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2018 Best Practices for Selecting the Most Profitable Property in Bangkok

2018 Best Practices for Selecting the Most Profitable Property in Bangkok

2018 Best Practices for Selecting the Most Profitable Property in Bangkok

It is always a matter of high concern for a person who is going to invest in real estate. The most popular curiosity of a real estate investor, what type of properties can be the most income generating properties either rental or sales yield? We are often asked how to invest in real estate and what should investors be looking for in an income producing property. It can be very challenging to make decisions for first-time investors especially those who are foreigners in Thailand, as Thailand real estate investment industry is riddled with various scenarios and situations that can decimate your returns. While the returns can be lucrative, proceed with caution, a wise decision about a right place at a right time can make you proud about your investments but a wrong step at a wrong place can make you repent on your own actions.

We at Angel Real Estate share with our clients and investors our extensive experiences in helping them acquire and manage condominium investment properties. These are a very popular vehicle for investment in Bangkok CBD, especially when it comes to Sukhumvit and Ratchadapisek Road, where the former is aorta passing through heart of Bangkok city and the later surrounding the whole body of Bangkok CBD and connecting many parts of the city, where both supply and demand for Condominiums seems to be endless. In Ratchada, Paholyuthin, and Viphawadi alone, there are currently several projects under construction that will bring thousands of condominium units to the marketplace for both investors and renters.

The geographic boundaries in which you intend to invest will be mostly restricted by whether you intend to outsource property management services or manage the property yourself. If the latter is the desired route, you are going to want to look for properties that are within a relatively close traveling distance. If you are outsourcing property management services, this is less of a factor.

Mentioned below in detail are the features that investors should think about and consider while hunting for that perfect real estate investment property.

  1. Property Proximity and Location:

Location is the first and most important factor to judge a real estate project. How connected the property is, has very intensive implications on the future of that property. The quality of the location will influence the type of renters attracted to your rental property. Look at criteria, such as the Walk Score, proximity to transportation, hospitals, proximity to universities and international schools, major business centers, local restaurants, and shopping centers and of course the night markets in case of Bangkok.

  1. Rental Price in the Surroundings:

If you are acquiring a property with the intention to harvest rental yields in future, then you might be interested in finding out the property rental prices in that proximity where you are looking to buy a condominium unit. You might be going to want to find out whether you can achieve above or below the average? At the very least, you are going to want to cover your mortgage (if you are looking to mortgage) payment, taxes and miscellaneous expenses like insurance. If this can be achieved, then you can move on.

  1. Employment Opportunities & Future Developments:

What developments are planned for the area which would positively or negatively impact the value of your investment property? Is it a high-growth area or one that is currently in decline? Places with a high potency of producing more jobs can result in the prosperity and uprising of that whole area. It can give a very clear boost to the demand for land because of the high influx of more people. More people mean more renters, especially if you target an area with a large rent/own ratio. Especially if you notice a large corporation moving to the area, migration will follow.

College towns are now also a viable option as there is the steady flow of students needing off-campus rental housing just like the very recent project we have been dealing with, Metroluxe Rama 4 condominium Bangkok. Due to its location in front of Bangkok University, it has been sold out in just a couple of months due to its high rental demand among students of Bangkok University.

  1. Amenities and Attractions:

Both intrinsic and extrinsic amenities matters, about a condominium or any residential real estate property. What attractions are nearby that will both be a draw and requirement for renters? Things that must be considered are swimming pools, library, fitness & gym shopping malls, parks, schools, hospitals, movie theaters and an easy and convenient access to public transportation.

  1. Property Taxes & Insurance:

Review the taxes and the current market value assessments and determine if they are high, and if so then you got some work to do, you have to investigate whether there’s a reason. If yes then what exactly it is and how to deal with it?

These taxes and Insurance are additional costs that erode your bottom line returns. Of course, you don’t want to invest in areas where you cannot get insurance, like floodplains or possible proximity to natural disasters, or you just make sure to invest in Bangkok CBD which as a whole is an insured and most secured area in Thailand. You can do your research with your insurance agent to determine the risks of claims that might exist and if you can get coverage at all.

The easiest and possibly best investment properties for beginners are condominiums. Condos are low maintenance. You must keep an eye out for high maintenance fees which are generally charged on a cost per square foot per month basis. Do your research and comparative analyses to ensure these costs are in line for the building in question.

When you have the type of property you desire and the neighborhood specified, look for the best properties that have both appreciation potential and good cash projection. You should choose an experienced and seasoned real estate agent that understands the risks and have the ability to transform threats into opportunities, an agency that has a proven track record of helping buyers with the acquisition of investment properties.


Angel Real Estate Consultancy

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