With an aim to attract customers, many real estate businesses have given many attractive profit programs for condotel products, but in fact some owners owe investors, or fail to pay as committed making customers not know whether to laugh or cry.”
Condotel – New profitability investment
At the present and in the time ahead, Condotel supply will be very abundant. According to Savills, in Nha Trang and Cam Ranh, supply of hotel and mid-to high-end luxury resort is expected to grow at an average annual rate of 29% in the next three years. In Da Nang and Phu Quoc, the number of resort condotel also grew at a fast speed of 30% and 27%, respectively.
The investment amount for a regular condotel product is quite attractive with around 2 billion /unit, but be able to own 5-star standard luxury hotel resort. With the support policy from the bank and the recovery of capital right from signing the contract has shown real profit from this product. It is suitable even for middle income customers.
With such abundant supply, so far, customers may have more options and are also stricter in their choices. In which, to ensure profitability after 10 years, investors tend to choose reputable owners with preferential interest rates, but according to property experts, after 10 years whether that choice is also considered as “added value ” or not also depends on the location selected.
Prime location, attractive services or policies, reputable and reliable enterprises… are top requirements that experts advise customers to consider when deciding to “invest money” in project.
Therefore, it can be seen that although it is a relatively new investment but at present the competition among businesses in the resort condotel sector is increasingly harsh.
High profit is not necessarily profitable
Reality shows that in order to attract customers, many real estate businesses have launched attractive profitability programs. The commitment rate often ranges from 10-12.5%, some businesses even commit to 14% /year for the first 10 years.
By simple calculation, we can clearly see that this rate is more attractive than saving deposit (current interest rates of saving deposit range from 7-8% per annum), and be able to recover capital after 8-10 year, to be entitled to average profit of 85% /year for following years.
With the so-called “terrible” profits, there is impossible to deny its “heat”, the attraction of condotel while other investment channels are down.
However, together with the optimism of customers many real estate experts have given a warning: Some products with this commitment program become more risky for buyers because less experienced owners develop large-scale projects without sufficient capital or capital support from banks.
Moreover, customers should also learn which basis the owner relies on to “give out” that engaging commitment, or that it is just a way to devaluate market price, to sell products by any means, while no one, even the owner is sure about that commitment in future.
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Investment solution: Choose prestigious owners
With such “hesitance”, according to real estate experts, when choosing resort real estate products to invest in, customers should consider quality projects from reputable investors. As for the real estate business, as the competition is getting fiercer, project must be invested more serious and the profit must be based on certain foundation to be convincing enough. In addition, when choosing a model to develop, it is necessary to plan carefully and study its feasibility from the beginning to have a product suitable to market conditions.
Representative of TMS Hotel Danang – owner of TMS Luxury Hotel Da Nang Beach project which is located on Vo Nguyen Giap street, opposite to My Khe Beach, said: To gain confidence from customers, TMS has signed comprehensive with MB Bank, under which MB Bank guaranteed a profit of 10% /year for the first 10 years.
Compared to other projects, the highlight of the TMS Luxury Hotel Da Nang Beach is that when buying Condotel, customers will be guaranteed profit commitment for free by MB Bank. It can be said that this is the only project on the market today “confident” with this commitment, because as usual if the customers would like to be guaranteed profit commitment from the bank, they must pay guarantee fee and this fee isn’t low anymore, with a lot accompanying terms and conditions.
TMS Luxury Hotel Da Nang Beach is also a combination between TMS Hotel Danang and Welham®, managed by Welham® – a prestigious Hong Kong property brand licensed to operation and development in Vietnam market.
With a team of professional managers and operators with years of experience from prestigious companies such as CBRE, Savills, Colliers and DTZ, Welham® selected by TMS Hotel Danang will be the operating unit for this project.
In addition, to provide maximum support to customers, TMS Hotel Danang also offers a large number of flexible sales policies and preferences: From August 1, 2017 to September 30, 2017, customers will have opportunity to receive 2 tael of gold when buying apartments valued less than 3 billion or receive 3 taels of gold when buying apartments worth over 3 billion; receive a voucher worth US$ 5,000 at SCOTS International English Language courses for all customers ordering to buy apartments at TMS Luxury Hotel Da Nang Beach.
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