Hi all,
Just a quick question about 'serviced apartments'.
I'm aware of the pitfalls about traditional serviced apartments in which the owner is forced to let the property through the hotel management, can't occupy and has to stump up huge fees.
What about apartments in Brisbane that give the owner the choice of owner, occupying, having a regular long term rental through any agent or using the onsite management short term letting pool?
Are these still considered to be serviced apartments? What if they are sold with a furniture pack?
Also if the apartments are 2 bed, 2 bath 100m plus does that help a lot?
Many thanks
Twinsen
Having and an exit clause in the lease (usually 30 to 90 days) will make this security more attractive to a lender and may even qualify for 80% lend instead of the usual 60 or 70% LVR. Bank Panel Valuer may want to deduct the value of the furniture pack in determining estimated value. Size counts. Internal sizing of 100 sm is v attractive. CG still not expected to be as high for conventional resi ppty as 'hotel' may be less attractive to Owner occupiers. If you are in Sydney, I am happy to meet up
Graeme Freer | Freer Property and Finance
http://www.freerpropertyandfinance.com
Email Me | Phone MeBuyers Agent
No, they are not your normal services apartments – they are closer to the holiday rental apartments that you find in SE-Qld. Typcially, banks and valuers take a much better view of these as they are pretty much "normal" apartments – however freerenterprise is correct, a valuer might very likely take the value of the furniture package off the purchase price. The size is good as it shows that it's more than just a glorified hotel room.
If you're worried about the finance side, go to your mortgage broker and ask them to confirm with credit if the property you are looking at stacks up.
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