Investing in growing resorts

Posted by rpg on Apr 1, 2017 |

Whenever we invest, we want to invest in something that is on the up, not on the decline and this should pretty apparent. However, it is surprising how often people ‘miss the boat’ or start investing in something that has clearly ‘had its day’. Investment decisions should definitely be made by the head and not by the heart so leave any emotional attachment at the door. Concentrate on how secure the investment is and what return you will get as in the cold light of day this is all that is important.

Whilst major stock markets are performing admirably at the present time, it may be not the best time to invest as the chances are that you will be ‘buying high’. Instead look for alternative, more secure investments that offer reasonable returns. Now is not the time to gamble but to take stock and look after what you already have. It is perhaps for this reason that investment properties are becoming increasingly popular.

Investment properties in the right location are superb investments offering excellent potential for capital growth as well as rental returns. Traditionally property has appreciated in value over the long term so is ideal for investors looking long-term with the future in mind. Of course, there are very few guarantees available and often the biggest problems are associate with tenants rather than anything else. So, when investment properties do come with some guarantees, they are bound to spark interest.

Rental guarantee concepts are something that have become increasingly popular in the last few years. They are ideal for developers and those selling the units as they are easier to sell and great for investors because they get the guarantees that they crave. Obviously there must be a demand and a projected long-term demand for this to work. Therefore, there is little surprise that a number of these schemes have appeared in hugely popular, expanding resorts. Such as been their popularity, even some of the major 5-star hotel chains are getting in on the act.

Here in Thailand we have seen some very successful rental guarantee concepts in the last decade, perhaps most notably from the well-established New Nordic Group but now the hotels chains, Best Western, Ramada and Amari have these types of properties available in some of their hotels. The benefits of investing with these hotels are obvious for all to see. Huge financial backing, prime locations, mass marketing and pulling power as well as offering their superb facilities and quality management.

There are three particularly attractive rental guarantee concepts available at the present time in the thriving resorts of Pattaya and Phuket. The first, in Pattaya, is in the already completed Amari hotel and offers a guaranteed return of 5% p.a. for five years – far better than returns offered by the banks. On top of this, the projected returns in future years are expected to be above 8% p.a. and whilst not earth shattering – healthy returns from a very secure investment.

The offers available in Phuket are in two projects that are still under construction in the Best Western and Ramada hotels. The returns offered are slightly higher to reflect the fact that the properties aren’t completed with guarantees of 7% p.a. for five years and then predicted returns in excess of 10% p.a. in the following years. Again, very attractive returns coming from low risk investments.