How do I choose the best rental guarantee concept for me?
We are always looking for the best deals regardless of it is in the supermarket, at the bank or indeed anything else, so why wouldn’t you want the best rental guarantee concept for you? There will obviously be a number of factors that you need to take into account, but no doubt the return and how long you will receive it for will play a big part.
Once you have found a few options that you are interested in you will need to evaluate them in order to match your circumstances. Often some of the best deals may be overseas so you need to decide whether you are comfortable with this or not. Generally speaking, if you do your due diligence and the country is both economically and politically stable the location of the investment shouldn’t be an issue.
The next thing that you need to consider when evaluating rental guarantee concepts is the amount of capital that will need to be invested. For example, a property in Central London is likely to require a higher capital investment than an apartment in Spain. This may mean that option is affordable and the other is simply out of your price range.
After that you will want to weigh up the management team running the scheme. Is this a new developer who is lacking experience or have they been operating similar schemes for a substantial period of time? Also, are there any ‘hidden’ costs, do they take care of everything for on your behalf? Finally, is it the developer or a third party who manages the scheme afterwards? Ideally, you want an experienced management team, who is the developer, that takes care of everything on your behalf with the exception of may be a annually maintenance charge.
OK, you have decided that the best option for you is an overseas investment, run by an experienced developer and it is well within your budget so you feel comfortable. What return can you realistically expect and how long for? Really you are looking for a return of in excess of 7% p.a. for periods of over three years. You are potentially tying up a significant amount of money for long period so you want a good return. This return is far greater than that offered by the banks and comfortably beats inflation in the vast majority of countries.
Imagine if this offer could be beaten and you could earn 10% p.a. for anything between five and twenty years on a property that was affordable, run and managed by an experienced management team who have successfully run such a rental guarantee concept for over a decade? Surely this would be the ideal investment for you and ticks all of your boxes?
Well this scheme exists and is being operated by the New Nordic Group in Pattaya, Thailand. Their scheme does exactly what we suggested and pays that 10% p.a. on a monthly basis into a bank account of your choice either in Thailand or overseas. The proven track record is best illustrated by the number of existing investors who choose to purchase more units in their properties, such is their level of satisfaction.
So, if you are looking for a relatively safe investment paying excellent returns, the rental guarantee concept offered by the New Nordic Group is probably the best investment to suit your requirements.