People love buying property in Thailand. A recent story from Thailand Business News points out that only can Thai real estate be great for a vacation home with places like Phuket and Chiang Mai being among the most popular tourist destinations, but it can also be an easy way to make money. Rental yields for residential properties in Thailand are higher here than in other countries making the Kingdom an ideal place for real estate investment.
Of course, buying a residential property in Thailand isn’t a sure thing. There are plenty of pratfalls and mistakes foreign buyers make when purchasing real estate in the country. One of the biggest gaffes is failing to find someone who can help guide them during the process.
Instead, they try to go it alone, which can be tricky in a place like Thailand. There are rules and regulations in place that buyers from outside of the country might not know about. In addition to this, a local will be able to help weed out good properties from less than desirable ones ensuring investors don’t get stuck losing money.
It is also important to understand why you are buying the property. Some buyers, especially those purchasing real estate outside their home country for the first time, don’t understand what they want and end up making an impulsive buy.
The first thing to focus on is finding a property that will generate enough rent to cover the mortgage payments, taxes, insurance, maintenance and management of the property each month. In some cases, there will be additional revenue generated that can be seen as profit, but getting expenses covered is the priority.
Beyond that, you should avoid gambling or speculating on a property. It is far better to make a purchase that is steady and unspectacular than being lured in by promises of high returns or possible add-on projects. Unless you have experience with these, it is smarter to make the safe property purchase.
