What Property Investments are available to average buyers in Bangkok?
There are many reasons why Bangkok is viewed as an investment hub, not just within Thailand but within South East Asia and the geographic location certainly plays its part. 2016 was a bumper year when it came to residential property sales in the city with records being smashed thanks to low interest rates, price stability and new rules regarding home loans. There is little surprise then that Bangkok’s real estate market remained the most developed in the country.
When it comes to purchasing real estate, there are lots of factors that play a part in where and what you purchase. It should go without saying that your budget, your personal circumstances and the reason for buying the property will all play a hugely important role in your decision. If you are purchasing your property as your home for life, to gain rental income or maybe you see it as a step on the property ladder, there will be a property in Bangkok that will fulfil your requirements.
Bangkok is different from many other capital cities in the region especially cities such as Singapore and Hong Kong which are dominated by skyscrapers and shopping malls. Bangkok and Thailand in general offers a certain amount of culture and history that adds to its appeal to tourists. The influx of tourists, the political and economic stability, and the excellent infrastructure make Thailand a safe place to invest when it comes to real estate.
The real estate market is far more accessible for average investors with the properties being far more affordable and little capital outlay is required, certainly when compared once again to Hong Kong and Singapore. For example, an investment of around THB3 million, less than US$90,000 in Bangkok’s new Eldorado condominium would yield a return of between THB15,000 and THB20,000 per month, depending on the terms of the contract. Of course, there are many other similar properties all from reputable, well-known developers.
The Thai baht is strong against many major currencies at present but this shouldn’t deter you from investing, especially if you are looking to achieve a rental return. Demand for rental properties is high in Bangkok and reputable real estate agencies can not only help you find tenants but can also assist you with property management and maintenance.
Higher value properties tend to give the higher ROI in percentage terms so we always advise clients to purchase close to the top end of their budget. The reason for this is what may seem like incidental costs such as plumbers and electricians to fix small jobs charge the same regardless of the size of the condo so again in percentage terms, a great amount of your monthly rent will be eaten in to.
Generally speaking, there are lots of very viable investment properties for the ‘average’ buyer in Bangkok. Returns are stable with capital appreciation expected and the options available to those with lower budgets are far better than those available in many other countries. All in all, Thailand is great place for investors looking to achieve rental returns and capital growth.