Top Questions You Should Ask Yourself Before Buying Property In Thailand
Bangkok may be the center-stage of the thriving Thailand real estate market, but it still needs to be approached with caution by property buyers. There are many pitfalls potential property investors can find themselves in when trying to make their way through this complicated real estate market.
Here are the top questions you should ask yourself before buying property in Thailand.
Is The Property A Good Investment?
This question may not sound very specific to Thai property market, but its importance cannot be overemphasized. You need to know right away whether you are making a smart investment decision or not. You could be washing your money down the drain by spending more on a property than it is actually worth. Therefore, make sure that the property is fairly priced, and most importantly, it meets your investment goals. There is little wisdom in spending so much money on a property that will not offer you any returns.
How Is The Property Priced?
You should try to find out how the property you are about to buy was priced. For instance, was the price based on prices of similar properties in the area or some other factors such as the construction cost. Usually, when it turns out that there is no justifiable reason for a property’s price, you should be extra cautious. There might be some complex legal issues attached to the property that you would be better off avoiding, especially when the property is unusually cheap.
How Is The Construction Project Managed?
Property development outfits are springing up right and left in Thailand, thanks to a booming property market fueled by a large influx of overseas guests into the country. Some developers do not have the
Financial muscle to guarantee the completion of construction projects, while others lack the expertise to succeed in this market. Therefore, when purchasing a property, especially before it is completed, look into the status of the developer and determine whether they have what it takes to undertake such a project successfully. Poorly managed projects cost investors a lot of money and often result in protracted legal tussles.
Is The Deposit Refundable?
Some properties do not have a refundable deposit. This could prove to be a problem, especially if you run into problems that make it impossible to proceed with the purchase transaction. For instance, if the developer turns out to be incompetent or financially incapable of completing the project and breaches the contract, you might end up losing your initial deposit.
The best option is to buy a property where the deposit is refundable in case of any eventualities.
How Is The Surrounding Area?
You should consider the surroundings carefully when buying a property. Other than telling you more about the fair price of the property you are about to buy, it can also help you understand how the value of your property might change in future. For instance, if the neighborhood is fairly underdeveloped, future development projects may raise the value of your property as the location becomes popular among other property buyers.
In many ways, buying property in Thailand is not different from buying property anywhere else in the world. However, when in Thailand, you should check the developer’s credentials, whether the deposit is refundable, the property’s pricing, the nature and prospects of the surrounding areas, as well as the viability of the property as an investment. The goal of these question is to prevent you from making a bad investment.