what risks with serviced apartments????????

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Marty McDonald
Participant
@marty-mcdonald
Join Date: 2010
Post Count: 64
November 22, 2010 - 3:34 am
You have to play by the banks rules…if you will have trouble financing it so will the people you eventually sell to.
The reason banks dont lik'em is they much more resemble a commercial property as most you cant "live" in thus the intrinisic value is greaty reduced. You would want commercial rates of return for the risk….and never buy a
"new one" or direct from the developer!! warning will robinson!!
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Quarks
Member
@quarks
Join Date: 2011
Post Count: 1
January 2, 2011 - 9:16 am
I am in fear as I read the comments above.
I just dived into a serviced apartments by Quest… I have already paid 10% and due for remaining amount in upcoming months.
I havent got a solicitor to review the contract as yet……
Should i just forgo the 10% (which amounts to more than $30K *cries*) and bail or should I even make a dash for it and hope for the worse. I should have, could have done more research. I was naive and essentially, so new on this and took the bait on the positives and negate on the possible setbacks…….
Help please!
T_rose
Member
@t_rose
Join Date: 2011
Post Count: 1
December 12, 2011 - 12:33 pm
Hi
I was about to do the same I saw this serviced apartment for sale, it says tenant pays strata water and council and management pays for repair and maintenance costs. Seemed really good and I really wanted to buy thus I did some research. You really should’ve gotten your solicitor to go over the terms of the contracts, but I don’t think you should let $30 grand go to waste that’s a lot of money!!!!!!
I’m very new to this and trying to decide what to invest on? Hard for newbies like us.
Goodluck though
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
December 12, 2011 - 8:22 pm
We looked at one in Sydney 3 years ago. It looked very attractive (money wise and visually). We ended up buying a VERY small 1 bed unit instead. It has risen 50% in the last 3 years. The serviced apartments have gone up less than 10%. Because there are a lot of them there are always a few for sale so whatever the lowest price someone is willing to sell for sets the price. Steer clear.
Andrew_A
Participant
@andrew_a
Join Date: 2003
Post Count: 392
December 12, 2011 - 9:05 pm
Quarks wrote:
I am in fear as I read the comments above.
I just dived into a serviced apartments by Quest… I have already paid 10% and due for remaining amount in upcoming months.
I havent got a solicitor to review the contract as yet……
Should i just forgo the 10% (which amounts to more than $30K *cries*) and bail or should I even make a dash for it and hope for the worse. I should have, could have done more research. I was naive and essentially, so new on this and took the bait on the positives and negate on the possible setbacks…….
Help please!
Any update on your situation Quarks? Hope things worked out well for you.
Steven_Bello
Member
@steven_bello
Join Date: 2012
Post Count: 3
October 10, 2012 - 10:40 pm
I'm looking at all the options and might invest. Quest apartments are a trusted brand so it's interesting to read other experiences before an investment.
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
October 11, 2012 - 1:12 am
Hi Steven,
Recommend you read post 9, 10, 19 & 20 (or thereabouts from memory) as these are the comments of people who own/owned a serviced apartment.
Others of us have used our knowledge and broader property experiences to stay away from serviced apartments.
stefan11
Member
@stefan11
Join Date: 2013
Post Count: 1
April 11, 2013 - 4:41 am
Hi all,
Accounting for all the risks disclosed above, would service apartments be a good idea for retirement properties? It seems as though not needing to sell the property, not needing a loan, little management and high returns make these apartments ideal? Any advice / flaws in that proposal would be greatly appreciated, thanks.