The world is a big place yet land does not grow on trees and with a growing population, real estate is a finite commodity, yet the demand for residential and commercial property keeps on rising, which is great news for real estate investors. While land prices do fluctuate, they generally go up and if you buy the right property, your investment is as safe as houses.
1) Rental property
Not much point in buying real estate and sitting on it until you are ready to cash in your investment; renting out property gives you a regular income, while the asset continues to grow in value. Of course, a lot depends on where you buy; check out the luxury Pattaya apartments for sale to get a good idea on rental prices.
2) Choosing real estate
If the major goal is investment, look for land/real estate in areas that are prime for development; acquiring a huge chunk of land and building a housing development could make you rich, it could also be the end of you financially, if something goes wrong. Many investors look further afield when looking to invest in prime real estate and Thailand is a very popular destination, especially known tourist areas such as Pattaya, Hua Hin and Phuket. Many westerners aim to retire in Thailand and spending half the year in a rented property is a good way to spend your time, so there is a huge market for rental properties.
3) Property management
Acquiring real estate for rental purposes demands teaming up with a local property management company to ensure the property is well-maintained, plus they provide other services such as sourcing and screening tenants and liaising with tenants on your behalf if you are not in the country. If you are planning to acquire several rental properties, you need to forge an alliance with a local property management company. Click here for the hidden costs of rental property.
4) Low risk-high returns
Have you ever heard of real estate prices plummeting? Neither have we; choose your location well and you should see a healthy return should you ever decide to sell. When compared to other forms of investment, real estate always comes out on top and there’s nothing to stop you investing in foreign real estate.
5) Capital gains tax
Governments always want what they think is due and wherever in the world you decide to acquire rental property, your business is liable for capital gains tax. You will need to enlist the services of a good real estate lawyer in order to be compliant with local laws and regulations; the last thing you need is issues with taxation, especially in a foreign country. It makes sense to consult with an expert when investing in real estate.
Here are a few of the advantages of investing in Thailand, which might help you make an informed decision.