Investment Insights

How to Identify a Good Property for You

BY Bridge Estate

Buying a property is no small feat. There are so many different types of properties and areas to invest in. There is also a lot of information that you need to know before you make the final decision to buy it. There are many factors that go into ensuring that you are making the right choice, that your property will actively generate value for you, instead of being a loss-making venture.

Whether you’re looking for a property for the short-term, as an investment, or for the long-term e.g. a retirement or vacation home, there are certain characteristics that you should look for in your potential property to qualify it as worthy of your investment.

Location
Arguably the most important factor you should consider when you’re deciding to invest in property. You should do a full sweep of the surrounding amenities and evaluate whether they will be suitable to your needs or not.

If you’re planning to move into the property, you should gauge how far it is near your workplace, schools and other amenities like shopping centers and transport facilities. Some homeowners that are planning to rent out their properties usually prefer to own homes near schools as they’re able to lease it out to families with children for longer, securing a long lease.

Retirees on the other hand, might want to live slightly further away from the city centers, in quieter neighbourhoods that are still serviced by transport networks. Some might prefer to stay near hospitals and clinics for their healthcare needs, while some might prefer to actively stay away from them because of fengshui or other related beliefs.
It’s always good to have a laundry list of your needs and preferences of amenities near your future property to check off when evaluating your choices.

Major Future Developments
Taking a long-term approach to your property search will allow you to reap more value. You should take note of the major developments that will be surrounding your property e.g. public transport networks, schools, expressways etc. This will ensure that your home’s value will increase by a large factor over the next few years.

If you are looking to invest in a property overseas, it is also worth looking at economic and job market forecasts of the country/city that you’re planning to buy your property in. While not a guarantee by any means, it will give you an idea of how the real estate market will look like in the short-term and help you gauge the appreciation rate of your property.

Returns on Investment
Regardless of your reason for buying a property, whether it’s for retirement, vacation or investment, it is important to calculate its potential returns when evaluating your choice in home. Even if you’re not looking to earn huge returns, you should at least make sure that you’re not making a loss or taking on an unmanageable financial burden in the short-term.

Engaging a local property agent to conduct thorough research on the rental yields and capital appreciation values of the properties that you’re considering will give you a clearer picture of the value that your property will generate over the years.

Ensure that you’re fully aware of and familiar with the various costs and taxes associated with your purchase to get a complete understanding of the financial commitment that you will be making.

Developer
It is important that you are fully aligned with and comfortable with the property developer of the home that you’re looking to purchase. They should have ethical businesses and construction processes that assure quality and commitment, that also align with your personal values.

Look for established track records for project completion and transfer, industry awards for quality and performance and positive reviews from past and current customers. For overseas property buyers, ensure that your property developer offers comprehensive after-sales services that enrich your home owning experience.

While location, future developments, investment returns and the property developer are not the only factors that you should consider in your property search process, they are the most important ones that will heavily influence your choice. It is important that you do your research, and engage experts that have your best interests at heart.

If you’re looking to start your property ownership journey in Thailand, speak to our experienced agents here.

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