Investing in service flats

It has been known for some time that we have an ageing population. That is to say, there are proportionally more older people than younger people. On the one hand, this creates a number of problems. For example, in the areas of care and pensions. On the other hand, however, it also offers a lot of opportunities. After all, by investing in service flats, you are most likely opting for a profitable investment.

Why invest in service flats?

All in all, there are a number of reasons to invest in service flats. By being aware of these different points, you will quickly understand why it is currently a real opportunity. Reasons to invest in service flats include:

• Meritorious return: When investing in service flats, you can expect a creditable return. Generally speaking, these are between 3 and 3.5%. This is on the high side. Especially when you compare it to other methods of growing your capital, such as saving. It is also important to note that investing in service flats is fairly risk-free. This has everything to do with the favourable expectation pattern for the coming decades. So, as an investor, do you like to choose for a nice return? Then service flats are certainly worth considering. 
• Demand will continue to rise in the future: The ageing of the population is a process that will not end in the short term. This therefore automatically means that it is a future-proof move. In practice, we see that people are retiring ever faster. Add to that the relative amount of older people and you soon see that demand will continue to rise in the future. Especially when the supply lags behind somewhat, this means that the prices of service flats will continue to rise steadily. Take advantage of this by investing in service flats.
• Handy for later: One option that many people decide to take is to invest in service flats with an eye to the future. And we are not just talking about financial reasons here. Since the lack of sufficient service flats is still a serious problem, you can also make preparations. You invest in a service apartment and rent it out until you need the space yourself one day. This way, you don't have to worry at all that there won't be a nice location left at a later date. After all, you invested in it early on.
• Different budget options: Finally, we have one last benefit to pass along; the fact that there are different budget options when investing in service flats. If one thing is clear, it is that not everyone has the same budget at his or her disposal. It is therefore convenient when your choice options are fairly diverse. This is the case with service flats. There are plenty of smaller, simple homes. But at the same time, there are also more luxurious forms of service flats. The budget for these flats is slightly higher.

What to look out for when investing in service flats?

An investment in service flats is not one that you should rush into. It is important, however, that you keep a number of points in mind. It is these points that will ensure that you are satisfied with your investment in the long term:

• Selecting the right location: It all starts with choosing the right location. This is because the location is of decisive importance when it comes to the long-term value of the service flats. There are certain districts in or near large cities that are often very popular. In many cases, it is expected that these will only become more popular over the years. Consider, for example, factors such as amenities in the neighbourhood and the amount of greenery. Such serviced flats are often worth more than buildings in older neighbourhoods, with minimal facilities and greenery nearby. 
• Reliability of provider: It is also important to look for a reliable provider. There are many service flats that represent a good investment. But there are also some rotten apples among them. Therefore, try to do enough research so that you do not run into any unnecessary problems. This starts with finding reliable service apartment providers. You can find them, for example, by using The Investor's Guide. Here you can read exactly how to invest in service flats properly.
• Condition of the service apartment: Of course, the condition of the service apartment is also very important. Therefore, take into account things like the year of construction, maintenance carried out and recent problems that have occurred in the service apartment. A useful tip is to also check the surrounding service flats that are no longer for sale. You will then get a better idea of the potential problems to be expected. Does this investigation reveal almost no difficulties? Then there is a good chance that you can make an investment with peace of mind.
• Determine budget in advance: Always try to have a clear idea in advance of what your budget will be. This will prevent you from being disappointed during your search. If there is one thing that is annoying about investing in real estate, it is that you have to let an attractive option pass you by. Especially when you are further along in the process, because you thought you had enough budget at your disposal.

Invest in service flats with Immotokens

As this article has shown, service flats have a lot to offer. However, there is also a lot of research involved in making the right decision. Moreover, you need a lot of capital. A service apartment can easily cost between €200,000 and €250,000. Do you want to make it as easy as possible and minimise your risk at the same time? Then choose to invest in service flats with Immotokens. Fast, clear and already possible from an investment of €50. Curious about what it entails exactly? Then read more!