Invest In Condo And Live From Rent?

[mcarels]

Didn't find a specific place to post this one, so let's try here;

I am thinking of setting up thai co ltd, buy a or several condo's (existing ones maybe), and live from the rent....

Of course a fully legal set up, where taxes will be paid...

Anyone any experience here? What kind of ROI can be expected? (invest for example 10 million baht, is a 10 to 15% /year a realistic figure?)

Hope to get some feedback.

Cheers..

Martin

[think_too_mut]

What kind of ROI can be expected? (invest for example 10 million baht, is a 10 to 15% /year a realistic figure?)

IMO, more likely 4-6%, depending on occuppancy and building levies.

Studios near Universities.

[trogers]

What kind of ROI can be expected? (invest for example 10 million baht, is a 10 to 15% /year a realistic figure?)

IMO, more likely 4-6%, depending on occuppancy and building levies.

Studios near Universities.

Depend on location, size of unit and acquisition cost.

ROI of 4-6% during this downturn and possible 8-10% during the upslope of the rental cycle. Ave 6-8% per annum. If you have Bt10m, better to acquire 2 or 3 small units. Do not put all your eggs into one basket.

[DonTron]

10-15% - then you have to be VERY good and VERY lucky!

I will say 7-9% is more the norm, depending on what properties you have invested in.

Low price condos (less than 4 mill) yield higher ROI, but the management/renting/maintenance/time eats up a lot of your profits

Medium price condos (5 to 12 mill) a bit lower ROI, but are fairly easy to rent out and the management/maintenance/etc. fees are the same amount as low price condos.

High price condos (12 to 35 mill) are much lower ROI, plus it’s really hard to actually find tenants here. These types of condos are for living or reselling, not for rentals.

I have actually done what you want to do and have achieved a passive income from rental properties which is worth living on, but it took a LOT more than 10 mill baht. I will say you need around 30-40 mill if you want to retire nicely and not live like a bum .

And you need good knowledge about investments in pattaya along with a good network of reliable realtors and property managers. I would even say that without a good network you won’t make it here as a condo investor no matter how much money you bring. The courts and laws are not on your side here, so you better know what you are doing and know the right people who can help you.

If you want to get started, contact a GOOD realtor who understands investors. Here I can strongly recommend Cees from Town & Country Properties. He helped me and many others get started in Pattaya.

Hope that helped you a bit on the way.

[Thaicoon]

In my opinion, if you are spending up to 10 million baht, you would be better off to forget investing in Thailand and to invest in a freehold investment in the UK, ie a lock up shop with a tennant on a 10 to 15 year lease, at 200 GBP per week plus.this is what i have just done with a spare shop i have, rented it to a local bookie on a 15 year lease,

Do not put all your money in Thailand beter of to have a nestegg in your home country.

Edited May 7, 2009 by Thaicoon

[yabaaaa]

Depends when you buy as to ROI ( return on investment) example I paid 1.17 million for studios when the baht was at 72 to the £ the cost was £16250 that was 3 years ago ( bought 1 more since at 1.35 mil and that took 6 months of haggling) but to buy today it would cost me about 1.5million for the same unit and the £ is at 52 baht thats £28846 I get minimum of 13500baht (some are at 14000 baht) for each unit, service charge and utilities are on top of that. That makes my roi 11.5% to 12% gross. Should get my money back in just over 6 years of which 3 have already gone + I still have the condos value after that. Got 5 units. I wouldnt be buying now using my "home" currency, £'s

I bought at the right time.

[Time Traveller]

One question, why would you want to set up a company to do that? You'll end up having to pay auditing, book keeping and other fees that you wouldn't have to if you simply owned them in your own name. Secondly, you'll end up paying more in tax from rental earnings if you're registered as a company than you would if you would if you were just a single taxpayer (30% v's max 20% up to 1million income per year).

[robert10]

Depends when you buy as to ROI ( return on investment) example I paid 1.17 million for studios when the baht was at 72 to the £ the cost was £16250 that was 3 years ago ( bought 1 more since at 1.35 mil and that took 6 months of haggling) but to buy today it would cost me about 1.5million for the same unit and the £ is at 52 baht thats £28846 I get minimum of 13500baht (some are at 14000 baht) for each unit, service charge and utilities are on top of that. That makes my roi 11.5% to 12% gross. Should get my money back in just over 6 years of which 3 have already gone + I still have the condos value after that. Got 5 units. I wouldnt be buying now using my "home" currency, £'s

I bought at the right time.

Are these condos in Bangkok? If they are, they look like low cost condos. I've been told that Thais hardly rent condos and rental demand is driven by foreigners. However, I feel some low cost condos can be rented out fairly cheaply (less than say 15K for 1br unit) and wouldn't there be some local demand for these? So who're renting your units if you can share?

[trogers]

Depends when you buy as to ROI ( return on investment) example I paid 1.17 million for studios when the baht was at 72 to the £ the cost was £16250 that was 3 years ago ( bought 1 more since at 1.35 mil and that took 6 months of haggling) but to buy today it would cost me about 1.5million for the same unit and the £ is at 52 baht thats £28846 I get minimum of 13500baht (some are at 14000 baht) for each unit, service charge and utilities are on top of that. That makes my roi 11.5% to 12% gross. Should get my money back in just over 6 years of which 3 have already gone + I still have the condos value after that. Got 5 units. I wouldnt be buying now using my "home" currency, £'s

I bought at the right time.

Are these condos in Bangkok? If they are, they look like low cost condos. I've been told that Thais hardly rent condos and rental demand is driven by foreigners. However, I feel some low cost condos can be rented out fairly cheaply (less than say 15K for 1br unit) and wouldn't there be some local demand for these? So who're renting your units if you can share?

I do not think it is low-cost condo. Probably a condo development in the outskirt of Bangkok like Parkland BangNa.

http://www.prakard.com/Default.aspx?g=posts&t=8531

[jerrylee]

One question, why would you want to set up a company to do that? You'll end up having to pay auditing, book keeping and other fees that you wouldn't have to if you simply owned them in your own name. Secondly, you'll end up paying more in tax from rental earnings if you're registered as a company than you would if you would if you were just a single taxpayer (30% v's max 20% up to 1million income per year).

Whether one setup a company or subcontract the management/accounting work is beside the point.

Rental properties are taxed at a higher rate than the furniture and fixtures inside, thererfore its one way to push up the ROI

if you keep books on each detail and depreciation as accordingly.

Wink, wink, say no more ...