Krabi Hot Talk

4 types of real estate investments that novice investors should know.

Regardless of how many years pass or how volatile the economy becomes, real estate investment remains one of the most popular and worthwhile investments. It offers low risk, good returns, and steady increases in value over the future. Furthermore, it provides a comfortable feeling when knowing you own the asset.

However, many novice real estate investors need to study and understand the different types of real estate investments. Krabi Land and House will introduce new real estate investors to 4 popular investment options to help you decide which type to choose when you need to invest in property, land, or a house in Thailand.

1. Investing in Real Estate Funds

This is an easy way of real estate investment that you can start with just a few thousand baht by buying and selling through funds to generate income and returns. You can invest in renting or buying various properties such as buildings, airports, hotels, and shopping malls. After the fund investment consultant deducts management fees and other charges, the remaining income is distributed as returns to investors.

2. Investing in renovation

This is one type of real estate investment, starting with buying resale homes or foreclosed properties with below-market-price value and located in prime areas. The renovated properties are then rented out or resold for a profit. This type of investment may require a minimum investment of several hundred thousand baht for a house in Thailand.

3. Investing in speculative buying and selling

A popular type of real estate investment among investors. It's a simple buy-and-sell method, but instead of products, it involves purchasing land, a house in Thailand, or other properties and then reselling at a higher price at the appropriate time.

4. Investing in rental

This refers to investors who purchase or own houses, condos, or other residential properties and then rent them out to clients. The landlord may obtain a bank loan to purchase the property and then rent it out to generate a steady income. This type of real estate investment includes both long-term and short-term rentals.

Short-term rentals - signing contracts with tenants for a period of less than 3 years, such as monthly or daily rentals to tourists in popular areas like condos in central Bangkok or accommodations or pool villas in provincial cities like Phuket City, Krabi City, Chiang Mai City, Pattaya City, etc.

Long-term rentals - signing contracts with tenants for a period of more than 3 years. This requires registration of the lease agreement at the land office. This is suitable for commercial purposes, such as leasing land for shopping malls, hotels, etc.

However, like any investment, real estate investment comes with risk. Therefore, novice investors need to thoroughly study various aspects, including consumer behavior, laws, finances, your experience, and your own liquidity, in order to achieve a worthwhile long-term return on your investment.

Importantly, don't forget to carefully consider the location for real estate investment. If you're investing in a house in Thailand, there are certainly many interesting tourist cities. One of them is Krabi City, a global destination for tourists from all over the world. There are also many reasons why Krabi City is good for real estate investment, including prices, opportunities, and the potential for further growth in the future.

If you see the potential of Krabi City and are looking for real estate investment opportunities in this city, just contact Krabi Land and House, a leading real estate developer in Krabi City with over 20 years of experience. We have many housing projects, land plots, and pool villas in Krabi City and are happy to provide advice for you. Because at Krabi Land and House…we pay attention to every detail.