Heights Holdings

[jingjingna]

Has anyone had any dealings with Heights Holdings? They seem to be offering 0% financing over 5/10 years on their projects after initial down payment of around 40/60%.

Would like to hear from anyone who has done such a deal with them and from those who haven't....I for one am not sure of the whole legality of this so am in no position to comment.

Discussion now open :

[Bemused]

Big deposit.

Come on. Think this through. The investor's down payments will finance the whole construction project. The interest free finance is just the developers taking their profit over a number of years, rather than straight away. This isn't actually much of a deal. Even worse, because of the big initial deposit until the construction is 100% complete the asset you are agreeing to purchase will be worth a lot less than the money you initially invested.

This may work out for you, but if the sh*t hits the fan you have very low prospects of getting your cash back. If you really want to move forward with this tell the developer you want to pay the deposit in stages as the construction goes on and then pay the remainder over 10 years interest free. If they don't agree then walk away.

[DonTron]

Heights Holding is for real. I just bought 7 units from them and put a large down payment and a 10 years financing on the Club Royal project (wong amart) - judging from the quality I can see at their other projects, I expect this to be one of my best deals yet looking from a pure ROI perspective.

[tokroneti]

I heard and was recommended Height Holdings through some of the most respected real estate guys of Pattaya and also my trusted friends. I contacted them and had some meetings with the Haim the CEO, he is a very honest and great guy, he did not hide any numbers from me, he spend his private money to invest in the projects and is really doing something to make everybody pleased. I did the numbers on this deal - and if you buy the units finances and rent them out, this can very well yeild up to 30% ROI which is very good, I know some of you think that 30% must be scam, but this deal is so great designed because you have to calculate it cash on cash(Your rental income will buy the rest for you).

They already have the money for Club Royal as "Dontron" talked about, and almost every unit in the first building is almost 100% sold out, so they started selling units in the second unit much earlier than expected. I have never had anything to do with Heights holdings before, but I will also invest in their new projects also.

[trogers]

Down payments and long-term financing of the balance. Where is the fulfillment to prove funds to purchase the property came from overseas as required by the Land office before ownership title can be transferred?

[Bemused]

Heights Holding is for real. I just bought 7 units from them and put a large down payment and a 10 years financing on the Club Royal project (wong amart) - judging from the quality I can see at their other projects, I expect this to be one of my best deals yet looking from a pure ROI perspective.

Hi DonTron

Forgive my ignorance, but are you are saying you have paid upto half the cost of 7 units in a development which hasn't been constructed yet? If so, could you explain what security you have on your payments if the development doesn't go ahead for whatever reason.

The reason for asking is that investors all over Thailand (and the rest of the world) are finding that the fall out of the drop in property prices is that the off-plan developments don't get finished as expected and they are left struggling to het their cash back. Normal investors can't afford to make mistakes and need cold hard reassurances that they won't lose their money. Readers of this forum need sensible advice, not just statements about forecasted rental incomes.

Does Height Holding offer somekind of bank guarantees? are the payments secured against the land title? etc. In difficult economic times these are kinds of things potential investors need to know. Past success isn't necessarily any guide to future success and the money which has previously been made may well have been safely taken out of the country already.

[mark5335]

Heights Holding is for real. I just bought 7 units from them and put a large down payment and a 10 years financing on the Club Royal project (wong amart) - judging from the quality I can see at their other projects, I expect this to be one of my best deals yet looking from a pure ROI perspective.

Would you please clarify whether the units were bought in a farang or Thai name? As mentioned in 'trogers' posting, you would normally be required to present a Foreign Exchange Transfer Certificate to the Land Titles Office to facilitate the transfer to a farang purchaser. I'm curious as to how HH is able to produce a FETC under such a deferred payment/vendor finance arrangement.

[eljeque]

Correct me if I am wrong, therefore rental income could not be used to pay for the property, as it is not from overseas.

30% ROI sounds rather high if the rental money will be used to make the payments. There would not be any ROI untilt he property is paid off unless the rental amount is in excess of the payments.

How high are the payments for 10 years, and how much do you expect to have to use for furnishing?

What about yearly maintenance fees?

[tokroneti]

Correct me if I am wrong, therefore rental income could not be used to pay for the property, as it is not from overseas.

30% ROI sounds rather high if the rental money will be used to make the payments. There would not be any ROI untilt he property is paid off unless the rental amount is in excess of the payments.

How high are the payments for 10 years, and how much do you expect to have to use for furnishing?

What about yearly maintenance fees?

I calculated it the same "wrong" way as you first time, but what you need to look at is the ROI with Cash on Cash aka. how many money is out of your pocket and how much value do you currently have. It takes a long spreadsheet and you should only look at the equity in this deal not the cashflow, since cashflow will be around 0$ (10 months tenant a year, realtor fee everytime, maintenance fees etc.).

I don't remember the exact numbers I used but I calculated it in "worst case" + hidden expenses like water pump etc. and put the price for furniture very high, since the WOW effect is great seller everytime.