Bangkok Real Estate Investment

Information on real estate investment in Bangkok Thailand.

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Tourist-Consider investing in high end leisure property with your group

Tourist value properties

One the blooming areas in Asia is the properties with tourist value. What I mean by “tourist value” is investment property which feeds on the influx and increase of tourist.

As example Chinese tourist are increasing substantially with no sign of slowing. In fact in the last ten years Chinese visitors increase from 13000 in 2006 to over 320000 in 2016. That is significant when it comes to decide on a tourist related property investment.The question is where do they go and what do they do?

Closeup of golfer putting on green wearing blue shorts. Copy space

One can think in the box getting an investment group together and invest in Hotels or resorts, yet that is truly traditional. Thinking out of the box is a little more difficult. So applying that to our ‘Chinese tourist” we have to think about them and their patterns. Of course they will stay somewhere, yet surprisingly eve the most wealthy Chinese do not spend their money on hotels. We are always surprised to find that most will stay at the cheapest hotels they can find that are reasonable.

This means they spend their money somewhere, so what it turns out to be is shopping as quality goods stores. This is due to the fact that many Chinese do not believe that which they buy in their own countries is of quality. So for example investing in an American or Japanese brand store may be a better choice for example.

Consider the variables

Another idea to consider is what do these and other tourist do for activity ? Well aside from the usual temples , a lot like the healthy out doors with the perceived clean environment as compared to China. So a good example may be a golf course for sale as its activity which is out doors with a lot of open space. Golf is increasing in Asia with Koreans, Chinese, Japanese as well as Indians. This is how you need to evaluate a tourist value investment. That means look at other cultural factors as well as the trends.

I think the thinking here is to consider not just its “tourist” property investment but the factors such as visitor trends , what they do and what they spend on is essential.

How much should I spend for a Bangkok Condo ?

Aerial city view of Bangkok at night - skyscrapers in Chit Lom area

Aerial city view of Bangkok at night – skyscrapers in Chit Lom area

This is an excellent and reoccurring question we receive with pretty straight forward answers. Once you determine that the rest is fairly easy in our view.

First you have to ask is how much money do I have?  If you have very little then maybe you should not purchase a condo at all and be satisfied with renting until you have more. This will determine your budget for a real estate purchase.

Yet other  important questions to ask  yourself, would include such things as , is this going to be your primary residence such as a retiree moving to Bangkok on a permanent basis or a second home ? In other words there are only a few motivations for a purchase.

There are basically four reasons people purchase property.

  1. You want to live there yourself for long term.
  2. You want a short term place (at least a year)  to live so you can recoup your money on leaving.
  3. You want it as an investment to later sell for a profit with no timetable.
  4. You want to have an income it.

Once you can come up with an answers to these  overview questions -How much money your have and what your reasons for purchase, the rest is easy. We know the real estate market in Bangkok so we know the patterns , what is realistic and probable outcome. You just have to plug in the numbers and answer your own questions with some certainty.

So in answer to question one , how much money do you have will ultimately determine at what level you should and can think about. So if you have 10 million Baht saved ( USD 280,000.00) and free from other debts you can find and extremely nice condo 3 bedrooms, 2 baths higher floor,  in a good part of town very easy. There certainly are many cheaper and more expensive ones as well.

The second question comes into play. What do you want to use it for?

Retirement living ? A person who is retired and wants to live there more or less permanently most likely wants a very comfortable place since you will be there a lot. Our advice is to get the best you can afford. Keep in mind the newer ones are very nice but will be smaller than the an older building. Also keep in mind all condos are going to have maintenance fees and these must be in your retirement budget. Nothing is more miserable than struggling to pay maintenance fees. So do keep your budget in mind.

What about an investment ? Well one thing we do know is buying real estate for investment purposes such as a condo, may not be the best idea. Sure you will not lose money as Bangkok residential real estate is stable but there are probably better hot markets to put your money in.

Rental income — here is where I think Bangkok shines, we have earned up to 6- 7% return and this is common depending on where you but and the demand.  So if your buying a condo for this purpose it may be very good idea for you. One cautionary note ; If your thinking about short term rentals such 1 week or  just a few nights like done through some well known web sites. Many condos associations are not allowing that anymore and their is strong legal basis for that.

This is just some quick information to get you thinking about real estate in Bangkok Thailand , it can be very good depending on where you are in your life.  So think it over and if you any questions contact us.












What does the Military Coup mean to Bangkok Real Estate ?

First let me say , that this is only the 12 coup Thailand has had and even more attempted coups since it relinquished absolute monarchy in 1932. Why and who and what is not our concern, as we have no political affiliation and we respect what ever decision is made by the people of Thailand and/or the powers that be.

Since we are real estate consultants,  our primary interest is in how this will affect the Thai Real Estate Market with an emphasis on Bangkok. If history is to be an indicator we can say that not one bit. Though one would think instability may send markets crashing this is not the case now or has it been in the past. The reason we believe is that Thailand is stable, and the coup with the Generals stepping in more or less assure that stability as has been in the past and appears so now.

What indicators do we have that Real Estate Market is stable ?

Well our biggest indicator that we know and is actual hard data is the number of inquires we have received for purchases  and rental units. Since the military announced the Marshall Law we have actually seen an increase in activity of individuals looking for condos and houses in Bangkok. This is hard data we can see and verify ourselves.

Why there is an increase  of buyers  is not entirely known.  One thought,   it could be people thought there may be some deals to be had,  as perhaps some foreigners panicked and would sell cheap and leave Thailand. Perhaps its just simply a coincidence or some unknown factor. Our analysis only can go so deep on such data at this time. Yet we can say for certain there has been some increase in people seeking property at this time.

If we look at other economic indicators the Thai stock market actually may be welcoming a military intervention as the market detest uncertainty and one thing most investors see the military as stable and perhaps a good force for stability.

As one financial observer noted:

Derek Bloomfield, Deutsche Bank: “Silver lining aspects of military intervention … We attribute this to: 1) immediate uncertainty regarding politics is suddenly diminished (even as medium-to-longer term uncertainties remain the same or even heightened), and 2) military deployment quells risk of large-scale protest groups from either or both rival camps from assembling and causing widespread damage.”

In summary,  its stability we see from the present coup and seems to be  shown in past events.

The Thai Baht only was marginally down against the dollar during this crisis so far.

What we advise:

For Buyers:

If your a buyer or looking for long term rental proceed as if the coup does not exist. It will at some point morph into something else as has in the past perhaps better doubtful worse. Most Thais and expats continue as if the politics is outside their world, in fact it is. The military will see that the country does not have escalating violence or events deteriorate , this is true now as it has in the past.

For Sellers:

If your seller, don’t panic and understand this country has a stable history of stable coups so to speak with little if any effect on foreigners. The property values have not dropped and remain stable. So unless you absolutely have to get out of Thailand in hurry, then we do not advise selling at lower than market value of your condo or property.







So much money in this town

Every year we have many visitors come to Thailand and visit the city of Bangkok. Of the 15 million visitors from abroad one has to add to that 26 million Thais who travel to the city. That is a lot of people and they spend a lot of money. According to the industry sources they spend over 100 billion dollars a year. That is a lot of money for the worlds most visited city.

Its no wonder many people are interested in buying real estate in the form of  condos, houses or shops in order to start a business here. sales and condo rentals