Sale-leaseback: the route to invest in tourist properties?
It is usual to revisit popular destinations; owning a tourist property as a second home makes sense
For die-hard tourists, one trip to a destination is never enough. So, buying a tourist residence seems to be a good option for a second home. But with this there are also issues such as maintenance costs and renting to be addressed. An answer could be the sale-and-leaseback (SLB) model where investors purchase the property from the developer and lease it back to that company or person for a specific period, over which they earn guaranteed rentals. The developer benefits as he is able to boost sales and also maximize returns for himself and the investor by re-renting the property to tourists, when the investor isn’t occupying it. The SLB model, though not popular, can be seen in popular tourist and pilgrimage destinations in India such as Goa, Kerala, Rajasthan, or even Tirupati and Haridwar.
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