Should I Keep It Or Sell?

[Sonkind]

My wife and I have a townhouse in Soi Watkoo(Mitthapharb Village) Phakred Nonthaburi that is all paid up we have been renting it out for the past year. It is a standard 2 bedroom thai townhouse and similar units in the area sell for about 900-1.1 million.

Thing is we buy houses/condo's as investments but my gut is telling me that the area's price will not increase much over the coming years if at all, and at 3500 rental income a month it is not exactly a money earner.

The person renting at the moment has offered 950k to buy the house as is , so my question is twofold, does anyone know of a reason why I should not sell or is it better to keep it and rent out? and is it better to spend 50k-100k repainting and upgrading and trying to sell it off for more through a agent?

We live on the other side of bangkok and our condo's are showing a much better return, but again I am concerned with the sheer numbers of new condo's going up.

Sorry I know this is a pretty ambiguous(spelling?) request but was hoping someone with a bit more savvy would be able to offer some good advice.

Thanks in advance

[trogers]

Sell and re-invest. A 7-eleven shop at the end of a dead end soi makes no sense compared to one located at the mouth of the soi. What prospect of human, business and employment growth are there in the location of your property? These are the factors that influence demand for land and living space, which in turn affect growth in rental and capital value.

Invest in a 2nd hand 1-bedroom condo (45sqm) along Sukhumvit with rental yield of over 7% pa. Price would be around Bt1.6m plus Bt150k for renovation and furnishing. Rental income is probably around Bt14-15k/month. Get a Bt900k mortgage for 10 years with monthly repayments of Bt12k.

[Khun Jean]

Along sukhumvit (Bts 300 meters) 4 bedroom/3 baths rent 11.000 baht (2.7 Mb to buy). 3-4 bedroom townhouse 4-5000 baht (2.1 Mb to buy) both with schools, 7/11, market, tesco express all withing a 5 minute walk. It is a renters market at the moment.

Of course these examples are more targeted to Thais, but newsflash there are more thais then foreigners.

I decided long ago that it would be best for us to invest in the smaller units around 25-30sqm. Now around 300K to buy, we bought around 200K. 2-3K for rent unfurnished (that's a neat 11-12%). Nothing flashy. Maintenance costs are very low as most of the stuff is owned by the renter. The biggest problem is a faulty toilet and that can be fixed quickly for a few hundred baht. 100% occupancy for the last 10 years. We started offloading the oldest ones last year for a neat 60-100% profit often to the renter and are shifting to "newer" buildings (10-15 year old instead of 20+) hoping to do this cycle again and again.

Location is everything and we don't buy (for investment) if we can not pay cash. Leaving out the banks is the best thing for roi.

Edited January 26, 2011 by Khun Jean

[happyfish88]

Along sukhumvit (Bts 300 meters) 4 bedroom/3 baths rent 11.000 baht (2.7 Mb to buy). 3-4 bedroom townhouse 4-5000 baht (2.1 Mb to buy) both with schools, 7/11, market, tesco express all withing a 5 minute walk. It is a renters market at the moment.

Of course these examples are more targeted to Thais, but newsflash there are more thais then foreigners.

I decided long ago that it would be best for us to invest in the smaller units around 25-30sqm. Now around 300K to buy, we bought around 200K. 2-3K for rent unfurnished (that's a neat 11-12%). Nothing flashy. Maintenance costs are very low as most of the stuff is owned by the renter. The biggest problem is a faulty toilet and that can be fixed quickly for a few hundred baht. 100% occupancy for the last 10 years. We started offloading the oldest ones last year for a neat 60-100% profit often to the renter and are shifting to "newer" buildings (10-15 year old instead of 20+) hoping to do this cycle again and again.

Location is everything and we don't buy (for investment) if we can not pay cash. Leaving out the banks is the best thing for roi.

Banks interest rate is outrageous :jap:

[london]

Sonkind,

you have had some great replies.

Definitely sell it.

The offer is reasonable and its immediate cash in hand.

Re-invest and don't think about it again.

Oh, be careful not to spend the 950k on something that isn't an investment.

[rgs2001uk]

Sonkind,

you have had some great replies.

Definitely sell it.

The offer is reasonable and its immediate cash in hand.

Re-invest and don't think about it again.

Oh, be careful not to spend the 950k on something that isn't an investment.

For a thread started in Jan this year, I hope he sold, who knows how many metres of water the place is under now.

[london]

Sonkind,

you have had some great replies.

Definitely sell it.

The offer is reasonable and its immediate cash in hand.

Re-invest and don't think about it again.

Oh, be careful not to spend the 950k on something that isn't an investment.

For a thread started in Jan this year, I hope he sold, who knows how many metres of water the place is under now.

OMG !! I didn't notice that.

[culicine]

Sonkind,

you have had some great replies.

Definitely sell it.

The offer is reasonable and its immediate cash in hand.

Re-invest and don't think about it again.

Oh, be careful not to spend the 950k on something that isn't an investment.

For a thread started in Jan this year, I hope he sold, who knows how many metres of water the place is under now.

OMG !! I didn't notice that.

Actually most of Pak Kret is not flooded - only the western side (my side) of the river is inundated. Pak Kret to Muangthong, up Tiwanon Road is dry as a bone. I'm near the Khae Rai intersection and no water at all here. This would be a good time to sell - advertising as "not flood prone" - I think Pak Kret Municipality did a grear job keeping water out of their area, and have quite a good wall along their stretch of the river.

[w11guy]

Along sukhumvit (Bts 300 meters) 4 bedroom/3 baths rent 11.000 baht (2.7 Mb to buy). 3-4 bedroom townhouse 4-5000 baht (2.1 Mb to buy) both with schools, 7/11, market, tesco express all withing a 5 minute walk. It is a renters market at the moment.

Of course these examples are more targeted to Thais, but newsflash there are more thais then foreigners.

I decided long ago that it would be best for us to invest in the smaller units around 25-30sqm. Now around 300K to buy, we bought around 200K. 2-3K for rent unfurnished (that's a neat 11-12%). Nothing flashy. Maintenance costs are very low as most of the stuff is owned by the renter. The biggest problem is a faulty toilet and that can be fixed quickly for a few hundred baht. 100% occupancy for the last 10 years. We started offloading the oldest ones last year for a neat 60-100% profit often to the renter and are shifting to "newer" buildings (10-15 year old instead of 20+) hoping to do this cycle again and again.

Location is everything and we don't buy (for investment) if we can not pay cash. Leaving out the banks is the best thing for roi.

I know this is an old thread, but how do you find the is condos? Is it mostly word of mouth and walking the area or are they advertised somewhere. all the websites I find tend to only have the more expensive properties.

[rgs2001uk]

Along sukhumvit (Bts 300 meters) 4 bedroom/3 baths rent 11.000 baht (2.7 Mb to buy). 3-4 bedroom townhouse 4-5000 baht (2.1 Mb to buy) both with schools, 7/11, market, tesco express all withing a 5 minute walk. It is a renters market at the moment.

Of course these examples are more targeted to Thais, but newsflash there are more thais then foreigners.

I decided long ago that it would be best for us to invest in the smaller units around 25-30sqm. Now around 300K to buy, we bought around 200K. 2-3K for rent unfurnished (that's a neat 11-12%). Nothing flashy. Maintenance costs are very low as most of the stuff is owned by the renter. The biggest problem is a faulty toilet and that can be fixed quickly for a few hundred baht. 100% occupancy for the last 10 years. We started offloading the oldest ones last year for a neat 60-100% profit often to the renter and are shifting to "newer" buildings (10-15 year old instead of 20+) hoping to do this cycle again and again.

Location is everything and we don't buy (for investment) if we can not pay cash. Leaving out the banks is the best thing for roi.

I know this is an old thread, but how do you find the is condos? Is it mostly word of mouth and walking the area or are they advertised somewhere. all the websites I find tend to only have the more expensive properties.

Can you read Thai?

They advertize these properties at bus stops or on walls, they are all over the place.

Suggest you head to On Nut or Prakhanong for starters.

These places can be bought for anywhere between 300-400k baht, and rent from anywhere from 3000+ per month.

[TommoPhysicist]

I hate it when some muppet revives an old post!

Edited July 7, 2012 by TommoPhysicist

[w11guy]

I hate it when some muppet revives an old post!

Why? What's the point of starting new post if there is already an appropriate thread?

[dave111223]

NVM

Edited July 10, 2012 by dave111223

[craigt3365]

Along sukhumvit (Bts 300 meters) 4 bedroom/3 baths rent 11.000 baht (2.7 Mb to buy). 3-4 bedroom townhouse 4-5000 baht (2.1 Mb to buy) both with schools, 7/11, market, tesco express all withing a 5 minute walk. It is a renters market at the moment.

Of course these examples are more targeted to Thais, but newsflash there are more thais then foreigners.

I decided long ago that it would be best for us to invest in the smaller units around 25-30sqm. Now around 300K to buy, we bought around 200K. 2-3K for rent unfurnished (that's a neat 11-12%). Nothing flashy. Maintenance costs are very low as most of the stuff is owned by the renter. The biggest problem is a faulty toilet and that can be fixed quickly for a few hundred baht. 100% occupancy for the last 10 years. We started offloading the oldest ones last year for a neat 60-100% profit often to the renter and are shifting to "newer" buildings (10-15 year old instead of 20+) hoping to do this cycle again and again.

Location is everything and we don't buy (for investment) if we can not pay cash. Leaving out the banks is the best thing for roi.

I know this is an old thread, but how do you find the is condos? Is it mostly word of mouth and walking the area or are they advertised somewhere. all the websites I find tend to only have the more expensive properties.

You might have to PM Jean as he's probably not getting replies to this thread any more. FYI....

[Khun Jean]

Many people ask me how i find these condo's.

It is just lots and lots of footwork.

Even driving around in a car you miss a lot. only do that when visiting a new area to get an impression.

Security guards, people on the street with food stalls, barbershop, restaurant owners etc etc.

If you see a building you like walk in and see if they have a bulletin board, or an office.

Ask if they know something, most know a bit, and it might be what you are looking for.

It took me 10 years to know where to look and be able to know if a price asked is normal in that area.

Just have patience and again lots of walking, i find early mornings the best, still good temperature and not too busy.

Websites are for lazy people and to know what the over the top prices are in an area.

Edited July 10, 2012 by Khun Jean

[GreenSnapper]

With Google Streetview, you can now limit your walking to the areas you are really interested in. Wish I had that a few years ago.