Renovating Thai Style Condos

[unforgiven]

I was in Pattaya a few months ago and noticed a great deal of development there and in Jomtien.I'm involved in the renovations industry in Canada and am wondering if I can make any$ buy buying rundown condos and renovating them,(ie hardwood floors western stone bathrooms,granite counters and western kitchens and ceilings.What do you think about getting trades people who are out of work in the north and bring them to pattaya to work?what if any are the permits necessary?Am I crazy?

[percy2]

Am I crazy?

Yes.

So many people had the same thought.

Many, years ago.

Cheers

[djinn]

Not a really good idea.

I live near Pattaya in a condo I renovated

I don't regret my experience because I live in what I exactly dreamed of but

You have to consider that:

-market is nearly dead now

-quality of work done by the thai workers is nut.Every job will have to be done minimum 2 times (no joke)

-If you don't speak thai,you need to find somebody who knows what renovation means who speak it and who can handle the thai way of working in order to speed the work

The only positive point is the low cost of the renovation...but I don't take in account the cost of the Xanax boxes you will buy

[jonniebkk]

Agree, this is not really an original idea. When there is a market for these units, plenty of Thai contractors are around to do the work.

[Tyke]

Agree, this is not really an original idea. When there is a market for these units, plenty of Thai contractors are around to do the work.

I assume you will need to set up a legitimate business, get relevant visas etc - not a nice thought considering the likely low returns. Also there are already many cheap workers from esan/the north looking for work - you don't need to bring them down yourself.

[gregb]

I was in Pattaya a few months ago and noticed a great deal of development there and in Jomtien.I'm involved in the renovations industry in Canada and am wondering if I can make any$ buy buying rundown condos and renovating them,(ie hardwood floors western stone bathrooms,granite counters and western kitchens and ceilings.What do you think about getting trades people who are out of work in the north and bring them to pattaya to work?what if any are the permits necessary?Am I crazy?

Very little money to be made in renovations here. In the West, renovations can be profitable because of the large labor component involved. Over here, the labor cost of a renovation is only 50k baht or so. So, even if you could find a buyer, you couldn't sell it at an appreciable markup. I can't really imagine a model where you could get a reasonable return on your investment.

You'd have better luck if you could import something cheaply from China to sell to other people doing renovations. For example, hot/cold water mixer valves for sinks at less than 1000 baht. That might be a viable business. Fixing up a condo and flipping it? Doesn't seem very likely here, and 3.5% business tax the government will slap on the sale would kill whatever small profit you might be able to earn.

[Tyke]

I was in Pattaya a few months ago and noticed a great deal of development there and in Jomtien.I'm involved in the renovations industry in Canada and am wondering if I can make any$ buy buying rundown condos and renovating them,(ie hardwood floors western stone bathrooms,granite counters and western kitchens and ceilings.What do you think about getting trades people who are out of work in the north and bring them to pattaya to work?what if any are the permits necessary?Am I crazy?

Very little money to be made in renovations here. In the West, renovations can be profitable because of the large labor component involved. Over here, the labor cost of a renovation is only 50k baht or so. So, even if you could find a buyer, you couldn't sell it at an appreciable markup. I can't really imagine a model where you could get a reasonable return on your investment.

You'd have better luck if you could import something cheaply from China to sell to other people doing renovations. For example, hot/cold water mixer valves for sinks at less than 1000 baht. That might be a viable business. Fixing up a condo and flipping it? Doesn't seem very likely here, and 3.5% business tax the government will slap on the sale would kill whatever small profit you might be able to earn.

gregb,

does the business tax apply to older condos as well as new condos? And for how long does one need to own a condo before the business tax is not charged?

[unforgiven]

I was in Pattaya a few months ago and noticed a great deal of development there and in Jomtien.I'm involved in the renovations industry in Canada and am wondering if I can make any$ buy buying rundown condos and renovating them,(ie hardwood floors western stone bathrooms,granite counters and western kitchens and ceilings.What do you think about getting trades people who are out of work in the north and bring them to pattaya to work?what if any are the permits necessary?Am I crazy?

Very little money to be made in renovations here. In the West, renovations can be profitable because of the large labor component involved. Over here, the labor cost of a renovation is only 50k baht or so. So, even if you could find a buyer, you couldn't sell it at an appreciable markup. I can't really imagine a model where you could get a reasonable return on your investment.

You'd have better luck if you could import something cheaply from China to sell to other people doing renovations. For example, hot/cold water mixer valves for sinks at less than 1000 baht. That might be a viable business. Fixing up a condo and flipping it? Doesn't seem very likely here, and 3.5% business tax the government will slap on the sale would kill whatever small profit you might be able to earn.

Thanks for the advice,I guess it's not that great an idea. Maybe I'll just hunt for some rock bottom deal(someone who desperatly wants to leave fast) and reno it for myself to live in.Is the pattaya area realestate market down? why is there all that new building.I have a good connection in China for western kitchen cabinets,maybe that would work?