Are serviced apartments worth buying and investing? You must know

Purchase restriction policies in various cities are becoming more and more strict. Now more and more investors are turning to serviced apartments. In fact, for those who have some savings but don’t have so much money to invest in residential properties, For customers, serviced apartments seem to be a great choice. But are serviced apartments really worth investing in? What kind of serviced apartments are more suitable for investment?

Are serviced apartments worth buying?

1. Advantages of apartments

(1) The unit price is low, usually about 30% off that of residential properties. For example, the average price of Forte Yannandu SOHO, which has just opened recently, is 20,000 yuan per square meter. The latest opening price of its residential properties in May this year was an average price of 32,000 yuan. RMB/square meter, the average residential price of the nearby Poly Tangyue, which opened on June 12, is 31,500 yuan/square meter.

(2) The total price is low, and the down payment and loan pressure are small. Regarding this, Mr. Kuan has different opinions and will clearly calculate the account for all home buyers later

( 3) The area ranges from 30 to 60 square meters, which makes up for the vacancy in the residential area. Well, this situation is true.

(4) Due to its commercial nature, serviced apartments can register companies.

2. Disadvantages of the apartment

(1) Short service life. Serviced apartments usually only have two land use rights of 40 years and 65 years. Moreover, for many apartment projects on the market that have been in stock for a long time, the land use life is often reduced by 10 to 8 years.

(2) High cost of use. Since the serviced apartment is commercial in nature, water and electricity are at commercial prices. Please see the table below for specific prices. Kuanjun’s friend lives in an apartment. In the summer, he charges 200 yuan on his electricity card, which is only enough for about a week. In addition, there is no gas connection, so you can only use an induction cooker to cook and an electric water heater to take a shower.

3. Investment: Residential PK Serviced Apartments

Currently when investing in residential properties, few people include rent in their investment return calculations. In recent years, the price of ordinary housing in Huadu has experienced several leaps and bounds, but house rents have remained at a stable level. At present, it is difficult to realize the investment method of rental loan.

But apartment hotels are different. Affected by the favorable effects of economic growth and conferences, more foreign companies in the financial, insurance and banking industries have settled in Duyun, and the rents of apartment hotels have increased and the vacancy rate has decreased. has become a trend.

4. Serviced apartment rental market

The demand for apartment rental market is mainly concentrated in senior employees sent by foreign companies, campus students, accompanying parents, private company bosses and other high-level people , are mainly for business residence, and have the need to live long-term and accommodate family members. In addition, the lease terms of these customers are generally more than half a year or longer, and the company is responsible for the high rent. At the same time, they have no need to buy a house and settle in a different place. As the city develops, there will be more and more customers renting this type of apartment, and the apartment market will become more and more impressive.

What kind of serviced apartments are worth buying?

1. Location is very important

Places with easy access in all directions, places with great views, and places with dense enterprises are suitable for rent. The cities will be more active. Another thing that many people don't notice is that schools. Places with high-quality school districts nearby have ideal rental flexibility and return rates.

2. The price is 50-40% off that of residences

There is always a price difference between residences and serviced apartments. What is the price difference that is reasonable and worth buying? Assuming that we put aside the brand factor first, we treat all serviced apartments equally. Serviced apartments are worth 50-40% off residential prices, so they are worth considering.

3. Be cautious if the return on investment is less than 5%

Rental return rate analysis method

Formula: (monthly rent - monthly property management fee) × 12/Total purchase price of the apartment

The higher the rate of return, the greater the income.

If you choose an apartment product in a non-popular area, you should first look at the selling price. If the selling price is relatively low and the owner's return on investment can reach more than 5%, then this type of serviced apartment is a relatively sound investment. Be cautious if the return rate is less than 5%.