The Makings of a Successful Property Investor in Thailand
Sure, there are many people who have profited from real estate investment. However, becoming a property investor and investing in real estate, just like any other business venture, entails risks. And no matter the property you plan to purchase – whether you hope to resell it or rent it out to tenant – the property investment sector requires huge capital. This means that extra measures are necessary and should be valued to prevent huge losses and ensure you get the return on investment (ROI) you need.
In Thailand, some areas are experiencing a shortage of property and others are on the verge of a bubble. Lack or excess in property can be a blessing in disguise. In fact, if you adjust your sails accordingly, you will find excellent opportunities for investment in such circumstances.
Note that while careful planning can spur you ahead of the pack, not everyone is fortunate enough to earn passive income through real estate. Success does not happen overnight. Here are some tips to help you get started:
1) Clear your debts
You are an up and coming property investor in Thailand. When purchasing your first investment property, you may consider certain investment loan options. Before you can go in this direction, however, make sure you already paid your previous debts.
Starting an investment portfolio with unpaid debts does leave a sour taste. That is why do not undertake the path of a Thai property investor unless you have settled your past debts (i.e. medical bills, insurance, student loans). Enter the real estate industry of Thailand with a clean slate.
2) Hold your emotions in check
Homebuying should not be a tug-of-war between the heart and the head. But when looking for a home, do so with a proper purpose. Make sure you can be practical about your decisions without altogether disregarding your personal preferences. After all, you will be buying a property that you intend to live in and profit from at the same time.
Since it will be your first investment property, it will be ideal to consider your purchase through the lens of a businessman. Remember that the property itself will be your business investment. Do not be impulsive during the negotiation period. Get the best possible price with the odds of earning more revenue.
3. Assess future expenses, income, problems and opportunities
Not that we are advocating it, paranoia does have its advantages. Not all the time, but at least it pushes you to look into every detail before sealing the deal.
First, before making your purchase decision, calculate your existing money and the amount you can possibly loan from the bank or borrow from informal sources. Next, how much are you going to dish out once you purchase the property plus the renovation costs you are likely to incur? How about operation costs? Leave no stone unturned and calculate every penny flowing in and out of your pockets.
Finally, when all is said and done, calculate the price you plan to list your property for. Leave out the expenses for a rough estimate of your future profit. The truth is that you may not reach half of your profit estimates, but at least you have a clear idea of your budget safe zone.