Buy To Let Hotel Rooms Boom As Investors Seek Safer Returns

The tough economic climate is forcing many small investors to consider non-traditional property investments as safer bets when compared to their existing buy to let and renovation projects.

Under normal circumstances the phrase 'non-traditional investment' would not be associated with playing it safe, but the investment market at present is far from 'normal'. The uncertainty in the financial markets and the collapse of both property prices and mortgage lending, have hit property investors hard. For those investors looking for a good place to park their retirement funds, safety and diversification are key factors.

The idea that you can buy hotel rooms might seem like a strange concept but its growing appeal is down to these very same motivators. Experienced hotel and resort development companies invite individual investors to buy hotel rooms within high-end hotel developments. Investors that buy hotel rooms benefit from both capital appreciation and a regular income from hotel rooms let.

Buy to let properties have always offered savvy investors a keen return, but as mortgage rates climb faster than rents can go up, many have been left out of pocket. Moreover any time the property stands empty means hefty monthly mortgage repayments and no income.

Buy to let hotel rooms offset these risks by basing the investors' income on the performance of the hotel as a whole, not their individual suite, and so provide a regular income level. Even at 50% capacity this can often be enough to provide a healthy return for investors who buy hotel rooms.

Of course, having all your eggs in one investment basket is still a risky move, which is one of the reasons why buying hotel rooms is often viewed as a way to diversify an existing portfolio. Buying a hotel room is much more of an investment in tourism than a straight property play.

It's a fact that particularly appeals to those planning for retirement as, provided you don't need the free stays on offer, you can even buy hotel rooms via your self-invested personal pension (SIPP) scheme.

Case in point, a recent development in the upmarket tourist town of Sesimbra is offering freehold luxury suites on a buy to let basis.

Keen to attract secure investments the developer is also offering to cover all closing costs and paying cash back to early investors.

Of course, for those not buying via a SIPP, investors also get the perk of free stays in the hotel as well - a little bit of luxury to part the dreary economic clouds.

About the Author:
Adrian Warriner / Owner Invest. For more information and advice on how to buy hotel rooms as well as current developments in Portugal visit >> Owner Invest: The Right Way to Buy Hotel Rooms

Article Originally Published On: http://www.articlesnatch.com

Tags: buy hotel rooms

, overseas property

, buy to let hotel rooms

, ownerinvest

, owner invest

, condo hotels

Related....

Videos...

Recent Finance Articles

Bad Credit Loans Can Help Out By: Leo Kingston | May 27th 2012 - Bad credit loans may be used for any purpose, but they are designed for emergencies only. Any borrower who chooses to take advantage of short-term loans will have use of the loan money until his or her next paycheck is due, and that's when the loan will be repaid, on the same day.

Successful Entrepreneurs Reconceptualize By: Chia-Li Chien | May 27th 2012 - Joan (not her real name) was my second client when I started my business. She was looking for new customers for her fashion design and manufacturing company in 1994. I suggested she create a website and capture information from those who requested samples from her. Putting the website in place brou ...

What Do You Know About Green Energy? By: Themis Smirneos | May 27th 2012 - You have probably heard about green energy, but do you know how you could benefit from it? Read this article to find out more about green energies.

sustainable housing

sustainable living

photovoltaic panels

Using A Credit Card To Track Business Expenses By: Abby Crowhurst | May 27th 2012 - While many business owners are aware of the convenient purchasing power of a credit card, some do not realize how easy it is to track expenses with a card. When using credit cards for business purposes, business owners can easily keep track of ...

credit card

credit cards

The Irs Proceeds Against More Tax Havens By: Sarah Simmons | May 27th 2012 - Now that the IRS's second special voluntary disclosure initiative has come to an end, U.S. taxpayers with undisclosed assets in so-called "tax havens" are being urged by tax audit professionals to come clean on their own, before the IRS finds them out.

tax havens

voluntary offshore disclosure initiative

tax attorney

tax audit

Find Good Medical Plans For Boomers By: Marilyn Katz | May 27th 2012 - Are you over fifty, but too young for Medical health benefits? If so, you may have a hard time finding affordable medical insurance on the private or individual market. Get some tips to help you shop for reasonably priced coverage at any age.

Important Training For Real Estate Agents By: tuc2p6f1pe | May 27th 2012 - The law demands that somebody who desires to be a broker must always attend the required schooling used for real estate agents as well as be licensed. Those future and would-be brokers also need to be 18 years and above. They should also have to pass various tests on real estate dealings and a numb ...

Important Mandatory Training Intended For Real Estate Agents By: dav16br0gi | May 27th 2012 - The law demands that everyone that wishes to be a broker must always attend the necessary schooling intended for real estate brokers and be certified. Those future and aspiring brokers also need to be 18 years or older. They will also have to pass several exams on real estate dealings and numerous ...

All About Payday Loans By: Paul Davidson | May 26th 2012 - When used wisely, payday loans can be a convenient way for people to survive until they receive their next paychecks. These types of loans are an option for those who cannot borrow small sums of money from family or friends. If an advance at their ...

Do You Want Debt Management? By: pen2iubnob | May 26th 2012 -
Customer and personal debt is, probably, the first issue facing most American family members today. The explanations behind the tremendous surge in debt have been connected to arising socio-economic patterns recommending that we've come to be a country obsessed by having lifestyles and consu ...

debt management plan

Comments

Still can't find what you are looking for? Search for it!

Site Navigation: