Category: Property Market (2)

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The Pattaya real estate market has certainly seen some ups and downs over the past 10 years or so. Here at Powerhouse, we’ve definitely heard our fair share of painful stories or known someone who has learned difficult lessons from investing when the market was up and peaking. Now that we are in a down period, we wanted to highlight the benefits and strategies for purchasing real estate in a down market. When prices are low as they are now, this can be a very rewarding time for patient investors. Below are some tips and advice to keep in mind when considering to purchase real estate in a down market.

Buying in a Down Market Requires Patience

Patience is a virtue: Being patient is certainly a virtue when you are buying while everyone else is selling. Remember, it is certainly a buyer’s market and you have the upper hand. If you have time, look at many properties in order to get a good sense of what you are looking for and the price you really want to pay. When you have spent enough time searching properties in Pattaya, you will really be able to see the difference between high quality developers and projects, where Powerhouse Development prides itself. You have no pressure to quickly buy in a down market, you are in the driver’s seat and should use that time and advantage to wait for the perfect time and property for you.

Negotiate the Property Price

Negotiate firmly: In the current economic and real estate environment in Thailand and Pattaya, the buyer definitely has the upper hand; don’t be afraid to use it. You should definitely be negotiating in a firm and resolute manner. The seller almost certainly needs to sell their property far more than you ‘must’ need to buy it. Negotiating effectively can save you significantly on the purchase price or help you to get inclusions and additions for customizing your new property.

Rental Property can be an Ideal Investment in a Down Market

Consider looking for profitable rentals: The key to real estate investing in any market (up or down) is strong positive cash flow and profitability. You definitely don’t want to forget that you are planning on laying out money monthly not only to finance, but also to maintain the property. Plan your profitability from the rental property to be sufficient enough to cover extra costs. If you can make it with a positive cash flow on the rental, plus the added equity from investing during a down market, you will achieve real estate investment success.

Don’t Overspend

Don’t overspend on extras and repairs: Granite countertops and wet bars may have been a big deal in the past, but a little practicality in your investment approach during a down market will certainly benefit you. Quality materials that are aesthetically pleasing and functional are the way to go, skip the vanity additions. If you can resist getting lured into the ‘WOW’ factor, you will keep your costs lower and attract the right renters or buyers.

It’s all about leverage: The continuous issue we see from those falling into real estate troubles is the act of overleveraging. There is just no way to sustainably cover a mortgage that is too large by generating rental income. We recommend you to keep your leverage at a maximum of 80% of the property’s value, which will provide you with the financial flexibility should you find yourself in a period of vacancy or financial troubles.

We hope this short refresher helps and motivates you to consider buying while the market is down. Follow the real estate pros and the rich, this is when they buy and this is how they get richer. When you are ready, contact us at Powerhouse Development, where we will be your guide to finding the right investment in the Pattaya Market.

Look at Other Factors in the Kingdom of Thailand

The Thai economy as a whole has proven over the years that is is resilient. Thailand is now one of the leading food exporters in SE Asia. Right now Thailand is one of the top exporters of rice, canned pineapple, frozen prawns, and tuna fish. With rice exports Thailand lost the top spot to India in 2014, however they are tracking to improve in the coming five years and there goal as a nation is to regain the number one spot. The fishing industry has been under pressure from the EU in regards to regulations and the entire industry has a led a clean up effort of their practices which will only help to improve exports in the coming years.

Look at the Price per Square Meter, not just the total Price of your Condo for Sale

Many people make the mistake of fixating on price and they forget all the other factors that go into making a sound real estate buying decision. Yes price is important but that is not the only thing to consider, and even more important than total price is the price per square meter. What may seem like a great deal, may be just because the condo is undersized so the total price seems cheap but if you work out the price per square meter you will realize it is not such a great deal.

The Best Deals are often Found either Off Plan or Buildings Under Construction

Specifically for the investment client when looking to maximize returns by buying low and selling high one must look at both off-plan purchases and projects that are currently under construction. The risk does increase when you buy in a building that is not complete, however if you choose the right building the payoff is much greater than buying after completion. Prices have been known to jump 30% during the first year after completion.

Do your homework on the developer! Look for a developer that raises their own capital rather than taking out construction loans. Find the developer who is still building during the slow times. Yes they will be behind schedule, it’s construction and it’s a down market, that is to be expected, however if they are still building despite the obstacles they are someone to watch closely.

Watch the materials used in the projects, are they high quality or mediocre? Higher quality will likely mean the condo will retain its value or increase quicker.

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Just about everyone has heard the old adage that time is money. The savvy investor has internalized this saying and lives it with every investment decision, whether buying a condo in Pattaya Beach for rental income, or investing in a piece of land to open a business in the up and coming area of Jomtien Beach. Whatever your investment goals in the property market for the eastern seaboard of Thailand Powerhouse Properties Co. Ltd. can be of assistance. Everyday Powerhouse receives enquiries from prospective buyers, sellers, and renters for Pattaya, Jomtien, Na Jomtien and the surrounding areas.

Powerhouse Properties realizes that your time is money and that it is very valuable to you. We specialize in connecting buyers and sellers, renters and landlords in the Pattaya Property market for commercial, residential and investment purposes. Powerhouse provides property management, expert marketing for sale listings for land, condos, and homes as well as commercial buildings, and appraisal services for prospective sellers. Your agent will advise you on every step of the process, whether you are looking to rent a studio for 10,000 a month, or you are looking to buy an entire floor of a newly developed building. The staff at Powerhouse Property will treat your time as valuable as you do.

Buying a Property in Pattaya Beach or Jomtien Beach

Then do not waste it and utilize the professional services of our reputable property agency at ‘Powerhouse Properties Co. Ltd.’ By taking only a few minutes to answer some simple questions, we can review our extensive database and not only locate the ideal property you are seeking, but also provide guidance right through to final acquisition.

We have a large inventory of available units for sale. Choose from houses, townhomes, condos, apartments, flats, penthouses, luxury accommodations, guest houses, shophouses, businesses, warehouse space, land and anything else you can imagine in the Pattaya property market. Houses can be freestanding, with or without a fence, some are located in villages, some have security, while others are outside the city without even a fence around them. Condos can be found on the beach, in high rise buildings, low rise buildings, over the top of businesses such as shophouses, in luxury buildings and in budget buildings. There are properties for sale to suit all tastes and budgets and for any purpose, whether vacation home, permanent residence, or rental property.

Selling Property in Pattaya Beach and Chonburi

If you are looking to sell your property, then the sales and marketing team at Powerhouse Properties Co. Ltd. can help via our Pattaya office. Powerhouse provides vast media coverage and a bespoke expert marketing strategy, we will connect you with real buyers and ensure a smooth and easy transaction. All that is required is a quick phone call to +66 (0)38 059 635 or email listings@powerhousepropertiesltd.com and allow our competent team to do the rest. Do not delay and list your property with us immediately. Powerhouse also welcomes walk ins. Stop by our office located on the ground floor of View Talay Residence 4, Jomtien Soi 5 near the Immigration Office.

Finding an Agent in the Pattaya Property Market

As a recognized property agent, we are regularly informed of current market trends and keep in close contact with all the developers within Pattaya and the surrounding area. Acting on your behalf we can usually obtain you a great deal, and negotiate better overall terms for that perfect investment. Our team has years of experience in the International Real Estate Market. Our agents speak a range of languages including Thai, English, Mandarin, Cantonese, German, Dutch, Spanish, and Russian.

Rental Management in Pattaya and Jomtien Beach

If you are an investor looking to have rental property in Pattaya or Jomtien Beach and do not want to manage the property yourself Powerhouse Properties can arrange that for you. Your rental property will be listed on both our websites, our complete listings site, as well as our dedicated rental site www.pattayarentalsnow.com We can manage rentals of all types including Holiday Rentals with daily, weekly, and monthly terms, short term rentals of 3-6 months, or long term rentals of 1 year or more. Full service property management from listing the unit, showing the unit, having the unit cleaned, qualifying the client, and taking care of contract signing and the collection of rental payments can all be arranged via phone, email or in person.

The Property Search in Pattaya

We are aware that not everyone is looking to invest in property immediately and some prefer to undertake a rental tenancy in the interim. Whether you are looking to rent a property or have a property that you wish to receive a rental income, then our staff can provide the proficient assistance required. Powerhouse will assist you in the acquisition of land, a single condo unit, multiple condo units, the floor of a condo building, an entire condo building, a townhouse, a freestanding house, or a commercial property. In conclusion, whether you are looking to buy or sell a property, rent or lease real estate, then look no further and let Powerhouse Properties Co. Ltd. ease the stress and take care of your needs.

Please do not hesitate to let us know how we may help you save your valuable time.