So you’ve heard about Thailand’s low cost of living and you’re considering making the move abroad. You’ve even decided on the city (Pattaya, maybe?), but have you decided whether you’re going to rent or purchase your home?
The questions of whether to rent or buy really depends less on your financial situation and more on your personal preferences. Here are a few of the advantages and disadvantages of renting vs. buying your condo in Thailand:
Pros and cons of renting in Thailand
Pros of renting
- More flexibility: When renting a home you can more easily pack up and move when you’re faced with sudden changes.
- Live in a better area: When renting you may be able to afford to live in a better area of Thailand or nicer condo complex than you would if you were purchasing a home.
- Lower monthly payments: The payment you make towards your rent would likely be lower than paying off a home loan, leaving you more spending money each month.
Cons of renting
- You cannot make changes: In most rental properties you cannot make many changes, such as changing out appliances, painting, or swapping flooring, without the consent of the owner.
- No return on investment: Since you will never truly own the condo that you are paying for, there is no return on investment. When you purchase a house, in contrast, each payment goes towards the ownership of that home.
Pros and cons of buying in Thailand
Pros of buying
- Value appreciation: Over time the value of your home will increase, when you finally decide to sell you home you will earn a profit. See more options for investing in Thai properties.
- Control over the property: What ever you want to do with your home, you can do it! Change the décor the way you’d like it, purchase the appliances you prefer… whatever you want to do, you can without having to gain approval.
- Its yours: No one can take your home away from you (unless the bank repossesses it when you don’t make payments). When renting a condo, if there is a change in ownership or the owner simply decides they don’t want to give you the option to renew your lease, then you’re left looking for a new place to live.
- Holiday home: You could choose to use your home as a holiday home and rent it out when you are not there. In this way you can have the best of both worlds – somewhere beautiful to vacate to and your investment paying for itself.
Cons of buying
- Large financial responsibility: Even though the cost of purchasing a condo in Thailand is far lower than many other countries, it is still an investment that you must be prepared to pay for.
- Risk of earning no return: Although the property market in Thailand is prospering, if you’re planning to purchase a property in hope of appreciation, there is always a risk that won’t happen.
- Less flexibility: If you purchase a home you can’t just move whenever you please, you must first go through the process of selling your home. If you prefer the stability of owning your home, this could actually be considered a pro!
There are advantages and disadvantages to both options; it just all depends on what you’re looking for. If you’re interesting in buying your own Thai condo, check out some of our current property listings to get an idea of what your money can buy!