Special Purpose Property Strategy

Serviced Apartments

Advantages:

• Hassle free
• Usually higher rental if managed properly
• No need to worry about tenants and maintenance yourself
• Desperate sellers

Disadvantages:

• Harder to get finance due to commercial contract
• Can be hard to resell
• Growth is tied into yield and how well it's operated, not necessarily reflecting local property prices
• Value of the property is affected by the financial viability of the operator

Display Home

Advantages:

• Usually built to a better quality spec
• Higher rent guaranteed for the contracted period
• No need to look for tenants or do any maintenance.

Disadvantages:

• Can be overpriced to compensate for guaranteed rent
• Can be hard to get finance from some lenders due to valuation and commercial arrangement
• Display operators financial viability can affect the guaranteed rent
• Property usually in outer areas with slower long term capital growth

Student Accommodation (Managed)

Advantages:

• Higher rental if managed properly
• No need to worry about tenants and maintenance yourself
• Affordable purchase price

Disadvantages:

• Can be hard to resell sometimes due to its special purpose
• Growth is tied into yield and how well it is operated, not necessarily reflecting local prices
• The value of the property is affected by the financial viability of the operator