Hi Everyone,
Kelvin, IMHO, The holiday apartment complex may be the answer you are looking for.
Our one bed apartment(67sqm) is currently in the holiday pool during peak season but we have the option to offer it for short term accommodation during the off season which not only gives us more money but it allows the 'holiday pool 'to be economically viable when needed.
This is how it works.....Our managers are great business people therefore their main objective is to make money for us (investors) then they will make money. This should be obvious but unfortunately too many people buy the management rights particularly in QLD without the necessary experience in running holiday accommodation. This may spells disaster for the investor of a unit in such a situation.Therefore 'interviewing' the managers about how they run the place, what refurbishments have taken place in the past or future, how does the holiday pool operate, are there any long term renters( this is a big red flag if they allow this as it devalues the accommodation units for everyone) body corp funds what are they being used for etc.......
After talking to the managers you should have a feeling of what direction the holiday units are heading ....going no where or increasing in value.
As I mentioned before, our very well located holiday acc has short term accommodation available for up to 3 months at a time. The units are serviced twice a week, not negiotable either so that the unit is maitained to a very high standard. Our unit has just been completely refurbished, painted new stove, couches etc If we rent it for short term accommodation we are able to rent it out for $250 a week. It is competently looked after cleaned, guaranteed rent, never a vacancy b ecause it just goes back into the pool.
The complex is only a few 100 metres from the beach, has cable TV paid by the customers, a pool and excellent barbecue facilities. It belongs to an international motel chain and is part of Quantas and Virgin Blue. I mention all this because with competion so fierce it is so important that the complex is affiliated with major airlines. It is thanks to our managers that this has happened. Before we even contemplated buying it, we asked all these questions first because it is so easy to buy a dud.
When you look at the unit, have a good look at the grounds, pool area, garden and most importantly how the units are maintained. Ours are 4 star therefore it must be 4 star quality. Unlike a house, it cannot be improved upon therefore if the accommodation looks run down there goes your customers and future customers.
We have only had it for two months,something not suited for everyone but the potential for growth and income is enormous.
For interest, the apartment is at one of the northern beaches, Cairns.
I hope I have been of some help and information I have given comes from our two sets of managers as we have 2 holiday acc units in different locations.
Mrs Bird
