How to invest the right property in Thailand

This is my very first article and i had often being asked “Which area of property do you think its good to invest” Today I will shared some opinions of mine, and hope you find it useful.

Every Property in its location is the right property to invest. Why? It heavily depends on what are your expectation and budget you can afford to invest. You can buy a property only for 10,000USD or even less than that all the time in Thailand.

It is very important to understand the market and looking into your own budget before any investment to be made. I often hear other real estate agents constantly telling their foreign customers to invest in the so called three “S” (Sukhumvit, Sathorn, Silom) why? It is because these are the areas that foreigners knows it very well, and that is the reason why you constantly see the prices in these areas are pretty high, which currently selling on average of 200,000 – 280,000 per sqm. You have to understand the market well enough to know who will be your next buyer? I often see investors getting their fingers burnt as they bought too many high end properties in Thailand, where they often sell it at loss in time to come.

When investing in a property, understand your budget and your expectation first and follow on by understanding the overall market before any decision made. I often see developer sales person or real estate agent pushing high end projects or units that are high property prices to its investors, as they could get very good paycheck out from a sale. They do not bother if you can make money out of it first, before mainly going after its income.

If you are investing in a property just purely for numbers and nothing else, the location does not matter, what matter most is ¬†NUMBERS! The average rental yields in Thailand fetches ¬†5 – 7 percent per annum, and capital appreciation on 5% per annum. Therefore the three “S” often only bring good cash flow from rental yields and not much of capital appreciation as the property prices are on the high side, and is this a good property to invest? I mentioned earlier on, it depends on your expectation and budget.

In the year of 2010, I had foreseen that Rama 9 area will be appreciate over 40% in years to come. I had invested a 30sqm property unit at 60,000THB per sqm. 2014 I had sold the property at 140,000THB per sqm and that is over 100% gains. In those days, not much of investors heard about rama 9, and today it is one of the top investment area of Bangkok.

When you plan for an investment, always remember to set your expectation and most importantly your exit plan. Don’t just invest for the sake of investing, and not forgetting your because someone close to you invested. They have a different budget and expectation from you.

Once again thank you for reading this article and hopefully it helps you to better understand the market and lastly HAPPY HUNTING!

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