Last year, we witnessed a phenomenon of overwhelming condo bookings, with sales closing on the same day as the pre-sale. At first glance, this might seem like a positive sign for the real estate market, but the question remains... Are the people in line real demand or are they just buying to actually live there? Let's go back to the primary purpose of real estate, which is the fundamental need for housing. However, nowadays, the real estate market is distorted by speculators holding booking slips for just a few hours, not by those who intend to transfer ownership. These individuals create considerable turmoil in the market because when the actual transfer date approaches, they often cannot proceed with the transfer, leaving units stranded and plastered with signs indicating they are available for rent.

Because the gurus don’t really know

             “Getting rich in real estate with 0 baht” is the most sought-after course. Of course... who wouldn't be interested in getting rich without investing a single baht? This concept seems plausible, but it is essentially a theory of borrowing other people's money or bank loans (OPM: Other People’s Money). Naturally, this comes with interest and various fees. Yet, the so-called experts claim that you can invest in real estate without spending a dime, just find a bank willing to lend 100%, walk in with your salary slip and a beautiful statement, and you’ll get approved easily. After that, just wait for someone to rent it and use the rental income to pay off the bank loan... Wow, it sounds so easy! But who can guarantee that

you will get a tenant immediately? How long will you have to leave the unit vacant?

Will the rental income actually cover the loan payments?

                Let’s stop here for now, as many people have likely already suffered losses. Simply put, if there are no tenants, we still have to pay the bank loan every month, not to mention the annual maintenance fees, repair costs, and other expenses. If you truly come in “empty-handed,” you are bound to face serious consequences.

Don’t just believe the hype of “everyone says it’s good”

                Besides the trend of investing in real estate with 0 baht, another alarming aspect of the real estate market is that “everyone” points out that this location is good, this project is good...

“Don’t believe it until you see the location with your own eyes”

            Many people miss out just by reading reviews, trusting gurus, or believing salespeople who only have superficial knowledge and then decide to buy, increasing the risk of losing money quickly. Not to mention having no money and no knowledge. They believe because others say so, they believe because everyone is rushing to book, they believe because the salesperson says it’s a good rental opportunity. Can these people really be trusted?

Build immunity as a real estate investor

               

If you ask whether investing in real estate is still viable or if you should turn to other investments instead, the answer is real estate remains one of the most attractive assets to invest in due to its high returns and stability in the “long term.” Emphasizing “long term” because TerraBKK believes that real estate will yield results only if you hold it for more than 3-5 years, and you must have a good enough immunity. Here are some points:

  1. Accumulate enough capital because nothing is free in this world. Investing in real estate with 0 baht is “possible,” but the risks are high. Therefore, if you buy real estate to rent out, you should not be someone without savings or who spends all their cash. Every investment carries risks, and there are often unforeseen circumstances that require you to dip into your personal funds, such as not finding tenants or needing major repairs.
  2. Knowledge gained from personal experience or from those who truly know. It’s strange that bookstores today are filled with books on real estate investment, making it hard to choose (while it used to be difficult to find information on real estate). Few books provide “real teaching.” If you’re going to study, you should seek out knowledgeable individuals who “are credible and knowledgeable,” with verified data and reliable analysis. It’s not enough to just hear someone say that this project is good or that project is good... The best approach is to gain experience yourself. Real estate isn’t difficult; you just need to observe the location closely and visit as many projects as possible. No matter how good someone tells you it is, it can’t compare to seeing it with your own eyes.

                Investing in real estate is not easy, but it’s not overly difficult either. Nowadays, there are many temptations. There are people saying this project is worth buying, and salespeople urging us to book quickly because it’s almost sold out. All of this can lead us to make mistakes easily due to pure “emotion.” Use “reason” as much as possible when investing in real estate - TERRABKK