The Knowledge Staircase to Real Estate Wealth in Thailand

Thailand's real estate has bloomed into a gold mine these days and the best thing about it is that the market does not require one to punch a daily attendance card for him to gain from his investment. Thanks to research done by a third-party broker in Thailand; you need not go back to school and spend another decade learning about this particular trade.

Thailand's real estate has bloomed into a gold mine these days and the best thing about it is that the market does not require one to punch a daily attendance card for him to gain from his investment. Thanks to research done by a third-party broker in Thailand; you need not go back to school and spend another decade learning about this particular trade. According to the study, here are the most basic things you need to know to determine where to put your money.

 

Location

The location of a property is one of the most important considerations to get a high gross yield, which is the annual rental return compared to the capital value of the property before deducting operating costs and allowing for taxation. Investors in Thailand need to know where the expatriates flock to when choosing their place of residence. The study showed that the downtown rental market is mainly supported by expatriates with virtually no Thai tenants at this market level. It was found that among the expatriates, the Japanese are the largest market, taking up 30% of the transactions. At about half of that percentage, the Americans followed. Germans and Australians also took slices of the rental pie. Gaining insight into the location preferences of the expatriates and their nationalities will help an investor determine which investments will cater to the preferences in terms of facilities and unit features.

 

Market Trends

Another significant factor is the trend of the market. While a trend might hold for a period of time, it is quite possible for the trend to reverse itself in the future. Keeping track of the changes in the market and foreseeing future possibilities will give the property investor an edge. When it comes to the type of unit in Thailand, some of the best yields recently achieved are from one-bedroom units that embody comfort and convenience. These units are well-furnished and conveniently located. However, the demand may decline as the supply--the number of available units--will grow significantly in the next two years.

 

Tenant Budget and Preferences

Catering to a tenant’s budget doesn’t necessarily mean sacrificing your yields and profits. An investor should be able to determine the optimum size of each unit that will maximize the rent per square meter but not exceed a tenant's fixed monthly budget.  Understanding this will tip the scales in favor of the investor. For example, some tenants would prefer living in a larger unit in an older building than a small unit in a new building.  Although the rent per square meter is cheaper in an older building, it is possible to get a higher yield than the rent per square meter in a new building. The difference lies in the number of square meters rented. Investors also need to factor in the different preferences of tenants and the styles that appeal to a wide range of tastes.

 

Choosing neutral and modern styles is generally safe, and one can never go wrong with choosing designs and furniture that don’t take much to maintain. Tenants will love that for sure. A good rule of thumb when choosing the best-yielding property is to look at both sides of the fence: the amount of investment as well as the possible achievable rent affected by different factors. Just dipping into this well of knowledge may lead the swimmer into richer waters.