Promoted by Quest
Investing in serviced apartments is a strategy more Australians are considering.
Serviced apartments are a convenient and cost-effective accommodation option for leisure and business travellers looking for extended-stay accommodation.
Quest Properties is the largest and fastest-growing serviced apartment operator in Australasia. After 25 years in the industry, Quest Properties’ network boasts more than 5,000 strata-titled apartments owned by about 3,000 private investors, who enjoy exceptional returns when it comes to long-term security and enviable cash flow.
Ownership of a Quest Properties serviced apartment is the perfect way to acquire and hold a profitable addition to an investment portfolio that offers high returns without the day-to-day hassle associated with other forms of property investment.
Why should you invest in a Quest Properties serviced apartment?
- Returns you can rely on. At an average gross return of about 6.5 per cent-plus per annum, you enjoy commercial strength rental yields with the security of owning a strata tilted residential property. Compare that with today’s term deposits and it’s not hard to see why they are popular investment options.
- Stability of income. A Quest Properties’ franchisee becomes your secure, long-term tenant. Your rent is paid monthly for the entire 365 days a year, regardless of occupancy.
- Save on management fees. Aside from a small contribution (usually less than $1,000 annually) to the body corporate sinking fund, you will not pay administration fees or property management fees. The Quest franchisee will pay your rent directly to you, saving you 7 or 8 per cent in management fees.
- Dedicated managers looking after your asset. The Quest Properties’ franchisee is the owner/operator of the Quest Properties business and has a vested interest in making it a successful enterprise, because their capital has gone into the property too.
- A Quest apartment could be the perfect addition to your Self Managed Super Fund. Given the tax benefits associated with SMSFs, owning a Quest investment apartment could potentially result in a more generous net income for your fund. It’s less volatile than shares and a substantially higher yield than a term deposit.
Here is the purchase process broken down in six simple steps:
- Register with Quest Properties to receive updates on new product launches and apartment re-sales before they hit the open market.
- Choose the Quest serviced apartment that’s right for you and arrange finance (if required).
- When you decide on the property, you will generally be required to pay a $1,000 initial deposit and enter a standard 60-day Contract of Sale.
- Call or email Quest Properties with any questions you may have, as often as you like. Quest Properties has a dedicated in-house team of professionals who can assist in the entire transaction process, including a dedicated investor relations manager.
- On settlement, you receive the title for your property – via your conveyancer – and are now officially a Quest Properties landlord, with your tenant being the franchise owner/operator of your serviced apartment complex.
- Your partnership begins in earnest. Quest Properties’ focus is on maintaining and facilitating strong stakeholder relationships, because that’s what their business success hinges on.
You don't need to worry about unpaid rents, general maintenance or loss of rent due to vacancies as a property investor in a Quest serviced apartment. It is a hassle-free property investment with bricks and mortar security and a trusted Australian brand as your tenant.
Most Quest serviced apartment leases are 20-plus years and generally operate according to one of the following:
- Initial term 5 years, plus 4 x 5 year options (exercisable by the tenant)
- Initial term 10 years, plus 3 x 5 year options (exercisable by the tenant).
About the Blogger
Quest is the largest and fastest-growing serviced apartment operator in Australasia. At present, there are more than 150 Quest sites across Australia, New Zealand and Fiji with more than 5,000 strata titled apartments owned by about 3,000 private investors
Quest’s exponential growth is testament to it successfully meeting the accommodation needs of the domestic and international business traveller.
Quest listens to the needs of business travellers and provides them with a variety of apartment configurations – from studios to four-bedroom apartments, open floor plans with separate living, dining and sleeping areas, fully equipped kitchens and laundry facilities, and a consistent guest experience delivered by professional Quest franchisees.
Quest Properties’ business operation is one based on mutual prosperity, where Australian property investors experience the benefits alongside the business.