Hua Hin and Cha Am Property Rental Income

[rufanuf]

We are having a debate between fellow property owners of what kind of % Yield NET of ALL expenses is reasonable to expect on a 2 bedroom condo or villa in the Hua Hin and Cha Am areas  in the current market.

 

Also what level of occupancy would the yield be based on? For example is the property let out for 3, 6 or 12 months of the year to obtain that income?

[Tofer]

Glad I'm not investing in HH or CA!

 

My UK properties create between 15% - 25% ROI (letting income only - aside from the forced and natural appreciation) and I generally let on minimum 12 month contracts. It should be noted however that my investment did include a considerable investment of sweat equity.

 

I would have thought a 3 month let would constitute a holiday let at considerably more ROI than the figures noted in the survey. If not then, IMHO, you're wasting your time unless you believe you have a substantial appreciation value to factor in.

[rufanuf]

13 hours ago, Tofer said:

Glad I'm not investing in HH or CA!

 

My UK properties create between 15% - 25% ROI (letting income only - aside from the forced and natural appreciation) and I generally let on minimum 12 month contracts. It should be noted however that my investment did include a considerable investment of sweat equity.

 

I would have thought a 3 month let would constitute a holiday let at considerably more ROI than the figures noted in the survey. If not then, IMHO, you're wasting your time unless you believe you have a substantial appreciation value to factor in.

Couldn't agree more, but the survey is not about a comparison between nations. Its about HH and Cha Am. If people are getting north of 10% would also like to hear comment from those people and how they came by the better returns as most Thai holiday home investors simply buy off plan and leave rentals to someone else. A very different dynamic to investing your own sweat!

[Jimmyjames120]

41 minutes ago, rufanuf said:

If people are getting north of 10% would also like to hear comment from those people and how they came by the better returns

The 3 golden rules of property, location location location, it’s not a myth.

[rufanuf]

43 minutes ago, Jimmyjames120 said:

The 3 golden rules of property, location location location, it’s not a myth.

Again, couldn't agree more..what I was hoping to achieve from my post was to gain some idea of the average return people are getting. Ive got friends who cannot find someone to let their property at all, and other who are letting out 12 months a year, and its generally due to location. Equally Ive got friends who have great condos in Hua Hin in terms of location and cant find a tenant at all, seems some agents are better than others too.

[bttao]

On 10/28/2017 at 12:11 AM, rufanuf said:

Again, couldn't agree more..what I was hoping to achieve from my post was to gain some idea of the average return people are getting. Ive got friends who cannot find someone to let their property at all, and other who are letting out 12 months a year, and its generally due to location. Equally Ive got friends who have great condos in Hua Hin in terms of location and cant find a tenant at all, seems some agents are better than others too.

I don't think it is all the agents fault: from what I saw/read about HH  it is not for those who are looking for peace and quiet... and not interested in night life.

Also, no road access to the beach like in Cha Am... and overall overpriced.

[TenDreams]

<quote>

Again, couldn't agree more..what I was hoping to achieve from my post was to gain some idea of the average return people are getting. Ive got friends who cannot find someone to let their property at all, and other who are letting out 12 months a year, and its generally due to location. Equally Ive got friends who have great condos in Hua Hin in terms of location and cant find a tenant at all, seems some agents are better than others too.

</quote>

 

Sorry, a little off-topic, and I'm no expert but my observations are:

Most condo owners here are Thais from Bangkok = rarely use the condo, do not rent out the condo (also own some of the most prime units).

Ex-pats who buy condos = use for holidays/friends holidays/lock 'n' leave solution, don't often rent out.  

Foreign retiree residents  = do not want to be cooped up in a condo.

Holiday-makers =  do not want to be cooped up in a condo.

Long term renters = do not want to be cooped up in a condo.

Locals = cannot afford to be cooped up in a condo.

All in all doesn't bode well for condo rentals, not to mention vast over-supply and pressure to ban short term lets by the hotel groups. 

The people I know who do well renting out condos have spent decent money on their own management staff and marketing, and they do do pretty well. I think marketing actively is key to doing well in rentals here. 

The most I have seen offered by rental programs here is 6%.

[bttao]

3 hours ago, TenDreams said:

<quote>

Again, couldn't agree more..what I was hoping to achieve from my post was to gain some idea of the average return people are getting. Ive got friends who cannot find someone to let their property at all, and other who are letting out 12 months a year, and its generally due to location. Equally Ive got friends who have great condos in Hua Hin in terms of location and cant find a tenant at all, seems some agents are better than others too.

</quote>

 

Sorry, a little off-topic, and I'm no expert but my observations are:

Most condo owners here are Thais from Bangkok = rarely use the condo, do not rent out the condo (also own some of the most prime units).

Ex-pats who buy condos = use for holidays/friends holidays/lock 'n' leave solution, don't often rent out.  

Foreign retiree residents  = do not want to be cooped up in a condo.

Holiday-makers =  do not want to be cooped up in a condo.

Long term renters = do not want to be cooped up in a condo.

Locals = cannot afford to be cooped up in a condo.

All in all doesn't bode well for condo rentals, not to mention vast over-supply and pressure to ban short term lets by the hotel groups. 

The people I know who do well renting out condos have spent decent money on their own management staff and marketing, and they do do pretty well. I think marketing actively is key to doing well in rentals here. 

The most I have seen offered by rental programs here is 6%.

 

I don't blame them !

I wouldn't want to be cooped in a  50sqm condo or less (which is like an extra large cell)... but I would if, it's around 100 sqm or more, with a view of the  beach.

 

I am looking for one to rent for long term (12 months lease at a time)... I am not interested in buying property in SE Asia:

1- it has to be in Cha Am in a High  Rise  on the beach.( not in HH)

2- Around 100 SQM and up , on the 10th floor and up.

3- Fully furnished and well maintained (30,000 B and up).

 

Most of the ads I have seen so far are for 29/35/60 sqm which are unacceptable to me.

 

Edited January 4, 2018 by bttao

[chrisandsu]

On 1/4/2018 at 5:33 PM, bttao said:

 

I don't blame them !

I wouldn't want to be cooped in a  50sqm condo or less (which is like an extra large cell)... but I would if, it's around 100 sqm or more, with a view of the  beach.

 

I am looking for one to rent for long term (12 months lease at a time)... I am not interested in buying property in SE Asia:

1- it has to be in Cha Am in a High  Rise  on the beach.( not in HH)

2- Around 100 SQM and up , on the 10th floor and up.

3- Fully furnished and well maintained (30,000 B and up).

 

Most of the ads I have seen so far are for 29/35/60 sqm which are unacceptable to me.

 

Modern condo at 100sq m is super rare . I don’t know where you are from but you may need to lower your expectations . Have you been to Hua Hin before ? It’s an expensive Spain and to me the most boring city in Thailand . You will pay for that honour too .