6 tips for effective resort real estate investment

(Baonghean.vn) - In recent years, the trend of investing in resort real estate has been increasingly popular, especially in localities with advantages in tourism development. Below are some important notes that customers need to know to minimize risks when investing.

1. Refer to the tourism and resort potential related to the project

Many investors have the habit of only looking at the project but do not clearly understand the advantages and disadvantages of the economic situation and future tourism development in the locality where the project is being offered.

To invest effectively, it is necessary to understand all information related to the resort real estate project, including policies that are about to be issued by ministries and state management agencies... limiting risks will increase profits.

2. Choose a reputable investor

In the resort real estate segment, it is important to choose a reputable investor with many years of experience, because this is a field that requires a lot of capital and long-term investment. Moreover, whether the resort is beautiful, modern, and of good quality or not depends largely on the financial capacity, creativity, and operating experience of the investor.

Operating a resort system is not simple, a professional and experienced management unit will have good marketing campaigns for the product, have long-term sustainable development orientations, ensuring maximum profit for customers.

3. Project location

According to statistics, 90% of resort projects are located on the coast, customers will need to carefully research which areas have potential for tourism and are developing strongly in tourism. This is very important because it will directly affect the customer's profits.

A good location often has factors such as being close to the airport, convenient transportation, having a cruise ship, being close to the highway, and being less than 3 hours away from major cities by car...

4. Difference creates competitiveness

Each different resort real estate project will always be designed to bring about differences compared to neighboring projects. Those who intend to invest should choose projects with full utility services and especially differences such as ecology, product quality, and project environment.

The difference will be the strength to invest in and will bring in profits that are sometimes unimaginable.

5. Prepare a table estimating the payback period

Quality resort real estate projects will attract tenants.

A normal real estate expects a maximum profit of 6% per year. Resort real estate has an ideal profit rate of 10-16% per year with a capital recovery period of 6-10 years, depending on the cycle. After a 5-year cycle, resort real estate can increase in value by 30% compared to the initial period.

In addition, investing in resort real estate requires profit sharing between investors and customers based on reasonable selling prices, then the profit margin will be high and the capital recovery period will be shortened.

6. Balance investment cash flow

Investors need to clearly identify that this is a long-distance race, attracting medium and long-term capital. If borrowing to invest, the interest rate must not exceed 11% per year with a 10-year loan cycle to be able to generate profits. The best way to avoid cash flow risks when investing in resort real estate is to consult with experts in tourism - hotels, finance before deciding to buy the product.

Ngoc Anh

(Synthetic)