Pattaya’s property market is one of the most attractive and marketable in Thailand. Amidst the financial crisis and the tsunami incident, it remained strong and even opened new avenues for growth and development. Pattaya’s resiliency to fluctuating economic conditions and its ability to recognize new market frontiers thus explain its appeal to the international developers, investors and consumers.
However, aside from concentrating on identifying feasible investments, foreign entrepreneurs are also required to devote time on due diligence. Due diligence is yet another important tool that aids many in assessing their respective investments.
A general understanding of due diligence
Due diligence is an integral aspect of property management. It involves rigid and extensive research. Due diligence examines the property’s strengths and weaknesses. This process is often conducted prior to purchasing an asset or engaging in major investments. Due diligence has several categories. One of these is physical due diligence. Such activity places heavy emphasis on inspecting the property’s physical components.
In Pattaya, condo units are the most popular properties purchased by both foreign and international clients. As for the local market, one of the main reasons behind acquiring condo units is the appreciation of modern and urban living. On the other hand, for foreigners, condominiums are the only freehold property that they can own in Thailand. Given this situation at hand, there is a strong need for physical due diligence to ensure that all investments made are worth the effort and time.
How to conduct physical due diligence
Conducting physical due diligence in Thailand is an easy yet meticulous task. Yet, reaping its results is highly satisfying. The first step entails a checklist creation. The checklist should outline the things that the owner should inspect or examine. In formulating a checklist, one should include the following aspects:
- The structural components – In scrutinizing the property’s structural components, most especially for residential units, one should carefully look at the house’s doors, ceilings, floors, and toilets. One should check whether they are in good condition or if they needed repairs. Aside from that, one must likewise examine its functionality.
- The electrical components – One is advised to always inspect the electrical wirings, insulated conductors and other devices.
- Repairs and maintenance – It is also best to investigate the series of repairs done in the property for this will provide the buyer with crucial information about the possible problem areas of the property.
- Pests – Always see to it that the targeted property is pest-free.
Upon creating a checklist, the next step is for one to set a doable deadline. Oftentimes, many get frustrated and disappointed when performing due diligence because of unmet schedules and timeframes. It should be always remembered that due diligence is all about research. Thus, a feasible schedule should be created to ensure that all important aspects are examined.
Lastly, employ the services of experts and professionals. Other than conducting due diligence personally, the assistance of those who are knowledgeable in such fields can provide a much better understanding of the property’s physical condition. In this case, such is highly beneficial in making sound judgments and decisions. Speak to a property lawyer in Thailand today.
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