What are the benefits of a rental guarantee concept?

Mar 13, 2017 | Emerging Trends

In today’s modern world we are always looking for guarantees especially where our money is concerned. Investments that seemed secure a few years ago, are no longer perceived to be as such. Large financial institutions such as the banks, once thought of as the pillars of the financial markets and day to day life are treated with suspicion. People are now looking to tangible investments and a rental guarantee concept is exactly what many investors are looking for.

There are many benefits associated with a rental guarantee concept. Firstly, as the name would suggest, there is a guarantee. This guarantee is usually both for the annual return that the investor will receive and for the period over which they will receive it. These guarantees are seen as vital when making investment decisions and give a sense of stability and long-termism.

Secondly, when you buy any property you are buying something tangible – something that you can actual see and touch. This asset, in normal circumstances, can’t be taken away from you and gives a greater sense of confidence than for instance a share certificate. Properties potential have multiple purposes with the obvious being that they can be lived in or they can be used as an investment.

What are the benefits of a rental guarantee concept
What are the benefits of a rental guarantee concept


Rental guarantee concepts, particularly those offered by established, reputable developers also have the security of being backed by large organisations. These organisations normally have experience, skilled management teams, their own interests in making the project succeed and perhaps most importantly, the infrastructure in place and cashflow to be able to support any such scheme. It is should be stressed that you should always do your due diligence and check that your particular scheme meets all of these criteria.

Rental guarantee concepts are not new but they are becoming increasingly common. Demand for rental property is high around the world for a variety of different reasons but we will focus on investment properties in the tourist sector. Many of these schemes operate overseas so once again it is wise to do your research and obviously choose countries that are politically and financially stable, not to mention have a thriving tourist industry.

One country that you will find several companies offering a rental guarantee concepts is Thailand with one scheme standing out head and shoulders above the rest. This scheme is offered by the New Nordic Group who are based in Pattaya but also have other properties around Thailand and indeed South East Asia. The company’s experience and longevity make them stick out from competitors as their scheme has been in successful operation for around a decade.

New Nordic’s rental guarantee concept offers investors a return of 10% p.a. offered for periods of anything from five to twenty years. Investors purchase condos from the developer, ranging in size from studios to penthouses, and ‘rent’ them back immediately to the developer. The developer then pays the investor the ‘rent’ in the usual manner into the bank account of their choice on a monthly basis.

The developer, in the case the New Nordic Group, then sub-let the units out to tour operators based in Thailand or internationally who guarantee bookings for weeks, months and even in some instances, years in advance. The revenue generated then pays the company’s monthly liabilities whilst naturally providing the Group with a healthy profit of their own. All parties, the developer, investor, tour operator and end user are satisfied with the outcome.

So, if you are looking for an investment that is secure and offers great annual returns then look no further than New Nordic’s rental guarantee concept. A tried and trusted business model that is certain to create more success stories long into the future.

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