Frequently Asked Questions
Should I check with a bank before I look for a hospitality property?
If you are looking for funding then yes, this would be a wise decision to make. There area a whole bunch of reasons why you should first talk to your bank to get pre-approved. One of the main reasons are that the banks will generally not give any funding for any hospitality property. The only way that the banks will consider any funding is if a potential client applies for a bond as a regular home loan and you would then have to qualify from another income that you have for the bond. You have to be sure that you are able to afford the monthly repayments. There are low occupancy months where guesthouses do not make sufficient income to cover all the costs.
Should I buy or rent?
Unfortunately we only do sales and do not do any rentals.
Do I really need a broker when purchasing a guesthouse?
It is strongly advised that you deal with a professional broker as your middle man. The right broker will make sure that all the correct documentation is put together for the sale and make sure that both the buyer and the seller are correctly covered regarding the sale. This is a big purchase and it is advisable that you make use of professionals. Please remember that all brokers are not the same though! When choosing a broker, make sure you are working with a broker that has the right knowledge and credentials and is working in both seller and buyers interest to make a potential sale work for all parties.
Who pays the brokers commission fee?
It is normally paid by the seller.