Real Estate in Thailand by the Rules of “Rich Dad”: How to Choose an Income-Generating Asset
Buying Real Estate in Thailand by the Rules of “Rich Dad”
The name Robert Kiyosaki is familiar to almost everyone who has ever opened a book on personal finance. His main principle is simple: assets should generate money, not take it away. If we apply this logic to the Thai property market, the “Rich Dad” approach looks very pragmatic. An investor doesn’t buy a dream — he buys a cash flow.
How Kiyosaki Views Real Estate
In Kiyosaki’s books, one idea is repeated many times: buying purely for capital growth is speculation, not investment. A true investment is stable cash flow.
If applied to Thailand, the main criteria for choosing would be:
If applied to Thailand, the main criteria for choosing would be:
- The property must be ready. Off-plan projects don’t qualify: until the building is completed, there’s no rental income.
- Yield should be 8–12% per year. Lower — it’s closer to a liability, higher — it’s risky.
- Maximum installment plans, minimum down payment. The less you invest upfront, the higher your capital efficiency.
- Price growth is a bonus. If the property appreciates — great, but the focus should be on rental income.
What This Means for a Buyer in Thailand
Thinking like Kiyosaki, investors should avoid projects that promise “50% growth in three years” or “millions from resale.” That may happen, but it’s not the foundation of the strategy.
What works are ready-to-move-in apartments in areas with strong rental demand: Pattaya, Phuket, sometimes Bangkok. There, you can put the property into circulation right after the deal and start receiving income from the very first month.
What works are ready-to-move-in apartments in areas with strong rental demand: Pattaya, Phuket, sometimes Bangkok. There, you can put the property into circulation right after the deal and start receiving income from the very first month.
Example With Numbers (illustration, not an offer)
Imagine a finished 30 m² studio in Pattaya. Price — 3.2 million THB.
Rented out for 18,000 THB per month.
Annual income: 216,000 THB.
Maintenance and tax: around 40,000 THB per year.
Net income: 176,000 THB.
That’s 5.5% per year with full payment. But if you use installments and invest only half upfront, the return on invested capital rises to 11%. That’s the “right” yield according to Kiyosaki.
Rented out for 18,000 THB per month.
Annual income: 216,000 THB.
Maintenance and tax: around 40,000 THB per year.
Net income: 176,000 THB.
That’s 5.5% per year with full payment. But if you use installments and invest only half upfront, the return on invested capital rises to 11%. That’s the “right” yield according to Kiyosaki.
Locations With Higher Yields
- Pattaya. Strong long-term rental market driven by expats and digital nomads. Seaside and central condos perform best.
- Phuket. Resort rentals in the high season generate strong cash flow. The key is choosing complexes with professional management and hotel-level service.
- Bangkok. City rentals offer lower yields (5–7% annually) but higher stability. Vacancy risk is minimal.
FAQ
Are off-plan projects completely unsuitable?
By Kiyosaki’s rules — yes, if the goal is cash flow. But for those betting on resale profits, off-plan can still be interesting.
How to realistically achieve 8–12% returns?
Use installment plans, rent through a management company, and focus on high-demand areas.
What’s more important: rental income or price growth?
Rental income. Price growth is a nice bonus, but not the core calculation.
Are such properties available now?
Yes, but they are limited. We know of projects in Pattaya and Phuket with ready-to-move-in units, installment plans, and yields starting at 8% per year.
By Kiyosaki’s rules — yes, if the goal is cash flow. But for those betting on resale profits, off-plan can still be interesting.
How to realistically achieve 8–12% returns?
Use installment plans, rent through a management company, and focus on high-demand areas.
What’s more important: rental income or price growth?
Rental income. Price growth is a nice bonus, but not the core calculation.
Are such properties available now?
Yes, but they are limited. We know of projects in Pattaya and Phuket with ready-to-move-in units, installment plans, and yields starting at 8% per year.
Conclusion
If Robert Kiyosaki were to buy property in Thailand, he wouldn’t choose a beautiful rendering — he would choose a ready apartment with tenants, clear cash flow, and installments with a minimal down payment. These are the types of assets that turn a purchase into a true investment.