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  1. #1

    Default Serviced Apartments


    I'm now to all this property investment stuff so bear with me here. I have been having a look at a couple of apartments that are leased to serviced apartment operators and from the headline number provided they seem to be a pretty good investment (longish term lease (2+ years), decent rental).

    Unfortunately (or should it be fortunately) I can hear my mother telling me that if something seems too good to be true, it most probably is. Being new to this stuff, I assume that I am missing some important considerations.

    I assume that given I don't have a significant deposit I can really only afford an Apartment.

    What questions should I be asking the agent and what considerations should I be thinking about?

    Thanks in advance.

  2. #2
    Join Date
    May 2008


    Can you name these serviced apartments and what are the figures (cost, rent pw, expenses (body corp, rates, fees) etc)?
    We may have already looked at them and might be able to tell you a thing or two.

  3. #3
    Join Date
    Sep 2008


    in the old days someone would take a punt, put up some money and build a hotel

    there was always a risk that money would be lost if occupancy rates were lower than expected

    however nowadays the smart hotel developer farms this risk out to REI wannabes who would like to dabble but don't have the time or skills

    so that's it

    if all goes to plan you'll get a little more than a bank deposit and possible capital gains to boot

    if it all turns to custard you are the 1 left with the mortgage as they walk away and build another hotel next door

    basically your call

    how lucky do you feel?

    are you willing to bet your house on it?

    waldorf seem to be building a lot of hotels in auckland


    seem to have been a truck load of sales at tetra

    from $114k - $190k

    sales at bankside too
    have you defeated them?
    your demons

  4. #4



    I am new here too. Can someone share their experiences investing in serviced apartments. I heard mixed experiences so far.

    In summary, I have heard of people never to invest in serviced apartments. However, I have also heard of long term real estate investors who focus on serviced apartments and have done well over the years.


  5. #5
    Join Date
    Dec 2007


    I took a look at Heritage Farmers Hotel a while back and the agent was telling me how great the guaranteed income of $680 per month was.

    Trouble was market rent was $300-odd a week!

  6. #6
    Join Date
    Sep 2007


    Has it got a couple of years of guaranteed rent? If so, get independent (!) advice about what the rent and occupancy rate will be after the guarantee period. Some developers inflate the sales price to pay the guaranteed rent and the market rent is way less, so you end up with an investment that's paying way less than you expected and worth way less than you paid.

    You might be better with just an ordinary old unserviced apartment.

  7. #7


    This thread may answer some of your questions.


  8. #8


    Are you actually looking at true serviced apartments, with short, medium and long term leases. Sometimes to large corporates?

    Or are you looking at buying a hotel room?

    The link is from today re the Westin Hotel


  9. #9



    Tks for all your inputs.

    I was just comparing between serviced apartments and residential apartments because although I do see many were against investing in serviced apartments. They were case studies of investors getting good returns by investing in serviced apartments managed by established operators.

    What about those residential apartment with guaranteed returns? Does that means they are serviced apartments?


  10. #10
    Join Date
    Feb 2013


    Apart from the guaranteed income, is there good capital gains on these types of properties?



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