Nowadays, both young people and the new generation are beginning to see the importance of investing more and more. Many people want to learn how to make their money work. want to have financial freedom By studying and gaining knowledge in things like investing in gold, stocks, real estate funds, but that's it. No matter which investment has a high return The risks are also high.

For an investment that is becoming a favorite among new real estate investors, it is "investing in condos for rent". Some people invest according to their friends. Some people invest because they want to have financial freedom. Or some people invest because they think it's probably the easiest way to invest in condos. Just pay down payment, submit a loan, transfer, find a tenant, let the tenant pay installments. In the end, I got a condo for free. After 5 years, I could sell it for a profit. The formula is like this. But in reality, it's not that simple. Every investment has risks. As for the risks for investing in condos for rent, there are 7 items as follows.

1. The risk of having more investors

more competitors, currently more than 50% of condo buyers More investors than residents Some are speculative investors. Some are rented out Therefore, there is a higher competition for tenants. More rooms to choose from Make the rental price lower than the target. Therefore, investors should study guidelines and make a difference from competitors. When there are many competitors, we have to learn how to acquire more customers, such as learning how to use the Internet, using agencies or new channels. in finding a tenant so that our rooms can be rented faster

2. The risk of not being able to find a tenant

This is the main problem of investing in rental condos. is afraid that there is no tenant But this problem will be gone when before deciding to invest in a condo for rent Should explore the target group and location first that Where is the location? Is it close to the community, such as hospitals, government offices, department stores? How much is the condo? What should be the rental price? And at this rental price, who will come to rent? If you can answer these questions without taking sides with yourself The risk will be less.

3. Risk from uncontrollable transportation routes

mass transit system or train etc. Some condo projects have informed customers or investors that Condo completed with electric train project Finally, the condo is really finished. But the train is not finished yet. Like this, there is definitely a risk of renting. Because tenants expect to rent a condo because it is close to the BTS for convenient travel. Therefore, this problem is the risk that the investor himself has to accept according to the condition. The best way is to study and choose a certain location before investing. Don't depend too much on future projects. Because if it's not as expected, the risk will happen to us.

4. Project risks

In this case, it means some projects from new entrepreneurs. with promotions or promotional discounts to attract investors But then the project was not completed, causing investors to leave the down payment or make complaints. go to court Waste of time as there are examples of many projects. Therefore, to reduce the risk, investors should study and be sure of the performance of each project that we will invest in.

5. The risk of fussy problems that will follow

Regardless of any investment, there will definitely be problems and obstacles that follow. As for the problem of renting, it was there from the beginning. Is to decorate the room, find a mechanic, install built-in curtains, buy furniture Every step will encounter different types of people. Until the problem with the tenants Therefore, before investing Should study yourself well before that. Once invested, will it be able to cope with these problems? Will you be able to enjoy the problems that will arise or not so that the investment risk can be reduced?

6. Risk from not self-estimating

Some investors invest with greed. Invest in multiple rooms at the same time Hope to get rent to pay back to reduce this risk Investors should consider themselves. Choose to invest moderately. Think about your ability to pay off. If the case is still unable to find a tenant Must have expenses from condo installment common expenses Including the fussy expenses that will follow must make us live happily Not tight or slack in investing too much It will help reduce the risk of investing.

7. The risk of lack of knowledge

This item is very important, regardless of any investment without knowledge. The risks will definitely follow. Therefore, to reduce this risk Condo investment should be studied. and should study yourself Ask questions and answer yourself that Why do we invest? What kind of investment do you like? What price should I buy? How much to rent? Who is the target audience? Where is the best place to invest? Various information is available from websites, seminars, books, or listening to experiences from successful investors.

Therefore, before deciding to invest in a condo for rent. Things to study are: 1. Investors themselves 2. Condo projects 3. Trends in future situations that we can't predict, such as economy, politics, transportation. Because when there is a lot of knowledge little fear low risk Make us invest happily.

Source: https://www.krungsri.com/th/krungsri-the-coach/investments/investment-knowledge/things-to-know-before-renting-out-condos

Date 8/2/2023