Property investment: Myths and facts

Property Investment

Jan 14, 2022

It has been proven that real estate investing can maximize your return on investment (ROI), provide a hedge against inflation, offer protection from stock market volatility, and also contribute to a continuous and secure retirement income. Even then many investors fall for the common misconceptions and myths particular to real estate investing, or simply don’t get the facts and don't know how to begin their property investment journey.

In this article, we shed some light on the best ways to find revenue-generating property in a real estate market such as exclusive pool villas in Thailand that are stable.

Myths about Real Estate Investment

Firstly, do not be blindly guided by what you have watched on television, read somewhere random, or word of mouth from unsolicited sources, because they do not speak about how you can be successful in real estate investing in-depth and often make it appear simpler than it really is. You don’t necessarily need a large amount of money to get started. Your (Individual Retirement Account) IRA can help you buy an investment property.

Let’s look at a few more common myths about real estate investing:

-Not the right time now 
-Investing in real estate is too risky
-You need to be a certain age to invest
-Only professionals can invest in real estate
-The best properties and locations are far too expensive
-You should invest locally in your home country
-Investment properties are too time-consuming
-Property Investors have to be landlords
-There is way too much competition

Facts about Real Estate Investment

Stability and Security

History has proven that investing in real estate is actually a lot safer than depending only on traditional investment assets such as mutual funds, stocks, and bonds to provide a stable income from investment, more so when you retire. The stock market can sometimes be lucrative when things are going right, however, it is subject to many unforeseen changes that are beyond the control of any investor. Buying a physical property that is tangible, on the other hand with a said value that does not completely rely on international market trends is much safer.

The Right Time, Place, and Background for Investment

And not to forget, the value of a property usually appreciates over a period of time, so no matter when or what reason, ‘now’ is always the best time to invest, irrespective of what age you are. Additionally, real estate investment can be people from any walk of life, regardless of their profession or educational background. And if you are aware of where you should look, you have the potential to find some outstanding deals. Do not be scared of looking outside your local area or even your home country to discover the best investment properties that have the potential to pay the highest returns as well as provide optimum security and stability.

Managing the Property

Lastly, know that you do not have to take all the details of your property upkeep such as maintenance, marketing, and rentals, in your absence. When you decide to go for investment property ownership of vacation homes at popular destinations that are in demand, there are many developers who provide property and rent management services, allowing investors to relax and enjoy great rental income without having to take any stress or put in any efforts. 

Starting with Real Estate Investing

The first step is to decide on a location and then fix a budget that you want to go with. If you are considering locations outside your home country, pay due diligence to the place’s overall popularity, tourist inflow, and how the area has developed over a period of time. Also, worth researching is what other investors have to say about their investment choices and experiences. Try to visit the area yourself to get a sense of where you are investing.

You can plan your budget with due consideration of investing from your Individual Retirement Account (IRA) or other retirement funds that you have planned, in case you do not have enough cash savings. When you buy real estate with an IRA account it helps you get a tax-free income that does not depend on stock market volatility. This is a simple process and it helps you use your retirement fund wisely also protecting you from paying mortgage interest that would affect your return on investment overall.

In Conclusion

So many myths and misconceptions have stopped or delayed several people from property investment and leveraging from the benefits of a stable rental income and high capital gains it offers. If you go by the proven facts, and with proper diligence, real estate investment can be extremely lucrative and pay off well.

If you are interested in Phuket pool villa investment opportunities or Koh Samui pool villa real estate market, contact our team at SKHAI to know more about our thoughtfully designed investment products to deliver maximum returns at some of the most outstanding island destinations in Thailand.