Hi I would like to hear from investors that are holding a serviced holiday apartment I’m looking at investing into this field i have 2 rentals on the go and have recently purchased two blocks of land that will become active this year and next
I would most like to hear the Pro’s and Cons from those that are doing this or have done so
i have a apartment in mind and have received the financial statement for the last yr the figures look good
also i understand that Holiday apartments leased to a management provider that the apartment in its self is not classed as commercial residential and is not subject to GST and i also understand that Negative Gearing applies. I also if i proceed will be looking at holding the apartment for a number of years so Capital growth is a concernKeith
Absolutely terrible capital growth, if any. Many lenders won’t want to touch them as they’re poor security, or require larger deposits etc.
You have to ask yourself, does it get you closer to your goals, or just treading water for the sake of it? Personally I’d rather have a property with strong cash flow AND capital growth any day.
As always, make sure you have worked out your investment strategy – this will help you decide whether a particular investment is working towards your goals, or against them. I wrote about how to form a goal and strategy a little here recently:
http://www.precisionfunding.com.au/planning-your-investment-strategy/
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Been there done that
Have now changed it to permanent.
3 words:
DON’T DO IT!!!!There is a difference between a emotional and investment decision, a smart investment decision does not involve holiday. I have a holiday house, its great, its a emotional decision, yes it has done well for CG however, its not there for yield….you need yield and CG and not sure a holiday apt will provide that outcome.
Cheers Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Well it seems that its not such a good idea to invest in holiday apartments
Thank you guys for your opinions and i note the lack of positive comments
i will be re thinking again Thank youkeith
Good to hear Keith – at least you have chosen to seek a second/online opinion to perform some sort of due diligence to determine if its right for you – thanks for checking in.
Cheers Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Hi Guys ,
We do holiday accom at surfers during the 6 months that its most busy then rent it out for the rest of the year private.This works really well but it is in cbd with high demand.
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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