Very often you will hear the words ‘Guaranteed
Rental Opportunity’ and often it seems to
good to be true. But it is a possibility, and not just
for the usual 2 years. Guarantees are now being given for
2, 5, or 10 years, ranging from 3% to 10%, or even being
run by a hotel/leisure group where 50% of room rates can
be received equalling a ROI of anything up to 15% and above
per annum.
Could I really buy a property with a minimum deposit and
nothing to pay until completion, then receive guaranteed
rentals for 2 years?
Yes you could, but would it be right?
Most options like this come around because
the bank are guaranteeing mortgages on a property which
will be worth a certain value upon completion. Hence the
developer can offer something like a 5% return per annum
from the profits being made, regardless of the property
being let or not. But no developer wants to lose money,
so will more often than not succeed in renting the property
out. There is nothing wrong with this,
and is an excellent way of steadying the purchase immediately,
allowing you time to market the property yourself or
through agents, and establish a flow of regular renters
for the property, before the end of the guaranteed period.
I’m sure
most people would opt for the 2 years of guaranteed rental
income than nothing at all.
So how can a developer offer a property that will produce
10 years of guaranteed rental income?
Easy. The developer will be in the fortunate position
of being invited to build a development that is being promoted
by a hotel/leisure group or being backed by the local tourism
industry.
Recently we have been promoting guaranteed
rental properties in
Cyprus with 10 years guaranteed rentals
at 5%
Spain with 2 – 5 – 10
years guaranteed rentals of 3% - 5%
Caribbean with 2 years
guaranteed rentals at 10% followed by 50% shared room rentals
Thailand with 2
years guaranteed rentals at 10% followed by 50% shared
room rentals
Margarita Island, Venezuela with 10 years guaranteed
rentals at 7%
If you would like to receive further
information about any of these opportunities or others
not mentioned here, please email
us here with
your chosen interests, and we’ll
be more than happy to forward all the details.
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