Real Estate with Assured Returns
How it all began
The original idea of investing in real estate was to buy a property and manage it yourself or via an agent.
However, eventually investors realised it wasn’t the most efficient approach and it’s more profitable to invite professional property management companies or even hotel companies to manage their properties.
That’s how the whole rental guarantee property market started.
How it Works
In practice, an investor is buying a property (freehold or leasehold), signs a management contract with a management company for a fixed number of years and a fixed return (usually around 7-8% p.a.).
Sometimes these properties have buy-back offers – the property is bought back by a developer at the end of the investment term for 100-120% of the original price (the exact amount is fixed in the contract).
In some cases, the investor also gets an opportunity to use the property a couple of weeks per year.
Products like that are perfect for someone who actually wants to own the property, for instance to use it after the investment period.
Benefits and securities
Rental guarantee properties are normally available on the markets with constant flow of tenants – student accommodations, popular tourist destinations, etc.
Our company specialises in properties managed by hotel companies in South East Asia for the following reasons: