I've noticed a few condo advertisements guaranteeing a return of x% in x number of years, (I put the x's because some are offering different rates/years than others). Any one checked into this(?), what's the catch? I notice they all have an asterisk after the statement so must be some fine print. Do they rent it out for you, and buy it back in a certain number of years? I don't see how they can guarantee this much return. Maybe it's the ol', "If it sounds to good to be true, it probably isn't".

You're right, "If it sounds to good to be true, it probably isn't".

Too good to be true and probably all risk already figured into the sales price and paid by buyer. Too many uncertainties, potential pitfalls and factors for me... MS>

There are two types of guarantee. The first is backed up with a deposit of money in a bank. This type of guarantee is secure, and you will almost always get what you were promised.

 

The second type of guarantee is simply a promise made by a company as part of its marketing strategy. You may receive what is being promised, or you may not.

 

Even the very biggest companies can fail,  so what you have to do is consider is what would happen next.

 

In Thailand the answer is that it would be almost impossible for you to receive what you were promised. Your only option would be to take the company to Court, but there would be no point. 

 

My suggestion is that if the promised return is a critical factor in your investment then you need to look elsewhere.

 

In Thailand such schemes might involve heavily overpricing the property in the first place. 

I guess if it's legit and some of the sales personnel are reading this they could respond.

1 hour ago, blackcab said:

There are two types of guarantee. The first is backed up with a deposit of money in a bank. This type of guarantee is secure, and you will almost always get what you were promised.

 

The second type of guarantee is simply a promise made by a company as part of its marketing strategy. You may receive what is being promised, or you may not.

 

Even the very biggest companies can fail,  so what you have to do is consider is what would happen next.

 

In Thailand the answer is that it would be almost impossible for you to receive what you were promised. Your only option would be to take the company to Court, but there would be no point. 

 

My suggestion is that if the promised return is a critical factor in your investment then you need to look elsewhere.

 

In Thailand such schemes might involve heavily overpricing the property in the first place. 

       I think your last sentence is key.  My partner and I have looked at several projects that were promising guaranteed returns for a number of years and the condos looked to be priced about a million baht more than we thought they were worth.  So, with some of the projects, I think a buyer is funding  at least a part of those guaranteed returns himself.

Always a potential con. And anyway promoted profits are before management fees, sink fees, etc thus are less than promised. There is no such thing as guaranteed profits. Three is a scando group offering a deal in Pattaya....It's a potential ponzi scheme.