Whether you are paying with cash or gearing via a ‘limited recourse borrowing arrangement’, Quest serviced apartments can assist you to meet the strict rules of investing in property through your SMSF.
Why? Its serviced apartments are utilised by corporate travellers for long-stay accommodation in business hubs and corporate growth areas of Australia. As a result, your SMSF members would be unlikely to live in or rent the investment property, would solely receive the retirement benefits from the investment and not alter the property significantly. (For further information on the rules regarding investing in property via your SMSF, click here.)
Quest serviced apartments are consistent with most SMSF investment strategies and fund member cash flow considerations and risk profiles. The strata titled apartments offer reliable high returns - in the vicinity of 6.5% plus, which is much better than the current average bank term deposit rate of 3% - and are far less volatile than shares. The serviced apartments feature ‘bricks and mortar’ property titles with no management or letting fees throughout the long-term commercial style lease of 20 plus years.
Quest Serviced Apartments is a well know Australian company that offers high quality accommodation to the corporate sector and leisure traveller in growth corridors across regional areas and capital cities of Australia.
Quest’s business has grown over 26 years to a network of over 150 serviced apartment complexes in Australia and New Zealand, with an average of eight businesses opening each year for the past 12 years and a number of new locations opening this year.
The Quest business model is based on a franchise system, where the franchisee owner/operator works on site, looking after your serviced apartment and ensuring that it’s in a good state of repair. They pay rent to you each month regardless of whether the property is vacant or not and also manage all the day to day cleaning and care of your asset. Quest also pays some of the owner’s usual outgoings like owner’s corporation administration fees. This results in an even higher net yield to the investor. Ultimately, this means you don’t have any of the usual hassles associated with a standard investment property and receive a higher commercial return on your investment.
The perfect location for an investment property
Quest Properties uses the following criteria when selecting a site for a new serviced apartment complex:
- A strong and vibrant local Australian economy.
- Significant investment by the public and private sector into local infrastructure, industry and commerce.
- Growing corporate activity for its clients.
- Positive population developments, that is, more people moving into the area.
- Proximity to restaurants, cafes, supermarkets, health-care facilities and retail outlets.
To find out more about investing in a Quest serviced apartment call Quest Properties on 1800 697 837 or simply click here.
Waiver: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Anyone should consider the appropriateness of the information in regards to their circumstances.
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
