Category: Blogging
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Koh Lanta Ocean Apartments
Make Money Off The Property Market?
In my home country of the USA, it was common for investors to buy a property and then rent it out, whereby the rent covered much of the mortgage, and often exceeded it. In Thailand, this is not true, i.e., rental prices usually do not come close to mortgage prices. This is the nature of the Thai property market and the values in the local economy.
Notably, right now, the ratio of sale to rental value in Thailand is around 200, i.e., if you collect rent for about 16 years then you'll break even. In the west it's around 100.
However, many properties have been appreciating in value at a high rate in Thailand, whereby many investors have bought a property and simply sat on it for awhile before reselling it to turn a profit, the property having never been occupied. This is particularly true in Bangkok, Pattaya, and Phuket. Under those circumstances, the rent could be seen as pure profit, in view of the eventual resale of the property for profit.
However, every property and situation should be analyzed independently.
Kind Regaards
Brad
089 727 0689
krabiagents@gmail.com
Read more: http://www.myspace.com/krabiagents/blog#ixzz0xa3RG3jp
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