Why invest in land?
Whether you are a property developer or private individuals who wish to build their own home or simply purchasing land as an investment you can rest assured that your asset will increase in value as demand is outstripping supply.
Unlike shares, land for sale is tangible - it can be visited, seen and walked on. Land is a finite resource in resort towns in Thailand with the majority of the population wanting to live in the coastal areas.
Land is a solid and easy to understand investment and is a surprisingly cheap method of investment. A four bedroom villa in Hua Hin can easily cost 10 million baht and upwards, whereas a residential-sized plot of investment land in the same location could be bought from upwards of 750,000 baht.
Investment land has a wide range of uses. Investment land can be used for starting a business or building a home on or it can simply be left as it is - As the saying goes, "you don't wait to buy land, you buy land and wait". Whatever is done with it, the price is likely to rise considerably, even if there is slowdown in house price inflation.
Due to its limited supply one can also rest assured that land values will always be on the rise, having already increased eight fold in value over the last three years.
Land location – where should I buy?
Primarily, land location determines its potential future growth in value. For the private individual the pricing of land near the beach has become too restrictive, however, land in and around the town of Hua Hin, particularly near to the two new golf courses which are currently under construction is more affordable.
The price of the land is related to the demand for it and the quantity available. For example, there is very little investment land left within the beach areas, so prices are at a premium. You could pay up to 30,000,000 baht per rai. By way of contrast, a plot of land in an isolated area just a few kilometers from the beach might cost only 300,000 baht per rai. Location and the quality of the land are extremely important determinants of the price of the land.
The value of land with services already provided can be up to 10 times that of land without. Obviously, purchasing prime land with services already supplied is usually more expensive, but that is good for you as an investor - because you buy the land when it is cheap and wait a while for it to become expensive land! As the saying goes, "you don't wait to buy land, you buy land and wait".
For instance, land lying within a three-mile area on either side of a major highway connecting two neighboring communities is almost certain to increase in value over time. Generally, communities tend to grow toward each other, developing increased demand and higher values for intervening properties. And, as a rule, the closer to the highway a plot of land is situated, the higher its potential value.
The importance of understanding the different types of land available to make a sound investment choice cannot be overstated. Best Plots Thailand has the largest portfolio of land for sale in the Hua Hin area and we can give professional advice to assist you in your decision making process to ensure you make the right choice of which the best plot for you!