Real Estate Investment In Chiang Mai

[inbkk]

There is an oversupply of hotel rooms in Chiang Mai, specially in the higher end market.

A sector doing fine is the guesthouse and apartment sector, as they have a well diversified clientele both local and foreign, and appeal to Thai students, travelers, residents. Chiang Mai has almost 200,000 university students and therefore represent a very large market

I saw this 42 rooms Guesthouse in Chiang Mai that can be easily converted to apartments only, or be kept as it is now (rented both on long term and per day). It is located in the city center, and represent a good long term investment, both in term of lease income and potential capital appreciation (land cost)

for those interested by a stable good return (above 10%), contact me. Note that it is a freehold property, asking price 17 million THB (which represent ~ 400,000 per room)

Edited October 9, 2009 by inbkk

[0zz1]

I think this should be in classifieds... people who are interested to buy something are looking from there > http://classifieds.thaivisa.com/ Chiang Mai, Business for sale.

[Stumbo]

Sounds like it would pull about 5 - 6% as an apartment, I did the numbers before on different configurations and was able to get to 10%. Most straight sells seem to be about 7%. There can be a dollar in it but it means buying at the right price, as usually you can't up the rent, and as far as I can see 17 million isn't that price.

[rgs2001uk]

Oh dear oh dear, what can I say, I dare say some mug might buy it.

Please tell us how much to convert to apartments?

How much land is involved?

Please inform us of the maths to arrive at "a stable good return (above 10%)".

Who has decided this represents, "a good long term investment, both in term of lease income and potential capital appreciation (land cost)"

What fee are you working on, the normal Thai rate of 3%?

What is the actual cash price?

[johnnyk]

200,000 university students? Where did this figure come from?