For beginners who will enter the real estate industry It takes quite a lot to study the information and understand the terminology. Because real estate terminology is quite unique, so to increase understanding and preparation Start by understanding the jargon. in order to talk to him to know about it first

On March 29, 2023, Prachachat correspondent Collection of terms that are often encountered in the real estate industry. as a guideline for studying the data or for beginners who do not yet know about real estate

1.Presales

Means the selling price before the official opening of the project or the project that has not yet begun to be built. The price will be cheaper after the project is completed. The advantage is that you can choose the location in the project before anyone else. and have a lot of promotions But it has to be traded with risks. Because I haven't really seen the project yet.

2.Resales

Refers to the selling price when the project is completed. There will be a higher price than the presales period. The advantage is that there is less risk. Able to actually see everything, whether it is the condition of the room, the materials used, the location, the central view, which will be part of making decisions easier. In addition, Resales also means down sales. which is the sale of project preemptions that have been purchased since the presale period

3.Capital Gain

Means the average profit rate from the sale of real estate In most cases, investors will use Capital Gain as a criterion for buying. or invest in that real estate project or not on average Real estate investment Capital gain is 5-7% per year.

4.Rental Yield Rate

means the rate of return from renting which the average rate of return on investment in real estate Especially the condo in the heart of Bangkok. Currently, returns are in the range of 5-7%.

5.Occupancy Rate

Means the occupancy rate in that project, which if the occupancy rate is high, it means that the project is popular.

6.EIA (Environmental Impact Assessment Report)

Means Environmental Impact Assessment Reporting The project must submit a report to the government agency. in order to apply for approval of project development, which, if the EIA does not pass the assessment, the project will not be able to be built Or in the event that the construction has already been completed, there are people objecting to the results of the EIA report submission, that project may have to stop the construction immediately.

7.Prime location/Prime Areas

Refers to potential locations in the heart of the city. has a high price per square meter Therefore, it is often popular with real estate investors such as Thonglor, Silom, Chidlom, and Sukhumvit.

8.CBD (Central Business District)

means Central Business District Is an area that is an economic center such as an office building Leading department stores, hotels, accommodation, transportation, which the current main locations are Silom, Sathorn, Ploenchit, Ratchaprasong, Ratchadamri, Siam, Sukhumvit, Asoke, etc.

9.New CBD (New Central Business District)

Refers to the new central business district The expansion of the city according to the development of the transportation system to provide more convenience of traveling. suitable for investment The locations that have been upgraded to New CBD include Ratchadapisek, Rama 9 and Lat Phrao intersection, etc., which are hot areas for real estate investors. The price is not as high as the inner area.

10.Downtown

Refers to the inner zone of the city. Although it may not be in the heart of the city. But there are also complete facilities such as office buildings of leading companies. mall Examples of areas in Bangkok are Ploenchit-Chidlom, Silom-Sathorn, early Sukhumvit, etc.

11.Midtown

Refers to the zone of the middle floor area. that moves out of the inner space zone It is a residential area that is not very far from the city, such as On Nut, Phetchaburi, Lat Phrao, Ratchayothin, Phaholyothin, Rama 9, Ratchadapisek, etc.

12.Freehold

Refers to real estate trading in an outright sale. which the buyer will be fully occupied And able to improve, repair, decorate the room If the condo has various disasters or is expropriated for sale of land The buyer receives compensation in proportion to the land title deed.

13.Leasehold

Means long-term leasing of real estate without ownership Most of them tend to rent for a period of 30 years, the price is lower than freehold projects in the same location. But there is a risk of not being entitled to compensation in respect of land and buildings. If there is damage caused by a disaster or was expropriated during the period that the lease contract was still in place

In addition, there are many more words that still need to be studied and understood. To be a guideline for coming down to play real estate safely.

Source:https://www.prachachat.net/property/news-1247221

Date 31/3/2023