What’s The Catch?!
When we see a great deal most of us ask this question and who can blame us? The New Nordic Group who operate in Thailand and other parts of Asia are offering a superb deal whereby they offer a 10% p.a. rental guarantee for periods of between five and twenty years. Obviously in today’s economic climate this is an excellent offer and, on the face of it at least, something that appears to be very low risk, so what is the catch?
The answer is quite surprisingly that there isn’t one. The fact is the New Nordic Group already own large amounts of the land where their projects are built and they have already completed literally dozens of such projects in the last decade. In fact, they have successfully been operating the same deal for the last decade so it shows not only how popular it is but how successful it has been.
The company has a fantastic management team as well as a superb business model that is tried and tested and has proved to be hugely profitable both for the group themselves and of course the investors. So, how do they make it work. Well, the answer is quite straightforward. As we have mentioned they already own most of the land. They are developers and they want to sell the units that they build so they offer an attractive incentive. They then sell their units and then make more profit on renting them out to tourist whilst at the same time paying 10% to investors.
So why don’t they just keep them all to themselves? The business model is built around selling the units, this maintains cashflow for expansion, whilst the company has forged strong links with tour operators both in Thailand and abroad who book the rooms months, even years in advance. This means that there are no concerns regarding occupancy rates, so all obligations are easily honoured even in the traditional low season. There are incentives and rewards in place on many levels to ensure that the whole concept runs smoothly and to plan.
So, to put it simply, there isn’t a catch, just a well thought out business model that has taken the time to employ the correct management team to ensure that the whole scheme runs successfully. So, if you are looking for 10% p.a. returns, and quite frankly, who isn’t? Then the New Nordic project is the perfect scheme for you.
It will provide excellent returns for the medium to long term giving you peace of mind and satisfaction that you have purchased the right property for your needs.