If you're considering buying a condo to rent out, seeing the potential profits from the investment, you need to be more cautious in your selection. Due to increasing competition, returns have diminished, making many projects not worth the investment.

This situation arises because the mortgage payments do not match the amounts that condo owners have to pay the bank each month. Many projects are now selling units that have fallen through, offering discounts and additional perks to attract buyers. Therefore, choosing a condo for investment requires more careful consideration, and you should keep the following points in mind.

1. Choose a Good Location That Works for You

Don't rely too heavily on textbooks or financial gurus' principles; instead, choose a good location that you can manage without too much hassle. The project you select should be fully furnished so you won't have to struggle with decorating the condo for rental. Sometimes, you might find an affordable condo in a high-demand rental area, such as Rangsit, where you can still find condos priced in the low millions. However, you must choose good tenants; otherwise, renting it out could lead to property damage.

2. Look for Projects with Future Value Appreciation

Condo profits come from rental income and price appreciation over 5-10 years. You should research the area to find out how much similar quality projects with comparable room sizes are renting for. The orientation of the room may affect the purchase price but might not impact the rental price. Look at the demand from tenants in that area—are they students renting for school or professionals renting for proximity to their offices?

3. Negotiate Before Buying

Explore various condos in different areas. Don't rush; choose a condo in a project that is either completed or nearly completed with only a few units left in a suitable location. Completed condos often have sales staff eager to close deals, allowing you to negotiate for extras, appliances, or waived maintenance fees.

4. Use Spare Cash for Investment

Since condos are a long-term investment, you shouldn't rush to sell. Carefully calculate the funds you'll need for the investment, including reserves in case there are no tenants for more than a month.

5. Find the Lowest Loan Interest Rates

Loan interest is one of the costs of investing in rental condos. You can choose the lowest fixed interest rate for the first three years, then refinance after that period or request a lower rate from your existing bank.

6. Know Your Target Tenant Group

You need to understand who your potential tenants will be—are they Thai or foreign, students or professionals? Knowing their monthly rental budget will help you decorate the room and provide amenities that suit their needs, making it easier for them to choose your rental.

7. Utilize Technology to Find Tenants

If you buy a condo in a tourist area or a popular tourist province, you should learn to use technology and applications to find and communicate with potential tenants. While monthly rentals are still feasible, daily rentals might be illegal.

SOURCE: tonkit360