Investing in serviced apartments has become an increasingly attractive option for savvy investors and in particular overseas home buyers looking for high rental yields and capital growth with the option of personal usage too. Serviced apartments offer a unique blend of residential comfort and hotel-like amenities, making them highly desirable for both short-term and long-term tenants. This versatility ensures a consistent rental income stream, reducing the risk associated with vacant properties and allows annual usage to the owner allowing them to enjoy 5* hotel living in the comfort of their home.
Typically serviced apartments offer anywhere between 2-6 weeks free usage per annum to the apartment owner whilst during the remainder of the time the property is rented out on the owners behalf and returns paid to them quarterly or bi-annually.
Serviced apartments are a resilient asset class that tend to perform well in varying market conditions. Their ability to cater to business travellers, tourists, and individuals seeking temporary accommodation ensures a steady demand, even during economic downturns. Moreover, they often yield higher rental returns compared to traditional residential properties due to the premium charged for the convenience and services offered.
Additionally, investors benefit from a fully managed hassle-free investment experience. Property management and maintenance are typically handled by the service provider, sparing investors from the day-to-day responsibilities of property ownership whilst delivering them superior rental yield and convenient annual usage for when they may like to visit their property.
Lastly, serviced apartments are known to appreciate higher than traditional residential properties value over time, making them a preferred long-term investment choice. The combination of higher rental income, capital appreciation, and reduced management stress positions serviced apartments as a lucrative avenue for real estate investors seeking both stability and growth in their portfolios.