There’s a handful of 5-star luxury serviced apartment buildings in the great Lion City, also known as Singapore. There’s even plenty more of average serviced buildings located inland. But before writing a fat check for a serviced apartment, let’s look at what it is and why it makes sense to buy one of these accommodations.
In a nutshell, it’s a regular apartment unit but comes fully furnished. Renters need not bring their own furniture and appliances. Many rental contracts are available for short-term and long-term time frames, depending on the renter’s needs.
Moving to another country can be tiresome and expensive. Conventional apartment units will come as empty spaces without anything but light bulbs, microwave, and stovetop. If you’re really lucky, you could even get a free standalone closet. With a serviced apartment in Singapore, however, it comes with all soft furnishings as well as cooking utensils. There’s also service personnel, such as housekeepers and parking attendants. Buying a serviced apartment ultimately lets you shortcut the initial burdens of replenishing supplies, furniture sets, and basic service providers.
Relative to comparable hotel rooms, serviced apartment units are cheaper. Although, some discount offers are only applicable for stays lasting a week or month long. Nonetheless, it’s indeed possible to find competitive rates for overnight or weekend stays. Aside from the rent rate, being able to cook indoors and avoiding the expensive restaurant menus outside will add more savings to a renter’s pocket, which further pushes demand for this type of investment property.
As if a cheaper rate wasn’t enough reason to stay in a serviced Singapore property, it’s also very cozy and spacious. The living room and dining area are divided from the bedroom, so you’ll have enough space to work with. For more space, you can arrange to stay in an Executive or Premier style apartment. Because of the available space, such accommodation is ideal for family or group travels. And as Singapore’s tourism industry further strengthens, it becomes fairly easy to find new renters and keep the income stream moving.
Now, how does one go about purchasing serviced apartments in Singapore? Know the options you have when investing in a serviced property. A straightforward way is to buy directly from the building owner or management firm. This is ideal if you have no plans of turning it into an investment property, but rather as a permanent home for you and your family. As an investment, you can turn to self-managed super funds, which give you more investment options compared to other organizations. An SMSF investment can be a safe and predictable asset to hold, not to mention the unique tax advantages that come with it.
Buying well-established serviced apartments in Singapore yield fixed rental rates, 100 percent tenancy, minimal to no management and letting fees, and taxation benefits. Be sure to weigh its pros and cons relative to other real estate types before making any irreversible decisions.