Serviced Apartments, are they worth it ?

[VYBerlinaV8]

Was is positively geared due to deposit paid and further loan reduction due to P&I?

No, the rent went up. I have a rent review every three years, and it's usuallu a substantial jump. For the first three years it was slightly negatively geared, but ever since it makes extra cash.

 

[HomePage]

I bought them off another seller, who suddenly realised that property doesn't increase in value in a linear manner.

I found them on allhomes.com.au, the local Canberra property website.

They were cheap, too, because most people who buy want more flexibility, whereas I was happy to wait, positively geared, for them to be paid off and reverting to residential use.

Excellent. I've looked on allhomes before, but haven't found any obvious ones. I'll just have to look harder. Thanks.

 

[Brady]

No, the rent went up. I have a rent review every three years, and it's usuallu a substantial jump. For the first three years it was slightly negatively geared, but ever since it makes extra cash.

Excellent stuff. Have you had them revalued has there been any CG?

Great bonus with the lease expiring giving you some option... what are you plans once the lease has expired?

 

[travelbug]

I bought them off another seller, who suddenly realised that property doesn't increase in value in a linear manner.

I found them on allhomes.com.au, the local Canberra property website.

They were cheap, too, because most people who buy want more flexibility, whereas I was happy to wait, positively geared, for them to be paid off and reverting to residential use.

Ones I've looked at have had very little CG (compared to other units in the same area). What has been the CG over 10 years?

 

[VYBerlinaV8]

CG over the past 10 years has been stuff all, maybe 20%. But once they come off the long term lease they revert to being able to be used residential, and so will 'catch up', and will value comparable to equivalent property in the same area. In the meantime they cost me nothing and throw off spare cash.

 

[VYBerlinaV8]

Excellent stuff. Have you had them revalued has there been any CG?

Great bonus with the lease expiring giving you some option... what are you plans once the lease has expired?

Haven't bothered getting them revalued. The finance conditions mean they don't work well for equity extraction anyway.

The hotel company has already written to us twice asking for additional lease options. I haven't signed any, but once they're owned outright I might, because they pay the rent of an equivalent residential property but with no management fees, and they are fully maintained by the hotel.

I own a couple in the same building.