Thailand is rapidly becoming a prime location for vacation in South East Asia, widely gaining its popularity among Europeans, Americans, Africans, and lately with Russians and Chinese as well. This increase in the volume of tourists has played a significant role in the boom of the real estate industry of the country, precisely in the growth of the commercial sector. This naturally has changed the equations of investments as well.
In this article, we are listing the pros and cons of investing in a condo tel in Thailand. But before we begin, let us define what a condo tel is. A condo tel is a unit managed under the hotel management and are sold individually as an unit. Buying and selling of condo tel has become an important part of Thailand real estate as it benefits buyers, sellers, builders as well as hotel brands and are handled by the hotel management industry.
Let us look at the pros–
>> When the hotel management industry takes care of any unit, it becomes easier for the owner to maintain the property. Also, since Thailand is huge holiday destination, condo tel units are in huge demand among the tourists. Being maintained by property management units or hotel management sites like Oyo, Airbnb, Trivago etc. helps is swift, safe and smooth booking as well.
>> Units once and when undertaken by the hotel management industry, property management companies or real estate builders, undergo vigorous inspection by the authority to meet the standards. Hence, owners can be assured that their unit is well taken care of without any negligence.
>> As mentioned above, condo tel units are in huge demand in Thailand, owing to its huge traffic. Hence, investing in one is a sure shot way of getting beautiful and hefty returns.
However, investing in a condo tel unit has its set of cons as well. Let us look at them-
>> The biggest risk of investing in a condo tel unit is that it changes the ownership during the term of the lease. During the duration of the lease, the actual owner loses power, which can be proven fatal during the times of need.
>> In the same lines, since the duration of ownership of condo tel units are for a limited period, the owner will have to keep signing new lease after every tenure. This can be tiresome for owners if and when they are located some place outside Thailand.
There is no bigger selling point than the potential returns while investing in a condo tel in Thailand. However, whatever the situation may be, investing in condo tel units in Thailand may be the best way to ensure biggest returns on real estate in 2018.