Pros and Cons of Buying Real Estate in Krabi, Thailand

HomePros and Cons of Buying Real Estate in Krabi, Thailand

Pros and Cons of Buying Real Estate in Krabi, Thailand

In the world of investments there are many options so the main thing is not to make a wrong choice. In today’s world situation the only clear and stable tool for saving and adding value remains purchasing of real estate. Square meters are not affected by inflation, banking crises, currency devaluations and other economic surprises. It is especially true for the properties located in resort areas, like Thailand. Real estate in Krabi, Thailand, does not require any introduction and presentation. This location is widely popular among foreign investors and those who plan to move to Thailand for permanent stay.

The Expenses on Real Estate in Krabi

Your real estate costs depend directly on the form of ownership you choose. For example, when buying an apartment in a condominium, a foreigner does not spend on the maintenance of the company, which even if it will be fictitious, still has to submit reports.

More of the costs can be allocated – a single payment of registration tax and contribution to the underflood fund (that is, you will be insured against a flood, which, although rare, but occur in Thailand). In the first case the tax will be 0.1%, and in the second – 450 baht.

Utility fees vary depending on the region and the amenities your condominium complex provides: security, swimming pool, fitness room, etc. Similar to hotels, condominiums also have stars, which indicate the level of comfort of the apartment complex, from one to five. Utility bills range from fifty cents to a dollar, depending on the region. Cold water and electricity are metered, and rates vary everywhere.

Goals of the Buyers of Real Estate in Krabi

If you are planning to buy a home solely for personal use, the choice can be guided only by feelings and emotions.

If the main goal is to generate income, then there are three basic investment strategies:

Buy and sell

It is only a question of a quick resale of the contract during the construction process, from the foundation pit to the roof. It happens this way: a buyer chooses a new building at the very start of sales and at the minimum price, then resells it at the last stage of construction. This is called an assignment of the contract, as there is no need to execute a new contract of sale and pay taxes before taking possession. Just change the name in the contract, and the new owner is already registering the apartment in his name.

Pros:

  • Fast turnover of money
  • High margin
  • No taxes and duties

Cons:

  • With high competition, you won’t have time to make a resale before construction is complete and you’ll have to take ownership, pay tax and registration fees
  • Newly built, which can be quickly and with 100% confidence resold during construction are difficult to find

Buy, Rent and Sell

The apartment is bought for renting it out and getting income (not regular), and then resold at the maximum price in 7 years to avoid additional tax costs.

Pros:

  • Total in the plus of 30-40% in 7 years at least
  • Use of the apartment for personal purposes
  • The absence of risks than in 1 strategy

Cons:

  • There is not many real estate that is always popular to rent

Buy and Receive Guaranteed Income

The most optimal strategy, it can be compared with the bank deposit. Buying an apartment, the buyer signs a guaranteed rental contract for 5 or 10 years, which specifies the amount of monthly income, regardless of whether your apartment is rented or not. This is the concern of a management company, you just get a regular and stable passive income. If you want, at the end of the guaranteed rental period, you can use the option to buy back your apartment. The developer himself will buy back from you at 100% of the original cost.

Pros:

  • Regular and stable income
  • The occupancy of the apartment is not your headache
  • No ongoing utility costs

Cons:

  • Inability to live in person
  • Difficulties with reselling the apartment during a guaranteed rental contract

The Key Notions

Real estate in Krabi is a beneficial option for any investment strategy. Visit the website Thailand-Real.Estate and become aware of a wide selection of high-quality properties in convenient locations.

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