Buying property for investment purposes needs careful thinking. There are many mistakes that are made in the process and here is a list of some of the mistakes which are made when buying property while in Thailand. The property market is also fluctuating and the markets do change. Investment property in Pattaya took a hit when the Russian Rouble had problems. Investment property in Bangkok is shifting more to the outskirts of the city as land becomes more expensive. These are things to consider outside of quality of the build and location.
Buying with your heart
This is a very common mistake where you like a certain property without considering the implications of the decision. Estate agents know this very well and they will try and show you the plus side of the property without any negatives. They might not tell you about the traffic jams, flooding each year in Bangkok or that another building is going to be built in front of yours, spoiling your sea view. The positive things they do show might be what you like but not what you really need.
Not Planning for Failure
Many buy investment properties by taking another mortgage bond in their how country where interest rates might be cheap. They think that they can rent out the unit and use that to help cover their mortgage bond at home. Interest rates might go up, you might not find tenants at the rental you are looking for and this can lead to problems at home. Consider what you want from your property and how best to secure this.
This is a bad sign when investing. Don’t buy impulsively as that becomes a fatal mistake. There is no hurry and you might spend many months finding what you really need. Estate agents would like to tell you there are only 2 units left to add pressure to your decision. Don’t make those type of decisions when buying property. Will the property go up in price, will there be a glut? Think 1997 and the Asian financial crisis. Bangkok is full of incomplete projects that everyone got wrong.
Take your time as you might not be able to sell the unit when you can’t make rental income. Speculating is not a good investment model and you should consider what it is costing you and also how easy it would be to sell the unit at a profit or by breaking even.
Do your Homework
Check the property location as well as a due diligence report on the Thai property. Many investors had lost their property to the government when the property was built on government land. Not all property developers in Thailand are honest. Always do your homework.
These are the basic of property investments in Thailand. Speak to a property lawyer and also check the area where you are buying to see if it has long term potential. Having a quality build is very important as you want the unit to last for many years. Always buy from quality property developers in Thailand who have an excellent reputation.