When investing in any field, the first thing that attracts the most attention in the investment room is always the rate of return. No one chooses to invest in something that does not bring a rate of return, this is natural.
And among the fields with high to very high profit margins, real estate or resort real estate, more specifically, resort villa products is an investment channel that brings profit rates in the top. tallest. Let's find out with AHS about whether this model is really profitable or not.
Resort real estate
Resort real estate is a secondary model. They are planned and built in locations with the potential to promote tourism development. These projects are resold and implemented. Project owners can use it for different purposes:
- Rent it out to other investors to provide services and thereby share profits or operate it yourself.
- Use for your own vacation purposes. This real estate model can be used both for profitable business and for relaxation. This is considered as a second home with attractive profit.
Should you invest in resort real estate?
Resort real estate is a product line that is different from resort real estate in other lands, such as mountains or a certain special area. Tourism development leads to resort real estate also developing potential and attractive profits. The potential that resort real estate brings:
– First: The resort channel is suitable for certain customers/investors. And the target audience of these projects are mostly high-income people with idle capital, not in a hurry. Resort products are often quite expensive, and only promote attractive liquidity with an average time of 5 years.
– Second: Compared to depositing money in the bank, investing in resort real estate gives greater profits, and at the same time you can avoid inflation and devaluation of money according to the market economy. .
– Third: Vietnam is one of the leading countries attracting international tourists to visit, travel and resort in the region because of its charming natural landscape with cool and fresh characteristics. If you invest in the resort segment at this time, you will be one of the keen investors to catch the trend.
– Fourth: Resort real estate is a fairly new type of business but quickly catches up with market trends. Resort real estate products often generate stable and long-term profits.
Note when investing in beach villas
Investing in a beach villa is an investment option that is not as safe as other types. However, if going in the right direction, investors will earn a huge profit. Saying so is not based on the element of chance but needs careful calculation. Should you invest in a beach villa as we said above, you need to meet the financial factors and have knowledge of the resort real estate sector.
Besides, I would also like to give you some suggestions to help you make the right investment when choosing a beach villa. Firstly, you should choose the location of a truly classy beach villa, with a beautiful beach that attracts tourists. You should calculate the payback period, the ideal rate of return is 10-16%/year. If you borrow money for long-term investment, you need to calculate the interest rate not exceeding 11%/year, then it will start to be profitable in about 10 years.
What should you pay attention to when investing?
Legal issue
Permanent red books are only issued for cemetery land and residential land. Most resort real estate built on service and commercial land only has a useful life of 50 years. Legal issues cause many risks in operations and management.
Cocobay Da Nang found it difficult to pay Condotel profits with initial commitments. The reason given by the Investor is that the business has recently encountered many incomplete legal problems.
Product placement requirements
The location of resort real estate is also one of the factors affecting the liquidity of the product. For resort real estate located along the coast with a panoramic view of the sea or real estate in a cool, peaceful space, it will especially attract customers more than real estate located in discrete places around the air. have accents. Besides location, product design and utility services also strongly influence the value of tourist real estate.
The potential resort real estate market is an opportunity for many investors to look forward to. Hopefully through this article you will learn more information about resort real estate and the decisive factors when investing in this type of investment, thereby making reasonable strategic choices in business.
