Here are a few areas to consider before purchasing that rental property:
Location, Location, Location
The location of a property is widely regarded to be the most important aspect when it comes to investing in real estate. Buyers who purchase close to airports, the city centre and/or major junctions, for example, are better poised to demand higher rental yields due to convenience. Other factors such as proximity to educational institutions, medical care facilities, dining facilities and access to public transport are also considerations that need to be taken into account.
Potential buyers should also ensure that they are fully aware of the area’s safety before they invest in a property. They should also consider development plans for the surrounding area in the short to medium future. If a large shopping centre is going to open in the next/following year, additional convenience brought by the development would be a big plus to rental yields and property value.
Amenities
Condominium developments are constantly competing to provide superior facilities and gain a one-up on their counterparts. In this day and age, the minimum standards of condominium amenities include having proper gym equipment, Olympic standard swimming pools and underground parking.
Many property developers have also stepped up their game and lured potential residents by offering premium services such as laundry facilities, concierge support, butlers and even limousine services to ferry residents to neighbouring destinations. Other additional perks that premium condominium developers are providing include 24-hour CCTV surveillance, game rooms and luxury spas set in their very own wellness centres. All these additional amenities are factors that willadd towards increasing one’s rental income.
Surrounding Employment Climate
This is one factor that is often overlooked by property investors when deciding on an area or a country to purchase in. Major cities tend to draw higher rental yields, catering to both foreigners as well as locals who travel inter-state and internationally in search of employment.
Thailand, for example, will increasingly draw more and more migrants due to development plans to further bolster an already strong infrastructure. The Thai government’s introduction of various tender procedures for foreign bidders to build on the nation’s infrastructure will pave the way for a plethora of new jobs. These plans surround an inter-city rail network system, enhancements to the highway network to link key areas in the country, a public transportation network (Bangkok) development plan as well as air transport and maritime development.
After Sales services
When it comes to condominiums, a buyer’s relationship with the property developer rarely ends on the day the papers are signed. Developers are increasingly offering after-sales services to sweeten the deal and ensure that maintenance of the development is carried out in an efficient way.
Sansiri, for example, has teamed up with PLUS Property to provide investors with a host of unrivalled after sales services. Aside from the necessary facilities management services expected in any condominium, the platform goes the extra mile by offering buyers a fully integrated service that includes rental and sales management, as well as consultancy services.
As always, potential investors should always be aware of the underlying legalities behind going into any contract. An example of this is the cost borne by a tenant in the case of repairs/maintenance etc. That being said, purchasing a property for rental income will continue to be one of the most attractive and lucrative ways of receiving substantial and stable returns on investments. With Thailand boasting rental yields of 5% and upwards, the country poses an enticing prospect for both foreigners and locals looking to invest in a condominium for relatively passive income.