I recently made my first property investment, which most likely will become my primary residence upon completion (it’s an off the plan apartment). I heard on the grapevine, that there is a chance that a large number of the apartments may be bought by a hotel to be used as serviced apartments. My question is, has anyone had this happen to them before and is there scope for me to get out of my contract should this go ahead?
i can see no benefit of this to existing apartment owners (i believe there are in the vicinity of another 100 people in the same boat as me)
Onshow,
This happened to apartments at Dorcas Street South Melbourne just recently.
A friend of a friend had purchased and had only later found out that part (the lower floors) were designated for Quest Serviced Apartments. There was nothing in the contract which allowed him to void the contract.
Check with your solicitor and the contract. I would doubt very much that you would be given the ability to get out of the contract because of this.
I wouldn’t be happy though if I was you…..Good luck
James
check with the council that it is zoned for short stay accomodation (sounds like it would be if they plan a hotel, but worth following up). Read your strata by-laws carefully and see what is in there. Some specifically exclude this sort of thing.
why are you so aginast the hotel? My friends just paid a fortune for an apartment in a hotel/residential development and it is actually pretty cool…. nice reception, well maintained communal area, bars and facilities nearby.
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georgisj, thanks for the reply. I know the apartments you are referring to, i was actually looking at them quite seriously back when i signed up for this. I will have to go back to the solicitor.
AusProp, at this stage theye probably aren’t zoned, because as i said this is real gossip from the actual developers mouths. I feel that there is no benefit of having short term accomodation in this building. The apartments were marketed as luxury accomodation targeted at the owner occupier. i feel that having these hotels will “cheapen” the overall aspect of the building and be detrimental to resale values.
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