Generating Income

[womble]

I'm about to come into a little bit of Money, not a lot, but enough to make myself, my family and extended family (farang and Thai), comfortably off if managed correctly.

I'm looking for a way to gernerate an income of 10,000 baht per month for my wifes parents. They own a house, car etc, have no loans, and are very sensible with their money, they are not gamblers or drinkers and health wise are in good shape, they all already have insurance as the son is a high up government worker, even so the extra 10k would mean Pops could retire and they would live a much happier life. They have never asked for a penny, and my wife has never asked, but I know this small amount would make a big difference to their quality of life, especially pops who only really works so he can get the cash to play golf on Sundays and buy a few luxury items here and there.

I would say they are lower middle class, good honest people who live a simple life, I want something that will bring in roughly 10k a month and in years to come will appreciate in value so my baby daughter will have something of value in years to come. Remember I don't want the parents to have to put any work it at all.

They are in UBON, just on the outskirts of the town.

I was thinking farmland, perhaps with rubber, or palm or some other cash crop where others come in and do the work. I know rubber and palm is more of a southern thing, but I have heard of rubber in issan.

Another thing that crossed my mind was a shophouse, it could be rented out, if a decent one was bought in a good location in the town, if it rented out for more we would have the additional income. This building should also appreciate in value and if in a really good location, be easy to rent out.

Any Idea going rate for shophouse or other commercial properties in Ubon town That could give an income around that figure.

I was also looking at local stocks that pay good dividends. What ever the investment is I want it to be in Thailand so to guard against currency fluctuations.

So my shortlist is :

1.) Land with Cash Crop

2.) Shop house or other commercial property, maybe even residential

3.) Thai Stocks with good Dividend payments

If anyone would like to offer advice and or alternatives it would be greatfully recieved.

Remember also the end goal is longterm capital growth (18+ years)

[chimsa]

Let the money do the work.

Find good shares or bonds to invest in. Easier said than done but can be done.

Your own suggestions might not involve work but will involve worry and stress. Depends of course how old you are.

I ,personally am getting on and no longer want commitment so all mine is in things like UK Isas and Hk bonds.

Let the "bankers" worry, let the money do the work.

[Dave the Dude]

Let the money do the work.

Find good shares or bonds to invest in. Easier said than done but can be done.

Your own suggestions might not involve work but will involve worry and stress. Depends of course how old you are.

I ,personally am getting on and no longer want commitment so all mine is in things like UK Isas and Hk bonds.

Let the "bankers" worry, let the money do the work.

I would agree with the above.

Not that this place is always the good resource to hear Success stories, but I have not experienced too many Foriegners making reasonable long-term incomes from Farming or renting out Shop/Town houses IMHO

[likewise]

We got palm plantation down South here and it creates a good source of income.

Go for both, diversify, townhouse for rent + palm or any other crop ( I don' think Isarn is the right place for palm though), and then some money in the financial markets. IF all managed well you don't have to work.

Out here a decent renovated townhouse gives you about 8K to 10K/ month rental income.

[rick75]

I would stick to shares that are in "your" name, buying land or property in others names is a mugs game, you keep the asset and give them an income, if your circumstances change you will still have the asset and the income.

[Dave the Dude]

I would stick to shares that are in "your" name, buying land or property in others names is a mugs game, you keep the asset and give them an income, if your circumstances change you will still have the asset and the income.

Wise words!

[Svenn]

Let the money do the work.

Find good shares or bonds to invest in. Easier said than done but can be done.

Your own suggestions might not involve work but will involve worry and stress. Depends of course how old you are.

I ,personally am getting on and no longer want commitment so all mine is in things like UK Isas and Hk bonds.

Let the "bankers" worry, let the money do the work.

What kind of income do you generate from bonds/mutual funds like that? Is the average interest rate for those things like around 5% or something? You'd need like a 4 million baht investment to get a decent, livable monthly return for that methinks....

OP, I had a very similar question as yours addressed here: http://www.thaivisa.com/forum/Risk-start-C...an-t315433.html

[womble]

Everything will be in my name, I'm in my early thirties. I have no intention of handing over an asset in their name or giving a lump sum, I prefer though to have the investment for them (even though in my name) rather than pay 10k per month from my own portfolio. I'm not too bothered about liquidity, but I do think a mixture of bonds, shares and a shop house would spread the risk a bit.

To me this is throw away cash, but to them as their health deteriorates it will become more and more important. So it needs to be in fairly safe investments. I fancy the cash crop as an option as it's something I have thought about for a while, this small investment could be a good test for future larger investments as part of my portfolio.

Years ago I looked at teak land in central America, never did it in the end as it all seemed a bit strange, but more and more i'm hearing people are investing directly into the land and crop as opposed to a managed fund.

The reason I want it in Issan is I do believe long term the area could indeed boom, the right investments could generate good longterm capital growth. My wife suggested rice farmland, but i'm not so sure, with the price of vietnamesse rice over 100$ a ton less, Thai rice could be in for a rough ride.

Perhaps someone with more knowledge of the rice business could shed light on this. I know foriegner can't own rice land, but it could be put in childs name, signed for by mother.

[rgs2001uk]

Let the money do the work.

Find good shares or bonds to invest in. Easier said than done but can be done.

Your own suggestions might not involve work but will involve worry and stress. Depends of course how old you are.

I ,personally am getting on and no longer want commitment so all mine is in things like UK Isas and Hk bonds.

Let the "bankers" worry, let the money do the work.

What kind of income do you generate from bonds/mutual funds like that? Is the average interest rate for those things like around 5% or something? You'd need like a 4 million baht investment to get a decent, livable monthly return for that methinks....

OP, I had a very similar question as yours addressed here: http://www.thaivisa.com/forum/Risk-start-C...an-t315433.html

The OP is looking for 10k per month, or 120,000 baht per year.

6 million baht in the bank will return 120,000 baht per year at 2% interest rate.

You will need a lot more than 4 million baht in the bank to get a decent liveable montly return.

40 million in the bank will give 800,000 baht per year at 2%, that is less than 70,000 baht per month.

[Svenn]

The OP is looking for 10k per month, or 120,000 baht per year.

6 million baht in the bank will return 120,000 baht per year at 2% interest rate.

You will need a lot more than 4 million baht in the bank to get a decent liveable montly return.

40 million in the bank will give 800,000 baht per year at 2%, that is less than 70,000 baht per month.

Do the bond, mutual funds, or other financial things people mention here have rates substantially or reliably better than 2%? If so, I would think that a much better way to get income than throwing it all into (ahem, 3rd world) business.

[womble]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

[Svenn]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Do you have any figures? are they reliable? I tried learning this on thaivisa a while ago but just got accosted with TV members wanting me to transfer them a bunch of money Sorry to take this a bit off topic btw.

[Svenn]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Do you have any figures? are they reliable? I tried learning this on thaivisa a while ago but just got accosted with TV members wanting me to transfer them a bunch of money Sorry to take this a bit off topic btw.

bump. still curious if anyone has any idea about this? I talked to a friend in the US and he says banks now are giving like 2% and other conventional financial instruments can't usually give out above 4% unless they're a bit risky, got lucky, etc.

[prakhonchai nick]

Everything will be in my name,

Then land and property are out..

In your wife's name YES but yours..NO!

[Dave the Dude]

Everything will be in my name,

Then land and property are out..

In your wife's name YES but yours..NO!

I hope he's done his homework enough to already know this, Nick.

If not, you have a lot more groundwork to do (with respect).

Another thought, what have your out-laws got to say about this?

Have they any skills/qualifications that may help a succesful enterprise?

Tread carefully,my friend

[Chaimai]

So my shortlist is :

1.) Land with Cash Crop

2.) Shop house or other commercial property, maybe even residential

3.) Thai Stocks with good Dividend payments

If anyone would like to offer advice and or alternatives it would be greatfully recieved.

Remember also the end goal is longterm capital growth (18+ years)

I dont see how the long-term goal is capital growth when the stated objective is to give your in-laws 10,000 Baht per month.

Forget about any of the Thai schemes if you want to keep ownership and control of the asset.

Where are the funds domiciled because I sure as hel_l would not convert Sterling (capital) into Baht at 47 THB/GBP ?

You will need to disclose the amount of capital available for the TV gurus to properly advise. You will do better than 2% but after tax and other costs I imagine you will need to ring-fence the equivalent of 4million Baht.

[popeye33]

sounds like op is trying to find ways to squander his money!

think it thru pal!

are you a farmer? real estate is good but not when you cant own it. thai stocks...............do you know the inner workings of thai stocks?

[torrenova]

I don't know that area but I was involved in the near purchase of a shop house in Buriram, trading as a non branded mini mart (in the end the deal did not go through). The property was around the 1.5m mark and was quite a bit wider than some shop houses you see, though not technically two units (it may well be 2 Pattaya sized units). Basic rooms upstairs etc. no luxuries.

The problem was that it rented out at around 5k a month. There were also some empty and a whole row on an estate not half a kilometre away which are called baan nok as only the birds live there. They cannot be rented out for any money at all ! So the return on investment on this property is only 4% and in fact, the reason it fell through was because the mini mart moved to another in the block for around 3k a month, making the yield around 2.5% and that has to really be in the region of repair money. Of course in the centre of town there are better places but they cost considerably more.

SO shop houses do not always provide a good return, income wise.

[Dave the Dude]

I see a trend forming here and basicaly its....

So my shortlist is :

1.) Land with Cash Crop NO GOOD

2.) Shop house or other commercial property, maybe even residential NO GOOD

3.) Thai Stocks with good Dividend payments NO GOOD

Sorry

[torrenova]

Just looking at this again and with your statement of "I'm about to come into a little bit of Money, not a lot, but enough to make myself, my family and extended family (farang and Thai), comfortably off if managed correctly.", then to make you and your extended family comfortably off, for your lifetimes, it cannot be so small a sum.

Would it not just be better to give papa a 10k stipend ?

I know you desire it to be somewhat indirect but you don't trust them enough to put any property in their name. As you're in your 30s and her parents presumably have a good few years left, have you considered inflation ? 10k today is not 10k in 5 years time nevermind 25 years.

Has papa got anything put away for his retirement / pension ?

I've a young daughter and I have similar long term plans but you are asking for capital appreciation and a high yield if your investment is low and that is not possible. You can perhaps have one or the other.

Or just invest 20m in the best shophouses in town and have done with it. Seriously, without an investment figure, how can people work out whether your idea is plausible ?

[Svenn]

3.) Thai Stocks with good Dividend payments

Why do they have to be Thai? What kind of dividends can one expect?

[cdmtdm]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

[Svenn]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

I had no idea banks were giving out that high of interest... do you have some special account with them or is it just regular savings? Has it steadily been at 5.7%, is it fixed, or will it get better when the economy does? But to be getting 20,000 baht + a month you'd need at least $150,000 USD in there right?

[rgs2001uk]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

I had no idea banks were giving out that high of interest... do you have some special account with them or is it just regular savings? Has it steadily been at 5.7%, is it fixed, or will it get better when the economy does? But to be getting 20,000 baht + a month you'd need at least $150,000 USD in there right?

Sounds easy, I dare say if you are Australian and the Australian dollar is your base currency shouldnt be an issue.

However for the rest of us it is pure speculation or gambling.

If it sounds too good to be true it probably is, yeah earn 5%+, not much good if the Australian dollar drops by say 10% in value to lets say the Thai baht.

A quick google search reveals a spread of 24.31 to 31.22 Australian dollars to Thai baht in the last year.

I beleive the Australian dollar is somewhere around 29 at the moment, I was taught always buy low sell high.

I doubt very much you will get anywhere near 5% on a US$ account.

Your options are to convert to and invest in Australian dollars, or have a look at what, for example the HSBC in Bangkok will give you on a foreign currency time deposit account in US$, I dont hold out much hope for anything attractive.

Then again half of something is better than half of nothing.

[cdmtdm]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

I had no idea banks were giving out that high of interest... do you have some special account with them or is it just regular savings? Has it steadily been at 5.7%, is it fixed, or will it get better when the economy does? But to be getting 20,000 baht + a month you'd need at least $150,000 USD in there right?

Sounds easy, I dare say if you are Australian and the Australian dollar is your base currency shouldnt be an issue.

However for the rest of us it is pure speculation or gambling.

If it sounds too good to be true it probably is, yeah earn 5%+, not much good if the Australian dollar drops by say 10% in value to lets say the Thai baht.

A quick google search reveals a spread of 24.31 to 31.22 Australian dollars to Thai baht in the last year.

I beleive the Australian dollar is somewhere around 29 at the moment, I was taught always buy low sell high.

I doubt very much you will get anywhere near 5% on a US$ account.

Your options are to convert to and invest in Australian dollars, or have a look at what, for example the HSBC in Bangkok will give you on a foreign currency time deposit account in US$, I dont hold out much hope for anything attractive.

Then again half of something is better than half of nothing.

[cdmtdm]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

I had no idea banks were giving out that high of interest... do you have some special account with them or is it just regular savings? Has it steadily been at 5.7%, is it fixed, or will it get better when the economy does? But to be getting 20,000 baht + a month you'd need at least $150,000 USD in there right?

Sounds easy, I dare say if you are Australian and the Australian dollar is your base currency shouldnt be an issue.

However for the rest of us it is pure speculation or gambling.

If it sounds too good to be true it probably is, yeah earn 5%+, not much good if the Australian dollar drops by say 10% in value to lets say the Thai baht.

A quick google search reveals a spread of 24.31 to 31.22 Australian dollars to Thai baht in the last year.

I beleive the Australian dollar is somewhere around 29 at the moment, I was taught always buy low sell high.

I doubt very much you will get anywhere near 5% on a US$ account.

Your options are to convert to and invest in Australian dollars, or have a look at what, for example the HSBC in Bangkok will give you on a foreign currency time deposit account in US$, I dont hold out much hope for anything attractive.

Then again half of something is better than half of nothing.

actually you get more if you fix the term , 6%plus ........ for 12months .... as for speculation well if i had US dollars i would be dumping them fast , a commodity based currency is far more attractive to me than sterling or Us dollars . At the moment the baht is far too strong so chances are it will pullback (good for the aussie exchange) and the aussie is likely to be at parity with the US sooner than later ,due to increasing interest rates and strong commodity demand in India and China .....

[cdmtdm]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

I had no idea banks were giving out that high of interest... do you have some special account with them or is it just regular savings? Has it steadily been at 5.7%, is it fixed, or will it get better when the economy does? But to be getting 20,000 baht + a month you'd need at least $150,000 USD in there right?

i use Westpac and have an Esaver acct which is on call , but fixed term deposits earn much more , it keeps increasing and i expect 7%within 2 years on fixed term deposits , you have options , i am an aussie so easy but i have met other farangs that have aussie bank accts not sure how ......worth investigating

[barky]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

Hi CdM,

While reading I noticed this. Could you tell me which Aussie bank and the name of the account/fund and any other detail you think important. I have some lazy cash looking for an attractive but secure home.

Cheers.

[cdmtdm]

Sticking it in a bank is not an option.

There are shares in Thai banks and many other companies that pay very attractive dividends.

Hi womble , i understand your situation and have looked at similar ideas , but in the end i settled for the money in an Aussie bank giving me 5.7% interest (one of the top four world banks) its secure and then ride the exchange rate and transfer the funds back in aussie dollars monthly, then give pops his cash monthly let him decide what to do with it , you will still have your initial deposit and he will have a nice monthly bonus .... win win .....

good luck and i like your Jai Dee

cheers CdM

Hi CdM,

While reading I noticed this. Could you tell me which Aussie bank and the name of the account/fund and any other detail you think important. I have some lazy cash looking for an attractive but secure home.

Cheers.

Westpac Esaver acct.... on call rates adjusts as the rates increase ...... more if you use a fixed term deposit 6% plus i think .....

[rgs2001uk]

From the Westpac site,

http://www.westpac.com.au/personal-banking...-deposit-rates/

I notice no mention of tax on interest.

What sort of rates are available for Australian dollar accounts in (tax free) Singapore at the moment?

BTW cdmtdm I share your view on both the US$ and £.