Have you heard of hotel investments? There has been a growing trend of people investing in hotel units and receiving guaranteed rental returns. Hotel investments are popular in emerging countries suchs as phillipines, thailand, cambodia and malaysia. Some investors wary about these countries being politically unstable or are unfamilar with these countries. Others are excited about being an investor, diversifying their property portfolio, entering at low quantam and getting high rental yields of up to 10%.
Let take for example Grand 99 Hotel which offers a 10% Guranteed rental for 7.5years and giaranteed buy back. 10% minus property tax and as you'll only start getting rental income 2 years later, you will get est 8.5% net. Beats putting that 100k in the bank and getting 0.5-1% interest? In fact after factoring inflation, you're losing money every year.
Most Singaporeans are more comfortable investing in Singapore properties. But with 100k you probably can ermm... hmm... nothing? Even the cheapest 1br condo-700k. The avg rental market is abt 4%(i'm being positive). So you'll get $28k a year. Vs 7 hotel units at 8.5% x7=59.5% = $59.5k nett guaranteed.
Every investment there's a risk. But as the famous quote goes 'how many millionaires do you know have became millionaires but putting their money in their saving accounts?
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