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A Few Tips To Optimize Property Investment

Posted by admin on April 2, 2015

Real Estate is extremely doing well in Thailand with condominium projects continuously being launched to match a rising demand.

As a property investor, and whether you are interested in rental return, capital appreciation or simply to purchase a second home to live in yourself, here is a few tips you should consider when purchasing a property here in the Kingdom:

TIP 1: Define Your Strategy Clearly

In fact, it is important for you to clearly define your strategy and the purpose of buying. Whether you are buying for yourself, for rental purpose or off-plan to flip the property before completion, you might be looking at completely different markets and thus, different project type and location for instance.

TIP 2: Act Early

Always remember: “The early bird catches the worm”. In fact, this concept also applies to property investment. Here at BTS Property Group, we can advise you on upcoming project launches so that you ensure being among the first buyers and thus, getting the best prices and discounts possible.

TIP 3: Unit Size and Type Matters

Indeed, try to purchase the biggest unit you can and/or a ‘special unit’ (for instance a corner unit, or a specific layout that only a few units enjoys in the project) without extending yourself financially. In fact, big and special units could be a considerable advantage when reselling your property for instance as thousands of units are for sale on the market but such unit would make you stand out.

TIP 4: Avoid Oversupplied Units – if possible

Especially if you are investing for rental purpose. In fact, there are for instance a tremendous amount of Studio and 1 Bedroom units (up to 35SQM) in the market and all their property owners have the same strategy and expectations towards renting them out. A lot of these investors purchase the furniture package offered by developers and thus, end up offering all the same unit to potential tenants. If possible, try to invest more in furniture and decoration to stand out and make your unit special within the rental market to maximize your chances to rent it out quickly.

TIP 5: Check The Maintenance Fee

In general, you get what you pay for. Therefore, paying up to THB65 per SQM will provide you with high quality maintenance ensuring the sale potential of your condo after years. What may appear as a cheap and cost efficiency maintenance fee will most probably mean poor maintenance and building degradation within 5 years.

TIP 6: Check All The Fees Involved

When purchasing a property, investors sometimes forget to consider the extra fee related to taxes at the Land Department for instance. In fact, when buying/selling properties in Thailand, a few taxes involved needs to be seriously assessed. BTS Property Group’s sales representatives can assist you in calculating those taxes so that you can better consider the total amount of your investment.

Same when calculating rental return, it is important to consider all costs including maintenance fee, refurnishing cost, etc. to calculate the net return and not only the gross return that some other agents may try to present you as net income.

TIP 7: Guarantees

Some property developers are offering truly attractive investment opportunities by guaranteeing rental returns for up to 10 years. Such investments are hassle-free and provide investors with high yields. However, property buyers need to carefully check the background of these developers, ensuring they have built condominiums in the past and have solid finance backing them up. Also, our agents are able to guide you through the developers to be trusted and those we would not recommend.

TIP 8: Use A Professional Real Estate Agent

Here at BTS Property Group we can advise you on the most profitable investment strategy to optimize your returns. Depending on your needs and expectations, we can provide you with tailored investment solutions to successfully meet your requirements and make your property purchase in Thailand a rewarding asset.

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