What are the Pros & Cons? Investing in Unilodge apartments

hi hamoracci,
Welcome to the forum.
I had looked at the opportunity sometime last year

The pros are:
* Long leases (usually 3-10 year leases with annual CPI adjustments).
* Hassle free investment (the management company does it all for you).
* No vacancy factor and therefore continued income.

However, I dropped the idea due to the following reasons:
* Limited capital growth
* Low LVR (around 60%-70%)
* You cannot add value to the property because you cannot do anything with the investment. The only option is to lease it to the student accomodation management company
* The gross yield appears good but usually there are a number of expenses (sinking fund, body corporate, management fees, etc) that eats into the yield. The net yields are usually not as good.
* Because the leases are multi year, you only get CPI adjustments for rent. Sometimes when the market moves strongly (like right now) you can get better than CPI increases but with such arrangements your increase is capped at CPI.

Hope this helps.