“With the world’s leading managing units, Condotel’s investors can be assured of full occupancy and 10% return. After 10 years of management expiration, customers can choose to own or continue to lease with the rate of 85% for the investors and 15% for the owner, so it can be sure that that condotel is still brought profitability after 10 years.” shared by Mrs. Vu Thi Lan Anh-Deputy General Director of CEO Group at the online talkshow with the topic of “ Comdotel market and the fear of oversupply” held by Vietnam Economic Times on August 10.
“50% of occupancy also received 10% profit”
Earlier, Realestatevietnam has received a lot of questions from readers with the same concern that “what is the basis for ensuring the commitment to share profits of 8-10% in 10 years from the investor when they buy Condotel product and how about the operation of that product after the contract of profit commitment expires?”
With the evidence and factual data from representatives of some Condotel investors, it seems that the above wonders of the readers as well as investors have been somewhat solved.
In particular, the representative of CEO Group said that Condotel is a inevitable trend because by early August, this company has just launched Condotel Sonasea Condotel & Villas in Phu Quoc and the project was immediately received the positive response from customers from Hanoi and Ho Chi Minh City with commitment of 10%/year in 10 years.
According to Mrs. Lan Anh,currently, investment in a regular Condotel product is quite attractive when the price is just about 2 billion/unit, but can own a high class 5 star-standard resort. With the bank’s support policy, at the time of signing the contract, it can be seen clearly the profit from this product and it is suitable for medium income people.
“There has tendency of owning a second home for resort and making profit from investment. With the current policy, when the living standard is raised, domestic tourism develops so Condotel investment is very large, good liquidity, attractive to the current market,” Deputy director of CEO Group said.
However, to ensure profitability after 10 years, investors have to choose reputable owners and to be able to receive interest rates but after 10 years the value will increase or not still depend on the the location. Therefore, investing in potential tourism sites will ensure better benefits.
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Also according to Mrs. Dung “At peak season, occupancy rates at the resort projects of FLC up to 90%, this rate in low season is slightly lower. The investment of each enterprise varies so the customer’s interests are different. With famous tourism destination, the occupancy rate of 40-50% is not too difficult,”
In addition, about the concerns of Condotel’s failure to operate for over 10 years, FLC Vice President said that many hotels still operate effectively over 10 years. Of course, during the operation, Condotel will be regularly maintained, upgraded.
Especially, even in the course of operation, if the owner is under bankruptcy, the entire project will have to be transferred to another owner, and new owner will continue to commit maximum interests for secondary investors.
Therefore, according to FLC leaders, there can be no risk of assets, they still ensure the capital, good interest annually.
“This is a long-standing trend in the world, and it is still new in Vietnam. FLC Group is committed to maximizing benefits for customers,” emphasized Mrs. Huong Tran Kieu Dung emphasized.
“Should open for foreigners to buy”
Regarding the legal status, Mrs. Huong Tran Kieu Dung said that Condotel hotel has existed long, but the new element here is business mode.
In order to do business, it must be confirmed that Condotel is a house but the buyer has no permanent residence household here. This brings great benefits to the locality as the land use fees for residential land are much higher than the service land, the local population is not increased due to the non-residential buyers which attracting more tourists, infrastructure.
On that basis, Mrs. Dung proposed that the Ministry of Construction and related units soon have a legal corridor to support the operation of Condotel. This is also the motivation for investors to invest more strongly in this segment.
Meanwhile, with the provisions of law that “foreigners can not buy Condotel”, Mrs, Vu Thi Lan Anh – Deputy General Director of CEO Group said that this is a limitation, because Vietnam wants to attract foreign investment capital, but the foreigners are not allowed to buy house in Vietnam has limited foreign capital flows.
” Current profit and investment commitment are also attracted foreigners, including those are working in Vietnam or abroad. If it can allow this subjects, it will help in utilizing overseas development capital, “said Mrs. Lan Anh.
Nguyen Manh Ha, Chairman of management board of Phu Quy Land , said that it has just worked with customers in Korea, Hong Kong, Singapore and they are very interested in Vietnam real estate market but the it is very difficult to complete legal profile. This is a shortcoming should suggest a legal corridor, soon open for this subject, in order to develop Condotel, exploit marine economic potential.
“Why we can buy house abroad but the foreigners can not do that in Vietnam?” Mr. Ha asked and added , Vietnam has many beautiful places, I have just traveled to Singapore, then found Hoi An on their website has book section to Vietnam. Taxi drivers here also know Halong Bay, Ho Chi Minh City …
Mr. Giap Van Kiem, Deputy Director of CEN Land – CEN Group Van Vien commented that Condotel is the best liquidity segment. In the North and Ho Chi Minh City, high-end real estate has slowed down but Condotel is still very developed because it is considered as an investment channel.
Legally, we must consider the issue for allow foreigners to buy, so that they can feel assured when investing, then they will definitely come to Vietnam, bring family, friends and spend in Vietnam. Accordingly, we can attract significant foreign currency for the economy.
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