What do the following words from a RE professional means?

[trogers]

That is because the price of new condo units here is increasing by 10% annually.

“Despite interesting positive factors in this location, if you buy a unit at the project where unit prices are higher than others or the market average, it may take more time to resell the unit,”

 

Double Talk?

Edited November 30, 2017 by trogers

[Peterw42]

I like this line.

 

“There are many choices in other locations away from this location"

 

The whole article makes sense if you put the word "asking" in front of any appearance of the word "price".

[trogers]

2 minutes ago, Peterw42 said:

I like this line.

 

“There are many choices in other locations away from this location"

 

The whole article makes sense if you put the word "asking" in front of any appearance of the word "price".

So, the RE professional is one who is telling some truth about the state of the market, without offending the developers?

[Destiny1990]

What words?

[trogers]

18 hours ago, Destiny1990 said:

What words?

Click on Double Talk to get to the article.

[trogers]

More Double Talk

 

"The condo sales rate in both Nonthaburi and Samutprakan is strong even if the number of empty units is also growing".

 

Empty units here means unsold inventory.

 

Add in the numbers of vacant units from the total sold, and we can now understand why half of completed projects are ghost units.

 

 

Edited December 1, 2017 by trogers

[Destiny1990]

 

5 hours ago, trogers said:

Click on Double Talk to get to the article.

Probably better to buy a resale in bkk as a new bkk unit will only go down in value for the first couple of years. And it takes 10 years at least to get back ur initial purchase price.

For resales if u bargain hard it might be a more stable investment but still the rental return in bkk are on the low side so for investment I probably buy not there.

if i wrong thenshow me a resale unit in bkk for 3 million bht that can generate 8%.roi.

[trogers]

9 minutes ago, Destiny1990 said:

 

Probably better to buy a resale in bkk as a new bkk unit will only go down in value for the first couple of years. And it takes 10 years at least to get back ur initial purchase price.

For resales if u bargain hard it might be a more stable investment but still the rental return in bkk are on the low side so for investment I probably buy not there.

if i wrong thenshow me a resale unit in bkk for 3 million bht that can generate 8%.roi.

Not at today's prices. Rental yield was 8-10% ten years ago when I bought.

 

These days, 5-7% is achievable for old condos. Those bought new a year or two ago would be lucky to achieve 4%. Problem for those shoe box units would be the ability to hold on to tenants, given the huge oversupply.

 

Actual yield after deducting the many many months of vacancy period between tenants may only be 60-70% of the figures above.

Edited December 1, 2017 by trogers

[Destiny1990]

22 minutes ago, trogers said:

Not at today's prices. Rental yield was 8-10% ten years ago when I bought.

 

These days, 5-7% is achievable for old condos. Those bought new a year or two ago would be lucky to achieve 4%. Problem for those shoe box units would be the ability to hold on to tenants, given the huge oversupply.

 

Actual yield after deducting the many many months of vacancy period between tenants may only be 60-70% of the figures above.

Correct me but that doesnt make sense for me in regard ur units.

i doubt it made 10%roi  about ten years ago because then now they should be making 12-14% or have u never raised rent in those years? I think wen u bought the units it generated 5-6% but by steadily increasing ur rent nowadays they are yielding 9-10%.

[trogers]

12 minutes ago, Destiny1990 said:

Correct me but that doesnt make sense for me in regard ur units.

i doubt it made 10%roi  about ten years ago because then now they should be making 12-14% or have u never raised rent in those years? I think wen u bought the units it generated 5-6% but by steadily increasing ur rent nowadays they are yielding 9-10%.

Rents are basically flat in Bangkok over the past decade. Remember the two political upheavals?

 

I only managed to raise rent by 10% for my units at Phrom Phong once, 3 years ago.

 

The 8-10% rental yield are based on the acquisition price plus refurbishment costs, 10 years ago.

[Destiny1990]

3 hours ago, trogers said:

Rents are basically flat in Bangkok over the past decade. Remember the two political upheavals?

 

I only managed to raise rent by 10% for my units at Phrom Phong once, 3 years ago.

 

The 8-10% rental yield are based on the acquisition price plus refurbishment costs, 10 years ago.

Rents flat, capital appreciation not really existing  then the only thing keeps climbing is sqm prices of new developments in Bkk.

seems u nolonger keen on to buy more investment condos in Bkk then given the low cash flow percentage  they will produce.

[trogers]

12 minutes ago, Destiny1990 said:

Rents flat, capital appreciation not really existing  then the only thing keeps climbing is sqm prices of new developments in Bkk.

seems u nolonger keen on to buy more investment condos in Bkk then given the low cash flow percentage  they will produce.

Capital appreciation is still present for old condos in good locations. Just that the appreciation is only in the range of 3-5% pa, and not the 8-12% price increase of new project launches.

 

That's why prices of old condos are not bubbly because you don't see flippers queuing up in old projects.