Income property can be a great investment. Owning a rental property in Thailand is a great opportunity to build wealth and make some money on the side.
Whether you’re looking to own income properties that rent to vacationers or residential income property with steady tenants, income properties are great investments.
When it comes to buying an income property, the search process can seem overwhelming. Here are a few tips to keep in mind to help you narrow down the search.
Talk to Local People About Income Property in the Area
One of the first places to start your investment property journey is by talking with locals. Talking with local residents can help you determine which area you should buy-in.
Different streets and neighborhoods all have their pros and cons. Talking with locals and exploring an area can help you figure out who the renter pool is and what the general vibe is.
Cornerstone Real Estate has professional, local real estate agents who specialize in income properties and rentals. A professional local agent can really help you gauge how much income property costs in an area and what the average rents are.
Set the Budget for Your Investment Property
Setting the budget for your investment property is one of the most crucial steps. You need to lay out what you can afford, what you want to put down, and how much income you think you can generate.
Rental prices vary by area so it helps to determine where you’d like to buy and how much you can afford when you start the process.
To set your budget, look at how much money you have to invest and put down. You should then think about if you need any financing and begin the process to see how much you can afford.
Picture Your Ideal Tenant
When buying investment properties, it can be really helpful to determine your ideal tenant. If you’re buying a property with multiple bedrooms near great schools, your tenant will likely be a young family.
If you’re looking at luxury rental units with smaller square footage, your target renter may be a professional, short-term business tenant or a single person.
The type of income property you purchase along with the type of renters in the area can help you figure out who you’d like to rent to. From vacationers to large families, different properties will suit different needs.
Avoid Investment Properties That Need a Lot of Work
When you’re just starting out with buying an income property, it’s probably best to avoid a fixer-upper. While light cosmetic work can help you get top dollar for rent, larger construction projects can be very costly and time-consuming.
Until you get a few more properties under your belt and a little more familiar with the process, stick with income properties that only need a little bit of work. If you’re a savvy contractor or handy person, choosing a house that needs more work might be a good investment for you.
If you’re ready to start house hunting for income property, get started here by filling out a contact form.
