10 House Buying Traps You Must Not Ignore When Buying a House in Thailand (Part 1)

Aren’t investors who buy houses in Thailand afraid of these traps?

This is based on the concerns of many of our clients and the negative reviews we have seen online about buying property in Thailand. We found that many Thai property investors have no idea what product they are buying! That is to say, I didn't do my homework before investing and I encountered unprofessional managers. These Thai property investors usually have some common ideas or situations: "wanting to make a quick profit", "not understanding local development brands", "not knowing the location and environment of the property they are buying", "only looking at the price", "listening to the recommendations of family and friends", "not considering the subsequent management of the house", etc. These ideas may come from advertisements or from friends and family, but investing in Thai real estate is not a small amount of money. Everyone has different expectations and purposes for buying a house in Thailand, so it is most important to understand it personally!

There are definitely traps when buying a house in Thailand, but think about it, there are just as many traps when buying a house in your own country! Therefore, we would like to analyze the details that need to be paid attention to when buying a house in Thailand for everyone, so that those who are interested in buying a house in Thailand can understand their needs, or after having this knowledge, they will be less likely to be deceived.

Trap 1 for buying a house in Thailand: When buying a house in Thailand, you must buy a pre-sale house. Can you make a quick fortune by reselling it before completion?

I believe that if you simply search "buying a house in Thailand" on the Internet, you will find that many people have this misunderstanding. If you read the content in further detail, you will find that most buyers who hold this argument had the same initial expectations for Thai real estate: "I originally hoped to buy a pre-sale house, pay a small down payment, and then resell it before paying the balance, and increase my assets 10 times in just 1-2 years." This expectation cannot be said to be completely unreasonable, but those who really succeed can only be said to be extremely lucky.

When it comes to investing in real estate in Thailand, we must give everyone a very practical idea: "Investing in Thai real estate should be planned with a long-term perspective. ', we estimate the so-called long-term vision to be more than 5 years. You may have a question about this. With such a long period of planning for buying a house in Thailand, and new pre-sale houses and newly built houses being built all the time, won’t I be unable to sell my house? That's right. Therefore, the key point is "how to choose your investment target", not necessarily buying a new house or a pre-sale house, which is more related to your budget.

The concepts you should have when buying a house in Thailand:

1. Living functions: Are there any large-scale construction, shopping malls, transportation hubs, or schools nearby? 2. Builder evaluation: whether it is built by a listed developer. 3. Regional policy: whether it is located in a key government development zone. 4. Occupancy rate: whether it is located in a potential high occupancy rate area. 5. Thailand real estate agency: whether it can provide long-term and excellent after-sales service.

Thailand House Buying Trap 2: Is it easier to make a profit by buying a ready-made house than a pre-sale house? Yeah?

In fact, with the answer to our first question, you will find that there is no situation where buying a new house in Thailand or a pre-sale house in Thailand is more profitable! The most important factors are the characteristics of the property itself and the financial preparedness.

Buying a new house in Thailand is something that people with sufficient funds can consider, because you need to pay the full amount to buy a new house in Thailand. The advantage is that you can buy it as soon as you pay the money. You can directly choose a well-developed area and see the rental income immediately. Another way is that if you already have real estate in your own country that can be used as collateral, you can use the lower interest rate of domestic mortgage loans to pay for the funds to buy a house in Thailand. Never let your funds be blocked without careful consideration, because the down payment or deposit for buying a house in Thailand is non-refundable!

If you don’t have enough funds to buy a house in Thailand, or want to invest without pressure, you can buy a pre-sale house from a well-known developer. Please note that you must buy from well-known listed developers, and do not be tempted to buy pre-sale houses from small developers. The unfinished houses or fraud cases in Thailand that you usually see on the Internet are all caused by unknown developers. Next, it is best to consider buying a building near a subway. Usually, the value of the house will appreciate before and after the subway opens. If you think the rental income is good, you can also hold it for a long time.

Trap 3 for buying a house in Thailand: Is it very easy to rent a house in Thailand? Anyway, many foreigners and international students buy it and make a profit!

Can you rent out a house you buy in Thailand? First, it has a lot to do with the location of the purchase. Second, if you are looking at future development potential, you must undergo a professional evaluation. It is best to follow the development of local Thai government policies, or make a decision after an evaluation by local experts, which will make you feel more at ease.

The best locations for buying real estate in Thailand: next to the Bangkok subway and near Bangkok’s central business district.

If you buy for investment and want to earn rental returns first, you should note that the foreigners residing in Thailand are still concentrated in Bangkok. These foreigners and senior white-collar workers in Bangkok will be your stable customers in the future. What this group of people care most about is the convenience of getting to work, so if you buy a house in Bangkok, Thailand, but not near a subway station or business district, the occupancy rate becomes a point you need to seriously consider. Similarly, students also like to live in areas with convenient transportation.

If you want to buy a house in Thailand to earn the price difference after future development: you can pay attention to Bangkok’s emerging areas Bangsue-High-Speed Rail Terminal, or the area near Bangna. According to the recent developments of the Thai government, this is the area where the government has invested the most funds in recent years, and it is also the area where local people are investing.

Trap 4 for buying a house in Thailand: It’s okay if you don’t have enough money to buy a house in Thailand, can you get a high loan locally?

This part requires careful evaluation. If you want to buy a house in Thailand and take out a local loan, don't be attracted by advertisements that say you can get a full loan for buying a house in Thailand. For local people with jobs, yes, maybe they can get a loan of 100%, or even 110%. But for overseas borrowers, such high loan amounts are usually not available. Moreover, the mortgage interest rate in Thailand may be as high as 5%-7%. Even if the property is successfully rented out in the future, the rental return rate will be eaten up by the mortgage interest rate. Therefore, if you want to take out a loan to buy a house in Thailand, it would be more cost-effective if you can find a loan with a relatively low interest rate in your own country and use the capital flow to buy a house in Thailand.