Our holiday spirits are high with the imminent arrival of summer. For some of us, the mere daydreams of sun, sand and sea turn in to thoughtful considerations of buying a permanent holiday home where we can endlessly enjoy the dual benefits of a second home-base for quick getaways and even additional rental income when the property is not in use.
Southeast Asia is a region that has caught the eyes of foreigners over the years. Real estate in Southeast Asia is one of the fastest growing property regions in the world, especially for buyers looking to invest in a second “holiday” home that can be used personal as well as investment gains. This has of course led to surging prices in much of Southeast Asian real estate investment market. There are a few top hot spots in South East Asia that can make perfect holiday escapes, retirement sanctuaries and/or for investors looking to flip and rent out said properties during certain seasons throughout the year.
If you are considering buying a holiday home as a second investment real estate property, here are some questions that you should first think about:
1. Are you currently financially stable and comfortable enough to invest in a second home?
You should always evaluate the current and predictable future status of your financial strength before taking the dive in to a second investment of real estate property. It’s easy to fall passionately in love with a dream holiday home and to the luxurious lifestyle that owning a holiday property can bring, but many people free fall down a financial spiral by making the very common mistake of not carefully and thoroughly assessing all the financial fundamentals before the purchase.
It’s crucial to remember to lead with your head and not just your heart, so keep these questions in mind:
• Why am I buying real estate now? What is the primary purpose?
• Am I in love with the idea of a holiday lifestyle, meanwhile neglecting the investment logic behind it?
• Am I fully aware of the knowledge and work required on the backend of owning a holiday home?
• What kind of returns will I get by buying this particular property? Does it make sense from an analytical standpoint?
If you are able to answer all of these questions soundly, we can then move on to major point number 2, moving you one step closer to become an owner of a holiday home. So, after personal evaluation, you have decided that a second home is feasible for you. What’s next?
2. Which countries in the Southeast Asia region are the best for buying a second holiday home and why? What are the different real estate/property laws and business laws in the different countries where you are seeking to buy property as a foreigner?
Southeast Asia is a beautifully diverse region scattered with magnificent countries for every kind of taste. The entire region is a splendid composition of eleven countries (Brunei, Myanmar, Cambodia, East Timor, Indonesia, Laos, Malaysia, Singapore, Thailand, Vietnam, and the Philippines), each with its own impressive concoction of history, geography and culturescape. The real problem isn’t pinpointing a country to fall in love with, because the variety of choices is diversely abundant. The main issue that buyers and investors face s that there are certain barriers to entry that restrict a foreigner from investing in the real estate market in specific countries and the laws all run differently from region to region.
Although the Southeast region totals to eleven beautiful countries, there are only five where property investment as a foreign national is more logistically possible. We will take a further look at these five countries, which are Singapore, Malaysia, Thailand, Cambodia and the Philippines. Each country has its own set of pros and cons from the property investment standpoint, and there is no single best country within Southeast Asia. It really depends on your individual preferences and what your long term goals are.
THE BIG FIVE COUNTRIES