SALE: Price slashed on Qld brothel
INVESTORS looking to buy into Toowoomba's only brothel will find their task easier after its owner dropped the business's sale price.
Deviations was listed for sale in June 2019 for $695,000 but is now on offer for $595,000.
Business broker Ron Frank said the new price made the brothel ideal for an owner-operator.
"You could manage it yourself for 50 hours a week and clear $100,000 annually," he said.
"The business has excellent presentation both outside and inside with substantial parking"
The asking price includes the brothel business with all furnishings and equipment, and the freehold property with all of the internal and external improvements as walls, ceilings, insulation, ducted air conditioning, plumbing, electrical and fixtures included
"Really it is about $150,000 for the business and the rest is for the building."
Deviations opened in 2010 after the site received a $400,000 security upgrade and fitout.
While cheaper there are unique hurdles potential owners must overcome.
"You have to get approval from the Prostitution Licensing Association and it costs $38,600 for the first year of the licence alone," Mr Frank said.
"It takes three to five months to get approval with police interviews, fingerprinting and a full criminal history check.
"They run your name through every police jurisdiction in the country."
Potential owners must be Australian citizens and they must pay in cash, as banks will not loan money to brothel owners.
Mr Frank said this is a state-wide policy.
"The PLA will only issue a brothel licence to a person," he said.
"In Queensland corporations cannot hold a licence so if the owner defaults the bank cannot take it over and stick a manager in, as they would for other businesses.
"When the business or the owner goes bankrupt the brothel closes."