Investing in renting out townhouses VS condos, which is better?

It is believed that at this time these real estate investors are amateurs who want to buy their own assets to rent out. Everyone is confused about whether to buy a second-hand townhouse or a condo because it seems that both types of real estate offer similar value. Some people have supporters supporting them to buy a house. because of additional land rights While in condominiums, if you study carefully, you will find that when unexpected things happen Residents have the right to receive the security deposit provided by the project. When the juristic person enters the dimensions and approves Then decide on what type of investment to get the most value. From now on, these worries will be gone. When you get to know the differences in investing in long-term rentals of both townhouses and condominiums in depth.

Townhouse for rent

Townhouse for rent

When thinking about buying a “townhouse” for investment and rental

1. Group of people who want to rent townhouses Most often it is family.

2. Townhouse is real estate. The price usually increases every year. and will vary according to the prosperity of that location Just like the land Especially in areas being developed according to the government's master plan.

3. Mostly, investors prefer to choose second-hand townhouses to rent out rather than buying new ones. This may be because the price is affordable, the cost is not high, and it is in a good location, a community area where there are no new projects emerging. But what you have to prepare for is Renovation costs That depends on the condition of the house as a measure.

4. Investors pay low common fees to tenants. Or you may not have to pay at all. If it is an old, second-hand townhouse Located in a project with no common areas

5. When applying for a loan to buy a second-hand home, the loan amount is usually not 100% of the appraised value.

6. Keep improving Repairing the house to make it look new and always attractive can reduce the rate of tenants moving out. This also adds value to the house.

Condo for rent

Condo for rent

Investing in renting out a "condo", what you have to face is:

1. Group that has a need to rent a condo. They are usually a group of working people, students, or foreigners. who want convenience in traveling to work or educational institution

2. Location is an important factor in investing in condo rentals. If you're near a train station, community area, or CBD area, there's usually a high level of demand. The same is true of rental returns.

3. Invest in renting out condos. You may have to come to terms with your competitors. Because there is a high supply

4. Investors need to bear common fees and funds (pay once on the date of ownership transfer).

5. Requesting a loan to purchase a condo Currently, banks often cooperate with projects to purchase Therefore making it easier to borrow. And some financial institutions give 100% of the appraised value.

6. Condos as the years have passed The building will deteriorate. If not repaired The value of the apartment will fall. This will affect the rental rate.

Worthiness of investment

Worthiness of investment

Summary of the worthiness of the investment

From the details of real estate investment For both townhouse and condo formats, it can be seen that the value for money is different as follows.

Townhouse = When the condition of the house is an important factor in determining the rental price. and is a component of creating incentives for tenants Therefore, many investors decide to spend more of their personal money. To completely renovate The aim is to get a higher rental rate. Without having to wait for inspiration from the potential of the location.

For example, the price of a second-hand townhouse is 1,500,000 baht, maintenance + decoration cost 100,000 baht, can be rented out for 10,000 - 15,000 baht / month (if in a community area).

Condo = Value for money in real estate investment. Like a condominium The location seems impossible to escape. Because if the pin is placed in the electric train line Will be able to charge rent at a relatively high rate. Even though there is the matter of the quality of the condo. is an important factor.

For example, the price of condominiums in the late Sukhumvit zone. Within walking distance of no more than 300 meters from the BTS, it is a 1 bedroom unit, 30 sq m, price 2,800,000 baht, common fee 1,350 baht / month (average 45 baht / sq m), can be rented out at a price. 12,000 – 15,000 baht / month

It can be seen that both townhouses and condos The rental returns are similar. The example is real estate. Located in a community area and near the skytrain which has a relatively high level of demand and supply However, both forms of investment will have to face the Vacancy Rate when they cannot find a renter for about 1-2 months and must bear various expenses. including home insurance, taxes, and common fees But for the highlight of the townhouse's worthiness If you buy a house for 1 million baht and rent it out for 10,000 baht per month, the total income for the year is 120,000 baht, deducting the period without tenants for 2 months and various expenses, remaining approximately 70,000 baht, representing a rate of return of approximately 7%, which is higher than Other types of investments And also receive real estate as an asset to resell, adding more value than a condo. Which, when entering the condo for a long time, it was in an old condition and had not been taken care of. Moreover, if the location is not outstanding, the price will fall.

Dr: ddproperty

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