After a certain age, it is a good idea to start thinking about your own investment profile. No matter how much your salary or monthly income might be, around 5% of it should be stowed away in an account, and you should ideally have an investment portfolio that is quite hefty by the time you are 40 years old, especially if you started saving up from your early or mid 20’s.
Now comes the bigger question, what should you invest in? The first variable that will come into play is the amount of savings you have gathered over the years. A flat or an apartment is always a great choice for investing in, especially since it will yield good returns, no matter the scenario of the real estate industry at that particular time. These days, many people are choosing to buy an apartment in the suburbs of the bigger metropolitan cities like Dhaka or Chattogram, especially focusing on an area that is picturesque. This is so that they could potentially rent it out as an AirBnB or a hideaway/ retreat to people looking for a home away from home.
These days, more people are looking to invest in short-term rental property. A number of benefits of such property is making people more enthusiastic about this type of flat or apartment. Here are some of the key reasons why:
- Stability
As we live in Bangladesh, we are all aware that we live in a climate of constant political and economic turmoil. Our economy, particularly our real estate sector, always takes a severe hit during any sort of political disturbance, including prior to and post elections. While larger apartments may be more difficult to sell off or rent during such times, short-term property rentals are always more consistent. Therefore investing in a short-term property for rental is always more stable as these will be easier to rent out, as people always want to travel or go on vacations.
- Lucrative
If you choose to invest in a short-term rental property, over time you will realize that it is far more lucrative an investment compared to a long-term rental property. For example, a holiday home in Gazipur with all amenities can yield higher returns (if maintained as a resort/ AirBnB) compared to a larger flat inside the city.
- Flexibility
Since a vacation or holiday home is not rented for long periods of time, you can easily control timings for repairs, upgrades and other adjustments that need to be made to that particular apartment or flat. As renters will be in and out quicker, you can take sufficient time for remodeling and other repair-related issues when necessary.
- Cultural Diversity
For those of you who can afford to buy an apartment in places like Kuakata, Moulvibazar, or Cox’s Bazar, the options of meeting people from diverse cultural backgrounds are literally endless. Anybody who enjoys meeting new people or learning about new cultures can look at investing in short-term rental property, as it allows you to become more culturally diverse.
So, if you are genuinely thinking of beginning an investment profile of your own, you should look into short-term rental property, particularly in areas that people choose to go to for vacation, or even business travels. Not only will it enhance your investment portfolio, it could eventually become a solid alternative source of income that can support you on a rainy day.
