When Buying To Let, Don’t Develop For Living

Many real estate investors fall into a simple trap on their first development. Having purchased a property with letting it out in mind – or even the idea of selling for a quick profit – they behave too much like themselves. That may sound wacky, after all we are all told often enough to “be [your]self” when we are young, so why change? The problem comes with the fact that a buy-to-let real estate property may look wonderful to you when you are done with it – but you are not going to be letting it to you. It is all too easy to become personally involved with the development and make a mess of it. So remember to take a detached approach when it comes to development.

One thing to remember about real estate development is that it tends to involve homes. Even if only subliminally, a house conveys to us the feeling that it is for living in, and when we come to develop it we often do this based on what we would like to live in. This is fine, in small measures. To put it another way, you need to be able to look at the house and feel that people would be at home there. It is not about standing back and thinking that you would feel at home, because you are not going to be living there. Adding idiosyncratic touches to the development because you feel it gives the house some character may well be an artistic approach, but remember that your idiosyncratic touches will make the character of the house your character.

This is not to say that a new development should be bland and consciously inoffensive. There needs to be something innovative about it if you are to realize a profit. To get an idea or two, it is helpful to view a house or two in the same area, houses which are selling for close to the price you hope to realize. By doing this you will be able to see what kind of stamp you want to place on the property when it is finished. Location is important when it comes to the kind of touch you want to put on the house. If your development is in a neighbourhood that is by tradition the place for retired couples, then developing a classic bachelor pad or a house for a young family is obviously going to lose you profits.

It doesn’t need to be rocket science – you can do some very simple research and find the ideal development property, then with a few simple touches have the ideal house or set of apartments to sell to the local market. Don’t make the mistake of getting too attached to the house, or to your idea of what it should look like. The chances are the potential buyers will have tastes which differ with yours. Save those touches for when you develop a property for living in. that is when you will need them.

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Renting in Thailand

Living abroad is something that most people want to do for at least some portion of their life, and which more and more people are deciding to do. As the Internet among many other things has seen the world become a lot closer, we all have a much better insight on other countries, their customs and the options they offer for someone looking to move there. Depending on the move you make, the “intricacies” of the whole process may not even need to be all that intricate. It is imperative, though, that you inform yourself of exactly what will be expected of you before you begin to put your plans into action. For example, while it may be relatively easy for a Canadian citizen to move to the US, or vice versa, moving between continents is not as straightforward.

The vagaries of property law often see a particularly large amount of tax levied on anyone looking to buy a house in a country where they have not lived before. This is one of the first things you should check before moving, as it can add another 50% to the cost of the house. Among the nations which place severe restrictions on non-nationals owning property is Thailand. To buy a property anywhere in Thailand, a non-Thai national will need to jump through a certain amount of hoops, and will invariably end up paying more than a Thai national. In order to avoid doing this, it makes a lot of sense to rent initially if you are planning only to spend a few years or less in the country. In becoming better acquainted with the country, it is also possible to learn a way to buy a property hassle-free, or monitor any changes in law.

Renting a property in Thailand, for Thai or non-Thai, is a lot more convenient and straightforward than purchasing. In fact, it is so straightforward that negotiation is very firmly discouraged. If you see a place advertised as being available at a certain price, you should not even consider trying to work the landlord down – most landlords will prefer to leave the property empty than rent it for less than the going rate. Why you would negotiate anyway is a matter for yourself – many rents for studio apartments in Phuket and Bangkok are in the region of $150, some even less.

If renting in Thailand it is worth being aware that all rental contracts are exclusive of things such as electricity, water and telephone bills, which are instead considered surcharges. However, considering the affordability of renting a property in urban or rural Bangkok it is hardly too much of a headache for someone with savings and a decent regular income to pay rent and bills and still have enough left over to live on without discomfort. Three bedroom houses in the more rural areas are available for little over $300 a month. At the other end of the market it is more than possible to spend four figures renting a condominium, but for that price quality is guaranteed.

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Why Should You Consider Getting Into Real Estate?

The world of real estate is one that is filled with challenges, and is never as straightforward as one would like it to be – as some think it may be from the outside, indeed. There is certainly no reason to suggest, though, that one should give up on the idea just because of the difficulties, it is these difficulties that make real estate what it is – an arena in which the strong survive and are rewarded handsomely for so doing. What is the story? Why should you consider getting into real estate?

1. The money. Let’s not pull any punches, very few people who get involved in the business of real estate go into it without money as their primary motivation. The most recognized way in which people make money from real estate is to buy a property when it is cheap, and potentially not very nice to live in, then spend some money bringing it into shape so that it can be sold on at a profit. The equation is fairly straightforward. You start with a modest outlay on a modest property. You want to maximize what you can bring in for it while not spending too much. Clever property developers will know how to improve a property while getting the best value.

2. Working for yourself. Sometimes there will be a lot of money in a job where you are answerable to other people. Sure, you enjoy the money, but when you are continually having to devote your time and skills to serving the need and request of someone else it can be tiring and unrewarding (except on the financial front, of course). Being your own boss means that you get to make the decisions and as well as being able to benefit financially you will also have the chance to make your personal philosophy into something concrete. This is something that is enriching in more than just the obvious way.

3. Standing in the community. This is something that tends to go hand in hand with financial success, of course. The two things are different, though. You can become a respected member of the community without a lot of money, and you can certainly make a lot of money without becoming a respected member of the community. But working in the real estate business can offer you the chance to really make ties that will stand you in good stead. Good property options will make a community far more profitable, and by contributing to that you may find that you are sought out by people with sway.

4. The journey is a blast. Often when someone buys a house, they do it up, sell it on and go back to work with a tidy profit in their bank account. This isn’t wrong. But if you realize  a knack for developing properties, you can continue reinvesting and keep making more money. When you are successful in real estate, it often means the big dream coming true – being able to retire early in order to enjoy your spoils at leisure.

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