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QLD Another OTP peril

Discussion in 'Where to Buy' started by Sydlad, 6th Nov, 2015.

  1. Sydlad

    Sydlad Member

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    Just heard that this development (marketed as luxury apartments) will be managed by Oaks hotel group.

    Nothing like that mentioned on the website other than down the bottom a reference to minor international (company that owns Oaks )

    You would be pretty livid if you bought one of these as a ppor without realising it was turning into a strata titled hotel

    The Milton Residences: Brisbane Property Development
     
  2. Tekoz

    Tekoz Well-Known Member

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    So that does this means ?
    The owner cannot live in the property anymore in the last minute change by the QLD developer ?
     
  3. Sydlad

    Sydlad Member

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    No they can still live in it

    But other units could be owned by investors who include their unit in a letting pool controlled by the serviced apartment chain who bought the licence

    This means lots of hotel guests in the building

    Lifts get used a lot more by the hotel cleaners so it can take a lot longer to get into lifts and the lifts become further worn due to high usage = higher body corporate costs for investors and owner occupiers alike

    Serviced apartment buildings tend to be valued less than 100% privately occupied or privately rented buildings so some could lose capital value from day 1
     
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  4. Tekoz

    Tekoz Well-Known Member

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    @Sydlad Ah I see now. Thanks mate for the clarification. I guess that's why serviced/managed apartment is not a good investment property despite higher yielding.
     
  5. beachgurl

    beachgurl Well-Known Member

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    And goodbye to selling it for a good price and quick turnaround. That owner has just lost a large percentage of interested buyers due to lender restrictions of buying a property in a hotel complex.
     
  6. Sydlad

    Sydlad Member

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    The worst it is that from what I have been told its not been made clear that this building will become strata titled hotel

    Buyers going in with their eyes closed
     
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