Starting age 25 as a graduate is a tricky proposition. You may have USD 1,000 to USD 25,000 in your savings, believing this amount is too small to start a real estate portfolio. So, let's try and track your personal portfolio growth starting at 25 years old.
Savings at age:
25 → USD 1,000 to 25,000
28 → USD 25,000 to 45,000
30 → USD 45,000 to 75,000
33 → USD 75,000 to 100,000
36 → USD 100,000 to 130,000
39 → USD 130,000 to 180,000
42 → USD 180,000 to 250,000
Beyond Silom, Sathon, and Sukhumvit, a starter kit unit of 50 sqm starts at THB 3,000,000. You may find it a shoebox, but stick it out when you’re under 30.
So, let's take a look at some opportunities under THB 10,000,000.
Once you exit our Central Business District (CBD), now is the best time to look at opportunities. Even within the CBD, in Thong Lo, you can find what I consider the best units in the country currently at THB 150,000 to 200,000 per sqm which is below replacement costs.
So let's look at your Equated Monthly Installments (EMI) on three values of condos with loans from government savings banks.
Putting it into practice:
Assuming you and your partner are 30 years old with THB 4,500,000 in savings, a joint income of THB 180,000 per month, and a combined monthly savings of THB 100,000, you are in a strong position to buy a home. By securing a 15-year loan with a 70 percent Loan-to-Value (LTV) ratio (meaning the bank funds 70 percent and your savings cover the remaining 30 percent deposit) at an average interest rate of 5 percent between 2027 and 2042/3, you can allocate up to THB 83,000 per month for your mortgage repayments.
Depending on your budget comfort, you have three distinct options:
THB 5,000,000 Home: Repayments are THB 27,000 per month for 156 months.
THB 10,000,000 Home: Repayments are THB 55,000 per month for 156 months.
THB 15,000,000 Home: Repayments are THB 83,000 per month for 156 months.
This decision relies heavily on leverage, which is using bank money to buy an asset that grows in value. With Thai real estate expected to appreciate by two to four percent annually, a THB 15,000,000 home growing at three percent per year would be worth roughly THB 24,000,000 by the end of your loan term. You just need to fully grasp the concept of leverage and home ownership.
Happy to connect if you need my assistance.