Condo For Investment

[pattayapip]

Am thinking of Buying Condos as a retirement investment in Pattaya instead of putting into pension as the returns are just about zero right now, I know there are many Guys here who have done and will do the same with Condos in Pattaya, what i would like to know is what Value Condos would be best to invest in ? Thinking Of Jomtien area maybe View Talay 2 A&B (Just Down from Threppasit Road) What would give me the best returns and running costs, a Basic Studio condo, or one more expensive and slightly bigger or even a 1 Bedroom Condo, Have something Like 2.5 Million to invest each year for say 5 Years?

Thankyou for any Advice

Edited January 19, 2011 by pattayapip

[PattayaParent]

I can predict that the concensus of advice you will receive is 'don't do it'

[rgs2001uk]

Please tell us how much rental income you think a 2.5 million baht condo will give you each year?

Are you going for capital growth or regular income?

How much do you think your 2.5 million baht condo will be worth in 10 years time in real terms?

Had a friend who bought 3 condos with the same idea 5 years ago, he managed to sell one, the other two are empty, if he is lucky he could get about 25,000 baht per month in income, needless to say he is still working, his plans have been put on the back burner.

For visa purposes there is no need to buy condos, houses, land or cars, only show the capital required each year to extend your visa.

£50k per year for five years isnt exactly retirement money, only equates to £250k, how old are you?

Lets not overlook those nasty little things like tax, or WP.

[trogers]

Pattaya? Have you not heard of low and high seasons in tourist spots? What kind of rental income will such condo units bring less annual common fees, insurance, and agency fees?

[toan6082]

Pattaya? Have you not heard of low and high seasons in tourist spots? What kind of rental income will such condo units bring less annual common fees, insurance, and agency fees?

brought in view talay 2 about 5 years ago for 1.6m sold 3 years later for 1.65m.no capital gain very hard to rent yearly to cashed up farang. rented for 12000 per month but not all year.

[pattayapip]

Please tell us how much rental income you think a 2.5 million baht condo will give you each year?

Are you going for capital growth or regular income?

How much do you think your 2.5 million baht condo will be worth in 10 years time in real terms?

Had a friend who bought 3 condos with the same idea 5 years ago, he managed to sell one, the other two are empty, if he is lucky he could get about 25,000 baht per month in income, needless to say he is still working, his plans have been put on the back burner.

For visa purposes there is no need to buy condos, houses, land or cars, only show the capital required each year to extend your visa.

£50k per year for five years isnt exactly retirement money, only equates to £250k, how old are you?

Lets not overlook those nasty little things like tax, or WP.

To answer questions in this post, The 2.5 Million is how much i am planning on investing each of the next 5 years, it may go up as Salary does So the question was buy a 2.5 Million Condo per Year or a couple at just over 1 million (maybe do them up if cheaper) My initial thoughts would be a couple of cheaper units done up nicely and rented at maybe 8000 Month, just guessing at figures obviously, even at that money its a lot more than investment rates !!!! And over a larger length of time one would think capital ivestment would increase as property rates anyway, especially if bought right

Nothing to do with Visa Requirements.

Am 50 and already have a pension, so just looking for best way to invest capital and would rather it went into property not pension top up.

And assuming by the Tax and WP you are saying i would need a WP if i were to rent these out ?

If that were the case would buy them in my wifes name which i would assume would make things much easier (I do not need advise on the pitfalls of buying in Wifes name, that can be done on other threads)

So all in all a genuine question to see how others have done this, or would do it.

Cheers for all the replies

[Jingthing]

It might make more sense if you are bullish on Russia, to invest directly in the Russian equity market. I own a condo to live in and on paper I am in theoretical profit, at the current prices and exchange rates on dollars, I wouldn't buy a new one for living or investment. The timing seems bad. The real estate bargains aren't here. There certainly are bargains in the US though.

Edited January 21, 2011 by Jingthing

[jay1980]

I have a condo in Jomtien I have rented out now.

Bought it off plan because I always fancied owning a condo in Thailand and plan to live there in the next 2-4 years.

Paid 1.4 million, if it is rented for 9 months of the year will get just under 7% roi after fee's have been paid.

I am also a BTL property owner in London (property is also owned outright), after income tax and mantaiance roi less than 6%, with the property rented out 100% of the year.

The advantage of London over Thailand is there is no shortage of tenants, it can be rented out in less than a week when empty. (my place has great train links into central London though). Also may get some capital apprication but nott expecting any in the short term.

The Jomtien condo is my first property purchase in Thailand, I am not thinking if as an investment yet, if it proves itself as one after a year I might consider buying more places as investments. If not I have a nice bolt-hole in Thailand.

Good luck!

cheers

[submaniac]

Condos in Thailand generally have a bad rap, and for good reason. It is difficult to sell. Thai's generally will purchase new rather than pre-owned. Thai condos, once completed, generally are not well maintained. Add to the mix it is Pattaya and there is the high and low seasons of tourist influx, so getting a year round renter is going to be difficult. There are also no shortages of places to rent in Pattaya either.

[JWJ]

Instead of buying 5 cheap places , why not look into buying a single unit in one of the top end places?

You will have one tenant with money vs 5 cheap renters in 5 cheap apartments that are falling apart.

That's what I would do.

[alexanderthai]

Instead of buying 5 cheap places , why not look into buying a single unit in one of the top end places?

You will have one tenant with money vs 5 cheap renters in 5 cheap apartments that are falling apart.

That's what I would do.

I 'm totally agree with you. Just buy commercial property in the good location ,then, you will not lack of tenants all year long. I don't understand why people here like to buy condo for investment. Thai doesn't buy a condo in the same or over price compare with a price of houses.

[Darrel]

Thai doesn't buy a condo in the same or over price compare with a price of houses.

Of course they dont, but they have the luxury of having a choice. Farangs can ONLY buy condos, if they want to remain within the letter and spirit of the law.

I would also much rather spend 3MBaht on a freehold 3-bedroom house with pool and carport than on a 50sqm condo but I cant (without putting a great deal of trust in a Thai person or the Thai government, neither of which tempts me at all).