You may be going to live in Thailand for the next few years for business, or you are already thinking ahead of your upcoming retirement and you decide that you want to experience the country’s exotic nature in your final years.
Whatever your reason is for buying a condominium in Thailand, make sure to keep in mind the five following pitfalls that other investors have fallen victim to.
These are the five things that have led other investors to a bad decision with their condominium purchase:
Developers are businessmen, and they are, understandably, prone to introduce hype for their projects. That’s the way things go for them, but it would be ideal for you as a potential investor to take a step back, take a deep breath, and do some more research. It is normal for the sales department to bombard you with things that will catch your attention and even close in for the kill to get an instant sale from you. Some investors have found this to have been detrimental to their investments, so don’t fall for developer hype.
Investing in condominium or real estate comes with legal obligations, like transfer fees and taxes. Fortunately, developers are very black-and-white about this and have laid these obligations out in their forms… but you will only find them if you take the time to read everything that is printed, even the ones written in fine, small letters. This will save you from the shock of dealing with payments that you were not psychologically prepared for.
By “looking around,” we mean that investors should evaluate the location itself before purchasing the real estate unit. Most investors buy units with the promise that it will have stunning views of the landscape, but they find out in a couple of months after receiving the unit that there is another project right next to their condo building… and this project is blocking that view that was promised.
The developer’s background and experience in real estate development is crucial. Some projects may be dubious, given the developer’s past record of, for example, not finishing up on their projects. That is a disaster for you as an investor – you’re going to lose that capital and see nothing from your investment when that happens, so make sure to do some research.
Agents employed by the developer are knowledgeable about the projects they are selling. However, if you do not ask the questions, they will limit themselves to explaining only about the basic facts about the property – i.e, the ones that can attract investors. Make sure to research thoroughly by asking many important questions from your real estate agent about the property.
Knowing these five pitfalls, certainly you will be on your way to being a successful real estate investor. With enough knowledge and some common sense, you will surely find that right condominium unit for you in the beautiful country of Thailand.