Buying condos for investment?

[chingmai331]

Any current knowledge of Sirithana Condo, behind KSK?  Like bldg quality,  ownership rate by farang, quality of maintenance, etc.  I ask coz this place looks old and well used but in a good location.

[beavercreek]

For some reason the people, who like to talk up BitCoin remind me of the people, who feel the need to tell you they flew business class.  Too bad it has lost half its value in about a month.

 

Sirithana recently had a makeover.  It appears to have good bones.  I think there is building I and II.  There are many better locations to live, but you could rent that out fairly easy.  VNQ is paying about 4.5% dividend yield...and no calls for service or notices from Thai tax collectors.

[zaZa9]

On 1/17/2018 at 1:20 PM, DLang said:

I got a great deal on an empty unit. Which is what I wanted, as I wanted to interior design it myself.

 

Ended up moving away from CM and got lucky ( I suppose) with a great agent. Been rented everyday since then returning 10% per annum of purchase + interior design. 

 

 

Stay away from cheap-ass studios in some moldy 40 yr old building. 

 

Hey , stop keeping on topic !

[sharktooth]

Don’t what all the fuss is about. I normally just flush them down the bog after I’ve finished.

[mpyre]

On 1/12/2018 at 3:03 AM, aMike said:

Planning to do shorter term rents for months, maybe even weeks, via an agent in Nimman , as it's a high demand area. 10% would be pretty good!

I'm curious if anyone has some tips regarding renovations in old buildings. Any things that are different here, to keep an eye on..?

 

 

An easier way to make 10% on real estate is to buy an international property ETF like Vanguard VNQI and write 4-6 month at-the-money call options against the position. VNQI currently trades at about $63.00 and yields 3.86%. The 6 month ATM options trade at about $2.00, thus yielding about 3.17% each 6 months, or 6.2% annually. Add in the 3.86% dividend and you have your 10%+ per year. This without the headaches of property management, and with a globally diversified portfolio. Of course stocks ebb and flow, but so does the value of property. You just ride out the ups and downs, and continue to write calls against your position.

Overall, a simpler solution.

[PattayaAngel]

On 1/12/2018 at 3:02 PM, toughlove said:

Location location.

Cheap Condos are never in a good location.

This is it.  Nimman is the best area, IMHO, although traffic is a nightmare so a condo in walking distance is the best bet. They are not cheap and for value forget the newer builds like 'Nimmana' etc.  I own one near Nimman and get 7% RoI and it always rents fairly easily.  The market has changed beyond recognition this last decade and the 'good old days' of finding cheap condos in great locations is gone. Use the farang agents as Thais are clueless what a farang will look for in a condo (assuming you are going for quality). If you just want a downmarket place a Thai agent is perfectly fine. I define an upmarket condo as 20,000+  but YOU do the research and be sure of the location. Good luck.

[aMike]

Thanks everyone for all the responses! To clarify - I've bought and sold multiples properties elsewhere, just not in Thailand yet, so was looking to hear some first hand experiences from people to know what to beware, what to look for etc. I'm of course aware of the risks, and wouldn't trust any real estate agents to find me a good deal, their goals are different from mine. This is for investment, not to live in, so only care about the numbers, risks and getting good return.

 

I looked at quite a few deals and found some that are rather attractive that I'm planning to go with. Most are around 6-7% return, but I think higher, closer to 10% is definitely possible with more research. But any tips are always appreciated - only if from personal experience. I plan to buy a few condos here, as I'm staying in Chiang mai for longer periods now. Happy to meet and chat with other investors to exchange experience, feel free to pm me. 

 

Also, anyone got a mortgage/loan for real estate purchase in Thailand, is it worth looking into, or are the rates too high, so if you have the funds it's best to buy outright?

 

 

 

Edited January 25, 2018 by aMike

[toughlove]

This is it.  Nimman is the best area, IMHO, although traffic is a nightmare so a condo in walking distance is the best bet. They are not cheap and for value forget the newer builds like 'Nimmana' etc.  I own one near Nimman and get 7% RoI and it always rents fairly easily.  The market has changed beyond recognition this last decade and the 'good old days' of finding cheap condos in great locations is gone. Use the farang agents as Thais are clueless what a farang will look for in a condo (assuming you are going for quality). If you just want a downmarket place a Thai agent is perfectly fine. I define an upmarket condo as 20,000+  but YOU do the research and be sure of the location. Good luck.

Your right about really cheap stuff on good locations gone.

 

I bought a 4.8 million baht 80 sqm condo in bangkok lower Sukhumvit 13 years ago and 2 minute walk from Nana bts and was told by everyone do not buy only rent.

 

The latest condo that adjoins Nana bts is the Q condo and is 1 to 5 million USA DOLLARS! Per apartment

 

[evenstevens]

38 minutes ago, aMike said:

Thanks everyone for all the responses! To clarify - I've bought and sold multiples properties elsewhere, just not in Thailand yet, so was looking to hear some first hand experiences from people to know what to beware, what to look for etc. I'm of course aware of the risks, and wouldn't trust any real estate agents to find me a good deal, their goals are different from mine. This is for investment, not to live in, so only care about the numbers, risks and getting good return.

 

I looked at quite a few deals and found some that are rather attractive that I'm planning to go with. Most are around 6-7% return, but I think higher, closer to 10% is definitely possible with more research. But any tips are always appreciated - only if from personal experience. I plan to buy a few condos here, as I'm staying in Chiang mai for longer periods now. Happy to meet and chat with other investors to exchange experience, feel free to pm me. 

 

Also, anyone got a mortgage/loan for real estate purchase in Thailand, is it worth looking into, or are the rates too high, so if you have the funds it's best to buy outright?

 

 

 

it appears so far.that your research so far excludes that marshall law is still in force .therefore your investment plans. in my view are in  the high risk bin.where one can easily invest your loot off shore.and receive returns that you are asking for and bullett proof guarantee.never the less best of luck.not for e/s though

Edited January 25, 2018 by evenstevens

[toughlove]

it appears so far.that your research so far excludes that marshall law is still in force .therefore your investment plans. in my view are in  the high risk bin.where one can easily invest your loot off shore.and receive returns that you are asking for and bullett proof guarantee.never the less best of luck.not for e/s though

I get 40k rent on a 4.8 million baht condo do the math . That's bullet proof with zero risk. Good luck with stock market volatility however thailand is the hub of stock market genuisus all making a killing [emoji23]

 

[evenstevens]

35 minutes ago, toughlove said:

I get 40k rent on a 4.8 million baht condo do the math . 

 

just done my maths.buy yourself a lottery ticket.have a nice arvo

[beavercreek]

I made an offer on a 100 year old, stone block bungalow, 1050 sf, on a 13,000 sf lot.  Some say it is the best climate on the planet.  Southern Arizona, 4000 ft elevation.  Nat gas, city water and sewer...500 meters to Food City.  Duty Free shopping... Jameson 1 liter 630 THB, 45% less than CNX Duty Free.  Asking 45,000..I offered 27,500 cash...counter offer is 32,500...would rent for 600..

[PattayaAngel]

2 hours ago, toughlove said:

Your right about really cheap stuff on good locations gone.

 

I bought a 4.8 million baht 80 sqm condo in bangkok lower Sukhumvit 13 years ago and 2 minute walk from Nana bts and was told by everyone do not buy only rent.

 

The latest condo that adjoins Nana bts is the Q condo and is 1 to 5 million USA DOLLARS! Per apartment

 

Yes those were the days my friend we thought they'd never end... you have certainly hit the jackpot!  I have never done quite that well but used to buy around 1.5m in parts of Chiang Mai and, on occasion, under 1m.  All those are now 3/4m.

[MaeJoMTB]

2 hours ago, toughlove said:

I get 40k rent on a 4.8 million baht condo do the math . That's bullet proof with zero risk. Good luck with stock market volatility however thailand is the hub of stock market genuisus all making a killing

 

What happens if they have a civil war, or decide no foreigners are welcome in Thailand  any more.

Or you get fitted up, and banned from entering the country ever again (aka Mr. Norway).

[toughlove]

What happens if they have a civil war, or decide no foreigners are welcome in Thailand  any more.

Or you get fitted up, and banned from entering the country ever again (aka Mr. Norway).

Junta here for civil war. I remember reading hundreds of posts about civil war on the kings death as well

 

Thailand relies on tourism heavily so you can't be serious about kicking out farangs, please tell me you made that up [emoji16]

 

I have many good friends here who would look after a condo sale if in extremely unlikely event I was booted out. I've only heard of one or two in the millions of expats and the OP is criminal and wouldn't trust a word he says

 

 

 

[beavercreek]

3 minutes ago, toughlove said:

Junta here for civil war. I remember reading hundreds of posts about civil war on the kings death as well

Thailand relies on tourism heavily so you can't be serious about kicking out farangs, please tell me you made that up

I have many good friends here who would look after a condo sale if in extremely unlikely even I was booted out. I've only heard of one or two in the millions of expats and the OP is criminal and wouldn't trust a word he says
 

and remember the big dive the stock market took after DT's election?  And the Canadian Immigration system overload?

[MaeJoMTB]

10 minutes ago, toughlove said:

Thailand relies on tourism heavily so you can't be serious about kicking out farangs, please tell me you made that up

I remember foreigner holiday homes in Yugoslavia .... now the country has gone, wonder what happened to the homes?

Cyprus had a similar game, but they only lost half the country.

Condos were popular in Lebanon, I think Hezbollah has the deeds to all of them now.

Spain is looking distinctly iffy for Brits with Brexit on the cards.

 

Anyway here is a link to "The Bay of Abandoned Hotels", just for a bit historical perspective.

Edited January 25, 2018 by MaeJoMTB

[toughlove]

I remember foreigner holiday homes in Yugoslavia .... now the country has gone, wonder what happened to the homes?
Cyprus had a similar game, but they only lost half the country.
Condos were popular in Lebanon, I think Hezbollah has the deeds to all of them now.
Spain is looking distinctly iffy for Brits with Brexit on the cards.
 
Anyway here is a link to "The Bay of Abandoned Hotels", just for a bit historical comparison.

I'm actually serbian. My mother bought a tiny studio about 30 years ago when the socialist government were selling them off for 2k oz dollars.

A developer bought the block and she got 70k euros lol

But you are right when the Civil War started they froze all bank money and my father had 30k oz dollars seized in yugobank I'm actually going there next week because they are finally releasing the money hopefully with interest

[atizawa]

I had 3 type of condos for sale in Chiang Mai  (1 bedroom, 2 bedrooms and Duplex)

opposite side of Lanna golf course.

 

1 Bedroom condo for sell opposite side of Lannd golf course

 

This condo is the private luxury low-rise project which located in the high security area; next to Bank of Thailand, opposite side of Lanna Golf Club, within 5-10 minutes away from Nimman Road and MAYA Department Store and Central festival
Also is easy route from Chiang Mai International Airport  

 

Project has Club House includes Swimming Pool, Fitness (gym), Stream & Sauna, Jogging Trail, Garden, Internet, Postal Locker, CCTV, Security guard, key code system, key card system, 100% car park 

This room includes 1 bedrooms, 1 bathroom / kitchen / living area / single terrace which suitable for working people or rental. And fully built-in with real wood.

Interior items : 1 king sizebed, 1 shower, 1 toilet, Wide window with wooden frame slide partition, 32" LED TV, Cozy sofa, Dining table, Microwave, Build-in stove, Refrigerator

 

Room No.204 - 1 Bedroom 
Location: 2th Floor 
Room size:  31.88 sq.m. 
Price: 3,200,000 Thai Baht 
Rental price : 15,000 Baht / Month

 

Contact Detail -  contact Khun Tae 
WeChat ID: taeatiruj
LINE: atizawa 
Mobile: +6686 3800 541 or +6689 130 9355 (Thai number)
Email: [email protected] 

----------------------------------------------   

[boonrawdcnx]

Buying land is a better investment than rental property  in CM province....

I absolutely agree with you - just discussed this with a friend who owns several condos here in Chiang Mai and one in Pattaya.

Asking his advice- I was thinking about investing part of a land deal profit into some condos - and he strongly advised me not to do it.

And I must say after checking out some of the condos on the market I cannot believe that these people are still building more!

There is virtually no domestic market unless you are willing to rent out for 3000 baht a month to Somchai who works at Big C or Central and wants to live nearby, you are stuck with a tiny percentage of foreigners who either live here or come on a holiday.

Owners have just been dealt another blow with Airbnb / Agoda Homes e.g. renting out daily privately being declared illegal but the government.

Before I had talk to my friend who owns condos about investing - I went to see some new condominium buildings.

I found it quite amusing after I checked out some new condos in the Nimann area at one sales office the sales girl proudly told us that she wanted 3.8 million baht for 35 square meter box!

Replying to her that this totally unrealistic once I calculated the rent that I would have to charge to get a good return - and unless I really needed to live in the city for work I could build myself easily a 350 m2 -10 times the size of her box - beautiful house in Chiang Mai for the same amount of money - I first just got a blank stare - and then she replied to me “ but this is Nimann!”

After I asked her what other selling points she had apart from the location - the endless noise? the horrible traffic ? The overpriced food in the area? the obviously cheap materials used in the building ? (Cheap windows that allowed the street noise in) the cheap “index” furniture?
She just walked away without explaining any more selling points to me.

Needless to say I did not look at any more condos anymore especially not as an investment.

Also many of my friends who live in condos tell me that the “maintenance fee” they are paying seems to disappear into some peoples pockets while buildings are falling apart over the years.

I do understand that some people have / want to live in the city for whatever reasons and they sadly have to put up with this.


Chiang Mai certainly is not Bangkok with it’s enormous international clientele - either business people or diplomats who are able to pay top notch rent to live in a certain area.

Comparing my (Thai) friends investments in condos and my own- land is certainly a much better investment but of course you need to know the local market and have a Thai partner you trust ( yes they exist ).

In my 32 years coming to Thailand I have never ever seen a land price going down anywhere - in the area where we live land prices have gone up between 500 and 900 % in the last 8 years alone.

Of course Investing in land takes money and time since land usually does not give you a monthly income and it takes sometimes years to sell - but if you can wait - it’s nice just to lean back knowing that your investment is growing year after year as the city is growing and closing in driving up prices.

[beau thai]

buying cheap studios to renovate still pays in the right  location and bought right. same old.....

[neilrob]

Three and a half years ago I bought a 123 sqm condo for 3.8 million in Nakornping Condo. It was in very good condition, so needed little to prepare it for renting. I receive about 7.5% rental return. The last time it was vacant, I had two eager tenants and rented it with no more than a couple of days vacant. I would expect to get significantly more than 5 million if I sold it now, based on comparable sales.

 

All in all, it has proved a good investment, so investment in condos can pay off, both for income and appreciation. That said, we have done better in land, but needless to say that has its own difficulties for non-Thais.

 

The OP might consider a look at Nakornping. It is not on Nimman, but is well located within walking distance of the old city and maybe 700m from Nimman. It is an older building, but well managed and in a process of continuing improvement (recent renovations include new lifts and renovated corridors).