Page 30 - Masala Lite Issue 166 October 2024

30 CASH COURSE WITH ATUL Examine the Facts

LOOK UNDER Deal sweeteners like guaranteed rental income usually come with a catch. What
happens after the three years your rental income is guaranteed? If you are lucky, you
THE HOOD may find a tenant for your unit straightaway. If not, you might have to wait a long time.

Rental guarantees are a fancy way of giving you a discount. If someone guarantees

IF YOU ARE you 5 percent of your money back for three years, that is reflected in the amount of
money you’ll actually pay.
You Know Yourself Better Than the Seller
BEING OFFERED You Know Yourself Better Than the Seller
sell
salespeople
more
Persuasive
the
Persuasive salespeople sell more than just the
than
just
product to you. Instead of selling you a condo
product to you. Instead of selling you a condo
A DREAMY unit in Pattaya, the y in ve sto r bui will sell div ersi fi ed
you
the
salesperson

unit in Pattaya, the salesperson will sell you the
id
idea of being a savvy investor building a diversified
ldi
savv

ng

a

of
ea
bei
a

ng
portfolio. Do not let them make assumptions for
BARGAIN portfolio. Do r not let iv them b make n assumptions for on s
at
t
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d
y
ll
se

s
i
e
se
t
mo

i
at
iv
g.
li
l
ur
Yo

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T
y
you. The seller is motivated by selling. Your motivations
ou
he
and other options are known best by yourself.
and other options are known best by yourself.
Salespeople can be very persuasive, so it is best to review
Salespeople can be very persuasive, so it is best to review
the facts on your own before deciding. If someone
own
on
before
deciding.
the
someone
If
your
facts
presses you to decide on the spot, that is a cause for
A Brief Summary: presses you to decide on the spot, that is a cause for
concern.
• It pays to think about the bargain you are being offered, especially when it

comes to investment and financial products. Factor in All the Costs
• Salespeople will sell you the lifestyle, peace of mind, and your dreams. But The return being advertised does not factor in costs. In the case of a condo investment,
you know yourself better than they do, so go home and make your own you will have plenty of expenses on your hands. For example, common management
decisions after reviewing the facts. fees are borne by the seller. Moreover, in the
long term, there will be periods where your unit
• Deal sweeteners like rental guarantees for condo investments are fancy ways
of providing discounts to you. is vacant. Factor this all in to evaluate what your
net return looks like before making any decisions.
• Make sure you know all the costs involved before crunching the maths. For condos, you can apply 10 or 10.5 months’
Do not make a mistake because you forgot to factor in fees and expenses worth of monthly rental as your annual net
involved in ownership. rental income. There are plenty of resources
available online to do the maths and more for
investment properties.
Beware Deals Too Good to Be True
Things often go on sale to entice buyers. The temptation of a good deal is effective in Remember That Nothing is Guaranteed

raising the value – or perception of value – for the person on the other side of the table. Sellers of financial products are in business

This is no different when considering financial and investment products. However, because they manage risk well. Promising to
unlike shopping at Zara, there are no refunds. Some products require an obligation pay you guaranteed returns or to provide you
on your part over a long period of time. Others may require a long time to sell. with certain benefits no matter what, is not

For the purpose of this article, we will use the example of an investment opportunity something they like to do. Read the fine print

in a condominium project where the developer guarantees a rental yield for a fixed because the salesperson will not read it out
duration. This is fairly common in both Bangkok and nationwide, and you may have loud to you.

even seen such tempting offers on billboards yourselves.
MASAL A LITE ISSUE 166 - OCTOBER 2024