Residential Or Commercial Unit Which Can Generate 10% Annum Income

[defaybe]

Hi,

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

[Foggy Dew]

Hi,

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

Did you want to ask something or just tell us what you are doing?

Foggy Dew

[quiksilva]

Hi,

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

Join the queue, but be warned you may want to bring a sleeping bag because you could be waiting a while.

[samran]

Hi,

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

Join the queue, but be warned you may want to bring a sleeping bag because you could be waiting a while.

I don't really understand the upside of property (condos esp) in Thailand then - appart from being a developer and a flipper. I can get 7% out of my ING bank account in Australia without any of the hassel being a landlord. Resale values here also tend to be quite dubious for me, in that they don't seem to go up very much and the secondary market seems to be sluggish.

I'm sure there are pockets of value here of course.

[quiksilva]

My point was actually that there is an abundance of investors looking for assets that meet this criteria, but in fact these expectations are (for the most part) unrealistic for the residential (and even commercial) markets.

10% + returns might be achievable today on well located residential property acquired several years ago or even more recently if you were fortunate to come across something at a good price(as a good friend of mine did, who acquired a new unit at 73K psm knocked down from 90K psm!).

Other than that if the OP is serious about those returns, he is basically limited to the industrial real estate market in Thailand, which benefit from good rental yields and are readily sold.

Edited January 9, 2008 by quiksilva

[jumnien]

It's hard to generate 10% returns these days. I just sold a condo last year for 4.4M that could have easily generated 8% after expenses. My advice is do not consider anything but leasehold if you are interested primarily in high rental returns. Freehold sucks.

[Khun Jean]

If you forget about the luxery foreigner oriented condominiums and start looking at cheap condo's that the thai middle class buy/rent you would have a higher change getting near your 10%.

For example my wifes sister bought a new condominium for 350.000 baht and when she decided to rent it out she got 3000 baht a month.

It is just an empty shell and typical 'thai'. about 30 sqm 1 room, 1 bathroom and small balcony. Only 'improvement' was a small kitchenette on the balcony and some good good locks.

Not much maintenance needed.

Getting the rent would be the only worry. But that problem you have in every area and price range.

The area is in Sai Mai, not far from the old airport.

Now there no condos for sale she is aware of, but a leaflet offering a buy and rent back might work to find some people who are short on cash.

[neetz]

Hi,

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

Hi, you have mentioned your desire to achieve a 10% annual return on your investment. This is very difficult at the moment and as other members have noted, you will have to 'join the queue' At the moment most developers are offering between 5% - 8% guaranteed rental return for anywhere ranging between 2 – 7 years, if this is not enough for your satisfaction then I would suggest you:

- Decide on exact location preferred

- Research developments on offer in the area

- Find a reputable development that has a proven track record for offering such returns

It is a gamble to purchase property without any guaranteed rate of return, however it can also be a wise choice if you choose the right developer.

Having said that, you are able to achieve higher rates of return by investing your money in the Banks / Financial Institutions, but then you lose out on the having your own investment in Thailand. Of course money is a key factor of any investment, but you have to decide if your investment is worth as much to you whether purchased in Thailand or not?

Cheers.

[ElephantRealEstate]

I am looking at property which can generate at least 10% annum income.

Either residential or commercial unit.

Preferable Bangkok area, which has high demand.

Price range from 5Million to 20Million Baht.

Thanks.

We broker property in Chiang Mai - there are apartment buildings here that cater to locals - one in particular has 52 rooms that could use some paint and maybe furniture but is already 100% occupied. At current rents it would produce a 9.9% return if 90% occupied. 8.5million

[xbusman]

In our real estate investments we look for purchases that are 100 times immediate rent. That is the point we will negotiate with the seller. Ideally, (but seldom) we want to have to do nothing to the property for three years. In the end, if we can get a property for 90 times immediate rent, we are doing great. Never over 100 times rent or its just an unacceptable investment as other posters have pointed out regarding guaranteed return monetary investments.

Using the 100 formula, our gross is around 12% before any expenses or costs. I have found nothing even remotely close to that which is a pretty sure indication of a real estate bubble. We were forced out of the LA market almost five years ago and have been selling our residential property ever since, turning that money into commercial property in Las Vegas. As of this year the bubble popped in LA and property prices are plummeting.

100 times rent has worked for us over 50 years, there are lots of exceptions but I am just referring to our rule of thumb to tell you that I have yet to find any property even coming close to realistic returns in Thailand. Thats not even taking into account the illegality and high risk of investing in anything other than a condo under the 49% threshold.

[Livinginexile]

In our real estate investments we look for purchases that are 100 times immediate rent. That is the point we will negotiate with the seller. Ideally, (but seldom) we want to have to do nothing to the property for three years. In the end, if we can get a property for 90 times immediate rent, we are doing great. Never over 100 times rent or its just an unacceptable investment as other posters have pointed out regarding guaranteed return monetary investments.

Using the 100 formula, our gross is around 12% before any expenses or costs. I have found nothing even remotely close to that which is a pretty sure indication of a real estate bubble. We were forced out of the LA market almost five years ago and have been selling our residential property ever since, turning that money into commercial property in Las Vegas. As of this year the bubble popped in LA and property prices are plummeting.

100 times rent has worked for us over 50 years, there are lots of exceptions but I am just referring to our rule of thumb to tell you that I have yet to find any property even coming close to realistic returns in Thailand. Thats not even taking into account the illegality and high risk of investing in anything other than a condo under the 49% threshold.

Sorry but can I ask...what does 100 times immediate rent mean?

[kennkate]

I have a commercial Freehold property in the UK for sale.

Returning 7.72% details on Thia Visa sorry no photo yet

Further details on request for enyone interested.