Rental guarantee concepts in major resorts
Rental guarantee concepts are becoming increasingly common and not surprisingly they tend to be found in the major resorts. These concepts are fantastic for inexperienced investors who maybe want to dip their toe in the investment property sector but don’t know where to begin. Rental guarantee concepts break them in gently giving them a real indication about what returns they could expect without exposing themselves to too much risk or any headaches associated with tenants.
Most of these schemes are available in properties that specialise in short-term rentals to tourists and they require a wide and diverse market to be able to guarantee their success. It is probably for this reason that you don’t see them springing up in every resort and indeed they do seem in Thailand to be focused on Pattaya and Phuket. Whether this will alter in years to come remains to be seen as the schemes are still in their infancy.
So, who offers these schemes? To start with it was developers of condominiums and since moved on to include the major 5-star hotels. This is excellent for the reputation of these types of scheme that they have been adopted by world-renowned companies and also gives investors a great deal of confidence in a city. After all, these hoteliers do a great deal of research and due diligence on a location before they even reach anything like the planning stage so you can be sure that the destination is expected to be popular for years to come.
There are of course endless benefits to the investors. Firstly, their unit will be located within a 5-star hotel therefore benefitting from the management expertise and the facilities that are available. Secondly, the hotel chain will have the best people working on their marketing. The benefits of this are more important once the guaranteed return period has finished as it is likely to mean that investors receive an even higher ROI. Thirdly, and again very importantly, is the fact that the hotel will be in a prime location. This means that there is great potential for capital growth as well as the income that you will achieve.
Do you think the idea of investing in a rental guarantee concepts with one of the major hotel chains appeals to you? Well, luckily there are three very impressive options available at the present time in Thailand and all of them are available in hotels managed by some of the biggest names in the business.The first option is available in Pattaya and is in the completed Amari. The option available here is a guaranteed return of 5% p.a. for five years with a predicted return of 8% p.a. in the following years although this is not guaranteed and as mentioned above could easily be higher due to the hotels marketing and future success of Pattaya.
The first option is available in Pattaya and is in the completed Amari. The option available here is a guaranteed return of 5% p.a. for five years with a predicted return of 8% p.a. in the following years although this is not guaranteed and as mentioned above could easily be higher due to the hotels marketing and future success of Pattaya.
The remaining two offers are in hotels in Phuket and available from Ramada and Best Western, however both of these properties are still currently under construction. To compensate for this the deals on offer are slightly improved with both offering guaranteed returns of 7% p.a. available for five years with projected return in subsequent years of 10% p.a. All of these deals are attractive offers due to the relative low risk the investor is exposed to and the returns offered.
If this type of deal appeals to you then you need to act quickly as they will not be around forever as demand is predicted to be high.