Building financial independence with rental guarantee concepts
When we are growing up one of our many goals will probably be to achieve financial independence. This certainly doesn’t happen overnight and indeed you will need to have a sufficient income and pot of savings before you can begin in earnest. Financial independence means different things to different people but most associate it with the freedom to enjoy their lives without being burdened by financial pressures. To achieve this, you will need to invest in something that will gain you a passive income.
A passive income can come from various sources. Dividends from stocks and shares, interest from bank accounts or bonds (although this is minimal at the present time) or, as is becoming increasingly common, from investment properties. Investment properties are great investments as firstly they are tangible, secondly historically they have provided capital growth and thirdly they can provide an income.
Of course, like any investment you will need to do your research and the old adage of location, location, location is definitely true. The location of your investment is crucial to its success as the property needs to be attractive to tenants – meaning that it needs to be affordable whilst having everything that a tenant would want and need. If it isn’t attractive to tenants you either won’t be able to attract them in the first place and you will attract the ‘wrong sort’ of tenants who don’t look after your property or pay their bills!
Naturally, a problem tenant can turn your passive investment into something that is anything but passive. You could employ the services of a property management company although this will eat into your return whilst at the same time will offer few guarantees on finding a tenant or the quality of the tenant that they will find. Yes, they will interview potential guests and they should get references but this is by no means a guarantee – it just takes away SOME of the work and headaches.
If you are looking for guarantees then you should consider purchasing an investment property in a rental guarantee concept. Rental guarantee concepts are a terrific way of building your financial independence and, as the name suggests, they offer certain guarantees that will always make financial planning far easier. The wonderful thing about these schemes is that someone will manage your unit of your behalf and that means everything, making it an ideal passive investment.
These types of schemes have proved to be so successful and popular in recent times that even the major 5-star hotels have started to have them available in their properties. This really is perfect as these hotels are only ever in prime locations and will have access to excellent management teams along with having superb financial backing. These are very secure investments so are ideal for building financial independence.
Here in Thailand we have three rental guarantee concepts that currently stand out from the rest. The first of these investments is in the completed Amari hotel in Pattaya with the other two options available in the Best Western and Ramada hotels which are both under construction in Phuket.
The return paid for investing in the Amari is a guaranteed 5% p.a. for five years with projected returns of over 8% in future years. The options in Phuket both offer guarantee returns of 7% p.a. for five years with projected returns in excess of 10% in future years.
These types of investments are exactly what you should be looking for to gain financial independence. They are safe and secure whilst offering very healthy returns. Why don’t you take one step closer to gaining your financial independence?