To date, Pattaya real estate is a very interesting object for buyers and investors. What are the reasons for such popularity? Let's break it down point by point:
- Over the last 1.5-2 years, there has been a sharp decline in property prices in Pattaya. Many experts agree that this is primarily related to the international crisis, falling oil prices, and the exit from the market of many large Russian buyers with subsequent resale of this property at reduced prices. This has really strongly affected the city's real estate market, where just a couple of years ago a third of buyers were from Russian-speaking countries.
So: We have established that one of the reasons for today's investments in Pattaya real estate is the reduction in market prices, sometimes by 20-30% relative to contract prices / prices from developers.
The second reason is also indirectly related to the exit of a large number of buyers from the market, or let's call it capital outflow. In connection with this, in recent years fewer and fewer new properties are being built each year. But new players are entering the market - these are investments from Southeast Asia, to a greater extent - from the Celestial Empire. And these buyers are becoming more numerous every month. This will soon cause a property shortage, as demand will exceed supply in the market; which in turn will cause a sharp price jump. Therefore, if you are thinking about investing in real estate in this city, it's better to think about it at the most favorable time period for this. In investments, it's very important to choose the right moment!
Writing about the fact that Thailand is one of the fastest developing countries in Asia, with the most dynamic real estate market, and that this property is not subject to confiscation under any circumstances; is no longer original, this has been known for a very, very long time, and this is precisely what has attracted and will attract investors from all over the world. In addition, let's remember that here there is no annual property tax, which is paid almost everywhere in the world.
Moreover, for many when choosing the best place to live, such important factors as Thailand's climate, the relative cheapness of prices for many goods - from food and SPA procedures to prices for entertainment and travel - are taken into account.
Today the Thai government and Pattaya city hall are doing much to ensure that the resort receives the right to be called "family-friendly". It is precisely thanks to the increase in family recreation that the city has gradually begun to rid itself of the image of past years and transform into a more "homey" resort with all its proper attributes. Two huge water parks are being built, the beach strip is being expanded, and new entertainment options for children are appearing. In addition, the city offers all the necessary infrastructure: international schools, high-class hospitals, excellent kindergartens - both Russian and English-speaking, as well as plenty of entertainment from sailing to polo and golf.
One could describe the advantages of buying property in Thailand for a very long time. But the first two points attract investment in Thailand right now.
Types of investment:
Firstly, there are two types of real estate investment - to receive rental income and for further resale at a profit.
Investing in real estate is one of the safest and most stable investments. But there are also disadvantages: it's a relatively high entry point (starting from $30,000), and small but stable growth, from 6 to 10% per annum. These are real figures, there are lower ones - but that's not an interesting investment for an investor; anything higher - "smells" of fraud. These are figures for Thailand, in some countries the % may differ slightly.
For those who like specifics, let's consider an example of rental investment in the Laguna Bay project
-Cost $41,000, apartment furnishing $2,500
-Long-term rent $300 per month on an annual contract. We don't consider monthly rentals, as you need to manage the apartment (cleaning, laundry, check-in, check-out) and the owner's personal presence, which changes the investment concept. Although the rental price can be $400-500 per month, additional expenses and time are needed. I.e. profit $3,600 per year, apartment expenses: $350 per year - apartment maintenance, and net profit $3,250 or 7.5% per annum
You can also consider apartments with guaranteed rent from the developer. Apartments are slightly more expensive, but there are installment plans and a higher rental %
Below you can see a comparative analysis of buying an apartment with guaranteed rent and buying an apartment for subsequent resale:
