If you’re into property investment, chances are you’re always on the look out for good opportunities and investments with the potential to add value to your portfolio.
Staying ahead of changes in the property market can be hard work, and knowing when and where to make a move and buy is probably the most significant decision you can make. While there’s no doubt it can be exhilarating to invest in property, it can also be fraught with times of stress, doubt and regret.
There is, however, another strategy for property investors that takes out some of the stress, worry and burden of research.
Serviced apartments offer investors an opportunity to buy property with built-in safeguards against some of the most common issues in real estate investment, such as rental return, vacancies, maintenance costs and damage. For investors, serviced apartments offer the chance to add to their property portfolio without adding the same demands and stresses of traditional property investment.
Firstly, the serviced apartment management company does all the location due diligence for you. Dedicated teams of researchers seek out and select specific locations for serviced apartments to be developed, using a strict criteria to ensure apartments are only built in locations with high demand for this style of accommodation.
For investors, this significantly relieves the amount of looking around, shortlisting and scouting that needs to be done. You can invest in a serviced apartment knowing that all the factors, such as capital growth, good local infrastructure and an improving local demographic have all been considered.
In addition, as an owner of a serviced apartment, you enter into a long-term lease with a management company. The long-term nature of the lease offers much more security than a standard residential lease (which is usually only negotiated for twelve months). It’s an investment you can just set and forget.
The management company pays you, the owner, an agreed rent, which is guaranteed for the life of the lease, regardless of whether the apartment is actually occupied or not. It’s the management company’s business to offer the apartment for short-term occupancy: they are sub-letting the apartment that they are already renting from you essentially as a hotel. Because your tenant is with the management company, your rent will keep on coming in, providing a reliable, regular source of income.
As an investor, this is a great stress-reducing strategy, as you are free from the concerns - and costs - of vacancies. Being able to rely on that cash flow from your serviced apartment investment alleviates the potential risk that residential investment poses when tenants don’t pay their rent.
As well, rental reviews and subsequent increases are also scheduled in, to ensure rents charged are remain at market value and you’re getting the best return from your investment.
All investment properties require capital to be spent over time as carpets wear out and painting needs to be done. With a serviced apartment, these are programmed and arranged by the management company on a prearranged schedule. Quotes are sent to the owners prior to any work being commenced and rents are still paid while the works are underway. It’s just another way serviced apartments are able to offer a truly hands free investment option.
If you’re a property investor looking to sink funds into a property, without the usual stress and rigmarole, have a look at serviced apartments: a property investment strategy with heaps of benefits but a whole lot less hassle.
Quest Properties
Quest Properties has over 25 years’ experience considering the location, infrastructure, job growth opportunities and return on investment to ensure their investors have long term security.
There are over 5,000 strata titled apartments owned by private investors who enjoy exceptional returns and enviable cash-flow benefits.
Quest Properties offers affordable property investing options with high rental returns (commonly around 6.5% plus) and attractive tax deductions. A Quest property is a secure, high yielding investment with extra benefits like no property or letting fees.
Whether you’re looking to invest, exploring the various benefits or would like an update on all our property news, simply register your interest and we’ll tell you everything you need to know. https://www.questproperties.com.au/register-interest-quest-properties
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
