Serviced apartments could be your perfect investment escape pod! Imagine fully furnished units that rent out to tourists, business travellers, or even long-term guests – all with the convenience of hotel-like amenities. Intrigued? Here’s why serviced apartments could be your real estate dream come true:
- Higher Rental Yields: Shorter-lets command higher yields (generally a third more). By investing in quality apartments in high-demand areas, investors can capitalize on these high yields by charging premium rates.
- Flexibility: Serviced apartments afford investors greater flexibility. People can choose to rent them on a longer-term basis for stability, or can rent them out on a daily, weekly, or monthly basis – or anything in between!
- Diversification: Serviced apartments represent a different asset class. For traditional buy-to-let investors, diversifying into this asset class can spread risk effectively.
- Location Independence: You can invest in various locations: tourism hot spots, central business districts (CBDs), city centers – demand for serviced apartments spans diverse locations. Just ensure to research guest demand and length of stays first.
- Higher Average Daily Rates/RevPAR: RevPAR (Revenue Per Available Room) is higher for serviced apartments due to their short-term booking nature, contributing to higher rental yields.
- Demand from Corporate Tenants: Corporate and business tenants often prefer serviced apartments over hotels, especially in locations with strong business presence, ensuring consistent demand.
- Potential for Appreciation: Investing in locations with strong growth potential may lead to asset appreciation over time, providing capital growth alongside rental income.
- Hedge against Economic Downturns: Serviced apartments in the hospitality sector may offer a hedge against stagnant or underperforming property markets. Business and leisure travellers will still require accommodation, ensuring continued demand.
- Easily Scalable: If you’re satisfied with your initial investment, serviced apartments are easy to scale. Acquiring additional units can increase your revenue stream, often at a lower price point than traditional buy-to-let properties, requiring less initial capital outlay.
One Serene Residences by One Homes offers Luxury Serviced Apartments that combine the allure of premium returns with the practicality of diverse investment strategies, making it an attractive option for savvy real estate investors.