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Is investing in serviced apartments a good idea?

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Your Investment Property | 14 Jun 2012, 12:00 AM Agree 0
Serviced apartments can be a convenient and cost-effective accommodation option for leisure and business travellers looking for extended-stay accommodation that resembles apartment-style living.
  • | 02 Feb 2015, 11:49 PM Agree 0
    Investing in serviced apartments can be a good idea because it has several advantages like:
    1. A fixed and secure rental income
    2. 100% tenancy with major providers like Quest Properties
    3. Tax and superannuation benefits
    4. No management fees
    5. No letting fees
    6. No repair and maintenance obligations
    So I think yes you can go for it.
  • Dale Sutcliffe | 13 Mar 2015, 12:51 PM Agree 0
    not a great article on the risks - make it more balanced
  • Peter the Property Guru | 24 Apr 2015, 06:13 PM Agree 0
    They won't make it balanced, they are biased, because the more attractive they can make the market, the more business for them.
  • Ian Z | 30 Jul 2015, 02:20 PM Agree 0
    Once an apartment is in a serviced apartment pool, the owner can't stay in it, and the rights are restricted, so Banks either won't lend on it or only to a reduced lending ration of around 65% maximum.
  • Silva Cruz | 20 Apr 2016, 11:04 AM Agree 0
    also got to be careful on the square footage of these so called "serviced apartments". most banks don't lend if its less than 5 squares unless Commbank but they too have made it harder now. as was thinking of doing it and then found out from banks the awful truth.
  • AnnaDanishek | 27 Apr 2016, 05:06 PM Agree 0
    To my mind it is not the best option to invest in
  • TheDeveloperGuy | 31 Jul 2016, 10:13 PM Agree 0
    Short answer is yes, but do your homework on the property first.
    How much is the body corp,
    what is the rental return and growth
    One of the best advantages of an apartment over houses or flats is that on most Apartment's there is no maintenance of the out side, this reduces your time in looking after the property.
    I personally owned over 50 houses and flats that was a full time job in maintaining them and very expensive. Now I have apartments and life is so much easier.
  • Raj Verma | 07 Sep 2016, 11:24 PM Agree 0
    Good Idea....
  • Isabel | 17 May 2017, 06:29 PM Agree 0
    This is such a great a post - I love the detail you've gone into. It's a very useful article for those who are looking at deciding which sector they would like to go into, as it can be a really difficult decision trying to decide between residential, or commercial or hospitality etc! When I first started investing in property (all those years ago), like many I initially went into the residential industry, mainly because that's what I knew. I understood homes, how they worked, what drove was a great starting block and one I would most definitely recommend to others. However now I've established myself further within the field, I'd really like to look into getting into the serviced apartments sector, not only because financially there's a lot of potential here, but also simply because I love a challenge, and I love to push myself to the next level. With sites such as Air B’n’B really taking off, serviced apartments are the next big thing in my opinion which is why I would like to strike while the iron is hot. That's why I was wondering if I'd be able to ask people for their advice. As I am very new to this side of property investment, I was looking for a good and highly reputable company I could go through. I came across a company called Emerging Properties while doing my research, and they look as if they have achieved great results for their investors. So I was really wondering what other people thought of them? Has anyone else used them before? I am very new to this specific sector of investment so any help or advice anyone could offer me would be greatly appreciated. Many thanks.

  • Izzy17 | 03 Jul 2017, 11:13 PM Agree 0

    Yes absolutely!! They’re a fabulous investment! Myself and my husband adore serviced apartments! We first started using them a few years ago and we've honestly never looked back! The problem is, hotels are so incredibly expensive! The prices are just astronomical - it's impossible to stay somewhere really nice without first having to remortgage your house! However when I do go on holiday I do like to have the 'vacation' feel to it e.g pools, 'hotel' esque staff etc. I don't want to go somewhere and spend half my holiday cooking and cleaning like I do at home! And that's why serviced apartments are so great! You get to balance the luxury with price! Plus you get heaps more space which is ideal for me and my husband! Honestly I do really think it's the future! My brother in law actually invests in them himself and he seems to do very well from it - so I know it's becoming a big industry! Is anyone else here a property investor? Have any of you had similar success? To be honest it's the kind of thing that I'd invest in if I had the money as me and my husband are looking at getting on the property ladder - but maybe for now we'll stick to student accommodation or something! Who knows! x
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