Investing In A Bangkok Condo - My Experience

[Dennis01]

Firstly, I must state that over the last 2 years I have read many topics in this forum about how buying a condo in Thailand is not a good investment.

Well I bought a two bedroom, two bathroom condo 2 years ago - it is situated in Silom area, about 2 mins walk to Surasak BTS. I live in Aus and purchased

the condo for my retirement (in approx 5 years) which I hope will be spent half in Aus and half in Thailand. Since I purchased the condo, I have rented it out for 40000 thb per month - no problems finding a tennant - this is now my third (different) tennant. An agent finds the tennant and charges me 1 month rent commission.

Since I have purchased the condo, my shares and investment portfolio has gone down by about 30 percent. I am very happy that I sold shares and bought the condo 2 years ago - at least now I have an asset that is in my name, can be rented out and with the fall of the AUD, I am getting an excellent return on my investment.

When I look at my share portfolio all I can do is shake my head and try to work out how 30% of my money has disappeared. I am aware that the condo might fall in value but at least I have an asset and it is making me money.

Sorry if you all disagree but I a happy with my condo in Silom.

[pkrv]

Firstly, I must state that over the last 2 years I have read many topics in this forum about how buying a condo in Thailand is not a good investment.

Well I bought a two bedroom, two bathroom condo 2 years ago - it is situated in Silom area, about 2 mins walk to Surasak BTS. I live in Aus and purchased

the condo for my retirement (in approx 5 years) which I hope will be spent half in Aus and half in Thailand. Since I purchased the condo, I have rented it out for 40000 thb per month - no problems finding a tennant - this is now my third (different) tennant. An agent finds the tennant and charges me 1 month rent commission.

Since I have purchased the condo, my shares and investment portfolio has gone down by about 30 percent. I am very happy that I sold shares and bought the condo 2 years ago - at least now I have an asset that is in my name, can be rented out and with the fall of the AUD, I am getting an excellent return on my investment.

When I look at my share portfolio all I can do is shake my head and try to work out how 30% of my money has disappeared. I am aware that the condo might fall in value but at least I have an asset and it is making me money.

Sorry if you all disagree but I a happy with my condo in Silom.

Your experiences mirror my own (though not from the rental angle). You are not alone here! Believe me I too have been in contact with many others in our position. Basically you are going to find an interesting paradigm - Those who do not own criticise (and often do not admit their position), those who own have to endure it, but of course come out on top ];-) Well I hope so anyway

Edited November 21, 2008 by pkrv

[cmsally]

I agree with you both. Having bought last year when it was 68 THB to the GBP I think I got quite a deal. I don't rent out but could do easily for around 20k/month. Don't have to worry about booking hotel rooms when I go to BKK and can turn up late without having to worry whether I have a room. Resales are few in the building I bought ,but would give me a profit if I sold.

When I look at what the other investment choices are at present; I now wish I had bought another unit.

[tangoll]

I totally agree with and can understand the feelings and pleasure mentioned by the 3 earlier posters about owning your own condo in Bangkok. I have my own place in BKK as well, and though I spend only about one week to 10 days each month here, I'm happy to be able to come to my own "home" in Bangkok. No need to bring a lot of lluggage or to pack up everything when returning to my other home in HK. I hold contracts on two other units under construction right by BTS Thonglor station on Sukhumvit, and am prepared to transfer on both without fear of prices collapsing. I will always keep one unit, probably the most convenient one, for my own use, and sell the other two or even keep them empty for some time. I don't want to furnish them and rent them out to tenants.

I could care less about the attitude or comments exhibited by others on this forum about the imminent collapse of the condo market in Bangkok. Frankly, I don't understand the schadenfreude (german word meaning finding pleasure at the misfortune of others) attitude of some here hoping that the market will collapse so that buyers/owners will suffer loss. I don't care about the investments or holdings of others, and whether prices go up or down is nothing more than data points on a price chart.

But owning your own condo in Bangkok is one of the pleasures of life, and whether you use it yourself or rent it out to others, I can only say, "good on you", and enjoy this moment.

[Bjamie]

good on you all!

I'm jealous... i own nothing!

[ray08]

I totally agree with and can understand the feelings and pleasure mentioned by the 3 earlier posters about owning your own condo in Bangkok. I have my own place in BKK as well, and though I spend only about one week to 10 days each month here, I'm happy to be able to come to my own "home" in Bangkok. No need to bring a lot of lluggage or to pack up everything when returning to my other home in HK. I hold contracts on two other units under construction right by BTS Thonglor station on Sukhumvit, and am prepared to transfer on both without fear of prices collapsing. I will always keep one unit, probably the most convenient one, for my own use, and sell the other two or even keep them empty for some time. I don't want to furnish them and rent them out to tenants.

I could care less about the attitude or comments exhibited by others on this forum about the imminent collapse of the condo market in Bangkok. Frankly, I don't understand the schadenfreude (german word meaning finding pleasure at the misfortune of others) attitude of some here hoping that the market will collapse so that buyers/owners will suffer loss. I don't care about the investments or holdings of others, and whether prices go up or down is nothing more than data points on a price chart.

But owning your own condo in Bangkok is one of the pleasures of life, and whether you use it yourself or rent it out to others, I can only say, "good on you", and enjoy this moment.

I think you are not comparing apples for apples here , your point of enjoyment of ownership , is quite understandable and i agree be it a car ,boat or condo , but the topic which is Invetsting in A Bangkok Condo is a different matter all together and relates to the point of investing and getting a return on your investment ,here is where IMO the investment is not good

I see now because of exchange rate profits people state how good an investment buying a condo turned out to be , that being the case trading currency would be a better solution as you can sell out anytime you want ,

But real profits in Bangkok Condo,s are hard to come by, just like the USA,UK ,OZ market ,where at least everyone admits there is a problem ,and where for what its, worth is where i would invest.

Edited November 22, 2008 by ray08

[pkrv]

I totally agree with and can understand the feelings and pleasure mentioned by the 3 earlier posters about owning your own condo in Bangkok. I have my own place in BKK as well, and though I spend only about one week to 10 days each month here, I'm happy to be able to come to my own "home" in Bangkok. No need to bring a lot of lluggage or to pack up everything when returning to my other home in HK. I hold contracts on two other units under construction right by BTS Thonglor station on Sukhumvit, and am prepared to transfer on both without fear of prices collapsing. I will always keep one unit, probably the most convenient one, for my own use, and sell the other two or even keep them empty for some time. I don't want to furnish them and rent them out to tenants.

I could care less about the attitude or comments exhibited by others on this forum about the imminent collapse of the condo market in Bangkok. Frankly, I don't understand the schadenfreude (german word meaning finding pleasure at the misfortune of others) attitude of some here hoping that the market will collapse so that buyers/owners will suffer loss. I don't care about the investments or holdings of others, and whether prices go up or down is nothing more than data points on a price chart.

But owning your own condo in Bangkok is one of the pleasures of life, and whether you use it yourself or rent it out to others, I can only say, "good on you", and enjoy this moment.

I think you are not comparing apples for apples here , your point of enjoyment of ownership , is quite understandable and i agree be it a car ,boat or condo , but the topic which is Invetsting in A Bangkok Condo is a different matter all together and relates to the point of investing and getting a return on your investment ,here is where IMO the investment is not good

I see now because of exchange rate profits people state how good an investment buying a condo turned out to be , that being the case trading currency would be a better solution as you can sell out anytime you want ,

But real profits in Bangkok Condo,s are hard to come by, just like the USA,UK ,OZ market ,where at least everyone admits there is a problem ,and where for what its, worth is where i would invest.

Ray08 - in my opinion tangoll got it exactly correct and (his/her) post summed up things in a more personal/human form - I too deeply relish returning to my home in Bangkok - this is, I would guess, our true investment.

On a pure monetary side FX movements only account for 'a component of the potential of my own investment' only 50% (ish) came from FX the remaining 65% from just making a sensible decision and doing my homework.

This is a discussion on experiences on buying a Bangkok condominium (hopefully in the Farang quota) - no horror stories yet.

[BusyBee123]

the reason your other investments dropped 30% can only be due to the FACT you invested your entire portfolio wholly in equites, only an idiot would do that, a smug post revealing an idiot are the best posts

[BEENTHEREDONETHAT]

the reason your other investments dropped 30% can only be due to the FACT you invested your entire portfolio wholly in equites, only an idiot would do that, a smug post revealing an idiot are the best posts

Well BusyBee your post appears to be one of the best post (according to your interpetation stated above). If your reading skills were a little better you would have realised he had part of his money invested in a condo in BKK and not all in shares .

[Huey]

Dose anyone own or have any experience with luxury condo's something around 18+ Million or so? Are those harder to sell/rent out?

[JimmyTheMook]

Don't keep all your eggs in one basket - stocks ?

Bah !!!

[glyph]

"Well I bought a two bedroom, two bathroom condo 2 years ago - it is situated in Silom area, about 2 mins walk to Surasak BTS."

I bought a 3-BR, 3-bath condo 4 years ago, within walking distance of your place. Back then, as now, the quacking ducks proclaimed that the Thai real estate market was going to collapse within a few months and, boy oh boy, was I stupid. I've lived in my place, as compared to renting it out, and I love it. As you've discovered, the condos have increased in price, while the stock market dipped. Not everyone can afford to buy a home, and those posters are very emotional about the impending economic doom and collapse of real estate prices. Actually, I think that there is a cluster of adult-onset autism in Thailand. Any tiny change causes mature farang men to whine, hyperventilate, and become emotional.

[trotski]

I hate to add to the chorus, but I too am very happy with my condo purchase, albeit in Pattaya rather than BKK. I bought a 2 bed 2 bath in a very nice new building between Pattaya and Jomptien last year. I got my cash in at 69 baht to the pound, and after a couple of one month rentals now have a 12 month tennant at 61K a month, which is a very good return when translated to sterling.

I have no hassles with letting etc as this is all taken care of by the building management for 12% of the rental achieved. When I wanted to visit earlier in the year the management let me have an empty unit for my stay just for the cost of housekeeping (this was one of the management company units that they let on their own behalf). So all in all I am a very happy bunny with this purchase, and fingers crossed it will pretty much have paid for itself when I want to use it for my retirement in a few years.

Just to add to the impression that some have about us property buyers, I am also completing on a condo in Spain in 2009, 2 bed 2 bath, front line golf on a Jack Nicklaus course, and whilst everything may be doom and gloom at present I firmly believe this will also be shown to have been a good decision in a few years time, especially as I am buying it out of free cash (as was the Thai condo) and do not need to worry about mortgages or loans. Lets face it in the forthcoming zero interest rate environment what is the point of keeping cash in the bank and seeing inflation eat away at it, much better in my mind to put that cash to work in Physical assets, having said this a medium to long term view must be taken (5 to 10 years at least).

Anyway I am happy to stand by my decisions, and if they do not work out as expected I have n one to blame but myself.

Trotski