What it costs to buy a laundromat in Australia
Laundromats are the classic semi-passive acquisition: no stock, no chef, and on a good site barely any staff. That reputation is also why they trade at real money. Australian asking prices run from around $250,000 to north of $1.2 million.
What laundromats sell for
| Recent listings | Asking price |
|---|---|
| Self-service laundrette, northern suburbs Perth | $250,000 |
| New Speed Queen laundromat, Ivanhoe VIC | $338,000 |
| Long-standing laundrette, St Kilda VIC | $420,000 |
| Modern automated coin laundry, shopping centre | $499,000 |
| Modern coin laundry, busy shopping centre | $580,000 |
| Profitable coin laundry, Springvale VIC | $1,280,000 |
The three numbers to ask for
Weekly takings, weekly rent, and machine age. One listing on the market shows takings around $4,000 a week against rent near $500 a week, and that ratio is the whole business. Rent is the fixed cost you cannot renegotiate mid-lease and the one that turns a good site into a marginal one.
Machine age is the hidden capital bill. A site running 14 washers and 17 dryers is a serious amount of equipment, and commercial laundry gear does not last forever. A cheap laundromat is often one where the seller has decided not to pay for the next round of replacements.
Why the shopping-centre sites cost more
Foot traffic and a catchment that cannot easily install its own machines. Centre sites carry higher rent and tighter lease terms, and they price accordingly. A suburban strip site is cheaper to buy and cheaper to hold, but it lives or dies on the density of renters and apartments around it.
Walk the catchment before you look at the P&L. Count the apartment blocks, and count the competing laundromats.
Financing a laundromat purchase
These deals split neatly. The machines are equipment finance against real, re-saleable security, and that is the cheaper money. The goodwill and the lease are business acquisition lending, which without property behind it generally prices closer to 9% to 13% p.a. against roughly 6% to 9% p.a. with it.
If the machines are near end of life, arrange the replacement facility as part of the purchase rather than six months later. If you are weighing building instead of buying, see our laundromat setup costs guide, and commercial laundry finance for the equipment side.
This is general information only and not financial, credit, or tax advice. Prices are indicative market listings, not Ventas figures, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.
Frequently asked questions
How much does a laundromat cost to buy in Australia?
Listings run from around $250,000 for a suburban self-service site to $1,280,000 for a profitable established coin laundry. Shopping-centre sites commonly sit between $499,000 and $580,000.
What should I check before buying a laundromat?
Weekly takings against weekly rent, and the age of the machines. Rent is the fixed cost you cannot renegotiate mid-lease, and ageing washers and dryers are a capital bill the seller may have chosen not to pay.
Are laundromats really passive?
More than most retail, but not passive. There is no stock and minimal staffing, though you still carry maintenance, breakdowns, cleaning and the lease. Treat it as low-labour rather than hands-off.
Can I finance a laundromat purchase?
Yes, usually in two parts. The machines fund as equipment finance against their own resale value, which is the cheaper money. Goodwill and the lease fund as business acquisition, which is sharper again with property security behind it.
Get your number from the lender panel
The figures above are indicative. Tell us what you are buying and we will come back with the real rate and repayment, usually within a day. No upfront fees and no credit check to get a quote.
Licence, freehold and funding, read together
Tell us the LPO and whether freehold is included and we will structure it, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.