Don’t get left behind when investing in a moving market.
Bangkok’s luxury market has been racing ahead. Undeterred by the rest of the market, the thirst of luxury property is at an all time high. This is reinforced by a record price being set for the Thai capital at The Residences at the Mandarin Oriental. With a healthy appetite at this end of the market, you might find yourself having to compete to get the property you so desperately want. Many luxury purchases are for end users, which means the process can be more emotional rather than just an investment, resulting in you ‘needing’ that property even more. In order to secure your dream home remember these following points.
1. Be realistic.
Buying property when the market is rising is guaranteed way to generate capital appreciation. However, it is easy to get swept up in the excitement of a boom market. Seeing a lot of activity is likely to compel you to get on board too. Therefore be realistic about what you can afford and what is the right investment for you. Remember the market does go in cycles so forecast whether you will be able to afford the property should there be a dip in the future.
2. Be proactive.
As soon as a new project is announced, there is a long queue of people waiting to get through the door. Real estate agents and developers are likely to have people clawing at them to be the first one to come to the marketing suite. So you need to be proactive especially if you are intending to buy off-plan. Get added to mailing lists to be kept in the loop, scan the news and Internet, and speak with your real estate agent on a regular basis to maintain communication to explain what you are looking for. Your eagerness will pay off.
3. Carry out due diligence.
Thailand has some seriously reputable developers. Take a look at the skyline and you will be able to see much of their previous work right there. Check out their previous projects to ascertain their level of work and to see if it fits with your standards. For newer developers you may not be able to do this. So it is important that you carry out due diligence on check their credibility before parting with your hard earned cash. Don’t forget to check the small print for terms and conditions.
4. Pick the right property.
Even if the market is performing well, it does not mean that you should buy any property. You need to make sure that you secure exactly the right one to as it will make the difference between making a profit and making a good profit. Choosing a unit with a strong brand behind it will add to its appeal. Picking a unit in a smaller building will mean that there is less competition when you come to sell it. Opting for the best view will also help. If you are lucky enough to be able to pick from a number of different layouts, make sure you select one with the best use of space and the most amount of storage. If there is an empty site next to the development, do your research to see if there are any proposed development on this site that could block your view in the future. Essentially you want to pick the best unit so that it is in demand to increase its capital appreciation.