Beat up properties In Pattaya?

[Hal65]

I am not too knowledgeable on the Pattaya market. For anyone who has been there, are there a decent amount of distressed properties for sale? I am loosely considering doing some small fix and flips (and I already know to account for increased holding costs).

 

 

[trogers]

Check the legal execution dept website on auctions of foreclosed properties.

 

http://www.led.go.th/default.asp

[dotpoom]

6 hours ago, trogers said:

Check the legal execution dept website on auctions of foreclosed properties.

 

http://www.led.go.th/default.asp

It appears to me that it's difficult now even for good value properties to sell, even accepting a loss.

[trogers]

1 minute ago, dotpoom said:

It appears to me that it's difficult now even for good value properties to sell, even accepting a loss.

No capital gains at the peak of a property cycle. Investment at this time should only be based on good rental yields.

[NoBrainer]

Forget about Pattaya, first of all Thais do not like to by second hand homes. They buy new, or just land to build on.

 

The Pattaya market is very depressed, with many thousands of unsold condos, and tens of thousands more, that have been sold 

(many to speculators) and sit empty for years.

 

There are also thousands of homes sitting empty and for sale.

 

If you really want to try this, then stick to condos in Bangkok, near the transit lines, and only in foreign names. You might have a chance to make some money.

 

Otherwise, I would look for a different business plan.

 

 

[newnative]

2 hours ago, dotpoom said:

It appears to me that it's difficult now even for good value properties to sell, even accepting a loss.

This has not been my experience.

[newnative]

2 hours ago, NoBrainer said:

Forget about Pattaya, first of all Thais do not like to by second hand homes. They buy new, or just land to build on.

 

The Pattaya market is very depressed, with many thousands of unsold condos, and tens of thousands more, that have been sold 

(many to speculators) and sit empty for years.

 

There are also thousands of homes sitting empty and for sale.

 

If you really want to try this, then stick to condos in Bangkok, near the transit lines, and only in foreign names. You might have a chance to make some money.

 

Otherwise, I would look for a different business plan.

 

 

  I don't do homes but in my experience Thais will buy second hand condos--at least for investment.  I have sold 3 secondhand Pattaya condos to Thais at a profit.

[catman20]

3 hours ago, trogers said:

No capital gains at the peak of a property cycle. Investment at this time should only be based on good rental yields.

like theirs not much rental property on the market now 

[trogers]

24 minutes ago, catman20 said:

like theirs not much rental property on the market now 

Location, location and location. There may be bargains that would give a good rental yield in a location with not much supply, like Siracha or Korn Kaen.

[thailand49]

Unless you can get the property dirt and I mean dirt cheap forget it in Pattaya.

[trogers]

9 minutes ago, thailand49 said:

Unless you can get the property dirt and I mean dirt cheap forget it in Pattaya.

A good chance in auctions of foreclosed properties. Could well be only 25-30% of asking prices of units in the same project.

[alex8912]

4 hours ago, NoBrainer said:

Forget about Pattaya, first of all Thais do not like to by second hand homes. They buy new, or just land to build on.

 

The Pattaya market is very depressed, with many thousands of unsold condos, and tens of thousands more, that have been sold 

(many to speculators) and sit empty for years.

 

There are also thousands of homes sitting empty and for sale.

 

If you really want to try this, then stick to condos in Bangkok, near the transit lines, and only in foreign names. You might have a chance to make some money.

 

Otherwise, I would look for a different business plan.

 

 

Again one of the biggest Thai Visa Forum myths. I'm sure that's why you have not sold a condo in Thailand to a Thai. The last condo I sold for a very nice profit was in a 20+ year old building to, ok, HOLD ON a single female Thai professional!!!  She was very happy to buy and move into my nice condo off Satorn with an amazing view of the tallest building in Thailand and downtown. The building is as solid as a rock ( I never ever heard the people below, above or next to me when I lived in it myself) and well maintained.  For 8 years of reading TVF posters with no real life experience always say Thais only buy new.  My neighbor sold his to a Thai and he told me his neighbor sold to a Thai before me as well.  Thais will buy nice older condos and they without a doubt like a great location. 

[Destiny1990]

12 minutes ago, trogers said:

A good chance in auctions of foreclosed properties. Could well be only 25-30% of asking prices of units in the same project.

Its mostly houses rarely condos and have such websites in English?

[trogers]

20 minutes ago, Destiny1990 said:

Its mostly houses rarely condos and have such websites in English?

I don't know. The last time I was at their office in Bangkok (Thonburi side) was in 2008, bidding for a foreclosed unit in Sukhumvit 24.

 

Info on auctions was presented in a booklet sold at Bt80.

 

I believe they have auctions at their office in Chonburi that also cover Pattaya.

[huawei]

2 hours ago, trogers said:

A good chance in auctions of foreclosed properties. Could well be only 25-30% of asking prices of units in the same project.

How do you know when there auctions in the area your interested one. Website?

 

i chanced upon one by accident, the thing that interested me was that there is a continual reduction by % in the asking price if it doesn't sell initially. So next auction 60% of original asking price, then 50% etc..

 

is this normal..

[huawei]

Second hand myth..

 

Agree. Once I reduced the price of my house on a nice moo baan, the Thai neighbours friends or family were queuing up..just put a sign outside.

 

it was a bargain price..

[trogers]

Just now, huawei said:

How do you know when there auctions in the area your interested one. Website?

 

i chanced upon one by accident, the thing that interested me was that there is a continual reduction by % in the asking price if it doesn't sell initially. So next auction 60% of original asking price, then 50% etc..

 

is this normal..

Yes, but I think there is a reserved price set by the claimant of the suit, and further auctions on the property ends for a period of time after getting no bids on 3 consecutive auctions.

[trogers]

3 minutes ago, huawei said:

Second hand myth..

 

Agree. Once I reduced the price of my house on a nice moo baan, the Thai neighbours friends or family were queuing up..just put a sign outside.

 

it was a bargain price..

Should gather all the interest parties for an auction. Just post your reserved price...??

[Khun Jean]

Thais love buying second hand, especially when it is already fixed (new floor, pant etc) and has a reasonable price.

Seen condo's go within hours as people who live in the building tip of friends and family.

See it all the time so this can really be put in the 'myth' box.

 

[SiSePuede419]

 I am loosely considering doing some small fix and flips (and I already know to account for increased holding costs).

 

I can appreciate your enthusiasm. ?

 

[Khun Jean]

That graph is still valid if you consider 'value', not money. 

I think we are in Thailand already 20 years in the 'Greed' phase with another 5000 years to go.

The 'mean' rises just as fast in money because of inflation. So be very aware between the distinction between 'value' and 'money' as they are completely different concepts.

A hedge is gold or western country currency.

[SiSePuede419]

1 hour ago, Khun Jean said:

Thais love buying second hand, especially when it is already fixed (new floor, pant etc) and has a reasonable price.

Seen condo's go within hours as people who live in the building tip of friends and family.

See it all the time so this can really be put in the 'myth' box.

 

 

Disagree.  Thais prefer new vs old.

 

Just talked to a condo owner this morning.  He said he owns several properties in the U.K.

 

"Never again [will I buy]"

 

Because it's illegal in Thailand to rent your condo out on a daily basis.

 

He said many of the owners in the building are ready to "slit their own throats" in order to walk away from the deal.

 

So, the question boils down to two things.

 

1. How many rich, uneducated, ignorant, gullible suckers, I mean "qualified buyers" do you know?

 

2. How good are you at "running a confidence game"?

 

 

 

[Khun Jean]

Well you must have gathered your knowledge from the internet.

Sure everyone likes to buy new, only the prices do not allow that.

The middle class buys what they can afford. They are also getting fed up with renting. Especially because owners really do not do anything to keep up a condo. And the ones who rent have a real hard time to spend money on something they don't own.

Credit is pretty easy for ones who have a good job. And smarter ones buy a 40m2 older condo for under 1MB instead of a new 20m2 for 2Mb.

How do i know? I have only been doing this for about 15 years.

I compete with Thai buyers as i buy only to rent out. I am not in the buy and flip game at all.

Many times a good deal is snapped away right before i had a change.

Last month i missed out on four of them (planned on buying one), all in the same building as the owner decided to cash out. I thought i could at least get one, but alas i heard in ONE day too late.

 

Just to clarify, I do my business in Bangkok and rent out only to Thais with good jobs. No shortage of them and close to 100% occupancy tells me i am on the right track.

 

Edited December 8, 2017 by Khun Jean

[Destiny1990]

1 hour ago, Khun Jean said:

Thais love buying second hand, especially when it is already fixed (new floor, pant etc) and has a reasonable price.

Seen condo's go within hours as people who live in the building tip of friends and family.

See it all the time so this can really be put in the 'myth' box.

 

Your statement is a bit over the top.

u well aware that 90% of the locals prefer to buy only new properties and even off plan with developer finance and stage payments. So only a very small procentage of locals would be prepared to consider to buy some second hand unit. Why else people here cant offload their second hand units if according to u they are so sought after?

[Khun Jean]

5 minutes ago, Destiny1990 said:

Your statement is a bit over the top.

u well aware that 90% of the locals prefer to buy only new properties and even off plan with developer finance and stage payments. So only a very small procentage of locals would be prepared to consider to buy some second hand unit. Why else people here cant offload their second hand units if according to u they are so sought after?

The answer is simple. Most second hand units are too expensive. Nobody is interested in those.

90% prefer, but of those 90% can not afford. What do they do, end up renting or are they buying second hand.

 

If the choice is 1.5Mb for a second hand and 1.6Mb for a new one, of course the new one is prefered, even with a bigger difference in price the monthly mortgage is only a few hundred toa thousand baht more. But a bigger price difference or much more sqm's will tip the scale in favor of older units.

 

Edited December 8, 2017 by Khun Jean

[Destiny1990]

12 minutes ago, Khun Jean said:

The answer is simple. Most second hand units are too expensive. Nobody is interested in those.

90% prefer, but of those 90% can not afford. What do they do, end up renting or are they buying second hand.

 

If the choice is 1.5Mb for a second hand and 1.6Mb for a new one, of course the new one is prefered, even with a bigger difference in price the monthly mortgage is only a few hundred toa thousand baht more. But a bigger price difference or much more sqm's will tip the scale in favor of older units.

 

Locals are somewhat negative about all second stuff because maintenance is not top notch here they know this themselves also the finance mortgage aspect makes it that secondhand units are really third choice here..but yeah the wider the gap gets in regard the price  the more opportunity for used units..So to say Thais Love to buy used units is not correct ?

[Khun Jean]

If new is first choice and second hand is third choice what is second choice then?

 

[Destiny1990]

11 minutes ago, Khun Jean said:

If new is first choice and second hand is third choice what is second choice then?

 

Hahaja may i answer that one after i wake up??

[trogers]

6 hours ago, Khun Jean said:

If new is first choice and second hand is third choice what is second choice then?

 

Newly refurbished second hand?

[catman20]

14 hours ago, trogers said:

Location, location and location. There may be bargains that would give a good rental yield in a location with not much supply, like Siracha or Korn Kaen.

are you serious ? have you looked in Siracha ? i have its over built there also many many units unsold and many empty. Korn Kaen ? did you mean khon kaen?