Serviced Apartments. What do I watch out for?

Viewing 4 posts - 1 through 4 (of 4 total)

smi69
Member
@smi69
Join Date: 2006
Post Count: 2
November 14, 2006 - 2:55 am
Hi all,
There are many serviced apartments for sale all with positive cashflow. Some guarantee the income for 2 years. A few of them are in inner city locations (accommodation for the travelling executive) and others are in tourist areas (accommodation just for tourists). Has anyone had any experience with these? Do you have any advice on what to watch out for?
Thanks in advance,
S.
JohnSmith
Member
@johnsmith
Join Date: 2006
Post Count: 93
November 14, 2006 - 5:37 am
Financing is only 60-65% from memory. and they only allow a certain percentage of the rent.
Regards
John
Inspired Finance
(02) 9944 7776
[email protected]
http://www.inspiredfinance.com.au
jdchen5
Member
@jdchen5
Join Date: 2007
Post Count: 1
February 1, 2007 - 1:28 pm
Just learned recently, some banks will not approve home loans for service apartment. The reason they give me is that most of the service apartment is under contract. So they won’t get a good price if they need to sell it.
Is this true? Or is there any other traps I am not aware of.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 1, 2007 - 1:39 pm
It all depends on the terms of the management agreement.
We just obtain 75% for a forum client on a Sydney apartment which was 37 square metres.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.
Richard Taylor | Australia's leading private lender