There’s a lot of potential to be leveraged when investing in the Bangkok property market, however, just like with anything else, there’s an element of due diligence involved. In order to have the greatest success and avoid the most common pitfalls, it helps to do a little bit of research before taking the plunge.
To help get you started, here are some of the biggest do’s and don’ts when investing in condos in Bangkok. Let’s get stuck in!
- Do recognise the advantages of using real estate as a diversification tool
If you are new to the world of real estate investment, congratulations, owning real estate property in addition to other, traditional investments, is perfect for diversifying your wealth. The Bangkok real estate market is certainly less volatile than the stock market, so while the risk is lower, make sure that you are certain before purchasing any additional properties.
- Don’t put all your eggs in one basket
Consider investing in multiple properties in Bangkok. Rather than putting all of your eggs into one basket, you should diversify your property portfolio as much as possible. You may even wish to consider ‘split testing’ by purchasing properties in two different areas (both of which are considered popular and thus prime real estate) to see which performs better.
- Do team up with an established real estate agency in Bangkok
Don’t make the assumption that tapping into a foreign real estate market will be exactly the same as it is back home. Whatever the case, you should have a reputable real estate agency backing you up – just as it pays to have proper legal representation. Keep yourself covered and take all of the help and advice that you can get!
- Don’t underestimate how much time is involved
Real estate investment isn’t a quick and easy way to make money. Not only is there a great deal of time involved, but it may also take years before you can see a return on your investment.
Whether you want to modernise real estate and flip properties for profit or rent them out and earn off of holiday makers, these things take time.
- Do explore the various property types
There are many different property types to choose from. While investing in condos has always been a safe bet in Bangkok, you might want to explore houses and villas as well. Do some research, speak with your real estate agent, and see if there are other property types that are worth your investment.
- Don’t overlook pre-construction condos
Foreign investors can profit from investing in pre-construction condos, so don’t overlook them. With a 30% down payment now, and the other 70% in 2-3-years’ time upon completion, your investment property will likely have appreciated in value by the time it’s finally built.
- Do remember that resale condos can be more complex
Buying a resale condo, such as some of the condos for sale at The Collection, can be a more complicated process than pre-construction. That said, when executed properly, there can be great value in it. Just make sure that you negotiate well, have a legal representative thoroughly check all docs and contracts, and make the necessary preparations for a successful transfer of ownership.