Rental guarantee concepts but why invest in Pattaya?
Investors are always evaluating their options and looking where they can get the best return for the lowest risk. Just a few years ago, investing was a relatively simple business and the hard and fast rules of high risk, high return were true. Nowadays, it seems that every investment imaginably carries a certain degree of risk, whilst the returns available are often barely above inflation – a situation that is hardly attractive to a serious investor.
The traditional investments of gold and property have always been the ‘go to’ investments in times of uncertainty. Long-term investments that may not yield the greatest returns but do have a relatively high degree of security. One of the main reasons for this is that that they are tangible assets and investors have more confidence in something that they can see and touch rather than just a share certificate.
There isn’t much that you can say about gold, gold is gold and is sought after in all four corners of the globe. Property on the other hand is far more complex and has many different aspects. One such aspects that is becoming increasingly common is the rental guarantee concept whereby developers construct properties that are specifically designed for the investment market. Basically, the developers are looking for investors who will buy their properties and in turn, rent them out to generate an income.
The idea of owning property to gain a passive income is by no means new but the idea of a rental guarantee concept is a relatively new occurrence. With many first-time buyers struggling to get onto the property ladder demand and need for rental property is increasing. Also, demand is increasing for holiday lets. Demand means potential for profit both in the eyes of developers and investors the skill comes in marrying the two together, hence the idea of the rental guarantee concept.
An example of one such rental guarantee concept is in Pattaya, Thailand by the New Nordic Group. Their scheme has been in operation for around a decade and has proved to be a roaring success with group having completed dozens of projects. They offer a 10% p.a. rental guarantee for periods of anything from five to twenty years. They have a sound business model and a well-established and experienced management team ensuring that everything runs smoothly.
As the scheme is so well established, New Nordic have excellent relationships with local and international tour operators who can guarantee bookings even in the low season. This means that all obligations can be easily met and indeed all investors have been paid out on time and in full on every single payment since its first inception. The company has excellent cashflow and is financially sound so this should eliminate any concerns that even the most sceptical investors have.
So, we have established that this is a great investment in terms of return as well as being relatively low risk, but why choose Pattaya as a place to invest in a rental guarantee concept? Firstly, the number of visitors to the resort town is increasing annually and attracts guest from all around the world. Secondly, Pattaya is forever evolving and offers something for everyone and moves to meet the times and therefore isn’t a resort that is popular for just one season. Finally, Pattaya has a great all year-round climate and although it does have a tradition a high and low season, the low season is still very popular with golfers due to reduced green fees. It really is becoming an all year-round resort!
Can you think of anywhere better that you could invest your money?