Fractional ownership is gaining popularity gradually over the period of time. The idea is to grow wealth with a horizon of medium-to-long term and then exit.The last two years have seen people being skeptical about their investments and are very cautiously putting their money into anything. Fractional ownership has now became most trusted as it involves low investment in high grade properties with appreciable net returns in hand as a result, out of all the investments, the real estate sector has been observing an upward trend. The market demand has been ever-growing for commercial and Second home properties. Second homes in the residential sector have piqued quite an interest in the past year, especially from residents of urban cities. The properties located in the outskirts of the cities or let’s say secluded areas have captured the eye-balls of the urban population. Resort Investment in this category have emerged as a one of the most profitable investment source for the luxuries and comfort it offers. People want to move away from the standard 2-3 BHK apartment concept to spacious rooms and a luxury lifestyle of safety and comfort within close vicinity to nature.
This is what making resort home investment one of the most trending and widely opted investments over CRE’s or general second homes.
Resort Investment is on the top of every real estate investment as it not only provides grand returns like CRE’s but also offer many complimentary benefits with ultra luxury lifestyle.
Resort investment has not only great advantage over CRE’s but also is better option over general holiday homes/second homes.
Have a look over interesting factors leading Resort Home investment widely opted over all other options : -
Investment is always primarily considered by its rental & returns percentage. In past few financial year average real estate returns on rental property is 10.6% while the average commercial real estate ROI is 9.5%.
If we talk about holiday home, the avg ROI oscillates b/w 2.5%-3% annually. Whereas in Resort Industry returns ranges from 8%- 16% annually with the guaranteed minimum returns making it a most profitable form of investment.
Buying a holiday home or second home is always accompanied with the headache of renting it out and its regular maintenance making it difficult to maintain steady flow of rental income whereas Resorts are run and maintained by brand hospitality groups on rental lease for 3 year or more where for each & every task a perfect expertise teams are available hence investors has only to invest & enjoy with zero maintenance.
Resort investment are almost always located in prime, scenic locations be it overlooking stunning mountain vistas, gorgeous beaches and oceans. lush green surroundings etc. In addition to this, these resort come fully equipped with top class amenities such as restaurants & night clubs, health spas, yoga rooms, gyms, mini supermarkets. club houses, beach facilities, etc. which a holiday home doesn’t comprises of. The biggest advantage of investing in resort is that being the co-owner, you can enjoy them at their own leisure.
Another benefit is that you have a sort of permanent pre-reservation in a resort type facility even in peak holiday season & which is completely complimentary. But in holiday homes where also you get the opportunity to stay is not much appealing as your rental for those stay days are deducted as a result your stay reduces your rental income.
In addition to a certain prestige that comes with owning a prime property surrounded by beautiful views, resort investment offer buyers a wide variety of choices to choose from as per budget. From 2 BHK apartments to lavish villas, resort homes offer a range of options to different buyers with differing budgets but with the same set of amenities.
Lastly but not least resort investment provides an amazing benefits of destination wedding voucher which can be used for personal use or can be sold out at its best market value offering direct profit to the co-owners/investors which is neither enjoyed in holiday homes not in CRE’s.
So, its clearly evident that Resort Investments are most preferable as well as best form of investment nowadays.