How to invest in real estate in a profitable way to save and increase your capital. However, it is important to choose the right strategy investmentto reduce risks and maximize profits.
There are several main strategies for investing in real estate in Thailand:
- Speculative resale
- Profitable real estate with subsequent resale
- Related contract
Speculative resale
Speculative resale is an investment strategy that involves buying real estate with the intention of reselling it at a profit within a short period of time. This strategy is one of the riskiest, but also one of the most profitable.
To invest in speculative resale, you need to find an object that meets the following criteria:
- The object is located in a good area with high demand for real estate.
- The object is under construction or recently built.
- The object has an attractive layout and design.
- The object has a favorable price.
Once you have found a suitable property, you need to purchase it and resell it within a short period of time. As a rule, speculative investments pay off within 1-2 years.
Profitable real estate with subsequent resale
Profitable real estate with subsequent resale is an investment strategy that involves the purchase of an object in order to receive rental income and subsequent resale at a profit. This strategy is one of the most popular among investors because it allows you to get a stable rental income and at the same time profit from rising property prices in the long term.
To invest in profitable real estate with subsequent resale, you need to find a property that meets the following criteria:
- The property is located in a good area with high demand for rent.
- The object has an attractive layout and design.
- The object has a favorable price.
Once you have found a suitable property, you need to purchase it and rent it out. You can find tenants on your own or use the services of a realtor. Once you have earned rental income for a few years, you can resell the property for a profit.
Related contract
A linked contract is an investment strategy, which consists in buying an apartment in a complex under construction with the condition of its subsequent lease. The developer undertakes to pay the investor a fixed amount of income over a certain period of time, usually 10-15 years. After the expiration of the contract, the investor can buy the apartment at a price that may be higher or lower than the original cost.
Linked Contract Benefits:
- Stable income
- No risks associated with low occupancy
- No maintenance costs
- The ability to buy an apartment at a price higher than the original cost
Related contract risks:
- Limited income
- Difficulty in reselling the apartment during the term of the contract
If you want to invest in a linked contract, you need to carefully analyze the market and select only properties that meet your criteria. You must also be prepared for the fact that your income will be limited to a fixed amount, and you will not be able to resell the apartment during the contract.
How to choose an investment strategy?
When choosing a strategy for investing in real estate in Thailand, the following factors should be considered:
- Your investment goals
- Your budget
- Your risk appetite
- Real estate market trends
If you want to get passive income, then you should consider a profitable income strategy. real estate followed by resale. To profit from rising real estate prices, you should consider a speculative resale strategy. If you want to mitigate risk, then you should consider a linked contract strategy.
It is important to do a thorough research market and select only those objects that match your criteria.
