Flipping Properties Opportunities in Thailand
Investing in real estate has become increasingly popular over the last fifty years and has become a common Financial Investment vehicle. Although the real estate market has plenty of opportunities, buying and owning real estate is a lot more complicated than investing in stocks and bonds. We want to provide you a quick guide for your Property Flipping investment.
Property Flipping or Real Estate Flipping What is it?
There are many Types of Flipping or types of real estate investment strategy, we will outline some of does opportunities as a
Flipping Investment strategy
Property Appreciation – An investor purchases a property with the goal of reselling that for a profit. The profit is generated either through the price appreciation that occurs as a result of a hot housing market and/or from and capital improvements. Investors who employ these strategies face the risk of price depreciation in bad housing markets. This investment Strategy typically takes more time.
Property Improvements – The investor will put some money into a house for improvements; the investment has to have the intrinsic value to turn a profit after alteration or they won't consider it. Flipping in this manner is a short-term with some cash investment. If a property flipper gets caught in a situation where he or she can't upgrade the property value, it can be devastating, because these investors generally don't keep enough ready cash to pay the mortgage on a property for the long term. This can lead to continued losses for a real estate trader who is unable to offload the property in a bad market.
Buying Low Selling High - the 3rd class of property investment flipping also exists. These investors make their money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment depending on the extent of the improvements. The limiting feature of this investment is that it is time intensive and often only allows investors to take on one property at a time.
Buying Option and Sell Before Transfer – the 4th Option of Property Flipping, investors make their money by getting in to a purchase agreement with a down payment or deposit made and before actual property title transfer the Investor already sell the property to someone else in a higher price. In this case the investor can maximize the profits by avoiding paying taxes and transfer fees. This Flipping strategy is very risky as the Investor can be in a situation that he or she did not find a buyer and they may loos the deposit if they were not be able to complete the full transaction.
Flipping the Property the Bottom Line
We have looked at several types of Real Estate Flipping Investment in Thailand, however, as you might have guessed, we have only scratched the surface. Within these examples there are countless variations of objectives of real estate investments. As with any investment, there is much potential with real estate in Thailand, but this does not mean that it is an assured gain. Make careful choices and weigh out the costs and benefits of your actions, before diving in to Flipping Properties.
We also recommend you to join our sponsored
Real Estate Investors and Networking Meetup group