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Guaranteed Rentals
What is a guaranteed rental? This is a rental plan that gives you a fixed income for an agreed length of time. This payment usually covers mortgage & running costs of purchased property.
No guaranteed rental plan is free, they are always built into the cost of the property. Developers are able to offer these schemes because they know they can achieve higher rental rates, pay clients a flat fee for renting their properties and then excess would be kept by them.
You do have to be careful when entering guaranteed rental plans, as sometimes what you see is not what you get. Because the prices of the property is higher due to the rental plan being built in to the costs. The capital growth of the property would be slower compared to non rental plan properties. Only when the guaranteed rental plan has finished, do you then show the true gain from these properties. Don’t always believe when developers say they are increasing prices of a unit in amounts higher than the areas capital growth. A property is only worth what someone will pay for it, not what a developer leds you to believe, by increasing prices.
However taking into account todays market some developers are offering very good rental terms for properties. You have to look at where to invest to capitalize on the best return, emerging markets are the best countries to invest in with rental plans.
See our list of guaranteed rental properties that we believe offer the best return for our clients.
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