The reinvention of serviced apartments have made these assets seem like a goldmine for investors. Even though apartment-style lodging has been around for more than two decades, it is gaining in popularity as of late because of the increasing demand from business travellers. It is no longer just meant for holidaymakers who love the feeling of waking up at home while away from home; the travelling business people are seeking for more privacy without missing the hotel-like environment.
If you’re looking for a potentially rewarding commercial property investment, serviced apartments deserve more than a consideration.
Industry’s Top Performer
IBISWorld declared that the serviced apartments scene has left the rest of the industry in the rear view for the 10 years. The steady rise to the top for a decade indicates that its strong performance is clearly not a fluke. As a matter of fact, experts estimate its annual growth at 3.3%, producing a total revenue of about $3B a year.
Thriving Tourism Industry
The influx of Chinese tourists gives Australia’s the tourism industry a CPR; recent data show a reduction in domestic travellers. Experts expect a rise in the number of Chinese arrivals in major cities, such as Sydney, Melbourne, Brisbane and Gold Coast, in the coming years. Real estate would be one of the biggest winners should the prediction come to reality.
Perfect for SMSF
Investing in serviced apartments, says sentinelpg.com.au, is a sound SMSF property investment strategy because it’s relatively predictable, and therefore safe, compared with other options. Unlike other types of investments, reinvented serviced apartments have proven to survive in volatile market conditions.
There’s a reason serviced apartments are the hottest amongst the hottest trends in commercial property. With the guidance of experts every step of the way, you could avoid all unnecessary risks involved in this type of investment successfully.