Friday, October 17, 2014

Student Accommodation and Serviced Apartments - Good Investments?

"In summary, it’s difficult to recommend pursuing an investment in either a serviced apartment or student accommodation. While they both provide good cash flow, investors are likely to encounter resistance in obtaining finance, plenty of fees, a weak aftermarket and a need for ongoing in investment."

See AFR article - the type of property to be wary of

At present in Brisbane, there is an oversupply of apartments built for investors to rent to students.  Rents are decreasing, vacancy rates are increasing, and there are less students looking for such accommodation.   And non-students are not interested in living in or buying such apartments.  Take care!

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