Long Term Investments in Asia


Investments by their very nature are usually something for the medium to long term as we are investing capital in order to gain an income, capital growth or a combination of the two. During periods of economic uncertainty these types of investment can be hard to find with many having a higher degree of risk than many investors are prepared to take. Stocks, shares and investments in emerging market may well generate large gains but there is a significant risk that some or all of your capital could be lost.

It is therefore little surprise that many investors choose investments that are more tangible – something than can touched, something that feels ‘real’. Examples would include physical gold or property. When economic confidence is low it is usually these types of investments that tend to take the lead but that certainly doesn’t mean that they should only be considered in more testing times. These are both relatively stable, long term investments that should be part of anyone’s portfolio.

The returns that can be gained are often in the region of 5-10% p.a. which is very reasonable, especially when you consider the levels of risk involved. They will definitely experience peaks and troughs if, as you should, hold them for the long term but overall the trend will be upwards -something that you naturally want from all of your investments. These are both excellent cornerstones for any investor or financial adviser to build upon.

Investment properties are perhaps the most attractive of the two options but they do usually require a significant amount of capital outlay. Demand globally is high for rental properties due to high house prices and lower incomes meaning that younger generations are struggling to get on the property ladder. This is obviously not an ideal situation for these groups but is good for investors. High demand means higher prices and higher demand also reduces the risk.

The major problem with rental properties is finding not only tenants but suitable tenants. You will be looking for someone long-term who will take care of the property and of course pay the bills on time. It sounds easy, but sadly all too often this is where returns can quickly get eaten into. Imagine then if you had the offer of a 10% p.a. rental guaranteed paid for by a developer. The developer manages your property, including finding tenants and promises to pay you your 10% regardless of if your individual unit is rented – sounds perfect, doesn’t it? Well now it is possible.

The New Nordic Group who are based in Pattaya Thailand have been offering this type of scheme for a decade paying investors 10% p.a., paid monthly into the bank account of your choice so have a proven track record. They have well established ties with domestic and international tour operators guaranteeing bookings for months and years to come. This when coupled with the fact that they own many completed properties in the area means that cashflow is never an issue and only low occupancy rates are required to meet all obligations.

This really is an ideal long-term investment as the returns are guaranteed for periods of five to twenty years depending on your requirements. Where else would you get this type of return for so little risk?