What can one expect from investing in a holiday home property in North Goa
Buying an apartment or villa in Goa not only promises an asset forever but also high rental income. As a property investor, you might have multiple options in India. For instance, in metro cities, high-rise buildings that offer modern amenities and facilities are quite an attraction among the millennial populace. However, here the builder will assure only 5-6 percent rent return that too for a specific period that goes up to two years. On the contrary, if you invest in a property in Goa, you could easily generate up to 9-10 percent returns(on the safer side) or more.Even if you buy the property as a holiday home, it can be used as a guest house while you are away or even as a hotel room by tying up with a property management company.
Moreover, you can also rent it out by posting your apartment/villa on rental portals. To state an example, an investment of Rs 50 lakhs for a 1 BHK apartment in Goa can fetch a minimum rent of Rs 10,000 per night during the peak season that includes the months of December and January.
Given the growing demand for rental properties in Goa, several property management companies have entered the market and offer various payment schemes to the property owners’ in-terms of rental income they can generate from the property. The property management company leases the property to guests and tourists and offers a fixed monthly rental to the owner from the gross income earned. The company only takes the amount over and above the fixed rent. Many homeowners have tied up with the property management companies because not only they assure steady income but also take care of the property. The process entails an agreement where all the terms and clauses pertaining to property maintenance and rental payments are stated categorically and signed by both the parties.
The property management companies take care of the property in every aspect and undertake various activities such as housekeeping, check-in and check-out services, and others. They also undertake stringent security measures such as keeping records of guests IDs and taking advances from guests with regards to loss/theft of any items within the property.
While numerous locations in India have caught the fancy of real estate buyers, Goa has been the prime destination that has always been on the investors’ radar. One of the biggest tourist destinations in India,Goa has also gained popularity for its growing economy as a large number of Multi-National Companies (MNCs) have established their footprints in the UT.