Budgeting 101 – preparing for property purchase in Thailand

Surprising difficulties with owning an apartment in Thailand

Financial incapability is surprisingly one of the shocking reasons stalling the purchase of properties in Thailand, especially among nationals/Thais.

With an average home value of $435,000 and quality home properties running into $600,000 and above, one factor is clear; you need money if you want to buy two-bedroom apartments in Thailand. More so, the larger your dream for a beautiful and comfy house, the larger your budget has to expand. In a world with increasing inflation, the rising cost of living, and lowering the value of minimum wages compared to financial needs, the only way to achieve the dream of owning a home is to budget.

How to organize your budget if you want to start investing in real estate in Thailand

According to Thailand-Real.Estate, it is not just enough to budget; you have to take definitive and calculated budgeting steps to achieve maximum results. Here are six major tips on how to plan a budget if you intend to invest in real estate in Thailand:

1. Watch your expenditure

The greatest route for saving money for any purpose, no matter how minor, is to watch how you spend because money spent on unnecessary items is inadvertently cutting down money available for the necessary items. It may seem like you are putting yourself under stress, but even so, it is for a reason. Always remind yourself why you started the whole budget in the first place and stay on course. Only spend on unavoidable items, meaning cut down your wants by 80% and focus on your needs only. This will enable you to have ample opportunities to save.

2. Take out your savings first before anything else

The best way to do this is;

  1. First, budget how much you need for the month for the necessary and unavoidable expenditures, and try to be conservative and prudent as much as possible.
  2. Leave a little bit of allowances for exigencies to ensure you stay safe throughout the month. You can consider this emergency stipend and keeping it locked in an account you hardly access.
  3. Remove your savings upfront as your monies come in. Don’t wait until later because the more you wait, the lesser that savings allowance becomes. This is the 21st century; there is always something to buy, but some need to be met.

On this point, remove your savings and set them aside before you do anything else.

3. Plan your expenditure on the reminder after your savings is gone

An important part of budgeting is to take out your planned savings and then plan your leisure within the rest. Never the other way around. Doing this will allow you to prioritize your needs. Yes, it may day a year, two, or more to achieve your target, but once you have the house, it is yours forever, so it is a fair exchange of value and a worthy sacrifice.

4. Do not bite more than you can chew

Next up, when planning your budget, please ensure you are budgeting for a house within your capacity. Whatever you do, do not go for a house that is more than your financial bandwidth. Yes, you may have read many motivational quotes saying that if your dream doesn’t scare you, it isn’t worth it. Please don’t apply that to Thailand real estate for your own sake. A major reason you should invest reasonably and smartly is the maintenance factor. If you go for a larger house than you can manage, you will struggle with maintenance, injuring your finances more than you can imagine.

5. Keep track and record your savings

Time plays a crucial factor in matters of budgeting. It would be best to have clarity on how much you are saving, how long it will take, and when you aim to achieve your goal. Also, have your savings in a trackable or recordable format so that you can continue to be clear on hold much farther you have to go.

6. Explore all options to achieve your goals faster

Some persons will go for mortgaged properties, while others will go for cash deposits, loans, etc. Try and analyze or access the various options available before investing or deciding. Depending on how much you have and your financial plan, you will figure that some methods are easier, more accessible, and better for you.

Lastly, he who rides in a team will have the exposure and knowledge of a team. So, consulting agents or keeping yourself abreast with contemporary trends will open doors for you specially and make your journey easier. Always remember that budgeting is as important as every other part of the investment as regards real estate.

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