When thinking of investing in property, the thing most people think about is how to make the best return possible. Property is often seen as a safe investment but you want to be sure that you can make as most profit from it as possible. There are spots around the world which have traditionally been seen as super safe for property investment. Manhattan, London and Paris come to mind to name just a few. However, Asia is seeing more and more investment from inside and outside the country. Let’s take a look at 3 reasons Thailand is perfect for vacation rental investment.
Tourists love it
Thailand continues to bring in growth in the amount of tourists visiting every year. This has been rising and rising and it wouldn’t be a surprise if up to 30 million tourists come to Thailand in 2015. With the big increase in tourists, you are looking at people who always will be needing accommodation. People sometimes do not want to book a hotel the whole time and think that they can get better value for money if they were to rent someone else’s property on the short term market. They would be right!
With a steady flow of tourists looking to come and stay, if you choose to do a property investment in the right location then you will be laughing all the way to the bank, quite literally. We have proven this model quite extensively through the work that we have done in Hua Hin with owners. We have a whole year of recorded data which shows that we can get an owner who is renting out their property on the short term market, 12% in 1 year. Try getting that in a bank!
Property is inexpensive
How much do you pay for a 1BR apartment in London? A lot is the answer. You are often looking at upwards of $400,000. A similar property in Bangkok would cost just a fraction of that with some condos and apartments starting to sell for $30,000. This means that if you were to play your cards right, there are the chances that you would have a lot more space for your money. If you like to come to Asia regularly and need a base then it is a good thing to have.
With the cheaper prices it means that generally, you will have to charge a lower rent. But this is not always true. As Thailand is very seasonal, you will be able to make more money from your property over the peak seasons. Tends to be the case that Thailand is in high season from November – April with peak season running from mid December to mid January. Therefore, factor this into your pricing. You will make a lot more during these months compared to the period in May – October.
Thailand is not called the ‘Land of Smiles’ for nothing. It has this reputation because the people tend to be kind and always smiling. They will do their best to help you if you need it and wherever you are, be it in the center of Bangkok or in a remote region in the North, you will experience the same kindness and warmth from all the people that you meet.
If you are planning on spending a lot of the time in the country but are not totally sure to make the complete plunge then buying a property to stay in some of the time and renting it out on the short term market for the rest of the time could be a good option. With this, you will reap the benefits of having a short term rental in an awesome place and always have somewhere to stay rent free (yes, you already bought the place)! What isn’t to like?
Of course, if you do decide to do an investment in Thailand and find that you do not have the time to manage your property like you would like, have no fear. Services do exist (*cough* Roomfilla *cough*) that can help you with such an endeavour. Get in touch and we will see how we can help!