Buying service apartments for investment is an interesting concept.
I do not know how profitable it will be, but it definitely merits a consideration if you are interested in real estate investment.
In some cases, you do not have to worry about the management of the service apartments.
When you buy service apartments, you are buying from the company that manages the hotel and the service apartments.
The company will continue to manage for you, pay you a guaranteed rental return of a certain percentage.
This will cover the monthly mortgage, and give you a positive cash flow.
The problem is that when you want to sell the service apartment, you have to sell through the company.
In other cases, the service apartments are sold as individual unit. You can choose to buy and rent out the serviced apartment on your own.
In this case, if you cannot get a tenant, you have to cover all the overheads, such as the housekeeping fees, and other charges.
The cost of buying a service apartment is higher since the apartment comes fully furnished, and daily housekeeping service is part of the deal.
Do you think it is wise to buy service apartment for investment?