Investing In Residential Real Estate In Thailand

[trogers]

thanks but I'm not sure yours is the most objective advice on this forum

Maybe not....as a broker.....but anyway, investing in these condoes has already proven a return on investment within 2 years!!

The first investors who bought off plan are now selling with 100% profit!

And most of these Phase 1 condos are already sold!

Where else in Thailand can you find this great ROI?

Good luck to your ventures ;-)

In speculative bubbles, the early birds will have full baskets, and the latecomer ends up with the hot potatoes...

Will you be an early bird or the latecomer to buy a unit in phase 2?

The logic - can any project have prices increase 50% per annum indefinitely? If so, the buyers of the project can acquire a chunk of New York City after 8 years...

Edited November 22, 2009 by trogers

[richm7]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

[Royspurs]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

Hi richm7,

Agree with your comments, commencing my reasearch I am seeing 6-7% rtn on apartments in Bkk CBD, so after running cost I would expect 5%, add a little appreciation and I am happy with that.

I googled the Siam Resort Apartments and got a page stating 2006 rent prices, interesting to note that the price is the same as today, economy or glut of apartments........or both?

Anyone have a view on rental demand for 1 bed apartments against 2 bed apartments in Bkk CBD?

Edited November 22, 2009 by Royspurs

[AddictedToThai]

In theory it is possible to have 10% on rentals. Check out the Park Lane condo in Pattaya. If you bought there early and paid just 1 mil baht for 36 sqm fully furnished 1-bedroom you could rent it out for at least 10,000 per month. But this is theory. The real prices will be set by the market. Many investors bought Park Lane for renting it out. Competition will be tough.

Anyone have a view on rental demand for 1 bed apartments against 2 bed apartments in Bkk CBD?

In my opinion 1- and 2-beds both good for renting out. Look at the situation in certain building. If there are 30 2-beds and 200 1-beds there it may be wise to invest in 2-bed and have less competition. Check neighboring condos as well.

[trogers]

In theory it is possible to have 10% on rentals. Check out the Park Lane condo in Pattaya. If you bought there early and paid just 1 mil baht for 36 sqm fully furnished 1-bedroom you could rent it out for at least 10,000 per month. But this is theory. The real prices will be set by the market. Many investors bought Park Lane for renting it out. Competition will be tough.

Anyone have a view on rental demand for 1 bed apartments against 2 bed apartments in Bkk CBD?

In my opinion 1- and 2-beds both good for renting out. Look at the situation in certain building. If there are 30 2-beds and 200 1-beds there it may be wise to invest in 2-bed and have less competition. Check neighboring condos as well.

Bought a 13-year old 1-bedroom (45m2) near BTS Prakhanong end of Sep 2008 at Bt1.55m + 130k for renovation and furnishing. Stayed there till end Oct 2009 and just rented out at Bt15k/month. Less tax of 5%, Bt900 common fees and Bt953 for internet. Getting net yield of 8.7%. Found my own tenant, so no agent's fee.

Edited November 22, 2009 by trogers

[richm7]

In theory it is possible to have 10% on rentals. Check out the Park Lane condo in Pattaya. If you bought there early and paid just 1 mil baht for 36 sqm fully furnished 1-bedroom you could rent it out for at least 10,000 per month. But this is theory. The real prices will be set by the market. Many investors bought Park Lane for renting it out. Competition will be tough.

Anyone have a view on rental demand for 1 bed apartments against 2 bed apartments in Bkk CBD?

In my opinion 1- and 2-beds both good for renting out. Look at the situation in certain building. If there are 30 2-beds and 200 1-beds there it may be wise to invest in 2-bed and have less competition. Check neighboring condos as well.

Bought a 13-year old 1-bedroom (45m2) near BTS Prakhanong end of Sep 2008 at Bt1.55m + 130k for renovation and furnishing. Stayed there till end Oct 2009 and just rented out at Bt15k/month. Less tax of 5%, Bt900 common fees and Bt953 for internet. Getting net yield of 8.7%. Found my own tenant, so no agent's fee.

Yes, well it depends on present value of course. I don't know the Park Lane in Pattaya and what they're worth today, but you really should be calculating your return against your present value, not the purchase value. Having said that, I would agree that it is possible to get higher returns against lower priced units i.e. if you buy ten THB1M units you might get close to the magic THB90K a month but you won't get that for a THB10M unit. But, and it's a big but, in terms of your up front capital it is safer in a bigger unit simply because that kind of development is much more likely to be well maintained. THB900 a month in CAM fees is just THB20 a meter, which is, I can assure you, ridiculously low and cannot possibly cover costs, certainly not over an extended period. The building will either go to the dogs or you will be hit for high extraordinary charges, guaranteed. I don't mean to be disrespectful but I have severe doubts as to the condition of a 13 year old building with a 20 baht/meter CAM fee.

However, the discussion is about returns and there certainly are better returns to be had at the low end of the market.

[Royspurs]

In theory it is possible to have 10% on rentals. Check out the Park Lane condo in Pattaya. If you bought there early and paid just 1 mil baht for 36 sqm fully furnished 1-bedroom you could rent it out for at least 10,000 per month. But this is theory. The real prices will be set by the market. Many investors bought Park Lane for renting it out. Competition will be tough.

Anyone have a view on rental demand for 1 bed apartments against 2 bed apartments in Bkk CBD?

In my opinion 1- and 2-beds both good for renting out. Look at the situation in certain building. If there are 30 2-beds and 200 1-beds there it may be wise to invest in 2-bed and have less competition. Check neighboring condos as well.

Bought a 13-year old 1-bedroom (45m2) near BTS Prakhanong end of Sep 2008 at Bt1.55m + 130k for renovation and furnishing. Stayed there till end Oct 2009 and just rented out at Bt15k/month. Less tax of 5%, Bt900 common fees and Bt953 for internet. Getting net yield of 8.7%. Found my own tenant, so no agent's fee.

Yes, well it depends on present value of course. I don't know the Park Lane in Pattaya and what they're worth today, but you really should be calculating your return against your present value, not the purchase value. Having said that, I would agree that it is possible to get higher returns against lower priced units i.e. if you buy ten THB1M units you might get close to the magic THB90K a month but you won't get that for a THB10M unit. But, and it's a big but, in terms of your up front capital it is safer in a bigger unit simply because that kind of development is much more likely to be well maintained. THB900 a month in CAM fees is just THB20 a meter, which is, I can assure you, ridiculously low and cannot possibly cover costs, certainly not over an extended period. The building will either go to the dogs or you will be hit for high extraordinary charges, guaranteed. I don't mean to be disrespectful but I have severe doubts as to the condition of a 13 year old building with a 20 baht/meter CAM fee.

However, the discussion is about returns and there certainly are better returns to be had at the low end of the market.

very interesting gents, so you think there is a shelf-life for apartments in Thailand generally, why, beacause of the construction quality (which I would think would apply to most buildings) or lack of maintenance? And do you think there is a pro-rata life expectancy according to CAM paid? if so

what would be a too old building with low end CAM & what would be a too old building high end CAM...........................thoughts

[trogers]

very interesting gents, so you think there is a shelf-life for apartments in Thailand generally, why, beacause of the construction quality (which I would think would apply to most buildings) or lack of maintenance? And do you think there is a pro-rata life expectancy according to CAM paid? if so

what would be a too old building with low end CAM & what would be a too old building high end CAM...........................thoughts

First, what is deemed too old? 30 years, 50 years?

Low CAM need not necessary mean the building is going to the dogs. All you need is a collection of Bt3k/m2 (sales area) to replace the elevators, major M&E equipment, ceiling and floor finishes of common areas, and repainting. This figure is worked from a condo with gross floor area of 10,000m2 and sales area of 5,500m2. Will still be more economical than paying for the higher land cost, plus plus of development profit and speculative froth of a new project next door.

It can be sold for redevelopment when the building's economic life comes to an end, usually through higher land values and permitted plot ratio. Thus, location is the prime consideration.

[RAZZELL]

If you want a heavy return on your investment you should consider the new property hot spot in Thailand!

I am talking about the beachfront resort town of Khanom, located at the mainland opposite Koh Samui.

We have one Thai Bali style condo complex ready to move in this December.

Phase 2 of this condo complex will be ready to move in late 2010.

You can find more info about this project here:

Beachfront Condo

I've only got a few units in Phase 1 left.... and for Phase 2 you'll save a lot of money buying off plan.

Another ex-Samui cowboy?

RAZZ

[ThaiSunshine]

Another ex-Samui cowboy?

RAZZ

Nope...only been to Samui 1 day in my life! First and last!

[trogers]

Another ex-Samui cowboy?

RAZZ

Nope...only been to Samui 1 day in my life! First and last!

Been to Samui 5 years ago to look at land plots for development. Spot one startling point - storm drains do not end at the sea...

Is Greenpeace helping the island retain and recycle polluted water?

[ThaiSunshine]

Don't think Greenpease has anything to do with Samui....

Samui has the same garbage and water pollution as Phuket.....too many people living there and causes terrible pollution and traffic jams....

[masonmorales12]

Hi,

Investing in residential real estate is the opportunity to get more profit. i have found M3REO Investment Program has been created to give the individual investor the opportunity to capitalize on this incredible wealth building opportunity. Thus we will manage the client's portfolio. To get more information's visit: M3REO.COM

[pkrv]

Hi,

Investing in residential real estate is the opportunity to get more profit. i have found M3REO Investment Program has been created to give the individual investor the opportunity to capitalize on this incredible wealth building opportunity. Thus we will manage the client's portfolio. To get more information's visit: M3REO.COM

Or perhaps not.

[Royspurs]

Hi,

Investing in residential real estate is the opportunity to get more profit. i have found M3REO Investment Program has been created to give the individual investor the opportunity to capitalize on this incredible wealth building opportunity. Thus we will manage the client's portfolio. To get more information's visit: M3REO.COM

Or perhaps not.

nicely put pkrv

[Pakboong]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

2009 data

120 sq meter property 7.99%

250 sq meter property 5.95%

http://www.globalpropertyguide.com/Asia/Th...d/Rental-Yields

[yabaaaa]

Thailand is not the place to make a lot of money in property investment at the moment.

Hi PattayaParent

You can be SOOOO negative sometimes!

I know of many people who have recently invested in real estate in Pattaya and are currently getting a great ROI.

Regards

Robert

Hi fivestar,

what are the numbers you base your ROI statement on?

and what is the target market farang or thai?

thx

Hi Royspurs

One example: Based on spending close two 2M Baht including full furniture package on a 1-bedroom condo and achieving between 15,000 and 18,000 Baht per month gross rental.

Second example: Based on spending 3.45M Baht on a fully furnished 1-bedroom condo and renting out for minimum of 20,000 Baht per month gross rental

Target market is the ex-Pat.

Cynics will no doubt question these examples!

Buys are investing in such units as they give a better return than deposits at Barclays, RBS etc...

You can PM me for further details.

Regards

Robert

Must try harder.................. my rentals are 13500 a month + the service charge the condos cost 1.1.million baht I bought at 72 baht to the £

[yabaaaa]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

I really think then that you dont know what your talking about if you dont see a 10% return and no Im not going to publish where and when as every Tom Dick and Harry will be here next.

Nobody mentioned 10mil baht condos try going down to 1 million+ and no it isnt a dump and yes its has just been repainted on the ground floor after 3.5 years from NEW so they are taking care of the maintenance pretty well.

The "rabbit hutches" are way out performing your "luxury palaces" Im happy with my hutches but then I did some research the first being whats the largest possible market for 1. a 10 million baht condo or 2. a 1 million baht condo 3. buying at the right time 72baht per £

[trogers]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

I really think then that you dont know what your talking about if you dont see a 10% return and no Im not going to publish where and when as every Tom Dick and Harry will be here next.

Nobody mentioned 10mil baht condos try going down to 1 million+ and no it isnt a dump and yes its has just been repainted on the ground floor after 3.5 years from NEW so they are taking care of the maintenance pretty well.

The "rabbit hutches" are way out performing your "luxury palaces" Im happy with my hutches but then I did some research the first being whats the largest possible market for 1. a 10 million baht condo or 2. a 1 million baht condo 3. buying at the right time 72baht per £

Smaller units in middle grounds are easier to let out. Gross return is one aspect, but the overheads to administer the lease will be higher unless the landlord has several units in the same location to spread the overheads.

I have 3 units in the same development - two 1-bed and one 2-bed. The 1-beds are giving gross return of 9.4%, while the 2-bed is giving 8.9%.

Edited December 22, 2009 by trogers

[yabaaaa]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

I really think then that you dont know what your talking about if you dont see a 10% return and no Im not going to publish where and when as every Tom Dick and Harry will be here next.

Nobody mentioned 10mil baht condos try going down to 1 million+ and no it isnt a dump and yes its has just been repainted on the ground floor after 3.5 years from NEW so they are taking care of the maintenance pretty well.

The "rabbit hutches" are way out performing your "luxury palaces" Im happy with my hutches but then I did some research the first being whats the largest possible market for 1. a 10 million baht condo or 2. a 1 million baht condo 3. buying at the right time 72baht per £

Smaller units in middle grounds are easier to let out. Gross return is one aspect, but the overheads to administrate the lease will be higher unless the landlord has several units in the same location to spread the overheads.

I have 3 units in the same development - two 1-bed and one 2-bed. The 1-beds are giving gross return of 9.4%, while the 2-bed is giving 8.9%.

Ha haah oh yes I forgot they "are" all 5 in one development!!

Edited December 22, 2009 by yabaaaa

[Royspurs]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

I really think then that you dont know what your talking about if you dont see a 10% return and no Im not going to publish where and when as every Tom Dick and Harry will be here next.

Nobody mentioned 10mil baht condos try going down to 1 million+ and no it isnt a dump and yes its has just been repainted on the ground floor after 3.5 years from NEW so they are taking care of the maintenance pretty well.

The "rabbit hutches" are way out performing your "luxury palaces" Im happy with my hutches but then I did some research the first being whats the largest possible market for 1. a 10 million baht condo or 2. a 1 million baht condo 3. buying at the right time 72baht per £

Smaller units in middle grounds are easier to let out. Gross return is one aspect, but the overheads to administer the lease will be higher unless the landlord has several units in the same location to spread the overheads.

I have 3 units in the same development - two 1-bed and one 2-bed. The 1-beds are giving gross return of 9.4%, while the 2-bed is giving 8.9%.

Troger,

my experience (but not in bkk) has been that cheaper properties give a better rental return, but not capital appreciation necessarily. However, as I change my focus to retirement income rather than capital gain your examples interest me, are you finding it easy to attract tenants & are they typically farang you target or Thai’s?

[Livinginexile]

These are for 1 year rental contracts.

regards

Robert

Great. What's the average occupany rate of a building in good and moderate location during peak and off peak periods? Over 85%?

I bought in Bangkok. Occupancy rate 100%.

So far my condo has appreciated in value 50% in 4 years.

Why in heavens name would anyone consider investing in "Mayaswellbelivingonthemoonaburi" is beyond me

You will lose money for sure.

Edited December 25, 2009 by Livinginexile

[trogers]

I'm sorry but I have huge concerns with these claims of over 10% return on rentals. That implies a rental of almost 1% per month on the value, or a THB10M condo renting for THB90K a month. Sorry folks, but it is not going to happen, and if anyone who claims it does happen would like to substantiate it, I'll be the first in queue to get in on it. If you don't believe me, take a stroll through the real estate ads or around some of the agents downtown BKK and see for yourself. I'd dearly love to get THB90k a month for my THB11M downtown unit but a more reasonable THB50-60k is all I'll ever see. And mine is a large unit in a well run, desirable building, not one of these rabbit hutches where you can't swing a cat. Beware of asking price rentals; they often bear little relationship to the REAL rental value and are usually stubborn owners with an inflated sense of value. Needless to say, their units sit empty for years. Anyone can ask. Getting is another matter.

Having said that, a 6% gross return is more like the general rule, or a THB10M condo renting for THB50k a month. Which is not at all bad in the current market. Adjust that number for costs (CAM fees etc) and you're looking at 5% net. Not too shabby.

Rentals, even in the current market, should be at 80% plus occupancy (condo building). If they are not, there will be a very good reason. Don't become a victim of that reason or your investment will disappear faster than a tequila down a bar girls throat

I really think then that you dont know what your talking about if you dont see a 10% return and no Im not going to publish where and when as every Tom Dick and Harry will be here next.

Nobody mentioned 10mil baht condos try going down to 1 million+ and no it isnt a dump and yes its has just been repainted on the ground floor after 3.5 years from NEW so they are taking care of the maintenance pretty well.

The "rabbit hutches" are way out performing your "luxury palaces" Im happy with my hutches but then I did some research the first being whats the largest possible market for 1. a 10 million baht condo or 2. a 1 million baht condo 3. buying at the right time 72baht per £

Smaller units in middle grounds are easier to let out. Gross return is one aspect, but the overheads to administer the lease will be higher unless the landlord has several units in the same location to spread the overheads.

I have 3 units in the same development - two 1-bed and one 2-bed. The 1-beds are giving gross return of 9.4%, while the 2-bed is giving 8.9%.

Troger,

my experience (but not in bkk) has been that cheaper properties give a better rental return, but not capital appreciation necessarily. However, as I change my focus to retirement income rather than capital gain your examples interest me, are you finding it easy to attract tenants & are they typically farang you target or Thai's?

My tenants so far in my condo units are a single Aussie, a French and his Thai gf, and 2 girls from the Philippines (both working in the Middle East and use Thailand as a holiday base). My next tenant early next year is a Brit with Thai wife and 2 young kids.

My units at Prakhanong in a 13-year old development has good rental yield, but like you said, low cap appreciation. Just bought a 1-bed unit off the first owner (Thai). She bought it at Bt1.78m from the developer and I paid her Bt1.95m after 13 years as the unit has never been renovated for that duration.

One advantage of buying 2nd hand condo units is that we can experience first hand the living environment and the communal spirit. Rental yield can be relative high if the location, environment and community is good. I bought additional units here because I stayed in one of the units since Jan this year and is happy with the living conditions.

Edited December 25, 2009 by trogers

[Pakboong]

These are for 1 year rental contracts.

regards

Robert

Great. What's the average occupany rate of a building in good and moderate location during peak and off peak periods? Over 85%?

I bought in Bangkok. Occupancy rate 100%.

So far my condo has appreciated in value 50% in 4 years.

Why in heavens name would anyone consider investing in "Mayaswellbelivingonthemoonaburi" is beyond me

You will lose money for sure.

If you bought in 2005 when the price index was in the high 120's. at the end of 3rd qtr 2009 it stood at 107 and could break the 1991 standard index of 100 this quarter. If you think your condos appreciated at 50%, you will have to know some complete idiot who wants to buy a condo at almost twice what they are worth in order to realize that dream. The data provided at the link below is not personal opinion. According to the Bank Of Thailand, foreign demand for property is off 90% of its decade high.

http://www.globalpropertyguide.com/Asia/Th...d/Price-History

[trogers]

These are for 1 year rental contracts.

regards

Robert

Great. What's the average occupany rate of a building in good and moderate location during peak and off peak periods? Over 85%?

I bought in Bangkok. Occupancy rate 100%.

So far my condo has appreciated in value 50% in 4 years.

Why in heavens name would anyone consider investing in "Mayaswellbelivingonthemoonaburi" is beyond me

You will lose money for sure.

If you bought in 2005 when the price index was in the high 120's. at the end of 3rd qtr 2009 it stood at 107 and could break the 1991 standard index of 100 this quarter. If you think your condos appreciated at 50%, you will have to know some complete idiot who wants to buy a condo at almost twice what they are worth in order to realize that dream. The data provided at the link below is not personal opinion. According to the Bank Of Thailand, foreign demand for property is off 90% of its decade high.

http://www.globalpropertyguide.com/Asia/Th...d/Price-History

Is this the reason why recently completed luxury condo like The Emporio and Milleinium Residence are looking like haunted towers? Cannot find some complete idiots to buy them at Bt130+k per m2?

[Pakboong]

Is this the reason why recently completed luxury condo like The Emporio and Milleinium Residence are looking like haunted towers? Cannot find some complete idiots to buy them at Bt130+k per m2?

Somebody falls off the turnip truck everyday and there is no telling what they are likely to do.

[DegenFarang]

If you want a heavy return on your investment you should consider the new property hot spot in Thailand!

I am talking about the beachfront resort town of Khanom, located at the mainland opposite Koh Samui.

We have one Thai Bali style condo complex ready to move in this December.

Phase 2 of this condo complex will be ready to move in late 2010.

You can find more info about this project here:

Beachfront Condo

I've only got a few units in Phase 1 left.... and for Phase 2 you'll save a lot of money buying off plan.

New property hot spot? The place doesn't even have it's own Wikipedia entry! lol

If you want to promote the area I suggest you create one.

[GarryP]

Since the troubles earlier this year, is it still worth investing in residential property for retirement income? The condos seem to be going up all over BKK so I would be concerned about over supply and as a result price slashing of rents reducing potential income. Starting to look into various possibilities, but this one still seems interesting. Keeping money in the bank will just not work, as the interest would not provide enough to live on (0.85% at present).

[bangkokjohn]

Since the troubles earlier this year, is it still worth investing in residential property for retirement income? The condos seem to be going up all over BKK so I would be concerned about over supply and as a result price slashing of rents reducing potential income. Starting to look into various possibilities, but this one still seems interesting. Keeping money in the bank will just not work, as the interest would not provide enough to live on (0.85% at present).

Property depreciates in Thailand quickly(2-3%) a year. With buying and selling transaction costs, vacancies(there will be many) and maintenance, it's difficult to make money on property.

Apartments you see being build now are Thai insiders acquiring long dormant land and putting it to use. Their cost of acquisition and construction is very low, so they can focus on very long term returns.

Buy your own home if you are sure to stay. Put the rest of your money in a brokerage account.

http://www.globalpro...d/Price-History

[travelmann]

Since the troubles earlier this year, is it still worth investing in residential property for retirement income? The condos seem to be going up all over BKK so I would be concerned about over supply and as a result price slashing of rents reducing potential income. Starting to look into various possibilities, but this one still seems interesting. Keeping money in the bank will just not work, as the interest would not provide enough to live on (0.85% at present).

Property depreciates in Thailand quickly(2-3%) a year. With buying and selling transaction costs, vacancies(there will be many) and maintenance, it's difficult to make money on property.

Apartments you see being build now are Thai insiders acquiring long dormant land and putting it to use. Their cost of acquisition and construction is very low, so they can focus on very long term returns.

Buy your own home if you are sure to stay. Put the rest of your money in a brokerage account.

http://www.globalpro...d/Price-History

From your link

"Acceptable yields, in a system which favours landlords

The average rental yield in Bangkok is around 7.2% in 2009, down from around 7.6% during the previous year, according to Global Property Guide research. The highest yields come from condominiums measuring between 80 to 120 sq. m., which have yields exceeding 7.5%"

Working on this % above I "should" be getting 8400 baht a month from each of my condos I rent out BUT I am in fact getting 12000+ baht a month, and this is reduced from the 14000 I used to get as prices have dropped recenlty. It really depends what you bought when you bought it and where you bought it.

Buying at "the right time" made a huge difference ie when Sterling was at +70 baht, I would NOT buy any condos today.