This is the first time I am looking at these, as my interest got spiked after talking to a RE agent about the ‘high demand'[hmm] hhmmm and ‘high returns’ in Sydney for these short term, furnished apartments.
I am wondering if any of you own an apartment to rent out on a short term (1-6 months)furnished basis.
Although the rental return is quite high, are furnished apartments really worth it?
The point of my post is to discuss the pros vs cons of these apartments.Cons I can think of right now:
*High outgoings:
– I can imagine for this kind of apartment to be in constant demand you’d have to replace the furniture frequently.
– More maintenance/cleaning necessary when you rent out on a short-term basis.
– Management would be much more intensive (and cost more).*In quieter months, there would be a lot of competition which can lead to vacant periods.
*Capital growth perhaps is not as good as it is for standard apartments?
*Problems with obtaining a loan for this kind of investment?
Pros:
*High returns. (Are net returns really that good to make this a cf+ investment?)
* High depreciation.Hehe, I can’t really think of more pros atm.[rolleyesanim]
But investors who own these apartments must invest in these apartments for reasons, so I’m trying to find out these reasons.
Celivia
Hi Celevia,
I have a dual key unit in Spring Hill, Brisbane. A dual key unit is basically two studio appartments with their own front door. I bought them as apair.
These unit were targeted for corporate customers on short leases. They are fully furnished. I purchased them for $330K, and they rent for $280 each per week.
Over the two years of ownership I have had about 14 weeks vacancy for the pair.
I assess that my property manager does an excellent job in getting the right tennant as replacement / repair costs have been low in comparison to a unit i had at the Gold Coast catering for uni students.
Lots of depreciation too.
hrm
You must be logged in to reply to this topic. If you don't have an account, you can register here.
