A few observations from clients who have bought into serviced apartments:
* The cash flow wasn't as good as yet expected.
* They're lucky to break even when they sell within a 10 year time frame.
In all these cases, when the client went to purchase the property they felt the cash flow was excellent and they were buying under market value.
My only client that's happy with their serviced apartment actually purchased an apartment which he leases (on his own terms) to a management company. Another client has held one long term, it's not doing anything special but not doing badly either. Every other deal like this has eventually been less than anticipated.
* The cash flow wasn't as good as yet expected.
* They're lucky to break even when they sell within a 10 year time frame.
In all these cases, when the client went to purchase the property they felt the cash flow was excellent and they were buying under market value.
My only client that's happy with their serviced apartment actually purchased an apartment which he leases (on his own terms) to a management company. Another client has held one long term, it's not doing anything special but not doing badly either. Every other deal like this has eventually been less than anticipated.