Hi,

I am in my fifties now, and after working many years, I could see my self making a living of having a smaller guesthouse by the ocean in Thailand. I have no ambition of getting rich. I would be quite happy, just to live a decent life.

My question is - how much money would it take to make this come true. I have a feeling that Pattaya, Phuket and Samui is too expensive to me. That is ok, I would be happy at a more quiet location, like Koh Chang, Prachuap Khiri Kahn, or something like that. Would  5 million baht get me anywhere? Does Thai banks lend out money to falangs?

Any tips and insights are much appreciated!

Do you want lots of headaches?

 

Put your 5m into a mutual fund.

 

Rent a nice room. Enjoy Thailand.

 

 

5m at 5% gives you 250,000 baht or 20,000 baht a month.

 

Monthly rentals can be had for 8,000 to 12,000 that are pretty decent.

 

 

Forget about the 'guesthouse by the ocean' and focus on a beach city or island you would actually like to live first. Then just rent some townhouse building, rent out some of the rooms and live their break even. Take an average of 8% a year on the rest in investments.

29 minutes ago, 7euner said:

could see my self making a living of having a smaller guesthouse

Have you ever ran a hotel before?

 

Do you speak Thai?

 

Do you know a good lawyer in Thailand?

 

Do you have a trusted Thai gf?

 

If you dont answer 4/4 id say the idea is hugely risky.

 

Most guesthouses only make a profit for about 4 to 6 months a year from what I can see.

 

 

Usually falang find a wife first before opening a business, by the time you find one you may change your mind

6 minutes ago, scubascuba3 said:

Usually falang find a wife first before opening a business, by the time you find one you may change your mind

Agree with u first time. In theory it goods great. In practice not.

forget it to many complications for a farang, like work permits, and from what I know you would be lucky to break even, right now is low season and it's quiet even here in Phuket, 

 

 

IMO it's a good way to commit financial suicide. The OP would need to be fluent in Thai, have good connections, and have experience in the hospitality business.

Alternatively, he could keep working until he has a nest egg of 300-400K USD, or equivalent. Invest the funds in his home country for a return of 40-50K baht/month. Come to Thailand, rent a house or condo wherever he wants.

Thailand has thousands of guesthouses, they have close to no customers in low season, which is about 8 months of the year.

A very good way to lose money.

I have a former work colleague who after retiring with 30 years working in Thailand did exactly this. Ocean front guesthouse on an island. He considers it a hobby business. He claims for three months he makes good money, for three months he breaks even, for three months he makes a loss. He is Thai by the way.