D
Dia Soleado Invest
New Member
In today’s evolving overseas investment property market we are seeing more and more developers offering some sort of guaranteed rental return. The question you may ask yourself, however, is just how are they guaranteeing a return based on the rental of your unit before it has even been built yet? Well, there are really a couple of ways that this can be achieved.
The first way is to simply add the return to the selling price. Obviously, this is not the preferred way as you are in essence just paying for your own return, which is given back to you over a fixed period. Unfortunatley, in a marketplace where the catch phrase ‘guaranteed rental return’ has become such a high priority for prospective investors, this is simply being used as a means to lure in purchasers.
The second way, which is the way in which all of our developments that we are marketing go about it, is to sign on National and International tour operators who in turn offer the developer a fixed price per annum for a reserved amount of units. In this way you are not exposed to flucuation in the rental market as returns are guaranteed irrespective of occupancy.
The best guarnatee in my opinion is still going to come from informed investing in strategic locations. We have all heard it time and again, but location, location, location has never been more true than it is nowadays and with a plethera of destinations to choose from it is crucial to get it right from the start.
One of the things we strive for at Dia Soleadio Invest is to not just bring you the latest from the emerging markets, but to really source out the best that those areas have to offer irrespective of guaranteed rental returns.
So, as enticing as a guaranteed return may sound, don’t forget about all of the other factors that make a great investment great!
The first way is to simply add the return to the selling price. Obviously, this is not the preferred way as you are in essence just paying for your own return, which is given back to you over a fixed period. Unfortunatley, in a marketplace where the catch phrase ‘guaranteed rental return’ has become such a high priority for prospective investors, this is simply being used as a means to lure in purchasers.
The second way, which is the way in which all of our developments that we are marketing go about it, is to sign on National and International tour operators who in turn offer the developer a fixed price per annum for a reserved amount of units. In this way you are not exposed to flucuation in the rental market as returns are guaranteed irrespective of occupancy.
The best guarnatee in my opinion is still going to come from informed investing in strategic locations. We have all heard it time and again, but location, location, location has never been more true than it is nowadays and with a plethera of destinations to choose from it is crucial to get it right from the start.
One of the things we strive for at Dia Soleadio Invest is to not just bring you the latest from the emerging markets, but to really source out the best that those areas have to offer irrespective of guaranteed rental returns.
So, as enticing as a guaranteed return may sound, don’t forget about all of the other factors that make a great investment great!
