Can I buy a serviced apartment to live in?

No, if you buy a serviced apartment it must be as an investment property. However, depending on the agreement with the operator you may be able to have intermittent use of the property. This is often the case with resort properties where the owner can use the apartment as occasional holiday accommodation.

Why is it so hard to get a loan for a serviced apartment?

When banks lend money they like to know they can mitigate their risks. They want to know the borrower can repay the loan and if they can't that the bank can take and sell the property. Serviced apartments are more of a risk to the lender because they are harder to sell on and because rental yields aren't guaranteed.

What are the disadvantages of a serviced apartment?

Serviced apartments face different challenges to regular apartments and other properties. If the apartment or complex is poorly managed the rental yield may not be what you would like it to be. The right serviced apartment however can offer a guaranteed yield. Serviced apartments are also very specifically only available to investors, and a certain type of investor at that. This means the capital growth can be lower than other properties. It also means they are harder to resell because the buyer pool is smaller. Banks are also less willing to lend for serviced apartments. Although this can be overcome by offering a higher deposit and demonstrating why you think it will generate a good income.