Property let to Staycity

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theo67

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Hope it's ok to post link above. I am looking at options for investment at the moment, though not in position to do so just yet.Wondering if there are is any experience out there as regards investing in a property let to such as Staycity.This sort of arrangement seems to remove a lot of hassle but are there pitfalls that only become apparent down the line?
 
Ok, I think.Wouldn't mind knowing a bit more about possible hidden charges,issues etc. On the face of it,seems attractive that guaranteed return for next 10 years, no hassle with tenants,Staycity maintain apartment etc. Is 500 euro mentioned as fees yearly.

I'm curious now so any info out there appreciated for my own,and maybe others, education.
 
If a hotel was selling a bedroom and renting it back from you, at a fixed price for the next 19 years, would you be interested?

I'm slightly exaggerating, but that's effectively what you'd be doing. There are 30 odd apartments in the building, all leased to stay city. It's not like you can choose to do something else with the apartment, so the value is driven by the lease cashflow. If you ever want to cash out, you need to find a buyer interested in this kind of investment.

There have been lots of sale & leaseback deals, a lot if them here & in France went badly for investors. On top of the usual property investment risks, you're also relying on the financial position if the leaseholder.

I wouldn't be making a direct comparison to owning and renting a single property somewhere.
 
Ah,bit clearer now. Thanks a lot, reckoned there had to be obvious downsides but just wanted to throw it out there.
 
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