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  • Writer's pictureRobin Lawson

8 Reasons Why Distressed Properties Make the Best Serviced Accommodation Investments

Updated: 2 days ago

Distressed Properties Offer Distinct Advantages

Investing in serviced accommodation has proven to be a lucrative strategy, especially when focusing on distressed properties. Clarice Carr & Co specialises in identifying these opportunities and managing the refurbishment process, transforming run down apartments into profitable serviced accommodations. Here’s why distressed properties are the best choice for your next investment in Newcastle and the North East.

1. Lower Initial Investment

Distressed properties often come with a lower purchase price, making them an attractive option for investors looking to maximise their budget.

  • Affordable Purchase: Lower buying costs mean more capital for renovations and enhancements.

  • Higher ROI: The lower initial investment can translate to higher returns once the property is refurbished.

  • Competitive Edge: Acquire properties at a fraction of the cost compared to new builds or fully renovated apartments.

2. Value-Enhancing Renovations

With run down apartments, you have the opportunity to add significant value through targeted renovations such as new kitchens, bathrooms, and windows.

  • Modern Upgrades: Installing modern amenities increases property appeal and rental income potential.

  • Customisation: Tailor the property to meet the specific demands of serviced accommodation guests.

  • Energy Efficiency: New windows and appliances can reduce energy costs, appealing to eco-conscious tenants.

3. High Demand in Key Locations

Many distressed properties are located in prime areas of Newcastle, where there is a high demand for serviced accommodation.

  • Central Locations: Proximity to business districts and tourist attractions increases booking rates.

  • Convenience: Easy access to transport links makes the property more attractive to potential guests.

  • Neighbourhood Revitalisation: Investing in these areas contributes to local regeneration efforts.

4. Tax Benefits

Investing in distressed properties can come with various tax incentives and benefits.

  • Capital Allowances: Claim tax relief on refurbishments and improvements.

  • Expense Deductions: Deduct costs related to the renovation from your taxable income.

  • Investment Reliefs: Potential eligibility for additional tax reliefs specific to property investors.

5. Faster Property Appreciation

Well-located distressed properties that have been refurbished can appreciate in value more rapidly than other types of real estate.

  • Market Demand: Increased demand for quality serviced accommodation can drive up property values.

  • Improved Aesthetics: Renovations enhance the property's appearance, boosting its market value.

  • Strategic Investments: Investing in up-and-coming areas can yield significant long-term gains.

6. Diverse Clientele

Serviced accommodation attracts a diverse range of clients, from business travellers to tourists, ensuring a steady stream of income.

  • Flexibility: Cater to different market segments and adjust pricing based on demand.

  • Repeat Business: High-quality accommodation encourages repeat bookings and long-term stays.

  • Wider Reach: Appeal to both short-term and extended stay guests, maximising occupancy rates.

7. Professional Management

Clarice Carr & Co will manage the entire refurbishment process, ensuring that the property is transformed efficiently and to a high standard.

  • Expert Oversight: Professional project management from start to finish.

  • Quality Assurance: Ensure all work meets the highest standards, enhancing property value.

  • Stress-Free Investment: Leave the complexities of refurbishment to experienced professionals.

8. Enhanced Guest Experience

By transforming distressed properties into modern, comfortable serviced accommodation, you provide an enhanced guest experience that drives occupancy and revenue.

  • Comfort and Convenience: Updated amenities and decor create a welcoming environment for guests.

  • Positive Reviews: High-quality stays lead to positive reviews, attracting more bookings.

  • Competitive Advantage: Stand out in the market with superior serviced accommodation that meet guest expectations.

Distressed Properties Make the Best Serviced Accommodation Investments

Investing in distressed properties for serviced accommodation in Newcastle offers numerous advantages, from lower initial costs and high potential returns to tax benefits and market demand. Clarice Carr & Co can help you find the right property and manage all refurbishment works, ensuring your investment is both profitable and hassle-free. By focusing on run down apartments in need of a refurb, you can tap into a lucrative market and enjoy the benefits of a well-managed, high-demand investment.

Want to know more? Check out our website or get in touch. 


Frequently Asked Questions

Why invest in distressed properties for serviced accommodation in Newcastle?

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