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Generally speaking, we all work hard for our money and therefore we want our savings to work hard for us in return.
Basically, this means investing our money wisely to get healthy return whilst at the same time not exposing us to too much risk. The problem is finding these types of investments as low risk usually means low returns. You therefore need to establish how much risk you are willing to expose yourself to and with this in mind, the return that you realistically expect.
Most investors these days wish to expose themselves to a low to medium amount of risk. Therefore, investors are probably looking at returns of between 5% p.a. and 10% p.a. with the medium risk investments being at the upper end. To get this sort of return over the medium to long term the types of investments will be things such as some mutual funds and property. Property is often the investment of choice but usually requires greater capital outlay.
Investment properties are for the most part good investments. If purchased in the right location for the right price they have a good chance of capital growth and earning the annual returns that we are talking about. The downside is that there can often be quite a lot of work involved in terms of managing the property so some investors choose to employ the services of a property management company although this does significantly eat away at the ROI.
It is maybe for this reason that we have seen an increase in the number of rental guarantee concepts that bring together property management and a healthy return. As the name suggests, these concepts come with guarantees usually in the form of what annual return you can expect to receive and for how long you will receive it. This gives investors a greater level of certainty and increased security as well as greatly reducing the workload of the investor.
Obviously, it pays to do your research on those offering the rental guarantee concept to ensure that the scheme is mutually beneficial and that they a financially sound. As with almost all things in life, anything that sounds too good to be true probably is so always keep in mind the levels of return that mentioned above. As a guide, you should expect the returns to be guaranteed for five years.
Several of these schemes have been setup in Thailand with the 5-star hotels getting in on the act as well as well known, established developers such as the New Nordic Group. Focusing on the offers available from the hotels you would have to say these are impressive and should be particularly appealing to cautious investors. After all, the deals are available in hotels managed by giant organisations so have superb financially backing, are fantastically run and always in prime locations.
The three notable offers available at present are in Pattaya and Phuket. The scheme in Pattaya is available in the completed Amari Hotel and offers investors a healthy return of 5% p.a. guaranteed for five years with predicted returns of 8% p.a. in following years. As the project is completed nervous investors should get all the reassurances that they need.
The rental guarantee concepts in Phuket and are offered in the Best Western and Ramada hotels. These projects are both still under construction and the returns offered are marginally higher to reflect this. In both deals the return is 7% p.a. guaranteed for five years with projected future earnings of above 10% p.a. All three deals have the benefit of being in hotels managed by these world-renowned brands.
Make your money worker harder for you by investing in one of these rental guarantee concepts whilst exposing yourself to very little risk.
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