Buying an investment property in Pattaya (1) – Easy to understand article about real estate investments in Pattaya
Make sure your Pattaya property is the right one for you
In the Pattaya property market there are many types of investors with different lifestyles. The same investment property in Pattaya that is right for them might not exactly be the right Pattaya property for you. So do your own research based on your own abilities & likes before you enter the Pattaya property market. Lets take an example, lets say Kevin (Investor 1) has found a good rental investment property in the Pattaya real estate market. Even though he is only here in Pattaya 2-3 months per year Kevin thinks he might trust the property to an agent to service & rent out. But unless he knows the agent personally that might be heading for trouble. Would you trust the keys to your new property to a total stranger with a desk? If Kevin were here more often off course it wouldn’t be so bad but the fact is he is not.
So maybe it’s not the right property type for Kevin even though it has potential as a rental property. So he looks at a solid rental guarantee in Pattaya with guaranteed returns for next 3-5-10 years. But then this would limit his choice of available property to choose from. Then he will also have people like John (investor 2) & other agents/locals telling him what a big mistake he is making buying rental guarantees. Why? Firstly because in Pattaya almost everyone will try to sell you something if they know you are here to buy. Therefor they will try to talk you out of almost anything else you might be thinking of doing. Pattaya is full of experts with not much on during the day. They like to spend their time telling others how things operate around here. Thats why its vital that Kevin only takes advise from reputable experts with a portfolio to call their own. As for the experts & savvy investors like John, some of their points about not buying rental guarantee properties might even be valid. Things such as:
- You can get a much nicer unit in another project with a better view.
- You can get the same unit for cheaper around the corner.
- Who knows how long these rental guaranteed will last. I don’t trust them a bit.
if John told Kevin to knock back 10%p.a rental guarantee he must get some pretty good deals himself right?. John (Investor 2) belongs to the segment of mostly savvy local expats as well as frequent visitors to Pattaya. People who have been coming back here for 10 or 20+ years. These are the investors who have really seen Pattaya real estate market, Pattaya condo market in particular, change, shift & take shape into what it is today. A lot has changed in this small town and a lot more planned going forward. As well as knowing what to buy, savvy property investors in Pattaya have also mastered when to buy and when to sell. They usually buy right at the launch of a project when the prices are at their lowest. And they get as much discount on the already low price as possible. Then they pair this low price with an easy payment plan of something like 20% down and 80% on transfer. Not only will this keep their commitments down but it can also increase their buying power. Basically for the full price of one condo they can now buy up to 5 condos with the balance due in 3+ years. With in that 3 years+ there will be several price increases totalling to about 30% – 40%. So they go in early, pick the best possible units for re-sale, get the lowest price, pay 20% and wait. So if the investor has paid 20% upfront being 200,000THB on a million baht condo (lets say 1 million to keep things simple) and they sell with 25% profit when the developer’s price increases have reached a 30% increase. In which case they sell quick as price is below the developer. Also they have basically doubled the money they invested per unit in a matter of 2-3 years & even covered the agent’s 5% commission. 
investors in Pattaya found out the hard way when their currency decreased dramatically under US imposed sanctions. This resulted in reducing their currency by around 70% at some stages. Now I think its around 50% but thats still a substantial increase in commitments & repayments on properties still under payment plan. From here emerged a new way for investors to purchase condos in Pattaya below launch price. So even if some investors missed the launch of certain projects they again have the chance to purchase Russian re-sales at prices below their original purchase price and in most cases below the launch price. Then off course depending on their own investment style & preference they either sell or rent them out through their network of agents or manage the property themselves on platforms such as airBNB. In which case they need to be present & ready to service & maintain their rental property. 