Property Information

[pagallim]

Just read an interesting thread about lack of investment returns from various developments around Phuket. Good to share this kind of information of course (the adage of 'buyer beware' immediately comes to mind). Still I see various developments being advertised with a 'guarantee' of 5/6/7% per annum return. In the current global financial climate, alarm bells should be ringing in the minds of any potential purchaser. Where is this 'return' figure coming from? What are the monthly/annual maintenance fees? Again, these threads that I've read tell me that a significant number of developers are defaulting on these arrangements, and as a consequence I have no doubt that the original purchasers are having to fund their investment from their own resources, rather than 'guaranteed' income, which was not the scenario they envisaged when they bought into their 'dream' holiday home.

I have no doubt whatsoever that this is happening all over the world, not just in Thailand. However, is there merit in creating a thread/forum for sharing information, that interested parties can post/view information solely in relation to investing in property either for retirement/vacations/income etc? Perhaps it exists already, and I'm just not aware of it.

[Boater]

Still I see various developments being advertised with a 'guarantee' of 5/6/7% per annum return

alot of these returns are built into the price

[thaiwanderer]

Still I see various developments being advertised with a 'guarantee' of 5/6/7% per annum return

alot of these returns are built into the price

of course,

and even if they weren't if it was 'guaranteed' why would a developer need a number of individual investors?

in any event often the return is gross, is only 'guaranteed' under a contract with perhaps a 2 million baht company, you would have to try and enforce and recoup it through the courts and many other issues

consumer 'investments in parasite'(sic) are not for the even slightly sophisticated 'investor'

[steelepulse]

They can even be "guaranteed" as long as they keep sucking in new investors.  See the thread about samui phuket penninsula in the phuket forums. Once the house of cards falls, good luck seeing any of your money. Caveat Emptor

[logbags]

They should remove the word "own" or "owner" from their advertising as no farang actually owns the freehold unless by proxy. Buying a house in Phuket is fine if you spend a lot of time there or want to move there.

Investing with the idea of a return is another matter. I could give so many examples of places that started out looking ok that have turned into very average places. The boom is over so it will be interesting to watch places coming on the market and how much they sell for. There are places I see that have been on the market for years so there is hardly a land rush happening. I doubt the re-sale prices will go up for quite a while simply due to the large amount of new stuff opening.

I was looking at one site where a lady actually said in an article that many high rollers just arrive and pay for a property in cash from a suitcase with no questions asked

[loverboy44]

I was looking at one site where a lady actually said in an article that many high rollers just arrive and pay for a property in cash from a suitcase with no questions asked

They talk a lot when the day is still young!!!!

If anyone guarantees you something this time they are simply lying.

Lehman guaranteed a lot too but where are they now?

[logbags]

Just to put a bit of perspective into house prices I was just looking at some Islands on Queensland's Sunshine coast on a TV program. You can buy a nice island for as low as $1 million Aust. which is about 26 million baht.

Turtle Island is for sale and they were open to any offer. This is the island Julia Roberts tried to buy but was outbid by some Aussie who is now trying to offload it. It was $4 million or 100 million baht so you'd probably get it for $80 million baht.

I was in Nai Thon Beach and saw a sign saying villas for sale starting from 85 million baht and you cannot even own it if you are a farang.

[thaiwanderer]

Just to put a bit of perspective into house prices I was just looking at some Islands on Queensland's Sunshine coast on a TV program. You can buy a nice island for as low as $1 million Aust. which is about 26 million baht.

Turtle Island is for sale and they were open to any offer. This is the island Julia Roberts tried to buy but was outbid by some Aussie who is now trying to offload it. It was $4 million or 100 million baht so you'd probably get it for $80 million baht.

I was in Nai Thon Beach and saw a sign saying villas for sale starting from 85 million baht and you cannot even own it if you are a farang.

but thats not Thailand