Investing on real estate holds a significant promise. Great hoards of people are always in the look for a place to stay, either through ownership or by renting these houses. This reality awes a lot of real estate investors, especially those who are novices of this corner of the investment world.
But, even with the great deal of promise it holds, real estate investment is a risky piece of business like all other investment ventures out there.
Unknown to some yet many chose to turn their blind eye on the reality that potential pitfalls in Thai real estate are not floating on top always and ready to be fished out all the time. Many of these pitfalls, however, are tied to the naivety of the unsuspecting but overeager real estate property investors.
Investing on real estate is just like a guessing game, sometimes you win some and sometimes you lose some.
Probably yes, it is similar to a guessing game because when you decide to splash your cash on an investment because you have these “good vibes” on the property, you assumed that it really holds the promise and that in the near future, it will give you a substantial return of investment.
But, are you that willing to gamble much or the whole of your savings to a “guessing game?”
Market trends are not always forever.
Yes, it is essential to study the trends in the real estate market. It will help you decide whether now is the right time to invest or you will just have to wait for a couple of months before you will invest your money.
But, if the trend suggests that in the next few months or years, the area will become a real estate haven, do not get easily swayed by this. The trend is not influenced by one factor alone in the form of people looking for places to stay. Remember the thing called “economy?”
The paint job is already good but I will make it better to attract more potential buyers or renters.
The trend looks bright; the house is cheap but is this really the “real deal?” Are those walls free from termite infestations? Can the roof trusses withstand a strong typhoon being Thailand a tropical country? How about the water pressure, is it strong enough throughout a 24-hour period?
These are basic questions that you need to know the answers first before signing the contract and making the down payment otherwise, you may end up spending more on repairs than your actual purchase.
A pristine lake just a few meters from front lawn and a calm river just beyond the fence, I am quite sure a lot of renters will vie for this property.
Oh yes, location is among the best determinants in the success of your real estate investment but do you actually know what happens on the lake side house when the monsoon rains come?
You have actually purchased the house, renovated it and rented it out to an expatriate couple quite easily. But, after a few weeks, they came back to you and demands for a refund and some compensation. The reason: that pristine lake swelled and the calm river became a rampaging one when the monsoon season came.
Bite when the pie is still hot!
When prospective tenants approach you for inquiries, do not easily give in and have your property rented out.
You have to know the background of your prospective tenants more than what they presented you through their identification cards or passports. Otherwise, you may end up being paid for the first 2 months of rent and on the 8th month, they vacated your property with lots of furnishings missing and the structure itself badly damaged.
Strike two birds with just one stone.
Sometimes before, during or after your acquisition, repair and selling/renting of the property, you may need to have the services of a property agent. Moreover, you will really need the expertise of a Thai-registered property lawyer.
But instead of having a property agent and a lawyer, you can have both in one person or entity.
A property cannot do market research and sales but cannot be a luminary of the legal side of things. A lawyer can do both.
Yet, the decision resides in you and whatever decisions you will ever have, do not ever try to circumvent or violate any laws in the Kingdom.