Company employee shares experiences in buying a house and investing in a condominium

1_Home_Stories_Khun_AerK.Aae_02

“Before buying any property, it is important to evaluate properties yourself. To know whether you’re ready to buy, consider key factors such as your reason for buying, budget, property location, and lifestyle needs and preferences. If you’re buying to invest, understanding tenants’ insights are key. Buyers should do further research on their target property — there’s plenty of useful information that can be found on the internet. Most importantly, have a plan B. These shouldn’t be too hard for those who are buying property as a beginner.”

Khun Aer Warangkana Wuthiaumpol, Trade Marketing Manager at DDproperty, offers this advice on buying a house and/or investing in a condominium unit. She shares her personal experiences to show that everyone can buy a property — including entry-level employees who have little knowledge of the real estate industry.

As a buyer, it’s important to assess your purchasing capability to make sure that any decision you make does not negatively impact your financial stability.

“When I first started investing, I made short-term property investments with an emphasis on investment flexibility and made sure I did not hold on to them for too long before selling. Eventually, I started making long-term property investments such as buying condominium units to rent out. Currently, I have condominium units in Bang Jak, Bang Na, and Ratchaprarop.”

Rental Techniques for Quick Profits: Start from “Location”

 

When choosing a condominium unit to purchase, analyze your objectives first

“Before purchasing any condominium unit, you must take into consideration its location. I, myself, would choose ones that ease my commute; these are condominiums near the BTS/MRT or ones that have easy access to public transportation. I do think that a fair number of tenants are searching for housing that would ease their commute and is near eating places. Potential tenants would usually ask around or explore the area themselves to get a clearer picture of the neighborhood."

2_Home_Stories_Khun_AerK.Aae_03

Khun Aer highlighted the importance of understanding tenants’ behavior to determine the future of condominium rental. In general, the higher the demand for residential properties in particular areas, the higher the chances of successfully renting out units in those areas.

“It’s important to note that the average prices of units in a particular area and their respective project tiers should be the benchmarks against which you evaluate the places you’re interested in. You should also consider price per square meter and price range to determine whether a property is too cheap or too expensive, given your purchasing power. Then, factor in Rental Yield and Capital Gain. If you’ve done your own evaluation and think you can afford it, then invest.”

How to generate a good rental yield.

Khun Aer herself owns a unit located in Ratchaprarop-Dindaeng near Victory Monument. The room, which is 28 square meters, is perfect for people who work within the area and who frequently commute — it’s close to the MRT/BTS Victory Monument Station and is centrally located.

 

Tenants are one of the challenges for amateur investors

 The key challenge for amateur investors has to be the renters. If they’re lucky, property owners would have nice tenants. If not, they would have to deal with problematic tenants and come up with a strategy that ensures that they only take in tenants who will agree to their rules.

“Screening tenants is also very important. Most investors need to look into potential tenants’ background, both personal and professional, to see if they’re trustworthy. Candidates who are a company employee and therefore have a stable income would have an edge as this means they have long-term financial stability. Using online rental agents could also help.”

Khun Aer uses DDproperty as a rental agent, which makes it easier for her to find the right tenant for her property.

3_Home_Stories_Khun_AerK.Aae_06

 

Even those who work in the real estate industry still need up-to-date information

 “Working in the real estate industry does have its advantages. For one, it allows me to understand which pieces of information I need when I want to purchase a condominium unit or house. Also, it gives me an edge in recognizing developers’ marketing campaigns; specifically, how they launch their campaigns, what the purposes of their promotions are, and whether future trends in the industry will help ease my decision-making process.”

However, working in the real estate industry doesn’t give all the answers. Whether as a consumer or investor, it pays to use websites like DDproperty.com, which provides property reviews and information regarding renting and purchasing, as well as finding agents.

“The information and services provided by DDproperty has helped me a lot. Whether you work in real estate or other industries, it will provide the answers you need regarding property investment.”

4_Home_Stories_Khun_AerK.Aae_04

 

Opening a new life chapter: Buying a home as you start a family

 Aside from investing in real estate property, Khun Aer and her husband are expanding their residential property. As they welcome a new member in their family, having a house with plenty of space would satisfy their current lifestyle needs.

For Khun, a home is a place that supports every member’s needs through generations.

“Actually, the house I wanted after I got married was a single-detached house that’s not too far from the city. However, most single-detached houses are located in the outskirts of Bangkok, which means it will take me hours to drive to my office in the city — that doesn’t suit my lifestyle. On the other hand, the prices of houses in the city are very high, so my husband I looked into second-hand residential properties, but not just single-detached houses. We found that the answer to our need is a townhouse.

Khun Aer said that the second-hand townhouse she bought was a bank asset located in Punnawithi and was close to the BTS Punnawithi station. This location makes it very convenient to go to the inner-middle Sukhumvit area, has many restaurants, and has pleasant surroundings. For her, it ticks all the boxes and is reasonably priced, making it worth buying and renovating.

“I had already been to this area and coincidentally saw a ‘for sale’ sign on the house during the time I was searching for houses. My husband and I didn’t limit our search to only new houses because we knew that properties in the city tend to be more expensive. If we only looked at new houses, our choices would be limited. Once we spotted it, I contacted the bank and discovered that the property was not that expensive despite being in a good location. It’s hard to find a house in such a great location with that price tag, so I decided to buy it and is now being renovated.”

 

Buying a property as a home and as an investment are two different things

 When buying a house to live in, buyers should prioritize their family’s lifestyle as main consideration. In their case, Khun Aer and her husband love living in the city and being able to take the BTS as their main mode of transportation. A convenient location and proximity to shopping malls and markets would also make one’s life a lot easier.

“When I have kids, it will take me less time to send them to school, so I chose an area I’m already familiar with: Punnawithi,” said Khun Aer.

 “It’s so important to consider your lifestyle when buying a house; otherwise, you might run into a lot of inconveniences in the future. And because purchasing a house requires a huge amount of money, I expect that my investment would prove to be a worthy investment that will last a long time.”

Simply put, there are vast differences between buying property as an investment and as a home. Whether it be for rental or resale, buyers must ensure that their needs will be fulfilled.

“When buying property as an investment, I have to do further research on locations, prices, rental prices, Rental Yield, unit numbers, and competitors. There are even more details to be considered when buying a house to live in. If you don’t know where to start, contact the gurus in the DDproperty website. They could be a lot of help.”

5_Home_Stories_Khun_AerK.Aae_08

 

Amateur investors and people who want to own property, don’t be afraid to get started now

Whether you’re purchasing a house to live or invest in, don’t be afraid to get started. This applies to both small investors and entry-level employees who do not work in the real estate industry. You need to plan carefully, understand your needs (if buying a house to live in), learn about renters (if buying a house for investment), and determine your budget and location preferences. Once you’ve figured these out, you’ll know which location to choose a property and have an idea of future trends in that particular area.

“Another important thing to keep in mind when purchasing real estate property is to ensure that your purchase will not negatively affect you in the long-run. Don’t invest in property that is too expensive given your budget because it could affect your financial stability. Also, have a plan B. If there’s no buyer, could you rent it out? This is called risk management. It’s important to think about worst-case scenarios to prepare yourself for any eventuality.”

“I plan to invest more in real estate properties in the future, but I’m still waiting for a golden opportunity and for circumstances to stabilize. I will surely be using online platforms to get further information that could help in my search. Nowadays, investing in or buying residential properties is a lot easier with the help of online property portals, so make the most out of them,” Khun Aer added.

 

Stay abreast of the industry’s news and updates sending directly to your inbox, sign up here.

Read Next

Tools & Calculators
Affordability Calculator Icon
Thinking of buying a property in Thailand? Use our affordability calculator to estimate what you can comfortably spend on your new home.
Refinancing Calculator Icon
Find out how much you can save by refinancing your existing home loan with our refinancing calculator.
Repayment Calculator Icon
Use our calculator to estimate the monthly loan repayments for your dream home.
฿

Get expert advice for every question you can think of!

Explore AskGuru and gain exclusive access to thousands of answers from our expert and agent community. 💬⭐👍