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Why Invest in Off-plan Properties in Thailand?(2) Featured

Off-Plan RESALE: WONG AMAT TOWER - NAKLUA, PATTAYA Off-Plan RESALE: WONG AMAT TOWER - NAKLUA, PATTAYA

Once you have decided to invest in off plan property, you need to decide which strategy you will adopt to achieve your return on investment. Are you simply looking to ‘flip’ the property, i.e sell it as soon as the development is finished, or are you adopting a longer term and perhaps more fruitful investment plan in the form of “buy-to-let”.
Maximizing Your Return on Investment in Pattaya, Thailand.

Off-Plan RESALE: WONG AMAT TOWER - NAKLUA, PATTAYA

Once you have decided to invest in off plan property, you need to decide which strategy you will adopt to achieve your return on investment. Are you simply looking to ‘flip’ the property, i.e sell it as soon as the development is finished, or are you adopting a longer term and perhaps more fruitful investment plan in the form of “buy-to-let”.
Maximizing Your Return on Investment in Pattaya, Thailand.

Choose a Strategy/Pick a Place

1. Purchasing early

At the start of a development, the developer offers units well below market value for the reasons mentioned above, often termed “Pre-Launch” prices. In Thailand it is also important to buy as soon as possible as the property market is in its early stages of development and prices are still very competitive but already rising. Investors who purchase now will see the greatest profits.

2. Purchasing the best units

Early investors can purchase the most sought after properties on any given development. The best units always offer highest capital appreciation in the quickest turnaround time, and will also command the greatest rental incomes.

3. Price increases as development matures

As the development begins to be constructed the units’ value rises. There is normally a completed show home at this stage so buyers are taking less of a risk without the need to rely completely on plans.

4. Price appreciates as more units sell

As more units are sold the price of the remaining units rises. This is due to buyers being able to see current units as mentioned above. Often there is a phase payment structure in operation which mirrors the increasing value of the properties. To the early investor this means that should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase.

5. Where to buy in Thailand?

As this section is devoted to ‘investment’ then there’s only one place worth considering and that is Pattaya. Sure there are some really beautiful places around Thailand including other resort areas such as Phuket and Koh Samui, but this is where it’s all happening. Pattaya is regarded as one of the biggest growth areas and is developing into an International City, something which has been recognized by world class hotels such as Hilton, Centara, Amari, Movenpick and Holiday Inn who have all expanded here in recent years. 

There are a plethora of restaurants, shopping malls and more than 30 international-standard golf courses are within an hour’s drive. Pattaya’s other leisure attractions range from the sedate (tropical gardens, Buddhist temples, zoos, fishing and sailing) to the more active (amusement parks, museums, go-karts, horse riding and shooting ranges), ensuring a constant flow of tourists not merely looking for beach pursuits.

The Eastern Seaboard region is also home to many huge industrial estates, with large international companies having production facilities here in Thailand. Car makers Ford, Isuzu and GM all have production plants here, with many expatriate staff. Engineering, shipbuilding, petrochemical, Oil & gas industry is also well established on the Eastern Seaboard. Just to the north of Pattaya is Laem Chabang port, a deep sea port, from which a large portion of Thailand’s import/exports enter and leave.

Reasons to buy in Pattaya

As Thai law restricts foreign ownership of land; condos and apartments are the prime option for foreigners investing in Thai property, since up to 49 per cent of the total units in a single building can be owned by non-Thais. This means that Pattaya condos are the primary property sector in this city, with a mature industry and some very nice developments. 

For a time, values increased by as much as 15-20 per cent per year, yet after the 2008 Global Financial Crisis, the market slowed down somewhat. The end of 2010 and beginning of 2011 has now shown us that the demand has risen again to normal levels. Now we have great opportunities and prices. Pattaya is still considered one of the best condos investment opportunities in Thailand and leasing prospects are considered strong.

Pattaya is very attractive to both westerners and Thai’s because it is very active and much cheaper than other places in Thailand. Pattaya is now only an hour’s drive from the new airport and about 1 ½ hours to Bangkok. This has been a great improvement for westerners, as well as, the Bangkok population who would like to just get away for the weekend and relax on the beach. The most popular places in Pattaya are Jomtien BeachCosy Beach and Pratumnak Hill but the landscape shifts as does the demand… so if you’re looking to buy as an investment please make sure you do your homework first.

Last modified onMonday, 04 March 2013 03:08
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