Is a Rayong condominium a good investment.

[FruitPudding]

24 minutes ago, JeffersLos said:

That's good, becuase he's a buyer. ????

Yeah, but that's a little short sighted.

 

One day he'll probably be a seller.

 

Then, there's a good chance he won't be able to sell at a reasonable price making decent return on investment; he'll get his pants pulled down on the price to sell within a reasonable timeframe.

[stratocaster]

As I posted previously my UK mates bought a buy to rent condo in Laem Mae Phim. In the first year they only got one rental for one month. It has been on the market to sell for 18 months. Main drawback is it a one bedroom condo with 32 sq mts and there are loads for sale 10% cheaper than they paid.

[sirineou]

40 minutes ago, stratocaster said:

As I posted previously my UK mates bought a buy to rent condo in Laem Mae Phim. In the first year they only got one rental for one month. It has been on the market to sell for 18 months. Main drawback is it a one bedroom condo with 32 sq mts and there are loads for sale 10% cheaper than they paid.

Yea I saw one that the bedroom was so small I would have to climb over the wife to get in bed every night . On the bright side it would be the most action I have got in a long time. 

[mokwit]

20 hours ago, FruitPudding said:

Property here has gone up around 5% a year anyway, in good areas, for the last decade.

I thought that was the cost of new builds, not the resale price on the market. If you mean buying an option on a new build and selling on completion maybe it applies.

 

Those who know feel free to come in and correct me if wrong, but i think this type of figure is used to bamboozle people into thinking their condo investment will appreciate.

[JeffersLos]

4 hours ago, FruitPudding said:

Yeah, but that's a little short sighted.

 

One day he'll probably be a seller.

So your advice on buying property is not to buy when it's a buyer's market. ????

[FruitPudding]

2 hours ago, JeffersLos said:

So your advice on buying property is not to buy when it's a buyer's market. ????

Why would you invest in something incredibly illiquid?

 

It's not like the West where you can easily sell your house in days or weeks and they'll be bidding 20% over your asking price.

 

He's asking about investment property, not a home for himself.

 

Naturally, therefore, he will want his money back one day and to see a return on investment to make it worthwhile.

[sirineou]

1 hour ago, FruitPudding said:

Why would you invest in something incredibly illiquid?

 

It's not like the West where you can easily sell your house in days or weeks and they'll be bidding 20% over your asking price.

 

He's asking about investment property, not a home for himself.

 

Naturally, therefore, he will want his money back one day and to see a return on investment to make it worthwhile.

I am not sure if I will go that way. Not worrying about liquidity , in a way it is good to have the money tied up and not have the temptation to spend it.

But it should at the very least keep pace with inflation. 

Very difficult to do do diligence in thailand where there is no MLS to  do research and appraise the property. 

As far as the property selling for less than you bought it, it has to be a bit of an Urban myth. If that was the case where most people sold for less that they bought then eventually property will be almost free. The trick is to buy right, but as I said very difficult to do your research if you only see listing wish prices rather than what the property actually sold for. 

Anyway. I appreciate all input, . Sunday we are going out of the country for a month , and I will revisit this when I comeback. With the US credit rating being downgraded to AA+ from AAA, the yield id heading north , last I check the 1 year treasuries were yielding 5.5% if it goes up another 5 base points, I might role it over for another year. 4 million baht (about  $100,000 would return about $500 per month . I have to check and see what rents are on a 4 mil condominium. 

[PJ71]

On 8/6/2023 at 9:36 AM, ChipButty said:

since covid we have been 95% occupancy right now it is slowing down I can tell by the amount of views we get, 

Do you mind asking who you rent to, Thais or farang, are these rentals in tourist areas?

 

Thanks