Hello.
I would very much like to know more about investing in hotel apartments. I'd like to know:
– The pros and cons of investing in hotel apartments.
– I am GST registered, do I have to pay GST when purchasing a hotel apartment?
– Is it easy to resell?
– Why are they tend to be cheaper than the nearby apartment of equivalent size and age?
– Whether the banks would like lending to these properties and their lending criteria – minimum LVR without LMI. Are these deals still considered to be commercial lending or normal property investment lending?Could someone please direct me to the right source. Thanks.
JennyAttn Moderator / Admin / Anyone
Can someone tell me what this Dubai post is all about ?
My geography is not so good, is Dubai anywhere near Nigeria ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
jenny111 wrote:Hello.I would very much like to know more about investing in hotel apartments. I'd like to know:
– The pros and cons of investing in hotel apartments.
– I am GST registered, do I have to pay GST when purchasing a hotel apartment?
– Is it easy to resell?
– Why are they tend to be cheaper than the nearby apartment of equivalent size and age?
– Whether the banks would like lending to these properties and their lending criteria – minimum LVR without LMI. Are these deals still considered to be commercial lending or normal property investment lending?Could someone please direct me to the right source. Thanks.
JennyJenny – they are hard to sell and to finance (treated as commercial property by many lenders), yield has to be higher to attract buyers however you are generally required to sign a management agreement with the managers of the building eg Medina apartments etc.
The issues arise in undertstanding of any management agreement that you have in place – requirements for furniture replacement/presentation, supply of linen/glassware/cutlery etc, refurbishment requirements etc.
Not 100% certain with the GST however they can be treated as residential property hence input taxed so registration is of no benefit.
They are cheaper ie you have a higher yield however income may be sporadic eg tourist area affected by winter/school holidays/seasonal factors/events driven etc.
SNM
Hi Scott,
Sounds like something to stay clear off.
Thanks.
JennyDo you trust the hotel to direct visitors to your room? If the hotel isn't 100% occupied, you could find yourself buying an empty room.
Hi Ive just bought a motel type situation in Surfers. Very small only 35m2. Cba was fine with the size. A little hasstle cause the broker said it was a serviced apartment, so it was declined at first. But turned out ok.
I only bought this one cause I have 4 options;
1. Owner/ occupy
2. Permanent let to general public
3. I can let out to holiday makers myself
4. I can put in the holiday pool.Im living in it at the mo' while Im renovating.
All the best
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