Many investors are rejected by Thailand Real Estate because they have neither the time nor the willingness to become owners and managers, which makes them a profession. If the investor is a re-educator or wholesaler, then the real estate industry is more like a business than an investment. Many successful real estate “investors” are actually real estate “operators” in the real estate industry. Fortunately, passive investors can use other safe and anti-inflation real estate investments without any difficulty.
Active participation in Thailand Real Estate investment has many benefits. Intermediate fees charged by unions, brokers, property managers and asset managers can be eliminated, which can lead to higher returns. In addition, as an investor, you can make all decisions. Whether it is good or bad, the ultimate responsibility lies with you. In addition, effective and direct investors can decide to sell at any time (assuming the market price of their property is sufficient to cover all liens and fees).
Passive investment in real estate is the other side of the coin, which offers many benefits. Real estate or mortgage assets are selected by professional property managers who invest in real estate investment, analysis and management. Often, the prices that these professionals can negotiate are lower than the prices they do alone. In addition, when individual investors’ funds are brought together, passive investors can have larger, safer, more profitable shares and better investment categories than investors. Operate with less capital.
Most mortgages purchased by Thailand Real Estate are a large part of the purchase price. Despite the many advantages of using leverage, individual investors are likely to have to personally guarantee the bill and put other assets at risk. As a passive investor, the partner or owner of the REIT shares is not obligated to repay the initial investment amount. Directly active investors may not be able to diversify their property portfolio. With only 2, 3 or 4 properties, the investor’s capital is easily destroyed or destroyed by isolated problems in one of his properties. Passive investors may have a small portion of a large diversified real estate portfolio that will significantly reduce risk through diversification. For a portfolio of 20, 30 or more attributes, one or two questions generally do not significantly affect the performance of the portfolio.
Type of passive investment in real estate
A Thailand Real Estate investment trust is a company that owns, manages, and operates real estate assets that generate income. They are organized in such a way that the income generated is taxed only at the investor level. According to the law, real estate investment trusts must pay at least 90% of their net income to their shareholders in the form of dividends. Therefore, real estate investment trusts are high-performance trading tools and have the potential for capital appreciation. Currently, there are approximately 180 publicly traded real estate investment trusts whose shares are listed on the New York Stock Exchange, ASE or NASDAQ. REITS focuses on property types (apartments, office buildings, shopping malls, warehouses, hotels, etc.) and areas. Investors can expect a 5-9% dividend yield, good real estate ownership, professional management and good opportunities for long-term capital appreciation.
Real estate mutual fund
There are more than 100 real estate mutual funds. Most invest in selected REIT portfolios. Others invest in real estate investment trusts and other listed companies involved in real estate and real estate development. Mutual real estate funds offer diversified, specialized management and high dividend yields. Unfortunately, investors ultimately paid two levels of fees and management fees; a series of management fees for mutual fund managers and an additional management fee of 1% to 2%.
Limited real estate association
A limited partnership is a way of investing in real estate and does not create any obligation beyond the amount of the investment. However, investors can still enjoy the appreciation of the total value of the property and tax breaks. Homeowners and developers can use SQ to use other people’s money to buy, build or repair rental housing projects. Due to high risk, private limited company investors expect annual investment capital to exceed 15%.