I’m considering purchasing a serviced apartment, guaranteeing 6% return for 10 years – positively geared. The bank will only lend 70% of the purchase price because it’s considered a commercial property. Can anyone advise/suggest on serviced apartments?
Yes do you really want to know about my sorry saga with other fellow investors of an 8 million loss in serviced hotel units at magnetic Island, be very careful and get a commercial solicitor to advise and read previous postings.
Hi
We own a serviced apartment in Parramatta, witha just over a guarenteed 5% return.
It is going fine, although it is neg geared. My feedback is that properties being purchased now are getting a higher return than we are and we only bought 6 months ago. 10 years sounds safe but it really is a lllooonnnggg time bfore you have real control over it.
Cheers
Leigh K[
]Read, learn, grow but most of all do it.
6% return is very poor compared to average properties returning about 4%. Factor in the higher management costs, lower capital gains, and the difficulty obtaining finance and on-selling. I don’t think it is worth the risk!
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I’m considering purchasing a serviced apartment, guaranteeing 6% return for 10 years – positively geared. The bank will only lend 70% of the purchase price because it’s considered a commercial property. Can anyone advise/suggest on serviced apartments?Gday mate. So im interested to see if you decided to move on your services apartment investment. I too have some interest in this area. Perhaps you could advise me of how things are travelling for you.
All the best
Dave.
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