We have been queried by a village about last weeks item on American operator Harvest Developments establishing Australian villages in the Gold Coast and Sydney with rentals of a flat $810 per week for a full service (meals, cleaning etc but no entry or exit fees). How does this compare to serviced apartments?
Lets say a person stays in a serviced apartment for 5 years. One Queensland example for a Single on leasehold is $100,000 buy-in (with no refund after one year) and $250 per week for all services except phone and power. Therefore the cost over 5 years is $165,000 all up. The Harvest Development cost is $210,600 but the resident did not need the $100,000 to gain entry or alternatively had use of the $100,000 for 5 years to invest or enjoy. The difference is $10,000 a year in cost.
In Sydney serviced apartments are not widely available. Aveum offers a range with an average model being about $225,000 with a 3.5% DMF and $300 per week fee. Over 5 years the total cost is $117,375, between $40 and $90,000 less than the Queensland counterpart and Harvests. The level of facilities of course will have to be taken into account.
American style rental villages follow up on last week and serviced apartments
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