Money for nothing!
Probably the first thing that springs to mind when you hear this is Dire Straits and dire straits is exactly where you could find yourself if you don’t investigate offers of “money for nothing” carefully! Sadly, we don’t get money for nothing but one of the best ways of earning money without lifting a finger is by having a passive income. This can come from stocks and shares or commonly in recent times, investment properties.
Investment properties have excellent earning potential in the form of rent as well as being able to gain substantial capital growth. Historically, property has performed admirably and is viewed as a relatively safe investment largely because it is tangible – you can physically see and touch it. You do need to do you due diligence and purchase wisely in order to make returns. Location and price are obviously huge considerations so don’t buy the first thing you see.
The problems that investors do tend get from investment properties are usually from tenants, either because they can’t find a tenant or because the tenants that they may have won’t stay long-term or cause other problems. This will undoubtedly affect you returns in monetary values but also effectively removes the passive element of your income as you may be required to do a lot work and have some sleepless nights.
Property management companies are a possible solution although there are no guarantees that they will find suitable tenants – they will just take care of any issues rather than you dealing with them personally. If you are looking for some guarantees, then the best option is certainly investing in a ‘rental guarantee concepts’. As the names suggests you do get a guarantee with these types of investment in the form of a guaranteed rental income for set number of years, not to mention the fact that in most cases they will manage your property on your behalf.
Such has been the popularity of these types of scheme some of well-known 5-star hotels now have these offers in some of their hotels. This is fantastic news for cautious investors as you benefit from having all the excellent facilities that you find in an upmarket hotel, the marketing and attraction that these firms have and of course they will be in prime locations as well as the fact that they have fantastic financial backing. It is hard to see how these rental guarantee concepts with the large hotels can fail.
There are three notable rental guarantee concepts offered by 5-star hotels that are currently available at the moment in Thailand and they are in the major tourist centres of Phuket and Pattaya. The scheme in Pattaya is available in a completed project, the Amari Hotel and offers investors a steady return of 5% p.a. which is guaranteed for five years with predicted returns of 8% p.a. in following years.
The offers that are available in Phuket and are available in the Best Western and Ramada hotels. The projects are both still under construction so the returns offered are slightly higher as is often the case with pre-opening projects. The deals are both the same, 7% p.a. returns guaranteed for five years with superb projected earnings of 10% p.a. in the years after the initial guarantee.
This certainly isn’t money for nothing but the rental guarantee concepts are definitely an excellent investment and one that most people should consider adding to their portfolio.