The news about 'Naw Toy Sambe' (Niran Boonyaratapan), a well-known cartoon voice actor, revealed that he and his son invested almost all their savings in a luxury real estate project in Phuket Province starting in 2021, trusting advertisements that promised returns of about 7-10% per year.
However, when the five-year contract expired, they received neither principal nor the promised returns. Additional information from his son stated that the family invested around 10 million baht. Later, the company entered legal proceedings and was placed under court-ordered bankruptcy protection, with a debt restructuring plan offering only 20% repayment of the principal. It is estimated that thousands of investors in the same project suffered losses totaling 1,000-2,000 million baht.
It was later found that this investment was part of an Investment Property Program (IP Program), which was once popular in the real estate business. The basic model allows investors to purchase condominium units and hold actual ownership like a typical condo purchase. Then, the developer or hotel chain manages the units as hotels, guaranteeing yields for a set period, including buyback rights and free stay privileges under each project's terms.
However, many investors and real estate experts clarified that this model is not illegal and does not mean all projects have issues, as many past projects have operated and paid returns as contracted.
The key lesson from this news is not whether the Investment Property Program is good or bad, but about weighing 'returns' against 'risks' before investing. In investing, these two factors must always be considered together, because even attractive returns can be undermined if unexpected events occur. Investor rights, contract protections, and risk tolerance all significantly affect investment outcomes.
The following seven questions are what investors should ask themselves before deciding to invest in real estate.
1. Is there genuine demand for the property purchased? (Property Risk)
Attractive project images, world-class hotel brands, or promising returns may make decisions easier, but ultimately, property income depends on actual occupancy or tenants.
Therefore, one should look beyond location to assess if the area has real demand, the level of competition, and whether there is an oversupply problem. No matter how beautiful the unit, if it cannot be rented, returns cannot materialize.
2. How strong is the company where we entrust our money? (Developer Risk)
Many investors study project details but neglect the company behind it. One should review the developer’s project history, whether projects were delivered on time, financial status, and manageable debt levels. Ultimately, promised returns depend on the business's ability to continue operating.
3. What is 'guaranteed' in the brochure or contract? (Contract Risk)
The phrase 'guaranteed returns' sounds appealing, but legally binding terms are those in the contract. Investors should verify who guarantees the returns, whether collateral supports it, what remedies are available if breached, and what assets back those obligations. Risks sometimes arise not only when the business fails but from signing contracts without fully understanding details.
4. Are the returns based on actual operating performance? (Cash Flow Risk)
Returns of 7-10% per year are not impossible if the business generates that level of income. The key question is not 'how much' but 'where the income to pay returns comes from'.
If income derives from real rental or business operations, supporting data should be available for verification. However, if actual income does not align with offered returns, investors should ask more questions before deciding.
5. If one wants to sell someday, will it be possible? (Liquidity Risk)
Real estate is not as liquid as stocks. Some projects restrict resale during certain periods, others have few buyers in the secondary market, or may require selling below purchase price. Knowing exit options before investing is as important as understanding entry.
6. If the economy changes or interest rates rise, can I still manage? (Leverage Risk)
Many investors use loans to boost returns, but rising interest rates or reduced rental income can turn manageable debt into financial pressure. Therefore, before investing, one should ask if they can still afford expenses if circumstances deviate from the plan.
7. If this deal fails, how much will my life change? (Concentration Risk)
This may be the most important question. Many investors do not lose money by choosing the wrong asset but by putting almost all their savings into one investment, whether real estate, stocks, funds, gold, or digital assets. Diversification remains a fundamental principle because no investment guarantees 100% returns.
The news about 'Naw Toy Sambe' may be just one case study, but these seven questions apply beyond real estate to stocks, funds, gold, or any asset type. Often, investors start by asking 'how much return will I get'.
An equally important question is whether we can tolerate losses if investments do not go as planned. Sometimes, what determines investment outcomes is not expected returns but preparation for risks that may arise along the way.
Source: Kasikornbank, Origin, Terra BKK, Real Estate Information Center
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