Pure Investment Thailand

The pure investor is an unemotional investment property buyer who is purely seeking maximum short term return on capital within the safest investment market in history. Their investment vehicle is the purchase price while the investment involvement is typically only 20-40% of the purchase price.

During the construction period, the developer is likely to increase the units’ sale price several times in stages. These price increases reflect the developer’s risk and as the development matures, the developer's exposure diminishes, allowing them to charge more for their product with each passing stage. Meanwhile the buyer pays more for the luxury of seeing physical progress and relying less on architects’ drawings and graphical impressions when making the decision to purchase the property.

To the pure investor, this creates an excellent investment opportunity as he/she can buy at the earliest stage possible and benefit from each of the phased price increases, gaining profits of 30%-40% (assuming 3-4 phase price increases each of 8%-10%). The pure investor then seeks to re-sell his investment bought at the lowest price possible, just before project completion, to a higher paying secondary buyer.

Thailand is ripe for the pure investment option while buy-to-let opportunities are on the increase in a number of new resort areas, in line with government plans to increase the number of visitors to Thailand by at least 10% per annum.

Investors looking for short and medium term capital growth are purchasing Thai property. They seek to purchase early on developments to secure the highest quality property units in the best locations at the lowest prices.

Capital appreciation in Thailand is expected to be in the region of 10%-15% in 2006, based on previous figures. With the government’s development plan for Thailand set to continue driving tourism and property market, many investors will be selling their pure investments and cashing in on some good returns, without capital gains tax, upon resale.

Case Study (Example Only)

John decides to purchase an investment property and after joining the IPIN he discusses his requirements with our investment experts. He decides that it is purely a wealth building exercise and the "Pure" investment strategy is for him.

John makes a decision in conjunction with our advisors taking into account his personal criteria to purchase a unit on the development "X" at €630,000.

John pays 30% deposit (including his initial reservation fee) which totals €189,000 and signs a re-assignable contract allowing him to sell prior to the completion of the development units.

The project matures and after several phased stages John, with the help of the IPIN, negotiates the sale of his purchased unit for €925,000 to a secondary home buyer.

To John, the pure investor, this represents a huge profit gained on invested capital of 156% (IVA and agents fees have not been included in this example calculation) as he has only ever invested the initial 30% deposit into the property.

This investment model relies on careful selection of property and entry into the investment at a very early stage. This maximizes profit during the price appreciation of the property as the development progresses. For more information and current opportunities in Thailand, join the IPIN now for FREE and speak to a specialist advisor.