TOP 3 profitable real estate investment strategies in Thailand

How to properly invest in real estate in Thailand? How to get the maximum return on investment? Why do so many people miss out on investing in real estate? We will answer these questions in this article.

Profitable real estate in Thailand attracts portfolio investors. Our agency helps to develop investment strategies, minimize risks and increase profits.

Buying a holiday property is a stable and profitable investment. People will always eat, drink, love and relax in the sea! Therefore, we will talk about three proven investment strategies in real estate in Thailand.

Speculative strategy

The first investment strategy is speculative selling or simply "buy-sell". We are talking about a quick resale during the construction period. For our client, it looks like this: we choose a project at the very start of sales at the lowest price and then resell it during construction, when prices rise.

More precisely, this is not a resale, but an assignment, since you do not need to pay a registration tax before taking ownership: the name of the new owner is simply entered the resale agreement.

Pros:

• Fast turnover of funds
• No taxes and registration fees

Minuses:

• The risk of not reselling the apartment during construction because of top competition. Here, bear the costs of registering the property.

A project that can be quickly found and resold at the construction stage is difficult to find. The most liquid apartments in residential complexes are sold out in a couple of weeks. Therefore, you need to be quick and buy immediately, without hesitation, for a long time.

Since there is a risk of not reselling this apartment in time and if the buyer's budget is limited, we do not recommend choosing this strategy.

Rental income - resale

The second strategy is rental income with subsequent resale or "buy-rent-sell".

Buying an apartment, earning rental income and then reselling it for the highest price is the most common strategy. It is recommended to resell not earlier than after 5 years. This will help avoid additional tax costs.

Pros:

• The highest total income compared to other strategies because of the sum of rental income and capitalization
• Less risk compared to speculative strategy
• The ability to use the property yourself, which significantly saves money on vacation

Minuses:

• Few suitable projects
• These properties sell out quickly.

To successfully implement this strategy, first, you need to understand all the nuances of the rental business. The best option is to buy an apartment in a residential complex with professional management. Not a single individual and not a single apartment rental agent can compete with such hotel operators as Hilton, Wyndham, Best Western, Marriott.

Second, it is necessary to contemplate the actual costs of maintenance and the tax burden.

The increase in price is much more important than rental income!

Third, an important rule: capitalization brings much more income than rent. Many people, when choosing an investment project, look at the percentage of rental income, and not at the prospects for price growth. Their reflections look something like this: "In one complex they give 5% of rental income. This is not enough. And in the other they give 10%. This is good." Note! For 10 years in Phuket, the price in the Patong area has increased by 200%. Example: 10 years ago you bought an apartment at 10% per annum. For 10 years you have earned 100%, but on the price increase you have earned 200%. This is always a very important fact that you need to pay attention to when choosing an investment project. The increase in price is much more important than rental income!

Related contract

The third investment strategy is the linked contract or buy-and-let. This is the most conservative strategy. By principle, it resembles a bank deposit: you buy an apartment and sign a related contract for 10-15 years, in which the amount of annual income is already clearly stated.

The contract also has a "repurchase" option, according to which the developer undertakes to buy the apartment from you for the same price at which you purchased it or + 10%.

Pros:

• Stable income
• The complete absence of risks associated with low occupancy. You will receive your income every year. Complete absence of maintenance costs.

Minuses:

• Limited income
• It is difficult to resell the apartment while the contract is in effect

So let's say an investor has $500,000. What investment strategy to choose? We propose to diversify funds: invest part of the funds according to the "buy-lease-sell" strategy, claiming maximum profit in the medium term. Invest the other part in a linked contract, minimizing risks and receiving a stable annual income, and accumulate a part of the already received profit and direct it to speculative projects.

For investors with a budget of $1,000,000 or more, we offer to purchase their own building in a hotel complex.

We have an individual approach to each investor. Contact us! We will create an individual investment portfolio for you and agree on the most favorable conditions.