Comments on: What advice would you give someone thinking of investing in a serviced apartment? http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment Tue, 08 Feb 2011 18:15:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Evan http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment/comment-page-1#comment-4069 Evan Fri, 12 Feb 2010 21:51:59 +0000 http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment#comment-4069 I will recommend you to join a board of professional Finance Advisers. They can help you in many ways and also give you the know how of latest trends!<br><b>References : </b><br> I will recommend you to join a board of professional Finance Advisers. They can help you in many ways and also give you the know how of latest trends!
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]]> By: my fair maiden http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment/comment-page-1#comment-4068 my fair maiden Fri, 12 Feb 2010 21:31:59 +0000 http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment#comment-4068 It's hard to get finance for a studio, or serviced apartments. Look at a normal 1 bedder, easier to get finance and better Capital Gains. Do i get best answer?<br><b>References : </b><br> It’s hard to get finance for a studio, or serviced apartments. Look at a normal 1 bedder, easier to get finance and better Capital Gains.

Do i get best answer?
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]]> By: lee http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment/comment-page-1#comment-4067 lee Fri, 12 Feb 2010 20:54:59 +0000 http://www.nanothailand.org/investing/what-advice-would-you-give-someone-thinking-of-investing-in-a-serviced-apartment#comment-4067 Serviced apartments are normal apartments that are leased out for short term stays and have additional services such as security or cleaning. Typically the owner of the apartment will buy a furniture package along with the apartment so the tenants can use them more like hotel rooms than traditional apartments. Normally the entire block is leased through the one managing agent who operates the block like a small hotel and pools the rent to then be distributed to the owners. Most lenders restrict the amount you can borrow quite significantly to 60% or 70% of the value of the apartment. First home buyers cannot get a loan for serviced apartments because serviced apartments are always used as an investment property. Lenders do not include the furniture package as being part of the property value. Many lenders have the following conditions just to lend 80% of the property value ■Permanent occupancy of the property must be permitted (i.e. there are no restrictions on permanent occupancy of the property under the management agreement or under local zoning restrictions. ■An “Alternative Use” valuation (i.e. a valuation undertaken on the basis that the unit is not a serviced apartment) provides support and is to exclude the value of furniture, fittings and equipment. ■The property is not a hotel/motel type of apartment. ■The property can be removed from the letting pool (where applicable) within a maximum term of six months from the giving of such release notice. Where this involves the payment of a fee or penalty in any form, the fee/penalty is to be deducted from the valuation. ■Rental income utilised as the basis for servicing/repayment calculations reflects that considered achievable in the ‘Alternative Use’ valuation.<br><b>References : </b><br> Serviced apartments are normal apartments that are leased out for short term stays and have additional services such as security or cleaning. Typically the owner of the apartment will buy a furniture package along with the apartment so the tenants can use them more like hotel rooms than traditional apartments.

Normally the entire block is leased through the one managing agent who operates the block like a small hotel and pools the rent to then be distributed to the owners.

Most lenders restrict the amount you can borrow quite significantly to 60% or 70% of the value of the apartment. First home buyers cannot get a loan for serviced apartments because serviced apartments are always used as an investment property. Lenders do not include the furniture package as being part of the property value.
Many lenders have the following conditions just to lend 80% of the property value
■Permanent occupancy of the property must be permitted (i.e. there are no restrictions on permanent occupancy of the property under the management agreement or under local zoning restrictions.
■An “Alternative Use” valuation (i.e. a valuation undertaken on the basis that the unit is not a serviced apartment) provides support and is to exclude the value of furniture, fittings and equipment.
■The property is not a hotel/motel type of apartment.
■The property can be removed from the letting pool (where applicable) within a maximum term of six months from the giving of such release notice. Where this involves the payment of a fee or penalty in any form, the fee/penalty is to be deducted from the valuation.
■Rental income utilised as the basis for servicing/repayment calculations reflects that considered achievable in the ‘Alternative Use’ valuation.
References :

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