From: John B
I have read the posts before on serviced apartments but I'd like some more info.
We inspected a very nice 2br S.A. in Melbourne CBD for $255,000 with a rental guarantee (from the Stockland group - whoever they are) of around 7% for at least 5 years or option for another 5 years. That means it is cash flow positive from day one. The price is relatively cheap for inner Melbourne. We already 3 other IP's - one "normal" unit and two houses.
The figures look really good on my spreadsheet (similar to PIA software) and capital growth in Melbourne has been good and seems to be continuing. The only outgoings are rates. All property management fees are covered including all insurances.
What are the risks here compared to normal IPs? What's the worst case scenario here?
The way I see it if that Stockland goes under then the unit reverts back to a normal unit needing property management, but you would still have a growing asset which would remain basically cash flow positive.
I kind of like the idea of having my 4th IP cash flow positive which makes it easier to service my other IP's
What do you gurus think of serviced apartments in general? Assuming their in a good area.
I have read the posts before on serviced apartments but I'd like some more info.
We inspected a very nice 2br S.A. in Melbourne CBD for $255,000 with a rental guarantee (from the Stockland group - whoever they are) of around 7% for at least 5 years or option for another 5 years. That means it is cash flow positive from day one. The price is relatively cheap for inner Melbourne. We already 3 other IP's - one "normal" unit and two houses.
The figures look really good on my spreadsheet (similar to PIA software) and capital growth in Melbourne has been good and seems to be continuing. The only outgoings are rates. All property management fees are covered including all insurances.
What are the risks here compared to normal IPs? What's the worst case scenario here?
The way I see it if that Stockland goes under then the unit reverts back to a normal unit needing property management, but you would still have a growing asset which would remain basically cash flow positive.
I kind of like the idea of having my 4th IP cash flow positive which makes it easier to service my other IP's
What do you gurus think of serviced apartments in general? Assuming their in a good area.
Last edited by a moderator: