The relationship between ownership and control is not always straightforward, especially when it comes to property investment.

An area that carries the potential for risk is serviced apartments, where options can often be lacking once a commitment is made.

It is with this in mind that the developers of Geelong’s Ritz project designed an apartment hotel with greater flexibility for property investors.

Whereas most serviced apartments are classified for planning purposes as a “residential hotel”, the properties in Ritz are categorised as “dwellings”, meaning most banks will be willing to lend on residential gearing and interest rates for this superior asset class.

They also differ in terms of net rental yields, which at maturity,  are anticipated to be between 6-8 per cent, after all cost.

IDS Director Phillip Petch said the apartments presented an opportunity for investors to have the relative safety of a residential property investment and still achieve commercial property yields.

Victorian Western District farmer and Ritz apartment owner Don Robertson. Picture: Supplied

“You might buy a high yielding small industrial factory in North Geelong and have a smash repairs tenant inside, but when the next recession comes around, there is always the possibility of default," he said.

“At the Ritz, there is likely to be consistent demand, due to Geelong’s undersupply of short-term accommodation.  The apartments designation as a “dwelling” provides an extra level of comfort”

Owners at the Ritz have the option of entering into an Apartment Management Agreement with Collective Hotel Management, which allows them to oversee the short term letting, cleaning, marketing and maintenance of the property.

There are no lock-in periods with the agreement, which the owner can opt-out of with 30 days notice.

Related Reading: High yields central to appeal of Geelong’s Ritz development

There is also no pooling of income, meaning owners receive whatever income the apartment produces.

Victorian Western District Farmer Don Robertson has been among those to purchase an apartment at the site.

Having previously invested in Port Fairy and Geelong’s Vue apartment hotel, he said the Ritz stood out in the current landscape.

“I’m currently running a Hamilton farming operation, but looking to the future – and so having sound investments are important to me in terms of my situation and succession planning,” he said.

“What really appeals about the Ritz is that it’s situated in one of the few investment regions we looked at that has a shortage of this property-type.” 

For more information, including the developer's final release of properties, visit the Ritz website.

To enquire about availabilities at the Ritz, email or phone Jim Chapman via the details provided below.

This is a sponsored article.