Getting the best return on your money
It is goal of every investor in the world to get the best return on their money but there are so many options available so choosing the right one can be a tricky business. There are so many things that you need to take into consideration, not least your risk profile and where you are in your investing cycle. Investing is usual a very individual thing but as we said, the objectives rarely change. So, how do we get the best return on our money?
In reality, evaluating this in minute detail would take reams of pages and probably throw up more questions and arguments than solutions. We will just look at the main categories such as stocks and shares, commodities, other businesses, bank accounts, bonds and guilts as well as property. As our main focus is property we will concentrate on this area alone and with it, only overseas investment properties.
Overseas investment properties have had something of a bad press in recent years but it would be unfair to think that they are all the same. The problems come when there is an oversupply, when a country is not politically or financially stable, or is just a destination that has no longevity and is nothing more than a fad. Thankfully, Thailand comes out very favourably in all of these areas and is an excellent place to invest.
Once again, if we are to keep things simple, you have two realistic options. The first is buying a property and renting it out yourself, finding your own tenants and managing all the aspects yourself. This way you have more control, potential for higher gains but also greater risk and more work. The second option is to take up something that is relatively new, a rental guarantee concept. With this you buy a property and rent it straight back to the person who sold it you, usually the develop and often connected to 5-star hotels.
With a rental guarantee concept, you will receive a guaranteed return of x% p.a. for given number of years. Often, there will be forecasts and prediction about future year’s earnings although rarely guarantees are offered. The management is also taken care of your behalf so you effectively do nothing – making it a great passive income. When you put everything into context, the risk and the return and what your input, rental guarantee concepts probably do give you the best overall return on your money. So, what is available in Thailand?
Well, one completed rental guarantee concept is available at the present time is from the Amari in Pattaya. The developer is currently guaranteeing a return of 5% p.a. for five years with projected returns expected to be upwards of 8% p.a. in the following years. It has the backing of a well-known, 5-star hotel situated in a prime location with one the finest management teams available in the form of the Amari Group.
Similar schemes are available in projects that are currently under construction in Phuket within the Best Western and Ramada hotels. The returns offered are slightly higher in these schemes to compensate for the fact that they are yet to be completed with 7% p.a. guaranteed for five years and projected returns in excess of 10% p.a. in the years thereafter. Once again these have the backing of well-known, reputable hotel brands in prime locations.