What type of condo do foreigners like?
Investing in condominiums for rental income is one of the most popular ways to generate passive income today. Ultimately, if you don't want to continue renting it out, it can become a second home, offering lower monthly payments as someone else will cover the rent. Alternatively, you can profit from the price appreciation over time by selling it later. However, for optimal rental returns, renting to foreigners is a highly effective method. Here are some key principles for selecting the right condominium for foreign tenants:
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1. Location Must Be Ideal
Foreigners renting condominiums in Thailand primarily do so for work or business, with a smaller group opting for permanent residence. However, this latter group is less common; those settling down as families tend to buy houses instead. Therefore, successful rental to foreigners depends on choosing a location that meets their needs. This means selecting a business district with a concentration of foreign companies or an expat community, such as Asoke (a hub for foreigners worldwide), Ratchada-Rama 9 (a residential area for Koreans and Chinese), and Ekkamai, Phrom Phong, and On Nut. For example, Japanese people tend to predominantly reside in these areas. If we focus on our target audience—specific nationalities of foreigners—choosing a location near workplaces and residential areas with a high concentration of foreigners will increase the chances of them being chosen for rent.
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2. Beautiful and Ready-to-Move-In Units
Foreigners, regardless of nationality, appreciate convenience and ready-to-move-in units that require no additional procedures. Therefore, ideal condo units for foreigners should be ready-to-move-in, beautifully decorated, and clearly zoned, such as bedrooms, workspaces, and living rooms, to best suit their lifestyle. The size of the room depends on individual lifestyles and nationalities. For example, Europeans, even when living alone, often prefer larger, spacious, and airy condos. However, for Chinese or Japanese people, unless they are living alone, a smaller unit is sufficient, as long as it's beautifully decorated and ready to move in.
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3. Bathtub and Water Heater
This is often overlooked, but considering the habits and lifestyles of foreigners, it becomes clear. Europeans and Asians like China, Japan, and Korea, who are often the main nationalities residing in these areas, often have bathtubs and water heaters. Those who frequently work in Thailand, especially in countries with cold climates, are accustomed to warm baths, hot water, and relaxing in bathtubs. Therefore, condos with bathtubs and hot water systems are a key selling point, making them more attractive for renters.
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4. Proximity to Public Transportation (BTS Skytrain or MRT)
Since the primary reason for expatriates living in Thailand is work and business, convenient commuting is crucial. Many don't own cars, so access to public transportation is a major factor in choosing a condo. They typically consider proximity to public transport, such as the BTS Skytrain, and how easily it facilitates travel to work, errands, and nearby areas like shopping malls and tourist attractions. If the location is convenient, renting becomes easier.
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If the target market for condo rentals is expatriates, investors need to clearly define their desired tenant nationality, such as Europeans, Chinese, Koreans, or Japanese, as each nationality has different preferences for condo styles. Meanwhile, the communities or workplaces of expats in Thailand are located in different areas. Clearly defining your target group will allow you to choose a location that better suits them, increasing the chances of successfully renting out the property. More importantly, in addition to researching your target group, it's essential to thoroughly survey the rental market, including the types of rental units available, in order to set the rental price and choose the style, decoration, and preparation of your condo to attract the most attention from expats.
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Thank you for the valuable information from REIC.
