......It seems strange that I wrote the following words more than a year-and-a-half ago: “During times like these, where it seems that everywhere you turn someone is telling you another ‘war story’ about a real estate agency going under or a condominium development stopping their construction ... one thing is for sure and that is ‘Cash Is King’!
It is so easy to get caught up in the plight of these times only to lose sight of the fact that this economic situation has been upon us for some time now.
For example, do you realise that it was Tuesday, 19 September 2006, that the coup d’état took place in which Prime Minister Thaksin Shinawatra was removed from the Thai government?
That’s almost three years ago – and the opportunity for ‘great real estate deals’ has only multiplied.
We have all heard someone at one time or another say: “When the stock market crashes ... that’s the time to jump in!”
Underlying message
Well, obviously, it is not that simplistic, but there is an underlying message that rings very true and Albert Einstein said it well: “In the middle of every difficulty lies opportunity.”
At times like this when many have found that there investment capital for property purchasing is ‘tied up’ in a market that has turned on the short-term investor and the banks are very reluctant to loan investment money ... those
with capital are in a very good
position indeed.
Having said that, just what would be a good investment during times like these?
There is a variety of good investment possibilities available in Pattaya and throughout the Eastern Seaboard and all one needs to do is do a little research.
Negatives and positives
As an investor, you must look at both the negatives and the positives contained in each opportunity that comes your way.
Yes, one must weigh the negatives against the positives. But one must also have the insight to make that investment move when it is available.
Just as luck is often described as the result of someone being prepared for opportunity, investment returns are often the result of not just being in the right place at the right time, but making the right decision at the right time.
Let’s take a look at some of the advantages and disadvantages of some of the available investment options we have here in Pattaya and throughout the Eastern Seaboard in May of 2009.
1 Owners who need to sell.
It is definitely a buyers’ market and there are some very attractive investment options available. This is obviously due to the impact made by Thailand’s ‘unfortunate’ political environment, which is now being compounded by the low season. These two ingredients have brought to light a good number of property owners lowering their selling prices and we have also seen a good deal of ‘owner financing’ as well.
The disadvantages are that these ‘deals’ tend to come up unexpectedly and usually sell pretty quickly as well. You must have quick and available cash to be able to take advantage of these types of property sales.
2 Purchasing a detached house with a tenant and rental contract.
If you are the kind of investor who is looking for a real estate investment that will provide you with a reasonable and steady income right from the start, this is your kind of investment. The prices for detached houses compared to condos is quite often much lower but the rent you get is the same.
One disadvantage and particularly important issue here is ‘knowing’ who is currently renting the property (pays rent on time, clean and neat, low maintenance to the premises, etc.) before you complete the purchase.
3 Purchasing land as short term investments in up and coming areas of ‘positive growth’.
There are a number of areas which already show good short-term investment possibilities. Examples are Naklua, Wong-Amat, Na-Jomtien, Soi Chaiyapruk, and so on.
Both commercial and residential plots of land in these areas have been going up steadily in price the past several years and will most likely keep on doing so in the coming years.
To avoid any disadvantages, make sure you know all the necessary information concerning building codes, zoning rights, utilities available, etc. The best plot of land in the best ‘positive growth’ area without any of the basic and necessary building codes, zoning rights and/or utilities available could make or break your investment returns.
4 Purchasing land in places which will be ‘positive growth’ areas in the future as long-term investments.
This category is a bit more insecure than buying land in an area where your money is not ‘tied up’ for a longer time. But, at the same time, you can make a lot more than with short-term investments. Some very good examples would be as in plots in the Bang Saray area, Mabprachan, Phoenix Golf Course and the Silverlake Vineyards.
The disadvantage, of course, is that you must be ready, if necessary, to wait the necessary amount of time to realise your investment. People who have made long-term property investments only to find they have to sell early for some reason are sure to lose money.
Yes, there are more and more great deals on condos and houses that are coming on the market everyday at some very attractive prices.
Remember, you can make as much money investing when prices are falling as you can when prices are climbing – and nothing – absolutely nothing is
going to keep foreigners from wanting
to purchase homes and live in the
‘Land of Smiles’! Ω
A little more about our columnist
Our thanks to Clayton Wade, managing director of Premier Homes Real Estate for preparing this ‘Eye On Pattaya’ report.
Clayton Wade has been running Premier Homes with his wife, Khun Supap for more than 12 years.
He has been in the industry for 22 years, having started his real estate career in the United States, where he was licensed to practise both real estate sales and property management in Seattle.
He was responsible for bringing in the first 53 General Motors executives for the ‘start up phase’ of Thailand’s General Motors manufacturing facility and had a three year exclusive deal with the company. Following that he placed most of the ‘start up’ executives for the Eastern Seaboard’s BMW manufacturing facility.
Clayton is known throughout the Asia-Pacific region for his writing, public speaking and television presentations.
His accomplishments in promoting Thailand’s Eastern Seaboard real estate industry include having been a guest speaker with several of Thailand’s top political and business figures on CNBC’s Managing Asia programme.
You can visit Premier Homes’ website at: www.premierinternational.com
Clayton Wade may be contacted by telephone at +66 (0)81-634-2915 or by email at: clayton@premierinternational.com |
