Building Small Block Of Flats

[blueeyes]

Hi all

I am thinking of building a small block of flats to rent out. Each studio/flat would be approx 3 to 4 m wide by 4 to 5 m long the usual ones that you can rent out to single/students ideally a block of ten which can later be built up to form a block of twenty this would be in Korat all i am asking is for a ballpark figure to see if its going to be worth it any ideas???contact numbers etc.

[PattayaParent]

Will they be single storey or 2 storey? or more?

No more than 10,000 Baht a square metre for single storey, probably a lot less.

Edited March 15, 2011 by PattayaParent

[trogers]

Will they be single storey or 2 storey? or more?

No more than 10,000 Baht a square metre for single storey, probably a lot less.

I have not come across blocks of flats that are single storey...

[trogers]

...a block of ten which can later be built up to form a block of twenty.

I would not want to be staying in a block of flats when there is construction being done above my head...

[danbradster]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

[trogers]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

Buy some local magazines on property for sales and you will see a listing of apartment buildings being put up for sales. If net yield is really 25% pa, there should not be many such buildings being listed.

[blueeyes]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

can you ask him how big was his apartment building ???

as to previous I want to build apartments in a straight line of ten ie one block at ground level split into 10 small appartments very basic

with view to add ten more on top later.

[trogers]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

can you ask him how big was his apartment building ???

as to previous I want to build apartments in a straight line of ten ie one block at ground level split into 10 small appartments very basic

with view to add ten more on top later.

It will make more sense to build two separate blocks of 2-storey, as trying to extend an upper floor in the future may not allow you to obtain an occupation permit for the completed first floor.

And it will also make more sense to have at least 16 units per block arranged as 4 units with entrance doors facing each other on each side of the central staircase, and a fire escape staircase. This will enable the common corridors and the staircases to be shared by 8 room units per floor.

Edited March 15, 2011 by trogers

[PattayaParent]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

Buy some local magazines on property for sales and you will see a listing of apartment buildings being put up for sales. If net yield is really 25% pa, there should not be many such buildings being listed.

But there's a big difference between selling price of the apartment buildings and construction cost of them.

[PattayaParent]

I have no idea, but my Thai buddy who runs a construction business with 100 low-paid employees said he build an apartment building for himself for 3 million baht and it grosses 750k baht per year, a 25% yield. But I don't know what other expenses he has.

can you ask him how big was his apartment building ???

as to previous I want to build apartments in a straight line of ten ie one block at ground level split into 10 small appartments very basic

with view to add ten more on top later.

That's what I thought.

Your cost per m2 for the ground floor will be higher to start with as the foundations have to be built to accomodate both floors.

Think also about the roof, if it's a pitched tiled roof on the single storey then this can later be removed and re-used for the upper storey.

Or you can use a flat concrete roof as you will need this anyway as the floor for the second storey.

Consider using a lightweight steel frame for the upper storey later, this will reduce the costs of your foundations and make construction quicker later as you'll have to have the lower units empty while constructing the uppper storey.

You'll need an engineer to do the calcs for you.