Condo for Sale in Thailand
Condo for Sale in Thailand
Factors You Must Consider Before Investing in Real Estate
When you are considering investing in the real estate, particularly in a condominium, there are certain things that you need consider to make positive progress and become successful in the real estate industry. You’ll be amazed to find out that there are many investors who don’t know how to identify the right property for investment. Learning to identify a better deal requires some experience, and proper research. Here are some important things to put into proper consideration when looking for condo for sale in Thailand:
Buying a condo for sale in the right point of the real estate cycle and in the right neighborhoods will definitely result in appreciation and higher profit. However, timing the right real estate cycle can sometimes be difficult and speculative. If you invest in condominium or apartments without cash flow or equity specifically for short-term appreciation, then you should know that you are directly engaging in a very risky investment. Therefore, consider a long-term investment before the value appreciates.
2. Cash Flow
When investing in real estate, cash flow is the most important thing you should consider before anything, but this depends on several different factors. These factors may include the total amount of down payment, the market type you’re purchasing into (for instance, C-class apartments often have higher tenant turnover and higher maintenance and repair compared to A-class or B-class condos), the local rental market strength (delinquency and vacancy) and interest rates of your financing (is it a hard money loan or conventional financing.
Leverage is necessary and very important when considering buying condo for sale because the less cash you invest on each condo, the more condominium or real estate properties you can buy. If this type of apartments increases in their market value, your return rate also rises exponentially. Alternatively, if the market value of the property falls, you’re likely to have a greater debt on your property, which leads to negative cash flow.
However, negative cash flow might be either good or bad. The good side of it is that is short-term and can make you really money. Property investment is highly attractive for any high-leverage real estate investor, but it advised to approach it with great caution. Generally, if you are a long-term investor, leverage will work in your favor if your investment markets appreciate in the future and your income from condo for sale can actually compensate for most of your monthly debt service.
Determining whether the condo for sale has equity or whether you’re going to create equity is also an important thing to keep in mind when looking for one. Equity often takes different forms, including poor management, discounted price, rezoning opportunity, fixer upper (“upside” potential) and foreclosure. There are so many ways to create equity, but it is always the best bet to buying into equity. You can find a motivated seller who is willing to sell his/her equity for half of the full value. You can also buy a condominium that requires some work, because such properties usually come with a greater discount on the selling price.
Concisely, investing in condo for sale in Thailand is a great venture, given that you enjoy all these benefits. It’s a good idea to involve a real estate agent or solicitor when looking for the right property for sale.