The Feasibility Study of Investment in Renovating Second-Hand Homes for Trade in Muang Khon Kaen District, Khon Kaen Province

Abstract

The study on the feasibility of renovating second-hand homes for trade aims to analyze the feasibility of four aspects, namely, marketing, technical, management, and financial, in the context of secondhand home renovation as a commercial venture. The majority of the population seeks to own a home for their livelihood, and secondhand homes are considered an alternative. This study analyzed the marketing components by distributing surveys to 400 consumers and conducting a general environmental analysis, competitive analysis, and SWOT analysis. The findings revealed a 70.75% interest among consumers in purchasing secondhand homes, with location, proximity to urban areas, convenience, and lower prices compared to new homes being the most critical factors. The study also assessed the technical aspect, identifying three lowest-cost sources for secondhand homes: direct purchase from homeowners, acquisition of Non-Performing Assets (ทรัพย์สินรอการขาย (NON-PERFORMING ASSET หรือ NPA)) from banks, and auctions through government enforcement agencies. These sources enable obtaining secondhand homes at prices below market value, aligning with the set objectives. Regarding management, the study emphasized the importance of clear goal-setting and effective planning, including organizational structure analysis for staffing and workflow procedures to control the organization. Finally, the financial evaluation estimated an initial investment of 10 million baht with a 4-year payback period and a net present value of 1,756,864 baht, signifying a positive return on investment of 15.18%. These results indicate the feasibility of investing in the secondhand home renovation business for commercial purposes.