Hotel apartment

Viewing 6 posts - 1 through 6 (of 6 total)

jenny111
Participant
@jenny111
Join Date: 2009
Post Count: 90
August 25, 2009 - 2:30 pm
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.
Jenny
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
August 29, 2009 - 1:17 pm
Attn 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
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
August 30, 2009 - 5:11 am
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.
Jenny
Jenny – 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
jenny111
Participant
@jenny111
Join Date: 2009
Post Count: 90
August 31, 2009 - 2:06 pm
Hi Scott,
Sounds like something to stay clear off.
Thanks.
Jenny
ajaydee73
Participant
@ajaydee73
Join Date: 2009
Post Count: 36
September 5, 2009 - 8:27 am
Do 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.
neety
Member
@neety
Join Date: 2007
Post Count: 15
September 6, 2009 - 12:32 pm
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