One of the options for buying property in Pattaya for expats is purchasing an apartment for subsequent rental. When buying a single “vacation” apartment, renting out usually allows you to cover maintenance costs and recoup your vacation costs. In this article we will talk about profitable investment in property of Pattaya and reasons why you should choose this region.
The most popular resort in Thailand
Pattaya is a delightful atmosphere of a tropical coast and the comfort of a modern urban environment. This unique combination of two principles attracts tourists and investors from all over the world.
Central Pattaya rises above Pattaya Bay. An amazing creation of nature – a four-kilometer “sickle” of sandy coast – is enlivened by luxurious resorts, condominiums, gourmet restaurants, and shopping centers. The six kilometers of Jomtien Beach and the beaches of Wong Amat and Naklua provide an alternative to each other, allowing tourists to choose between a secluded or busy atmosphere.
The history of Pattaya is the story of the lands of a small fishing community that gradually became the heart of the fastest-growing region of Thailand. Residents and visitors to Pattaya enjoy a standard of living and a climate that can make many envious. The development of Pattaya continues to this day. Thailand’s most popular beach resort is elevating its status with:
- comfortable and contemporary accommodation,
- state-of-the-art infrastructure,
- an ideal location just 90 minutes from the new Bangkok International Airport.
The islands and coral reefs around Pattaya attract divers with many PADI-certified diving centers. Anglers will enjoy deep, clear seas, harpoon hunting, and charter service for large game excursions with multilingual guides and staff.
Pattaya has long been one of the world’s water sports centers. It hosted the Kona Windsurfing World Championship and the World Raceboard Championship, while the Top of the Gulf regatta attracted over 500 entrants and about 250 boats.
Benefits of investment
The effectiveness of such investments is facilitated both by the growth in the total number of tourists to Pattaya and the growing popularity of independent travel involving the rental of apartments rather than hotel rooms.
More profitable rental income becomes when buying a block of apartments, as customers are offered a greater choice of housing and ensure fuller occupancy of the premises. The owner of a block of apartments becomes a kind of owner of a mini-guesthouse while avoiding additional costs and worries for maintenance, as utility bills cover them.
After acquiring several apartments, two main schemes for managing them are possible. The first is self-renting, a method that is becoming very popular thanks to websites for property owners. The second is the transfer of authority to the management company that offers such services for its clients who purchase real estate. In addition, some developers offer the purchase of apartments with a subsequent rental program with a yield of up to 10% per annum for 5-10 years, but the cost of such options is initially higher than the market ones.
One of the promising options when buying a block of apartments for rent is buying apartments in the Thai quota, which is significantly cheaper. When buying “wholesale,” the price becomes even lower. All apartments are issued to one Thai company owned by the buyer, thus minimizing the total cost per apartment. Leasing activities can be officially carried out on behalf of a company, the ownership of which will allow you to get the opportunity for a long and fully official residence in Thailand. It should be noted that although this technique is not yet very popular among foreigners, many of our clients from European countries have for many years preferred this particular method of investment, which combines profitability and legalization of stay.
Thailand-Real.Estate provides investment advice and property management for its clients. On the aggregator website you can find and choose different kinds pf property: flats, apartments, villas and houses, compare the prices and buy accomodation that suits your wishes.
Rental Investment Strategies
Apartments on the secondary market. The purchase of finished housing is beneficial in purchasing the so-called “burning” options (hot sale) at a reduced price. In this case, the owner purchases an apartment at a price lower than the market price and, as a result, receives a high rent-to-investment ratio (ROI). Purchasing such a “secondary” requires the obligatory presence of the buyer, the need to have the entire amount for the purchase, and a sufficient long stay in Thailand in anticipation of a “burning” property.
A block of apartments in projects under construction in a foreign quota for personal ownership. Discounts when buying a block (wholesale) reduce the purchase price. As the facility is built and prices rise, the owner can sell some or all of the contracts at a profit. The remaining apartments are used for renting out. The buyer can obtain a so-called “investment” visa with a sufficiently large amount of investment.
A block of apartments in projects under construction in the Thai quota. Buying apartments from the Thai quota allows the buyer to save an additional 15-25% of the cost compared to the previous option. All apartments are issued to one Thai company owned by the buyer, thus minimizing the total cost per apartment. Leasing activities can be officially carried out on behalf of a company, the ownership of which will allow you to get the opportunity for a long and fully official residence in Thailand. The main disadvantage of such an acquisition is the lower housing liquidity from the Thai quota.
In both cases, the purchase of housing in objects under construction can take place remotely, and there is no need for the buyer to be personally present in Thailand until the completion of construction. In addition, it involves installments for the entire construction period and does not require a large one-time investment.