Choosing between a plot and a flat in Thailand

Choosing between investing in a plot or a flat is a common dilemma for many potential investors in Thailand. Although each option has its own merits and demerits, there are several important facts to help you make an informed decision.

Let us discuss some of them in more detail:

(1)Income generation

One advantage that owning a flat has over owning a plot of land is that a flat is ready to generate income the first day it is rented out. Even when land generates rental income, it is always very low compared to how much a flat can generate.

(2)Resale value

This is one of the most important factors to consider when purchasing real estate. This is even more so when you intend to buy in the outskirts of a large city. Generally the resale value of a plot increases with time while the opposite is true for buildings due to wear and tear.

(3)Investment cost

When choosing between the two options, it is important to consider the cost of purchasing, developing as well as maintaining the property. Compared to a plot, a flat has many other costs that are associated with it in additional to the initial purchase price.

(4)Supply and demand consideration

The demand for plots does not diminish especially in developed or developing localities. Demand for constructed flats is not as high due to the high cost involved.

(4)Lifespan of the investment

A flat has a lifespan after which its value starts to diminish. This is because after a while growth stagnates due to the limited ways of using or modifying the property. A plot on the other hand will continue to appreciate as demand rarely diminishes.

(5)Bank assistance

One advantage of investing in a flat is that banks are willing to provide financing. It is not easy for banks to show the same willingness when it comes to financing the purchase of a plot.

Bottom line

It is clear that both options have their own pros and cons. It is important to consider all your own specific requirements before you even consider the factors discussed above.

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