Investing in Real Estate is Great, But…

They say that real estate is the best form of investment there is for any individual. They are right, of course. Real estate doesn’t depreciate, meaning its value doesn’t go down with each year that passes. Theoretically, you’re getting good value out of the money that you’ve invested into the property because there are good returns.

There are many ways to make money out of real estate outside of capital gains. These include putting the property up for rent, if it is a residential property, as well as putting it up for long-term lease if you’re the owner of a commercial property. Both of these options give you regular residual income from the monthly amortization from your tenants, and you don’t even have to lift a finger for that.

Thus, it’s only natural — and sensible — that you could be thinking about investing in real estate, whether in Thailand or in any other country around the world.

Take note that it’s impossible for foreigners to own real estate in other countries outside of business purposes, i.e you incorporate a business there and purchase the property in its name, or if the foreign national has married a local. That’s a topic for a separate discussion, however.

Some Considerations to Take Into Mind

Real estate is theoretically a good investment, but its quality really depends on your choice. As agents tend to say, location is a prime consideration. You can buy any real estate property you set your eyes on, but they won’t give you any return at all if the location is not ideal to your goals.

Here are some factors to consider when picking a location from which you can acquire real estate:

 Is there market demand in the location?

In this case, you’ll have to find out if there is a demand for properties for lease or rent in that location you’re considering. If there’s no demand, then it would nearly be impossible for you to find tenants both for residential or commercial properties. Let’s put it this way: if you’re a businessman, would you want to lease property in a location where there is little to no customer traffic?

 Is there a projected development in the area?

Is there a big business opening there soon? That would bring in a lot of people, both employees and businessmen. This creates a good market for apartments, for instance, as people will want to rent temporary abode so they can be closer to where they work. It’d be also a great time to acquire or develop commercial properties as smaller businesses will want to take advantage of the new demand.

Bear these considerations in mind, and you should find yourself a good piece of real estate to invest in, in no time!

If you’re thinking about seriously developing a real estate portfolio, make sure to tap the services of a portfolio manager.

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