Real Estate Project

[anonymousXXX]

Would like to start a small real estate project (build condominiums, townhouses, or apartments). I have about 4 million baht to spend total - that includes land, architecture plans, building and construction, the whole 9 yards. The problem is, I'm not sure exactly where to start.

I don't know how big of a building I can afford with the money that I have. Therefore, it seems I cannot go to an architect and ask him to draw up plans for a building when I have no idea how big I can go, how many units, etc. Similarly, I cannot go out and look for and/or purchase land because I don't know how big of a piece of property I should look for, because again I don't know how big of a project I can afford.

How does one go about "knowing" what one can afford so that one can then look at land, go to an architect, etc? Should I perhaps speak to a "builder" first, who would have rough ideas for what costs what, and then take that rough idea to an architect?

Thanks.

[Teach]

Would like to start a small real estate project (build condominiums, townhouses, or apartments). I have about 4 million baht to spend total - that includes land, architecture plans, building and construction, the whole 9 yards.  The problem is, I'm not sure exactly where to start.

I don't know how big of a building I can afford with the money that I have.  Therefore, it seems I cannot go to an architect and ask him to draw up plans for a building when I have no idea how big I can go, how many units, etc.  Similarly, I cannot go out and look for and/or purchase land because I don't know how big of a piece of property I should look for, because again I don't know how big of a project I can afford.

How does one go about "knowing" what one can afford so that one can then look at land, go to an architect, etc?  Should I perhaps speak to a "builder" first, who would have rough ideas for what costs what, and then take that rough idea to an architect?

Thanks.

<{POST_SNAPBACK}>

The best advice most will give you is 'don't go there'

Your choice of who to speak to first suggests you have little idea how things work here. Your first port of call WILL have to be with a trustworthy Thai lawyer who speaks English. This can be provided. Or Speak with the guys here namely Greg Lange of Sunbelt.

Bt.4m is a painfully small sum to start such an extravigant venture but not impossible as long as the advice you receive is first class.

My advice is go see the lawyer first, it may change your mind.

T.

[thai_norman]

buy a rai of land and build a house then sell it, obviously this doesnt apply to bkk...

[Digger]

4,000,000 and you will be bust within 3 months. I was talking with a guy who's opinion I trust and he told me he had spent over 60,000,000 baht building half a dozen house which he rents out. They originally expected to spend 40,000,000 on buying land at farm prices (i.e not inflated farang prices), building and equiping the houses, landscaping, roads, electric, phones, water supply, maintenance etc and then off course they had to fit them out - Kitchens, curtains, hot water, furniture etc.

By the way, the land cost him about 4,000,000 baht - the other 56,000,000 went on the infrastructure, buildings, roads etc etc etc - all of which is easily overlooked. he told me his walls alone cost him well over 2,000,000 baht and they are not that special. He also said landscaping added about 3,000,000 baht to the cost. The place looks really good but it aint cheap to do and he has said he would never do it again.

[roscoe]

4mill buy 3 or 4 small places and rent them out !!

[dr_Pat_Pong]

Would like to start a small real estate project (build condominiums, townhouses, or apartments). I have about 4 million baht to spend total - that includes land, architecture plans, building and construction, the whole 9 yards.  The problem is, I'm not sure exactly where to start.

I don't know how big of a building I can afford with the money that I have.  Therefore, it seems I cannot go to an architect and ask him to draw up plans for a building when I have no idea how big I can go, how many units, etc.  Similarly, I cannot go out and look for and/or purchase land because I don't know how big of a piece of property I should look for, because again I don't know how big of a project I can afford.

How does one go about "knowing" what one can afford so that one can then look at land, go to an architect, etc?  Should I perhaps speak to a "builder" first, who would have rough ideas for what costs what, and then take that rough idea to an architect?

Thanks.

<{POST_SNAPBACK}>

A recipe for disaster. Forget it. They say a little knowledge is dangerous. No knowledge at all has to be far worse.

[anonymousXXX]

<<4,000,000 and you will be bust within 3 months. I was talking with a guy who's opinion I trust and he told me he had spent over 60,000,000 baht building half a dozen house which he rents out.>>

My plan was to simply build a "small" building of condos. What is "small?" Whatever I could afford. I was hoping it would be 4 - 8 units, maybe 2 stories. Some guy told me he built like 7 townhouses for around $75K-$80K USD, so I thought it might be feasible, at least, for me to do something along those lines. But what do I know? If this would cost anything approaching what you say above, which is over an order of magnitude greater than anything I can put my hands on, I need to forget about it. But crap - I thought stuff was supposed to be cheaper over here in Thailand than in America, not the same or more expensive!

<<A recipe for disaster. Forget it. They say a little knowledge is dangerous. No knowledge at all has to be far worse.>>

Why is this a recipe for disaster? I just want to build a building - that's all. They are everywhere in Thailand from what I see. Why must this be a recipe for disaster? And yes - I do have a little bit of knowledge. I admit that. And I agree it's a dangerous thing. But I'm willing to learn.

I mean, "nothing's easy" - that's been my motto for so many years I can't remember a time when it wasn't. But is this really such a totally monumental, herculean, impossible task that I really should just totally "forget it?" I mean, I have to do *something* if I'm going to live in Thailand. I can't live for the rest of my life on the interest that 4 million baht generates. And at least give me credit for not contemplating going down the road of "buying a bar" which seems like the first thought that pops into so many peoples' heads that move here (no insult intented to anyone who has done that).

Are you saying it is impossible to do with the funds that I have? That I can live with. Or are you saying that it's so much of a headache, and the revenue with the units I would build would be so little, that it just isn't worth it? Or are you saying something else?

If not this, then are there any other ideas on what to do with roughly 4 million baht?

By the way... just how much is a "rai" of land anyway? Is it roughly comparable to an acre?

Thanks.

[dr_Pat_Pong]

1 rai is but 1600 square metres.

[taxexile]

They say a little knowledge is dangerous. No knowledge at all has to be far worse.

By the way... just how much is a "rai" of land anyway? Is it roughly comparable to an acre?

you obviously have no knowledge at all.

you will be eaten alive by the lawyers , land sellers , your builder , your architect and your suppliers and anyone else who happens to be passing by.

your money will have disappeared before ground is broken.

you will return home a bankrupt and disillusioned cynic like so many others before you.

dont do it.

[stevehaigh]

i totally agree with all the cautionary advice. but if you are ###### bent on doing something, you shuold be able to buy land from 200,000 to 1M baht/rai (or way higher) depending on location. you could easily put 6-8 small bungalows on a Rai.

a small bugalow, coconut wood, straw roof, real basic 20m2 unit should cost around 250,000 baht, so it's technically possible to do something small for under 4M bhat. but consider the rental income for 6 to 8 small bungalows, maybe 200-300 bhat/night and how many nights are you going to fill them?

look at the income and expense side, before you decide.

steve

[pluto_manibo]

You can not be for real!! Smells like a TROLL!! After seeing your 2 postings, either you are completely ignorant or having us on!!

[Gary A]

Don't go there was the best advice. Besides the "a little knowledge is a dangerous thing", some of the advice on here is much MORE dangerous!

[Dragonman]

Buy a house for 1 million baht and spend the rest on chang, women and karaoke.

You will have nothing left but great memories, unlike the bad memories when you think of the lawyers, real estate agents, and developers who have ripped you off. Take it from one who knows ( have been a lawyer, real estate agent and developer)

[stevehaigh]

You can not be for real!! Smells like a TROLL!! After seeing your 2 postings, either you are completely ignorant or having us on!!

<{POST_SNAPBACK}>

i talk to farangs almost every day with half baked ideas about buying a bar, or setting up some bungalows, or whatever. once they find out even the most basic facts, they wise up and find something else to fantasize about.

[Dakhar]

Actually,

That guy that told you it could be done, was me. I did it, and the 7 town houses are now rented out. It took about 6-8 months to have them built to turn key. No AC/no water heater, basic Thai style living. Tyle floors... over all, a nice looking complex. It is built along clong 6. Total cost 70-80K USD

But lets give some details on how/why I was able to get this done.

1) Land purchased fairly cheap via and uncle of the family

2) Mother in-law is a former construction sight Foreman/forewoman

3) Mother in-law lives about a 4 minute walk from the complex

4) the team of construction workers foreman is a cousin of my wife

Truthfully the mother in-law was a big help, it was built, and done fairly well without me being present for a single moment. The time I saw any of the project was when I walked around the land...

I plan on doing this again in the near future.

AnnonXXX PM me, and I will send you some photos

[anonymousXXX]

You can not be for real!! Smells like a TROLL!! After seeing your 2 postings, either you are completely ignorant or having us on!!

<{POST_SNAPBACK}>

i talk to farangs almost every day with half baked ideas about buying a bar, or setting up some bungalows, or whatever. once they find out even the most basic facts, they wise up and find something else to fantasize about.

<{POST_SNAPBACK}>

Geez Louise!! This must not be the place to come with questions!! Didn't mean to be "completely ignorant," didn't mean to be a "troll," and didn't mean to "fantasize" (in fact, I could think of much better fantasy material than risking hard-earned money in a real estate project). Just wanted to do something with my money is all. I didn't think it was utterly preposterous to invest in real estate, but perhaps it is. Maybe I should pick up my old day trading habit again - something I was trying to get away from.

I'll go now. Thank you, and good day.

[LaoPo]

Maybe I should pick up my old day trading habit again - something I was trying to get away from.

<{POST_SNAPBACK}>

Good idea; don't know what kind of trading you're in, but maybe you should visit some exhibitions in China and look around what's happening overthere.....you will be amazed about the opportunities.

Less complex than real estate I would think.

Buy a product, sell a product; profits are immense.

good luck to you

Laopo

[dr_Pat_Pong]

At least he now knows that 1600 sq. metres = 1 rai

[Dakhar]

Don't know why you guys gave him such a hard time.

I did it, and I am just meere mortal with agv. smarts. I did not know what a rai of land was or is even now... but I guess the key was, knowing the right people and having the capital to do it.

[taxexile]

and I am just meere mortal with agv. smarts

less than , a good bit less than.

[Dakhar]

OK I have less than avg smarts...

I guess if i was smarter, I would not be in the medical field, have a doctorate degree, make 6 figures, and earn approx 9% on my investment in Thailand....

If only I were smarter I could retire younger than age 35.

You are right, it is a struggle to be as dumb as I, but some how I make due.

Geez, I have never seen such a large group of Nay sayers.... You guys want to sit around and say it can not be done... Well it can, it has been done, and I will probably do it again. I had the first complex built, and paid in full, the next one will also be paid in full, no need to finance the projects, so I don't sit around and pay off banks while a house is vacant. Even if 2-3 are rented, I still earn more off of them, than I would a money market account here in the states......

But if you have better ideas, please share with the group.... Maybe I will take my money else where.

[taxexile]

OK I have less than avg smarts...

I guess if i was smarter, I would not be in the medical field, have a doctorate degree, make 6 figures, and earn approx 9% on my investment in Thailand....

If only I were smarter I could retire younger than age 35.

You are right, it is a struggle to be as dumb as I, but some how I make due.

Geez, I have never seen such a large group of Nay sayers.... You guys want to sit around and say it can not be done... Well it can, it has been done, and I will probably do it again. I had the first complex built, and paid in full, the next one will also be paid in full, no need to finance the projects, so I don't sit around and pay off banks while a house is vacant. Even if 2-3 are rented, I still earn more off of them, than I would a money market account here in the states......

But if you have better ideas, please share with the group.... Maybe I will take my money else where.

well i'm sorry .

i didnt realise i was dealing with thailands very own richard branson , thailands very own mr. midas , and with a doctorate in a medical field as well .

not only that but you are modest about your achievments too.

lets all bow down and kiss the earth beneath your lucky feet.

i was just making a light hearted remark at your failure to spell a four letter word correctly and your inability to type three letters in the correct order.

perhaps you should invest some of your vast wealth in a sense of humour

what is your medical speciality by the way ...... dyslexia ?

[Dakhar]

OOps, you got me there. I apologize for my lack of spelling ability.

I guess you teach English in Thailand, so really you are the authority when it comes to English usage. My lack of English skills must really gall you. I appologize again. You can use my posts while teaching class as an example of poor English if you like.

By the way, no need to bow, I am only human, a meer mortal with avg. smarts, and your apology is accepted.

[taxexile]

appologize

[Dakhar]

Do all English teachers have the need to castigate others?

Or is this just your cheery personality?

I hope AnnonXXX takes his 4million Baht, buys the internet cafe you are sitting in, and kicks you out. That would be the best.

[donx]

Dakhar,

I am curious as to where clong 6 is. Is it somewhere around Bangkok?

I'm interested in having a house built at some point, but I'm not planning on doing it as an investment but as a place to use in my retirement years. Last year, my wife built a small bungalow on her parent's land as a place with airconditioning for us to stay when we are visiting. It's nothing grand, but it is next to a small stream with a western style bathroom. My wife was the general contractor with help from her brother and brother-in-law. Her brother has worked as a forman and oversaw the work being done. Her brother-in-law installed the electric concealing the wiring within the walls. I was quite impressed with the end result and will definitely have them get together to build something more elaborate on a separate piece of land.

I'm interested in knowing where your units are because the price of the land sounds rather inexpensive.

Good luck on your next development.

[dr_Pat_Pong]

appologize

<{POST_SNAPBACK}>

and meere Find out which institution awards these doctorates

[Dakhar]

Dr Pat Pong

That institute would be the Arizona School of Health Sciences

[Dakhar]

I am curious as to where clong 6 is. Is it somewhere around Bangkok?

I'm interested in having a house built at some point, but I'm not planning on doing it as an investment but as a place to use in my retirement years. Last year, my wife built a small bungalow on her parent's land as a place with airconditioning for us to stay when we are visiting. It's nothing grand, but it is next to a small stream with a western style bathroom. My wife was the general contractor with help from her brother and brother-in-law. Her brother has worked as a forman and oversaw the work being done. Her brother-in-law installed the electric concealing the wiring within the walls. I was quite impressed with the end result and will definitely have them get together to build something more elaborate on a separate piece of land.

I'm interested in knowing where your units are because the price of the land sounds rather inexpensive.

Good luck on your next development.

Clong 6 is about 15 min away from the Future Park Mall. There is a Tech univ. near where the town houses are built. There is still plenty of land to be had in that area, and my mother-in-law owns some, she may be willing to part with it. I really can not speak for her on that.....

[dr_Pat_Pong]

Dr Pat Pong

That institute would be the Arizona School of Health Sciences

<{POST_SNAPBACK}>

Spelling isn't a prerequisite for graduation in Arizona then ?