What is the investment prospect of serviced apartments?

Abstract: Serviced apartments are a kind of "property" between hotels and high-end residences. Due to its wide scope, the industry does not have a clear definition. The term "introducing hotel-style managed apartments" is just a relatively common and general explanation. Since serviced apartments have the advantages of small area, low total price, low investment risk, large transfer and rental returns, large market demand, and room for appreciation, they have become a popular area for investment in recent years. Let’s find out more with the editor below. Advantages and disadvantages of investing in serviced apartments Advantages of investing in serviced apartments

1. Small area, low total price, low investment risk, and high return on transfer and rental.

Generally, the rent of a hotel is 30 RMB higher than that of an apartment. However, the advantages of serviced apartments are that they are small, easy to manage, and easy to rent. However, high-end projects occupy relatively more funds and have a relatively long return cycle, so they are more suitable for medium- and long-term investors.

2. The product has both functions and can be used for both investment and personal use.

Because it absorbs the respective strengths of traditional hotels, traditional apartments and traditional office buildings, it is popular among business people.

3. Owning property rights can give owners peace of mind and peace of mind.

When necessary, you can also transfer your property rights and recover your investment, thus reducing the investment risk. Serviced apartments are also the first choice for investors and homebuyers, especially for those who want to buy properties in other places. This type of investment has room for excellent returns for most people.

4. The macro situation is improving, the market demand is large, and there is room for appreciation.

In the future, more multinational companies will set up companies in China, and properties such as serviced apartments have become the first choice for some small and medium-sized companies. At the same time, first-class business people in large and medium-sized cities in China have considerable spending power on this type of property. Due to their small size, low total price and light monthly payment burden, single apartments are particularly attractive to young people, especially foreign professionals.

Serviced Apartment Investment Risks 1. High Living Cost From a living perspective, the cost of living in a serviced apartment is also relatively high. For example, water and electricity bills are calculated based on commercial properties, which are about twice as high as ordinary residential water and electricity bills. Taking Beijing as an example, the electricity fee for ordinary residences is 0.48 yuan per kilowatt hour, the water fee is 3.7 yuan per ton, and the natural gas fee is 2.05 yuan per cubic meter. However, the fee for serviced apartments is 0.9 yuan for electricity and 5.1 yuan for water. Most of them Commercially approved serviced apartments do not have natural gas connections.

2. The rate of return is greatly reduced. Many developers of serviced apartments offer a profit margin of 15 to 18, which is much higher than the real level, and the actual annual profit rate is between 5 and 6. . High rates of return are indeed attractive to investment clients, but the key element of hidden costs is often overlooked, which mainly includes the following factors:

Deed taxes and public maintenance funds. When the developer sells the project, its price does not include deed tax and public house maintenance fund. Judging from the current charging standards of these two, the deed tax for ordinary residences is 1.5, and the deed tax for non-ordinary residences is 3; Price of 2. Therefore, judging from the above situation, even if the price of a serviced apartment makes you tempted, you must also take into account the two hidden costs of deed tax and public maintenance funds.

Discounts on rental prices. When developers of serviced apartments calculate project income, they often base their calculations on the market price of daily hotel rentals in the location. Taking a serviced apartment project near Beijing's East Second Ring Road, the sales price is 25,000 yuan/square meter. Investors can make a comparison with the daily rent of hotels in the same location before investing. Taking a four-level hotel in the same location as an example, the market price of a standard room in the hotel is about 800 yuan per day, and there will be a profit of 24,000 yuan a month. However, as we all know, in order to attract customers, hotels often adopt membership, discount and other activities , the discounted price is often around 400 yuan to 500 yuan per day, which is far lower than the high profit margin expected by the developer.

Property fees, heating fees and other expenses.

When investing in serviced apartments, in addition to the necessary fees that need to be paid at the time of purchase, many fees such as property fees and heating fees need to be taken into consideration, and these are often hidden costs that we ignore when investing. Maintenance costs such as property fees and heating fees for serviced apartments are usually relatively high and difficult to pass on directly to tenants. From this point of view, the high profit margin of 15 to 18 per year offered by developers obviously does not take into account many of the above factors.

Agency fee. After investing in a real estate project, investors must also consider the rental of the house. Many investors need to spend a lot of energy and material resources to find customers by themselves, so they often entrust the house to an agency, which requires a certain amount of agency fees to be paid to the agency, and this part of the fee becomes the investor's Hidden costs.

3. It is necessary to distinguish the property rights of serviced apartments. The serviced apartments currently on the market can be divided into three types according to their property rights and management methods: unified management of large property rights, unified management of small property rights and non-unified management of small property rights.

Serviced apartments operated by large property rights are not suitable for investment by small investors. Serviced apartments operated by large property owners have high capital requirements. The capital barrier makes it difficult for individual investors to invest in such serviced apartments. They are generally controlled by investment funds or professional companies. Investment in serviced apartments with small property rights and non-uniform management is risky, so investors need to be cautious. Because there is no unified management due to non-unified operation, there is great competition between various small apartments in the same building. In fact, this type of serviced apartments is basically the same as ordinary small-sized residences. They just use the name of serviced apartments to increase their value. In fact, they cannot reflect the advantages of serviced apartments.

Serviced Apartment Investment Prospects How much does it cost to invest in a serviced apartment? First of all, investors need to rent a store with an area of ??more than 300 square meters. The store should be located in an area with relatively developed transportation and a place with a large passenger flow. . For a store like this, in first- and second-tier cities, the annual rent would be 500,000 to 800,000 yuan.

Then, investors need to carry out exquisite decoration of the store. Since apartment hotels are generally high-end, investors should choose good decoration materials when decorating, and the decoration should be more grand. The renovation cost is 200,000 to 300,000 yuan.

Next, investors need to purchase various hardware and software equipment, such as air conditioners, computers, TVs, etc., which require an investment of about 200,000 yuan.

In addition, investors also need to recruit waiters, and the monthly salary of each waiter is about 4,000 yuan.

After that, investors still need to pay for water and electricity bills, advertising promotion, opening ceremony fees, etc., which cost 50,000 to 80,000 yuan.

After calculation, opening an apartment hotel requires an investment of about 1.5 million yuan.

The investment value of serviced apartments 1. Not much investment. The size and location of apartments on the market vary widely. The smallest apartment is about 35 square meters, and you can buy one for about 250,000 yuan. The investment threshold is very low.

2. The investment pays off quickly. Many serviced apartments are ready-made properties. You can renovate them after buying them, then rent them out and collect rent. Some hotel apartments come with leases. After you buy them, The rent can be collected in two months, which is quite fast.

3. Worry less. If you invest in a hotel apartment, you don’t need to decorate it yourself. There are hotel management companies that will decorate it directly for you. For some hotel apartments, you don’t have to pay. The hotel spends its own money. Your house has been decorated. If the hotel stops operating in the future, the decoration will still be yours. Just use this decoration and you can continue to sign lease contracts with other people, saving time and worry.

4. High rental income. If you invest in serviced apartments, usually a 50-square-meter apartment can be rented for 4,000 yuan. According to the current market conditions, commercial apartment prices are lower than residential prices in the same area. , a 50-square-meter apartment costs 16,000 yuan per square meter, with a total price of about 960,000 yuan.

How to calculate the return on investment in serviced apartments? Return on investment = (increase in investor’s equity after tax cash flow)/amount of equity investment. After-tax cash flow refers to the cash flow after income tax, and the increase in investor equity = Principal repayment income = Current principal and interest payment amount - interest.

To put it simply: rate of return = annual rent/total price

Will the apartment you invest in not be sold? The apartment you invest in will not be unsold, but the apartment you invest in will definitely not be sold. Easy to sell. Because there are a few differences between apartments and ordinary commercial residential buildings. First of all, the property rights of the houses are only 40 years old, while commercial houses have a 70-year term. In addition, the apartment is very uncomfortable to live in because its floor area ratio is relatively high and the area is relatively small. When it is sold, there will definitely not be too many people wanting it. If the price is cheaper and can be taken out, someone might still want it.

In fact, apartments are relatively easy to sell now, but it mainly depends on the location of your apartment. If the location of the apartment you invest in is very good, then you will definitely have no worries about selling it. If If the location of the apartment you invested in is not particularly good, it may not be easy to sell. So when we invest, we must check whether the area has development potential in the future. In fact, I think the most important thing when investing is to have a long-term vision, so that you are suitable for investment.

Choose a location for investment in serviced apartments. Serviced apartments are small in size, with main unit sizes below 90 square meters, and with high-grade decoration. Most of them are located in the core bustling areas of the city and around business districts, with convenient transportation. According to the star The exterior and interior design of the building is based on the facility standards of a first-class hotel, reflecting class and comfort.

The issue of regional planning and prospect areas is particularly important for investors. Because they need to consider renting out their properties faster in the future, investors try their best to invest in areas with mature business districts and relatively complete transportation facilities. In addition, the prospects of the area also need to be considered. Once the area develops well in the future, the possibility of the house increasing in value or being easily resold will also increase.

Some apartment products located in future business districts will be relatively cheap due to the immature supporting transportation and industries. Before buying, you must first study the regional planning, such as industrial support, subways, schools, businesses, offices, whether there are enough high-end leasing groups, etc. While seizing the opportunity, you must also start with caution.

Serviced apartments with supporting facilities are generally well-decorated and equipped with various electrical appliances, allowing consumers to move in with just their bags. However, different serviced apartments have different configurations of these facilities. The better the configuration, the easier it will be for investors to rent out in the future.

Return on investment Not all serviced apartments in the current market have a high return on investment. Before purchasing, investors should make appropriate calculations and choose a serviced apartment with a relatively higher return rate.

If you find it too troublesome, you can also invest indirectly and choose some real estate investment projects that are already on the market. For example, in terms of white-collar apartments, there is the Rui·Apartment Project Investment Plan, etc., and there are also serviced apartments among the investment targets. , the annualized income is between 9.5-10.5.

Developer brand There are so many apartment projects in the current market that it is easy to have difficulty choosing, but brand can be used as a selection criterion. Developers with insufficient brand strength may encounter problems such as incorrect goods, substandard quality, and planned supporting facilities that cannot be realized.

What are the things to pay attention to when investing in serviced apartments? 1. Choose a good "butler" The biggest selling point of serviced apartments is hotel-style property management services. What buyers value is the price ratio of serviced apartments. In general, hotels are cheap, but the service is up to the level of a hotel. This requires that the property company selected by investors not only has professional property service capabilities, but also has good market operation capabilities, which is the basic condition for ensuring investors' profits. If the property management company of serviced apartments does not have efficient, systematic and professional market development capabilities, when developers develop serviced apartments, they just want to sell out the properties and everything will be fine, instead of trying to help the owners find a good housekeeper, which will lead to another problem. A form of "unfinished" projects makes it impossible to guarantee the owner's return on investment; the return on investment is low, which in turn affects the market consumption pillar of serviced apartment development and the enthusiasm of investors, thus forming a vicious circle.

Judging from the current market, there are very few property companies with hotel management capabilities, and general hotel management companies lack property management experience. Therefore, investors should conduct an in-depth evaluation when choosing a cooperative property company.

2. Positioning of serviced apartments The positioning of serviced apartments is a substantive issue that investors should clarify before development and investment. It is directly related to the hardware facilities and service content of serviced apartments. Specifically, the positioning of a hotel-style apartment should depend on the consumer demand for buying or renting such properties, that is, the investor group and the consumer group, and the investor group depends on the consumer group. Therefore, fundamentally speaking, the hotel-style apartment The positioning of an apartment should depend on its consumer group.

After several years of development, serviced apartments have been divided into two categories. One type focuses on residential functions and mainly provides hotel-style services for home-based residents; the other type focuses on office work. Function, serviced apartments that provide office space and simple living conditions for various organizations or individuals. There are two types of serviced apartments used for home life: medium and large units and small units, each of which caters to different demand groups. Developers can win the market only by providing more differentiated products and services based on market demand and catering to the needs of more special consumer groups.

3. The geographical location of a hotel apartment has a great influence on the success or failure of developing a hotel apartment, so care should not be taken. Since different types of serviced apartments have different consumer groups, there are also specific requirements when developing serviced apartments. Generally speaking, there are the following differences:

A. Serviced apartments focusing on residential functions , mainly provides residences for businessmen and corporate senior staff. It should be located near high-end office buildings, with convenient transportation, good living environment and landscape, and complete living supporting facilities.

B. Serviced apartments that provide office and living space for domestic and overseas business organizations resident in Shenzhen and domestic and overseas business personnel who often come to Shenzhen should be located in a bustling urban area with dense hotels to attract hotel guests. Frequent visitors also require more office buildings, convenient transportation, and good commercial, catering and entertainment facilities to facilitate business and living.

C. Serviced apartments that provide office and living space for small businesses and individuals in Shenzhen. The location requirements are not as strict as the first two categories, but they must also have convenient transportation, be close to office buildings, and have relatively complete surroundings. Commercial, cultural and entertainment facilities.

4. Management issues of serviced apartments The operating methods of serviced apartments are nothing more than selling, leasing, and leasing and selling simultaneously.

By selling, you can recover your investment as soon as possible, obtain returns, and reduce market risks. This is a business method that developers tend to adopt, especially some developers in the growth stage. This method is very popular. . However, since the hotel apartments that operate in this way are handed over to the property management company for management after completion, the developer does not participate in the later management. This requires the developer to make clear agreements and commitments with the property management company on the service content before operation. , to avoid some uncertain factors and hidden dangers in later management.

The rental method has a long investment recovery period and involves greater market risks. The main risk lies in decoration. Without decoration, there will be no customers to rent, and with decoration, it may not meet the customer's wishes. New customers often require new decoration, resulting in frequent decoration changes, which brings a lot of trouble to the operation and management, and also increases the developer's investment. . At the same time, there is still a certain phenomenon of blindly following the trend in the real estate market. If a type of property has good market prospects, many developers will rush to buy it, causing the market supply of that type of property to surge, and the sales price and rent will also fall. These irrational investments This method greatly increases the investment risk of serviced apartments.

The rental and sale model is a business method that developers have to adopt as a last resort. The units that are sold are used or rented out by small owners, while the units that cannot be sold have to be rented out and operated by developers.

5. Services of serviced apartments The biggest selling point of serviced apartments should be its complete services. Generally, corresponding services should be provided according to the needs of its consumer groups. For example, hotel-style apartments that are mainly home-based can provide services such as taking care of the elderly and children, and picking up and dropping off students. Clothes laundry, purchasing daily necessities, home cleaning, etc. are also essential services.

For hotel-style business apartments, more consideration should be given to the needs of business personnel, and more business resources and information should be provided, including legal counsel, business consulting, financial consulting and secretarial services, business car rental, office supplies purchase, air tickets, and train services. Tickets etc.

Traps of investing in hotel apartments 1. Be careful with promised return on investment. In the process of purchasing hotel apartments, we often encounter developers promising a return of 8% per year for five years. However, the investment rate of some serviced apartments in the actual market is even less than 3, and the promise of 8 per year is usually a trap. You want to sell a house that is actually only worth 10,000 to 15,000 by promising a return. Yuan. Therefore, when buying, don’t listen to the salesman’s one-sided words, do your calculations, and then buy if you think it’s a good deal.

2. Property, water, electricity and service life. The property management fees of serviced apartments are usually relatively high. If it is a house for both commercial and residential use, the water and electricity fees may be charged at commercial standards, which is also a large sum. Not a small fee. Since the operation of serviced apartments is very complex, the principles of accuracy, organization and convenience must be followed when positioning. In addition, developers lack experience in developing such products, but insist on running their own operations, which will also leave hidden dangers for conflicts after handover.

3. Avoid the deposit trap. Many developers will offer discounts that offer as much as you pay. How much deposit is required. Some developers will still refund the deposit. Some people have various reasons for quitting. Therefore, if you pay a deposit, you must be optimistic about the deposit contract! Moreover, Chinese culture is broad and profound. Although the meanings of "ding" and "ding" are similar, there is a big difference. Therefore, the difference must be clearly distinguished to avoid falling into the deposit trap.