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Thinking of investing in a serviced apartment? Here’s a quick synopsis of why it’s a good idea.
• A fixed and secure rental income
• 100% tenancy with major providers like Quest Properties
• Tax and superannuation benefits
• No management fees
• No letting fees
• No repair and maintenance obligations
Key Point 1: Preference for serviced apartments is on the rise
The taste of business travellers has changed over the past decade or so to favour more privacy and space, and travellers are expressing a preference for serviced apartments over traditional hotels.
There are a few main reasons for this trend: firstly, serviced apartments provide corporate guests with a comfortable and flexible personal environment to work within.
Secondly, serviced apartment complexes provide more freedom and fewer costs than a hotel but with the hotel-style comforts that are traditionally enjoyed by guests – like swimming pools (example shown below is from Quest’s Breakfast Creek serviced apartment complex).
Key Point 2: Demand for serviced apartments is on the rise
Australia’s traditional reputation as a tourist destination and growing renown as a high economic performer means that more visitors to Australia are arriving each year.
This growth in demand is contributing to high-to-full occupancy rates in serviced apartments –complementing the increasing preference for apartment-style accommodation to make a serviced apartment an attractive investment option.
Key Advantage: SMSF benefits
There are a wide range of other benefits of investing in a serviced apartment, most of them covered in the summary, but SMSFs (Self-Managed Super Funds) are a particularly interesting plus-point.
This is because serviced apartment investments can be turned into self-managed super fund investments - giving investors more control over their super and future financial security.
Reputable serviced apartment providers such as Quest can also offer advice on how this can be achieved.
Investing in serviced apartments is an option worth considering in the near future if you are looking to diversify your investment portfolio with a safe and secure investment option.
For more information on investing in serviced apartments visit one of the major providers like Quest Properties.
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