Many tourists are still quite confused with the term "what is resort real estate?" and they also want to know what types of resorts there are to choose for their trip.
As for individuals with finances, they want to learn the advantages of each type to have an investment direction. In order to create "golden eggs". So this article AHS will share with you the clearest understanding of this concept.
What is resort real estate?
Resort real estate is real estate such as: villas, hotel rooms, condotel apartments, minihotels, shops, townhouses, even huts, or other forms... built in tourist and resort areas and then resold to individuals, organizations and investors for lease to operate business.
There are 2 options for investors: self-employment or the investor leases back to operate the business and then shares the profits from that business (this type is common in Vietnam). Resort real estate is both for vacation and profitable business: this is considered your second home.
Types of resort real estate
Beach resort villas: These are resort apartments built on coastal city islands, beautiful, famous beaches and coastal resort villas.
Hotel apartment: Condotel is an abbreviation of Condo & Hotel, meaning Apartment hotel or hotel apartment.
Resort urban area: A tourist resort urban area has the structure of an urban area but is operated for the purpose of serving tourism and resorts.
Extended Old Quarter: This is a part of the old quarter designed in the style of the old quarter combined harmoniously with modern infrastructure. It can be said that these resort real estate project products will bring visitors completely new experiences.
Mountain view resort villas: In Vietnam today, there are many resort real estate projects built on beautiful terrain in eco-tourism and high mountain areas such as Sapa, Tam Dao, Ha Giang, Hoa Binh.
Condotel: Condotel needs a business owner to manage and operate the sub-leasing issues.
Where does resort real estate revenue come from?
Resort real estate's main source of revenue comes from leasing resort villas and hotel apartments in tourist areas, from which there is a cash flow to pay customers. It is known that in Vietnam, investors are often committed to a profit of 8-12%/year. This is an attractive profit commitment because the bank interest rate is only 6-7%/year, not to mention that customers also get 10-15 nights of resort stay.
In addition, there are project development units that share business profits 85/15 - 80/20 - 75/25 depending on the project selling price and the hotness of the resort location. However, to ensure the profit as committed, the management and operation unit must be professional and experienced to exploit the number of customers at the resort and along with that is the reputation and potential of the investor.
Potential risks
With huge benefits, however, resort real estate also has potential risks such as:
Low liquidity, this model is mainly for customers with idle money and determined to invest long term. The legality of this type of real estate is not clearly regulated, which is the biggest concern for customers when deciding to invest. Therefore, when deciding to buy resort real estate, you should choose reputable investors with many successful projects on the market.
The scarcity of beautiful locations for tourism exploitation is clearly a plus point that helps resort real estate still receive attention from investors with strong capital, because the scarcity of real estate locations is one of the key factors that help real estate value grow. Vietnam's untapped tourism potential is the "universal lever" that helps Vietnam's resort real estate still be a fertile land for foreign investors.
