Category Archives: Real Estate

Condo Investors Rent Out Property To Generate Income

Thailand is one of the biggest beneficiaries of investment from China, both individual and corporate, resulting in many a condo unit being open for Bangkok property rental, as investors opt not to move in, and, instead, make a profit.

According to research from the Siam Commercial Bank IEC, Chinese investors expanded their property market investments outside of the Mainland over Bt1 trillion in 2015, which is a whopping 82% increase from 2012, which saw a total investment value of Bt170 billion.

In Thailand, during the first year of Chinese investment, the Chinese invested only 0.2% of their total overseas investment. Over the years, their primary locations for investing in Thai property projects became Bangkok, Chonburi, Chiang Mai, Phuket, and the Surat Thani province.

According to the latest survey by Juwai.com, a Chinese trade property website, Thailand ranks 4th among all the property bought by Chinese investors. In 2018, their investment value in Thailand’s property market was recorded at US$2.3 billion/Bt73.6 billion, for about 15,000 condo units.

Chinese investment in Thailand saw a return averaging 6-10% when condo units are opened for Bangkok property rental, according to reports from the property firm, CBRE.

Most Chinese invest in condo units for rental, instead of moving into the property themselves, as they prefer the business opportunity to generate income from rental from their investment, according to a property expert.

The market trend is for property management for rental, which grants entry to the Thailand property market by supporting demand from investors who need to gain income from their asset.

Seeing a business opportunity, startup firm Hostmaker, an award-winning home rentals management company from Europe, set foot in Thailand in November 2018. According to Hostmaker Thailand’s Assistant General Manager ParuethaiPanjaboon, the company now has 120 condo units in Bangkok.

She says that the demand for rental averages sit between one and three months, mainly from people doing business in Thailand and other ASEAN countries. For the Thai real-estate industry, there’s an oversupply of properties that doesn’t balance with demand, especially in the capital. However, as the sharing economy continue to grow, the industry is starting to see opportunities, and so do visitors to the country.

A Guide To Choosing Property In Pattaya

If you are not sure whether to buy or rent a property in Pattaya, the best thing that you can do is search properties from seaboard-properties.com and other online property sites. There are factors that you need to consider in order for you to come up with a wise decision. Some of these factors include the following:

Duration of your stay in the area

To help you decide whether to rent or purchase a property is to consider whether you are going to stay in a place for long or for good. If you are to have the property as your retirement home, then buying a house would be the best option. However, if you in Pattaya for a work assignment and you are going to stay in the area for only a few years, then renting a condo, an apartment or a fully furnished house would be a wise decision. On the other hand, if you are a Thai national, buying a house than renting it would be better since renting a property is paying and spending on something which cannot be yours in the long run.

Consider your budget

If budget is not an issue and you are in for the long haul in Pattaya, then buying a house would be an excellent option.  However, if you are working on a budget, even if you would stay in the area for a long time or even for good, renting a house from seaboard-properties.com is worth to consider. You can just rent for a while until your budget is ready for a house. You can also mortgage the property if your money is not yet ready.

Factor in recurring fees

Renting a condo incurs recurring fees such as monthly rental, insurance and other fees required from a condo renter. When you buy a property such as a condo, you also incur a considerable amount of money for mortgage if ever the property is mortgaged, condo fees, maintenance fees, property tax and others. Make a research at seaboard-properties.com on which type of property is suitable to your budget, lifestyle and property purpose.