Investing money for condo question.

[meyori]

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

 

If you can share your thought and perhaps your experience, please do. Thanks.

[marin]

8 minutes ago, meyori said:

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

I have a bridge for you. Guaranteed great investment. ????

[worgeordie]

1 minute ago, marin said:

I have a bridge for you. Guaranteed great investment. ????

Must be a toll bridge ,right , joking aside , be very careful believing any promises

from property developers , they are up there with second hand car dealers, 

 

regards worgeordie

 

[FritsSikkink]

8% rental guarantee for 5 years. 

1. Who will they rent to?
2. What if they trash the place?
3. How will they guarantee?
4. How will the payments go?
5. Will the entity who rents out exist for 5 years?

 

After 5 years, you can sell the unit back to the project at price 100% of the buying price.

A project is a temporary thing (build units), after that you get operations (manage the place).

1. Who exactly will but the condo back?
2. Will that entity exist after 5 years?
3. Can they afford to pay 100% of the buying price after 5 years?

[bkk6060]

I have seen some as high as 10%.

How can they guarantee anything?

Is it a ponzi scheme?

I do not see real estate here as an investment, but a place to live.

You will probably make much more investing in Microsoft, Tesla or Apple.

And, have more flexibility with your investment. 

 

[ezzra]

This is Thailand, you'd be wise to take any deals with a big pinch of salt.

[stoner]

sounds similar to the send me 1 btc and ill send back 10 investment. 

[sidgy]

26 minutes ago, meyori said:

I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price

If true then you will probably be buying it at least over 40% market value

[Don Chance]

Never put all your money into one investment. Especially in a 3rd world country.  I would suggest a REIT, which are very affordable these days. Along with a diverse investment portfolio.

[brianthainess]

36 minutes ago, meyori said:

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

 

If you can share your thought and perhaps your experience, please do. Thanks.

A friend of mine who owns a few condos, once told me with that kind of deal you'll pay 8% extra for the condo. just saying.

[bignok]

29 minutes ago, stoner said:

sounds similar to the send me 1 btc and ill send back 10 investment. 

Send me 0.1 btc, i send back 2 btc

[bignok]

56 minutes ago, meyori said:

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

 

If you can share your thought and perhaps your experience, please do. Thanks.

No yields are guaranteed unless its rented to government and they guarantee it.

[OneMoreFarang]

59 minutes ago, meyori said:

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

 

If you can share your thought and perhaps your experience, please do. Thanks.

Do you think this sounds too good to be true?

If it would be true and all guaranteed, then investors would line up left and right.

And you can be sure whoever sells this also gets a commission, and probably a high commission...

[sikishrory]

I just bought a condo myself. I declined the much touted rental pool program. I don't really understand why anybody would join.

It seems very convoluted and you have no real idea what's going on with the money. You can't login and see where every baht is going and just have to have faith some slimy people are not ripping you off.

I found a company to take care of daily rentals and can login to the system and have full control. Totally transparent and higher return.

Not locked into a contract (1 month notice to get out).

Can stay whenever I want, provided there is nobody booked.

 

[Peterphuket]

21 hours ago, meyori said:

Hi, I'm thinking to buy a condo as an investment. I found one offers 8% rental guarantee for 5 years. After 5 years, you can sell the unit back to the project at price 100% of the buying price plus 3 nights free stay per year. Do you think this is a good deal? It seems much better than keeping money at bank. 

 

If you can share your thought and perhaps your experience, please do. Thanks.

Have owned several condos, sold all but one at a loss, my advice, put your money in gold or something similar, of course you won't get any short-term benefit.

[newnative]

20 hours ago, FritsSikkink said:

8% rental guarantee for 5 years. 

1. Who will they rent to?
2. What if they trash the place?
3. How will they guarantee?
4. How will the payments go?
5. Will the entity who rents out exist for 5 years?

 

After 5 years, you can sell the unit back to the project at price 100% of the buying price.

A project is a temporary thing (build units), after that you get operations (manage the place).

1. Who exactly will but the condo back?
2. Will that entity exist after 5 years?
3. Can they afford to pay 100% of the buying price after 5 years?

     All of the above are excellent questions that you need to have answered to your satisfaction before investing.  I would pay very careful attention to the developer.  What's the developer's track record with completed projects?  What are their financial resources?  How long have they been in business?  Are they managing any other projects?  If so, try to check them out and see their condition. 

     Pay close attention to those first five questions regarding the renters.  If the project is focused on foreign renters, what's the plan to deal with another covid or large-scale civil unrest that keeps foreign renters away for long periods?   Here in Pattaya, there was a developer offering a good financial return on rental units, with a number of completed projects, who went belly-up when covid hit and the foreign renters the developer counted on were cut off.  If the plan is focused on a steady stream of 'X' renters to remain solvent, what happens if that stream of 'X' renters goes dry?

    Investing in property has been financially-rewarding for my Thai partner and myself but we've relied on doing everything ourselves, not on another party or on an investment such as this.  I would say do your homework, get thorough answers to all those questions, and then make your decision based on those answers.

[fredob43]

The OP needs to get a bit of reality. First off go on line look and see how many condos estate agents have for sale or rent. (There are thousands) You will find that they cant give condos away at any price at present. So how can someone guarantee 8% return. Buying a condo in Thailand is a mugs game. If you fit the later go ahead and do it. Just don't forget to tell us how much you loose after 5 years.

N/B you can get 5% guaranteed return at present by just putting your cash in most UK banks. That could even go up to 6% if they put the bank rate up yet again.

Before anyone questions it that's what I'm getting 5% it's fixed for 1 year, You can always get your monies back at any time but you will loose most of the interest. Whatever its better than investing? in Thailand.

[gargamon]

This reminds me. Whatever happened to all those ugly orange condos (Nordic something I think) that were prevalent years ago. They had a similar deal from what I can recall.

 

I wonder how those investors feel now? 

[ignore it]

It's your money.

But borrowing to buy with the idea that your rental money will pay the mortgage is, well, just stupid. 

 

Long term, buying for cash that would otherwise sit in a no/low return Thai bank account not quite a bad.

Somebody rents, pays annual maintenance. 

 

You got a place for fam or friends to stay.

 

But if you find yourself skint and gotta sell its gonna hurt.

 

Market looks good (ha ha)

sell.

Even if you just break even, you've just "parked your money" as you would have a bank.

 

 

 

[DJ54]

Sounds quasi timeshare 

[zib]

If the contract say they guarantee 8% per year then the scheme is that they rent it out for way more than 8% per year but that's what you get. Usually works. I've had agencies offer me 5% up front while they are renting out for 15%.

 

To add: With current offshore interest rates , if your money is offshore, where you can get a non-risk 4-5% , 8% is a bad deal. What I said above was several years ago when interest rates were 0%.

[Hummin]

On 7/7/2023 at 8:08 AM, FritsSikkink said:

8% rental guarantee for 5 years. 

1. Who will they rent to?
2. What if they trash the place?
3. How will they guarantee?
4. How will the payments go?
5. Will the entity who rents out exist for 5 years?

 

After 5 years, you can sell the unit back to the project at price 100% of the buying price.

A project is a temporary thing (build units), after that you get operations (manage the place).

1. Who exactly will but the condo back?
2. Will that entity exist after 5 years?
3. Can they afford to pay 100% of the buying price after 5 years?

Nr one Who is behind the project?

 

Two how is their reputation and how is their finished projects run after first year, 5 years and even older projects. 

 

And of course location, 

 

Last, does the finished projects looks the same as the prospect when sold? How much did it change from the original plans? 

[FritsSikkink]

14 hours ago, fredob43 said:

The OP needs to get a bit of reality. First off go on line look and see how many condos estate agents have for sale or rent. (There are thousands) You will find that they cant give condos away at any price at present. So how can someone guarantee 8% return. Buying a condo in Thailand is a mugs game. If you fit the later go ahead and do it. Just don't forget to tell us how much you loose after 5 years.

N/B you can get 5% guaranteed return at present by just putting your cash in most UK banks. That could even go up to 6% if they put the bank rate up yet again.

Before anyone questions it that's what I'm getting 5% it's fixed for 1 year, You can always get your monies back at any time but you will loose most of the interest. Whatever its better than investing? in Thailand.

I have a long-term investment in durian trees, which cost you quite a bit for 6 years but then can make you a fortune for the next 80 years +

[fredob43]

22 hours ago, FritsSikkink said:

I have a long-term investment in durian trees, which cost you quite a bit for 6 years but then can make you a fortune for the next 80 years +

Well I can only hope your very young or someone else will be reaping the profit.

[Hummin]

2 minutes ago, fredob43 said:

Well I can only hope your very young or someone else will be reaping the profit.

The land itself will be worth more, if he is in the right location. Meaning it is in the area well know for durian, and he have the right strain producing the right quality. 

 

Nothing is just given even durian is high appreciated 

[fredob43]

10 minutes ago, Hummin said:

The land itself will be worth more, if he is in the right location. Meaning it is in the area well know for durian, and he have the right strain producing the right quality. 

 

Nothing is just given even durian is high appreciated 

You have seemed to have forgotten that as a non Thai he can't own the land. So I will stick by my Original reply someone else will reap the profit. 

[Hummin]

1 minute ago, fredob43 said:

You have seemed to have forgotten that as a non Thai he can't own the land. So I will stick by my Original reply someone else will reap the profit. 

Well, you are both right and wrong, but that is another tread alike Land ownership also active for the moment.  

 

 

[FritsSikkink]

7 hours ago, fredob43 said:

Well I can only hope your very young or someone else will be reaping the profit.

It is for my kids and their kids when they get some. I don't need the money.