Rental guarantee programs are becoming increasingly popular in the major resort locations around Thailand. These ideas are very smart and safe for inexperienced property investors who maybe want to diversify into the property investment market but don’t know where to start.
These developments are managed by major hotel chains and offer 7-10% annual returns for 5-20 years. Rental potential is great, due to increased government spending luring growing numbers of tourists. No capital gains tax for private investors, and low ongoing taxes. Not surprising at all they tend to be found in the major tourist resort destinations like Pattaya and Phuket. Most of these rental programs are available in developments that specialize in short-term rentals to tourists, and they already have an extensive and diverse client database to be able to guarantee their success.
There are of course endless benefits to the investors. Firstly, their unit will be located within a 5-star hotel, therefore, benefitting from the management expertise and the facilities that are available. Secondly, the hotel chain will have the best people working in their marketing. The benefits of this are more important once the guaranteed return period has finished as it is likely to mean that investors receive an even higher ROI. Thirdly, and again very importantly, is the fact that the hotel will be in a prime location. This means that there is significant potential for capital growth as well as the amount of income you will receive.