Investing in a property is always been a profitable deed. With proper knowledge and information, you can make the most of your investment. You can either enter the property market for just finding an ideal home for you and your family or you can seek to get extra income from rental units. Whatever your desires are, you just need to know exactly where you need to invest to get the best outcome.
Bangkok is the best place you can find in Thailand. Its real estate is booming right now and this makes Bangkok a unique opportunity to get a striking resale price or a steady rental income.
In this post, I am going to provide you with some information that can help you when you’re buying a property in Bangkok. So, stay with me and let’s have a look at these tips.
Here you go,
The Factor Of Bangkok’s Mass Transit System.
Bangkok comprises of about 80 percent of the total urban area of Thailand. This makes the city resident of over 9 million people at the present time which is estimated to increase up to 11 million people by 2025. And since the economic significance of the city, there are frequent traffic jams which really affect most of the inhabitants. This is the reason Bangkok administration has introduced Bangkok’s Mass Transit System that is successfully transporting people from one place to another.
You need to keep this in mind that if you’re investing in a property in Bangkok, then you must look for the apartment buildings near these stations (BTS/MRT). Even for steady rental income, these suites have the significant value which promises to provide better returns.
Developers Make A Difference.
As you have seen in many of the normal days to day life products, brands do make a difference. Similarly, an established developer does in the case of property in Bangkok. An experienced developer has all the exposure of the basic amenities and luxurious needs of a person. They know exactly how to fulfil your needs in terms of quality and quantity.
When you go for established developers, then you can expect a better quality of apartments and condos. They invest significant resources in the planning, designing, and functionality of the projects.
Property By Property Investment Decisions
In Bangkok, you cannot make the decision of property by just having a peek of the location. There are many other factors that vary from property to property. There are many cases where condos and apartments in the prime location have underperformed. In Bangkok, all the properties are evaluated on a project by project basis evaluation which involves all the positives and negatives of the building.
The final price of the property depends heavily on the status quo of the neighbouring condos and apartments.
Property Mortgages For A Foreign Buyer
It is easy for a foreigner to get mortgages for the property in Bangkok. However, there is very few number of financial institutions that offer foreign mortgages, and furthermore, they have very strict guidelines/ requirements. In addition to that, mortgages offered to a foreign buyer are comparatively of less competitive rates and conditions as compared to Thai Citizens. I would suggest you take mortgages only if you’re buying a home, not renting it.
The Strange Bangkok Property Phenomenon
In Bangkok, 2 side-by-side developments can be priced very differently, within seemingly similar attributes. There are instances where 1 development could even be double the price of another development just beside it.
Many developments sell based on construction quality, types of material, design, and amenities within the development. As compared to Singapore, say in River Valley, selling for $1600 psf, the land cost could easily have been $1000 psf, construction cost could be $350psf, developer margin $250psf. Land price accounts for more than 50% of the selling price. In Bangkok for example, developments could be Bt20,000 psf (S$769 based on S$1: Bt26) while construction cost could be Bt5,000 psf (S$192 based on S$1: Bt26), margins could be Bt5,000 psf (S$192 based no S$1: Bt26), hence the land price as a percentage of the total selling price could be typically less than 40 -50%.
Super luxurious fittings, amenities, unique design all contribute to raising the cost of the development and hence selling prices.
So it is important to choose not only good locations, also focus on the design, the quality of the material used, the amenities, the finishing, furnishing, and fittings. These can impact the prices of a property quite a bit.
About the Author
David Lane was born and raised in Thailand. He is working as a Realtor for Thailand-property, which provides the best Thailand property for sale to clients. David is praised most often by clients for his enthusiasm, patient approach and unwavering loyalty. Apart from this, David loves to do fly fishing, sporting clays and play golf.