Condo Glut

[gk10002000]

Opening paragraph from a major Thailand newspaper"

 

" New condo supply in Pattaya being launched this year should not exceed 5,000 units as more than 12,000 units remain unsold, the highest since 2015, according to a property consultant. ".  Is anybody surprised?

[johng]

I'm only surprised you left the T out on the title ????

some will say those condos are actually sold..but to "flippers" who never move in and try to resell at a higher than purchase price...or to  weekenders with lots of disposable cash ????

others think its a good way to "wash" money ?

[bkk6060]

Well, I would not be surprised if there are more.

Such a foolish purchase but of course ask those that have bought over the past few years and they will tell you how much theirs has appreciated. 

I personally would not pay 1/2 of the asking price of most these places.

Rents seem to be stable or down most parts of the city I have looked at several recently nice newer places with a water view in the 10,000 b or even less range so why buy anything?

Invest your hard earned money in a true investment which Pattaya real estate ain't.

[champers]

2 hours ago, bkk6060 said:

 

Invest your hard earned money in a true investment which Pattaya real estate ain't.

Sex, drugs and rock 'n' roll.

[bkk6060]

11 hours ago, champers said:

Sex, drugs and rock 'n' roll.

Of course.

What else is there!

[bomber]

20 hours ago, bkk6060 said:

Of course.

What else is there!

condo's

[Henryford]

On 2/1/2019 at 7:40 PM, bkk6060 said:

Well, I would not be surprised if there are more.

Such a foolish purchase but of course ask those that have bought over the past few years and they will tell you how much theirs has appreciated. 

I personally would not pay 1/2 of the asking price of most these places.

Rents seem to be stable or down most parts of the city I have looked at several recently nice newer places with a water view in the 10,000 b or even less range so why buy anything?

Invest your hard earned money in a true investment which Pattaya real estate ain't.

Who said it was an investment. I bought mine, 12 years ago, to live in. I have broken even on what i would have paid in rent and now live rent free for the rest of my life.

[cornishcarlos]

I have no idea...

Bought a 1 bed ( 32sqm ) condo in Bangkok, 2 yrs ago for 1.7 mil.

We paid the initial down payment, which was in the region of 150k.

It's rented out for 9k/month and we pay an extra 2k/month to top up the loan.

Are we fools ? If someone can work out how long to pay off and how much it will cost us, please jump in ????

 

[luckyluke]

On 2/1/2019 at 7:40 PM, bkk6060 said:

nice newer places with a water view in the 10,000 b or even less

I am here ( 17500 ThB + utilities ) till end of month ( visa extension ) :

 

http://www.maxxcity.com/en/index.php

 

and no " water view ".

 

Wonder where those " nice newer places with a water view in the 10,000 b or even less"

are.

 

Of course " new " & " nice " are relative.

 

[wgdanson]

30 minutes ago, cornishcarlos said:

I have no idea...

Bought a 1 bed ( 32sqm ) condo in Bangkok, 2 yrs ago for 1.7 mil.

We paid the initial down payment, which was in the region of 150k.

It's rented out for 9k/month and we pay an extra 2k/month to top up the loan.

Are we fools ? If someone can work out how long to pay off and how much it will cost us, please jump in ????

 

1.7M - 150k = 1.55M / 9k+2k = 141 months = 11.5 years. But that's without deducting any maintenance etc charges.

[cornishcarlos]

8 minutes ago, wgdanson said:

11.5 years.

 

So I will pay roughly 500k which includes my deposit, monthly payments and incidentals like condo fees. 11.5yrs later, I have an income source..

That's not too bad if it remains rented out ????

[wgdanson]

7 minutes ago, cornishcarlos said:

 

So I will pay roughly 500k which includes my deposit, monthly payments and incidentals like condo fees. 11.5yrs later, I have an income source..

That's not too bad if it remains rented out ????

You are correct....IF it remains rented out

[Benmart]

On 2/2/2019 at 9:10 AM, bkk6060 said:

Of course.

What else is there!

An early death if abused.

[dotpoom]

Some people actually like to own their own home ..rather than live in a rented one. If one can't understand why....then there's not much point in trying explain it?

 

[quandow]

There's been a glut for years, this is not news.

[Pravda]

3 hours ago, cornishcarlos said:

I have no idea...

Bought a 1 bed ( 32sqm ) condo in Bangkok, 2 yrs ago for 1.7 mil.

We paid the initial down payment, which was in the region of 150k.

It's rented out for 9k/month and we pay an extra 2k/month to top up the loan.

Are we fools ? If someone can work out how long to pay off and how much it will cost us, please jump in ????

 

 

I don't know if you are a fool, but this is a cash flow negative investment. I don't see the point of a cash flow negative investment in a country where you have next to nothing rights. Mortgage rates in Thailand are not exactly low. Don't know where you are from, but my guess is that you could have done better in your own country.

 

We don't know the location of the condo, but being bought 2 years ago at 1.7mil, my guess it is far from being in a prime location. It will most definitely suffer from famous Thai no maintenance which is another big issue here.

[Cricky]

On 1/29/2019 at 9:46 AM, gk10002000 said:

highest since 2015, according to a property consultant.

Property Consultant - you'll find they come and go, usually fail at their business and move on, these people are not the best informed, you should get reliable information from another source.

 

I've been buying property here in Pattaya since 2003, there has always been a glut.

[cornishcarlos]

39 minutes ago, Pravda said:

 

I don't know if you are a fool, but this is a cash flow negative investment. I don't see the point of a cash flow negative investment in a country where you have next to nothing rights. Mortgage rates in Thailand are not exactly low. Don't know where you are from, but my guess is that you could have done better in your own country.

 

We don't know the location of the condo, but being bought 2 years ago at 1.7mil, my guess it is far from being in a prime location. It will most definitely suffer from famous Thai no maintenance which is another big issue here.

 

Like I said, I really have no idea.. It was actually my SIL that paid the deposit originally, then realised that she could not afford it if not rented out. So it was a bit of a charity buy !! Even so, would I be better off putting 500k in a bank over 11 yrs ? It's £50 a month, which I could spend in 2hrs at the bar in Singapore where I'm working now... 

Unfortunately, I am struggling to get a mortgage in U.K, as I get paid in foreign currency.. Might buy a rental back there with cash next year ? 

To be honest, I should really go see a financial advisor ????????

[Emdog]

I bought my little rabbit hole for cash back when exchange was 40baht to the dollar. Now around 32. Made up in what would have been shot in rent plus that exchange rate bonus if I ever sell... or rather, wife sells after I croak.

[cryo]

Location,location,location some condo's sell far easier than others, added to that a lot depends on when and how much you paid for your condo. I bought 4 condominiums and had them made into one large condominium approximately 15 years ago for a total of 4.5 million baht at an exchange rate of 74 baht to the UK pound and would have no problem selling it due to the location and area its in. I think not having to pay rent for 15 years and having an investment to sell at approximately 80% greater sterling return to the original price if sold at the original purchase price is a good deal. Planning at the initial stage is the key and with condominiums selling at reduced prices planning correctly and purchasing now is a good investment if you are going to live in the condominium.

 

Ken.

[owenm]

4 hours ago, wgdanson said:

1.7M - 150k = 1.55M / 9k+2k = 141 months = 11.5 years. But that's without deducting any maintenance etc charges.

That sounds correct on paper for the principal loan amount but what is the % interest rate from the lender? That could add another 1-2 years in repayments.

 

And is there any tax payable on the rental amount? And of course body corporate maintenence fees would add up over the years.. 

[myshem]

so where are the good deals ? I have few millions to buy few condos, where would you buy ?

[PerkinsCuthbert]

3 minutes ago, myshem said:

so where are the good deals ? I have few millions to buy few condos, where would you buy ?

That is for the initiated to know and not to tell. You need to put in the legwork.

[Mavideol]

On 1/29/2019 at 10:00 AM, johng said:

I'm only surprised you left the T out on the title ????

some will say those condos are actually sold..but to "flippers" who never move in and try to resell at a higher than purchase price...or to  weekenders with lots of disposable cash ????

others think its a good way to "wash" money ?

seen exactly the same in China... fake advertising and people running into buying property that was not legally registered, some years later when they try to sell they all realized there was no ownership tittle and the bubble kept growing, I see the same happening in Thailand in a near future, easy lending rules pushing people into bad investments

[vincent13]

28 minutes ago, owenm said:

That sounds correct on paper for the principal loan amount but what is the % interest rate from the lender? That could add another 1-2 years in repayments.

 

And is there any tax payable on the rental amount? And of course body corporate maintenence fees would add up over the years.. 

I would have thought significantly more than 1-2 years.

[1FinickyOne]

5 hours ago, cornishcarlos said:

 

So I will pay roughly 500k which includes my deposit, monthly payments and incidentals like condo fees. 11.5yrs later, I have an income source..

That's not too bad if it remains rented out ????

and if the condo is well managed and remains in good condition... buildings depreciate/deteriorate here... 

[newnative]

4 hours ago, dotpoom said:

Some people actually like to own their own home ..rather than live in a rented one. If one can't understand why....then there's not much point in trying explain it?

 

Well said!

[Caine]

8 hours ago, Henryford said:

Who said it was an investment. I bought mine, 12 years ago, to live in. I have broken even on what i would have paid in rent and now live rent free for the rest of my life.

12 years about ready to fall apart then, 

[bkk6060]

5 hours ago, dotpoom said:

Some people actually like to own their own home ..rather than live in a rented one. If one can't understand why....then there's not much point in trying explain it?

 

Sure they can do what they want. Some people have to be married also gives them some sort of feeling of security.

But your options overall are much less flexible when buying.  Many more complaints over the years from buyers.

Noise

Upkeep

Fees

Neighbors

Traffic.

Etc.

Buyers are stuck in frustrated purgatory...

 

And if one calls Pattaya real estate "an investment" then they are a foolish. It is mostly in Pattaya dead money. But of course, if you try to discuss a financial portfolio with many of them they do not get it and are absolutely lost.

Some of us choose to keep our money working for us.  But, it takes education and knowledge which many here have no clue.

 

[Yellowtail]

Wanting to own your own home is the best reason to buy a home.

 

If you do not want to own your own home, don't buy one.