Dream Come True OR Too Good to Be True ?
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GUARANTEED RENTAL RETURNS
Dream Come True OR Too Good to Be True ?
Guaranteed Rental ! It certainly sounds like a dream for every investor . But how guaranteed are you and is it exactly what you need ? As with every investment , it ’ s better to arm yourself with all the details before jumping right in .
words by Property Hunter
What is a “ Guaranteed Rental Return ”? A Guaranteed Rental Return , or better known as GRR , is a future rental income that is guaranteed by the developer or management company to the property purchaser for a contracted period after the purchase agreement is signed . In simpler terms , it ’ s an auto rental when you own a property . Sounds too good to be true , you might say ?
GRR needs to be considered amongst many other factors that determine whether an investment is of good value or not . This will help the buyer consider the objectives and investment timeline , which varies from individual to individual .
1 . The investor should be cautious if there are no paper promise or an actual contract to protect the buyer should the income not be generated .
2 . The investor should study the current market of their chosen property and monitor to see if the income figure is realistic and achievable .
3 . To ensure that the developer does not inflate the property price , the investor should ensure that the developer has the ability to manage the property adequately for the income to be generated .
Source : PropertyGuru . com . sg
Robert Gavin , CEO of Property Horizon gave three points to refer to when considering buying a property with GRR . www . PropertyHunter . com . my 31