Reasons of change

[Senia]

Is it worth to buy a condo in Bangkok just for rental income ? Anybody doing this now ?

[givenall]

Not unless you buy a luxury one in a very good and centrallocation to rent mostly to tourists. If not you will have a lot of hassles withtenants especially Thai tenants and you will never get complete return on yourinvestments. Speaking from experience

[trogers]

Location, location and location. Yours and the condo you want to lease out.

[ExpatJ]

I have seen quite a few posts from farangs who have bought and rented out properties in the 0.5-1.5 million baht range- but does any one have first hand experience of buying high end condos and renting them out? 6-7 million baht ++ for 1 or 2 bedrooms in the prime BTS, new condo locations?

[jalansanitwong]

Who are you going to rent it out to? Japanese are the best tenants but they are mostly at the top end of the condo market. If you rent out a cheap condo 1-2m baht it will go to the farangs or even worse...Thai's. Thais will trash the joint ( all 6 of them) expecially the bathroom.They may even steal expensive fittings and replace them with cheapo parts from Chinatown markets.You rent to a thai you better take atleast 3 months deposit. There are much better ways of making a modest income here.good luck.

[trogers]

Who are you going to rent it out to? Japanese are the best tenants but they are mostly at the top end of the condo market. If you rent out a cheap condo 1-2m baht it will go to the farangs or even worse...Thai's. Thais will trash the joint ( all 6 of them) expecially the bathroom.They may even steal expensive fittings and replace them with cheapo parts from Chinatown markets.You rent to a thai you better take atleast 3 months deposit. There are much better ways of making a modest income here.good luck.

Not true that Japanese are mostly at the top end of the condo market. There are more middle management staff then the MDs. Those with families would probably be given a budget in the range of Bt40-50k, while singles given up to Bt30k.

[CDB]

There are a few advantages in buying luxury investment condos in mid-sukhumvit/thonglor

* These areas are in high demand, and BTS extensions will not reduce this, because of the lifestyle and amenities

* Luxury condos in this area are sought for rental by Japanese and farang, and often by well off Thais for living in > high occupancy

* Although they have high common fees, they are more likely to stay in very good condition. The problem with cheaper, grade B/C units, is that you might get higher yields in the first years, but they often degrade more quickly over time.

* I agree that Japanese are the best tenants, but the difference is more in education/income level than in nationality/race. Regardless of nationality, people renting out a 50 K per month unit are much less likely to trash it, than a 5 K a month unit.

* Building management in a high end unit, will not allow pets, overcrowding etc., and the high end security means that people won't be stealing stuff from it

* Right now, you can generally expect 6-7% yields on luxury condos (less common fees) plus capital appreciation.

I've just purchased an 11 million baht unit in Thonglor which I will probably live in, but also will consider renting. I don't think the Thai baht will weaken against major currencies, Thonglor will stay in high demand, and increases in minimum wages, land prices and commodities are likely to keep prices rising for a few years.

Even if there is a price peak and a property bubble, when re-sale values come down, the rental rates don't usually drop quickly.

Posts on buying property in Thailand tend to attract a lot of naysayers, but after nearly 20 years here and owning three condos, if I compare with what would have happened if I bought in Europe or America over a 10 year period, Thailand has been a good investment.Of course past performance does not guarantee future performance, but there are no signs yet that the market is overheating

CDB

[ExpatJ]

There are a few advantages in buying luxury investment condos in mid-sukhumvit/thonglor

* These areas are in high demand, and BTS extensions will not reduce this, because of the lifestyle and amenities

* Luxury condos in this area are sought for rental by Japanese and farang, and often by well off Thais for living in > high occupancy

* Although they have high common fees, they are more likely to stay in very good condition. The problem with cheaper, grade B/C units, is that you might get higher yields in the first years, but they often degrade more quickly over time.

* I agree that Japanese are the best tenants, but the difference is more in education/income level than in nationality/race. Regardless of nationality, people renting out a 50 K per month unit are much less likely to trash it, than a 5 K a month unit.

* Building management in a high end unit, will not allow pets, overcrowding etc., and the high end security means that people won't be stealing stuff from it

* Right now, you can generally expect 6-7% yields on luxury condos (less common fees) plus capital appreciation.

I've just purchased an 11 million baht unit in Thonglor which I will probably live in, but also will consider renting. I don't think the Thai baht will weaken against major currencies, Thonglor will stay in high demand, and increases in minimum wages, land prices and commodities are likely to keep prices rising for a few years.

Even if there is a price peak and a property bubble, when re-sale values come down, the rental rates don't usually drop quickly.

Posts on buying property in Thailand tend to attract a lot of naysayers, but after nearly 20 years here and owning three condos, if I compare with what would have happened if I bought in Europe or America over a 10 year period, Thailand has been a good investment.Of course past performance does not guarantee future performance, but there are no signs yet that the market is overheating

CDB

I'm in the market for a high end condo to buy and then rent out..but the one thing holding me back is all the empty units in these new condos, even those next to the BTS- e.g. the new Siri at 39, 5 mins from emporium and BTS phrong pong which opened a few months ago is 80+ % empty (most windows still covered with paper).

do you have first hand verifiable knowledge of anyone who has bought a high end condo and rented it out in the last few months?

(And i speak not as a naysayer, but someone who is ready to buy.

[CDB]

I don't have personal experience of renting in this area (I did rent another unit near Sathorn to a Japanese).

Is Sansiri 39 really even completed yet? If not, that would explain low occupancy! And Sansiri is really looking for premium selling rates, so I am not sure how many units have been sold at this point.

I am on 49 close to Thonglor, and I do know that most condominium units around here are close to full occupancy.

CDB

[mark5335]

Is Sansiri 39 really even completed yet? If not, that would explain low occupancy! And Sansiri is really looking for premium selling rates, so I am not sure how many units have been sold at this point.

CDB

All units at 39 by Sansiri were sold out in 2008. I visited the sales office in late 2007 and there were few units left then.

Regarding the low occupancy, transfers have only occurred over the past several months, so for many units, the owners have yet to complete their decoration. Given the location I believe that most owners were 'buy to let' investors and seem to be holding out for rental yields which are likely unrealistic in the current market.

[ExpatJ]

Is Sansiri 39 really even completed yet? If not, that would explain low occupancy! And Sansiri is really looking for premium selling rates, so I am not sure how many units have been sold at this point.

CDB

All units at 39 by Sansiri were sold out in 2008. I visited the sales office in late 2007 and there were few units left then.

Regarding the low occupancy, transfers have only occurred over the past several months, so for many units, the owners have yet to complete their decoration. Given the location I believe that most owners were 'buy to let' investors and seem to be holding out for rental yields which are likely unrealistic in the current market.

I'm thinking to buy a 1 br there to rent out but the prices are high @7 million baht for a 1 br and i dont see how i could get more than 4-5% rental- i would also like to live there myself in the future (im married but wife may want to move back to US in future so a condo there would be great for me to be based out of if i was here alone doing consulting work). I think its one of the best located condos in Bkk- 3 mins to BTS, 5 mins to emporium, benjasiri park, 4 British pubs, Villa market - v nice area of town.

Do you know how many floors the new emporium mall annex that is being build next door to 39 sansiri will have?