30-year Lease On A Condo

[johnnyk]

The numbers can sometimes stack up but usually only where the allowable depreciation is much lower than the cost of the lease, offset for tax purposes and even then, I cannot see why anyone would pay up front as there are no tax benefits in doing so. Renting as you go would be far more beneficial.

It is very hard to make a viable argument for taking out a 30 year lease at anywhere near the terms likely to be offered.

Well-known man about town On My Way, who made money in real estate in the US, said selling price should not be more than 7 years rent to make economic sense.

He was renting a nice place @23K/month (7 years rent = 1.93 million THB) and the place was asking 4.2 million. No way, said he.

But to pay effectively the freehold selling price for a 30 yr lease on a condo makes no sense to me.