There may be quite a few reasons to jump into the real estate market and buy a condo in Asoke or other Bangkok central areas. I tried to list the main of them and come with the following six reasons.
Pride of Ownership
This one is probably the biggest reason why people buy properties – simply to be proud of saying we own whatsoever. And it does not really matter if it is a small hut or condo in a city center, as soon as it is yours and you are free to do with it as you please. People are proud to own any property since ownership means accomplishment.
Quit Renting & Equity
Many think: “Why should I contribute to someones wealth when I could be paying off my own?” With various funding programs available in different countries, it is easier than ever to own a home with relatively small money down. And with the perpetual rental market increase it becomes more reasonable to own than to rent without a fear of mortgage payments increase.
One of the greatest things about real estate ownership is that property owners build equity, which gives them financial freedom to access a home equity loans. Property owners may borrow against the equity they have built in there own home for a all kinds of reasons such as home improvement, paying for private school, medical treatment, or starting up a new business. As opposite, you will never see again money paid for rent.
Investment – Appreciation & Rental Yield
In long term the price of real estate always increase making buying real estate one of the lowest risk long-term investments we can make. Historically, real estate has had a long-term, stable growth in value. For example residential property prices in Thailand appreciated (increased) more than 40% during last 8 years.
If you need to choose between “investing” in a new car or in a new condo, a condo mostly probably wins as it will appreciate (increase in value) over the years while a vehicle depreciates (decrease in value). Property investors who build some equity may also be in a financial position to buy another property to rent out.
Property investment may be considered for two general purposes. First, is to gain wealth from property price appreciation either in short term or in longer term. Another purpose is to buy property for renting it out and to gain profit based on property rental yield (the annual rental income, expressed as a percentage of property purchase price). For Thailand an average property rental yield is more than 5%, that is one of the highest rates in South East Asia.
We recommend to get an advice from reputable local real estate companies before making investment decision.
Low Interest Rates
Nowadays interest rates are low. It makes sense to buy property rather than keep money in bank. Also low interest rates are an opportunity to get your foot on the first rung of home ownership. It may be the right time to get into the real estate market and lock into a low interest rate and start building an equity.
Freedom, Privacy & Security
You are free to do whatsoever in property you own – to paint the walls in any strange color with graffiti or decorate the ceiling with mirror or carpet! You are free to apply your unique talents and taste and to express yourself so that you can change the house to satisfy your private and special needs. When renting condo, your freedom is certainly limited. The only limitation you may have for your own property is keeping in mind that when you are ready to sell it, some potential buyer may prefer different style.
If you favor privacy, owning your own house permits you to stop worry about the owners checking up on you. Now you are the owner of property and you gain an independence and privacy with this ownership.
Have you been worry about your apartment or condo being sold out from under you to investors or somebody else? When renting condo and facing this situation, you could find yourself forced to pay unreasonably higher rental price. Such increases happen indefinitely so the investors can make greater wealth while you will need to leave and they can turn your building into a high rise condominium or serviced apartment.
Stability & Sense of Community
Owning a property gives you and your family time to build long-lasting relationships within the community, gives you a feeling of belonging in that neighborhood and gives you the sense of putting down roots and getting established. It also offers your children the benefit of educational and social continuity.
Hi there. Yesterday I published the last Part C where I have concluded that I will need to spend more than 250,000 ฿ (almost 7,200 $) a month in New York if I want to maintain same lifestyle that costs me 95,000 ฿ (about 2,700 $) here in Asoke Bangkok Thailand. This calculation is probably quite specific for my own lifestyle, even though it may be some good indicator for other expats. I took into account food, utilities, consumer goods, sports and, certainly, real estate expenses to compare cost of living between two cities. I may need to add cost of health services – this may be of interest for many expats, especially those from New York, where cost of health insurance and doctor visits getting higher and higher. It may be a good topic for one of next articles.
Here I would like to complete calculation for comparing cost of living in Asoke Bangkok and Sydney Australia, as started in Part B.
How much it would cost me in Sydney to maintain my same Asoke Bangkok lifestyle?
We already know that consumer prices (excluding Real Estate rent) in Sydney are 76% higher than in Bangkok, restaurant prices in Sydney are 182% higher than in Bangkok, and groceries Prices in Sydney are 51% higher than in Bangkok
Apartment Rental Prices in Asoke Bangkok and SydneyRead More
Hi there. Last week I started this “project” of comparing cost of living in Bangkok and New York. I have done it in a non-traditional way that is, however, relevant for me, and, probably, for some of readers. My way of comparing is based on a fact, that spend 95,000 ฿ (around 2,700 $) a month to maintain a certain lifestyle here in my condo in Asoke Bangkok.
How much it would cost me in New York to maintain my same Asoke Bangkok lifestyle?
In parts A and B we already compared cost of food, transportation and other expenses, excluding real estate and salaries. My calculation shows that consumer prices (excluding apartment rent) in New York are more than 2 times higher than in Asoke Bangkok. Restaurant prices in New York are almost 4 times higher than in Bangkok. And groceries prices in New York are almost double of those in Asoke Bangkok.