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