Question: How To ‘Flip’ Property In Bangkok?
So you would like to ‘flip’ your Bangkok property. (flipping means to sell the contract of the property you purchased before the condominium completes)
Firstly, we would suggest that you should not be buying a property with ‘flipping’ as the main motivation. Go back to the fundamentals and look for good properties that are in good location and will be easy to rent in the future.
Truth be told, we do have a number of clients who managed to ‘flip’ their Bangkok properties but we never recommend a purchase to clients with ‘flipping’ as the end goal.
A lot of it will depend on the market conditions also, which is something beyond our control.
As a guide, we will suggest that you go for developments that are not too large or mass market. This is because, in order for you to be able to ‘flip’ your property, the foreign quota will have to first be sold out.
The second thing to note also is for good developments, developers tend to sell their units in phases, increasing the price with each later phase. This will, in turn, give clients an extra boost if they are the earlier buyers and are looking to sell the property subsequently.
Thirdly, we will suggest that you stick with the reputable, public listed developers. These developers, such as Sansiri, Ananda, Noble Development, etc have a wide global outreach. As such, it is more likely potential buyers will only look at developments on offer from these developers. And if the particular development they are interested in is already fully sold out, the only way for them to purchase a unit will be to get one from the secondary market. Then the chance for you to ‘flip’ the property for a profit will come.
In conclusion, we do not advocate clients to purchase Bangkok property with only a short-term horizon in mind. Focus on the fundamentals and when the right time comes along, you will get the opportunity to sell the property quickly for a good return on investment.
The cost to ‘flipping’ a property in Bangkok is relatively low. All you have to incur is the agent’s commission and the administrative fees for the change of contract. Taxes are not applicable before the completion of the property.