Invest or not?

[speedtripler]

 

 

Put 10% in bitcoin, it will outperform everything else combined in the next 12 months

Edited November 6, 2017 by speedtripler

[a10ams]

Mk1 2-door Ford Escorts. Restore them here on the cheap and ship them back to the UK.

[fletchsmile]

On 11/5/2017 at 5:48 AM, blackcab said:

Well chosen pieces of property, on the understanding that they would probably be resold after 10-20 years, depending on how things went.

 

In the meantime the property would be rented/leased for the best return possible for the least day-to-day hassle.

 

This is what I do on a daily basis for the company I work for. It's interesting to see how different investments perform, especially when you can compare real data from different commercial and residential categories.

What's the average rental yield on residential properties? Gross before expenses and net after expenses if you have.

 

We've a condo we'll be looking to sell or rent in a few weeks or so. The rental yields don't look that attractive to me though when I look on things like hipflat or just general property websites comparing rent to value.

 

For least day to day hassle something like TMB Property Income Fund would appeal to me more than direct property investment and the hassle of tenants. 

 

In your case I suspect the hassle is reduced because of economies of scale. Having only one property which turns out to be unrented for a while or nightmare tenants is a nightmare. With a portfolio though if it's only one of 20 properties that's fine. 

[fletchsmile]

Someone else already mentioned LTFs if you work here. I'd second that.

 

Thai assets and THB currency. Helps eliminate currency risk compared to foreign assets.  Equities with potential to outperform inflation. Tax relief up to 35% as well. So a 1000 baht investment can effectively cost 650 baht. Even if the price goes nowhere while you hold it full term, that still turns 650 baht into 1000 for a gain of over 50%

[blackcab]

2 hours ago, fletchsmile said:

What's the average rental yield on residential properties? Gross before expenses and net after expenses if you have.

 

We don't do much single unit residential - it's just too much hassle for the returns. In general we get a little under 5 per cent gross and the net is 3 or 4 per cent depending on refurbishment, void periods, agency fees, etc.

 

It's possible to get more, for sure, but I don't tend to encourage the people I work for to invest in single unit residential because our head office costs rise disproportionately.

 

For those with a good eye, cash to invest and spare time it's possible to get 7 or 8 per cent gross if you buy very carefully, manage everything yourself and have good, long staying tenants.

[fletchsmile]

21 hours ago, blackcab said:

 

We don't do much single unit residential - it's just too much hassle for the returns. In general we get a little under 5 per cent gross and the net is 3 or 4 per cent depending on refurbishment, void periods, agency fees, etc.

 

It's possible to get more, for sure, but I don't tend to encourage the people I work for to invest in single unit residential because our head office costs rise disproportionately.

 

For those with a good eye, cash to invest and spare time it's possible to get 7 or 8 per cent gross if you buy very carefully, manage everything yourself and have good, long staying tenants.

Thanks for the feedback. Appreciated. 5% gross / 3-4% net as you mention isn't really worth the hassle on a single condo.

Even 7%-8% gross isn't that appealing, given the other things that need to fall in place.

 

Cheers

Fletch :)

 

   

 

 

[blackcab]

12 minutes ago, fletchsmile said:

Thanks for the feedback. Appreciated. 5% gross / 3-4% net as you mention isn't really worth the hassle on a single condo.

Even 7%-8% gross isn't that appealing, given the other things that need to fall in place.

 

Cheers

Fletch :)

 

If you can sell it, then do so. It's one less headache. You will always be able to buy a used condo in Thailand.

[utalkin2me]

We have a condo that has seemed to do well, although I suppose you never know until you sell. We tried hard to buy in a coveted location. More Difficult but worth it in the long run. 

 

We are also in Thai mutual funds. I don’t keep track of them as much as I should, lol, but last time I checked they seem to be doing ok.