14 Mar 2012
Words Tim Admin

The Perfect Investment Property

In this world of economic uncertainty, people are always on the lookout for freehold investment properties for sale to get involved in property investment. Property investment has been growing at an impressive rate as more and more people have become aware of the benefits that can be accrued in this area.

If you own the right type of property, it would bring about an increase in your personal wealth, not to mention being a fallback source of income, should you leave your current salaried job. This is the main reason people are attracted to the idea of an investment scheme involving tourism property such as hotels, motels, caravan parks, and resorts.

If you are sceptical about this, let’s take a brief look at the development of the motel service industry as an example. In Australia, it began in the 1950’s, and proved to be an invaluable convenience for employees who needed to move around the country and fulfil their employment responsibilities. Since then, motels have become ubiquitous in Australia, with motel operators steadily improving the quality of the property they own and manage, eventually attracting not only business travellers, but also frugal holidaymakers.

The property investment business has been so good that the typical ownership of property comprising, for example, land and building complexes, sell at an impressive 9-10% yield. Tenants who take up leases on the motels have been known to serve very long durations of tenancy; some span 25 years, while even 30 years is quite common. The usual arrangement is that the tenant pays for all outgoing matters. The rent rate is adjusted on a yearly basis using the Consumer Price Index as a reference point.

Investors who are new to the concept of investing in resorts for sale usually purchase and manage their first piece of property for a few years before they move onto other types of properties. A time frame of 2-3 years should be sufficient for many people to make a decision on whether to stay or to move on to different property types such as caravan parks or hotels. In general, approximately 60% of investors come and go as they get the feel of the motel service industry.

If you feel the inclination to make a foray into tourism properties, Resort Brokers are on hand to provide pertinent and valuable advice. With more than 2 decades of experience in the field of real estate, they are the go-to people if you are investigating new means of income generation.