Buy-To-Let Condo Investment In Bangkok

[ppam888]

Hi,

Lets say I have around 5-6 million baht to invest. And I want to maybe invest half of that in real estate and other half in stocks. I was looking at purchasing a condo as a long term investment and then renting it out. I have read a lot of the forums and there have been a lot of pessimistic views regarding condo investment in bangkok as a buy-to-let. Do you think its worth it? I believe I will probably get a better return in stocks but I if bought I condo I would gain exposure into something Im relatively interested in....

Keep in mind that I will be paying in lump sum and will prob be buying around jan 2012. Do you think its worth it?

If so what type of condos would be best? (e.g. old/new, 1 bed/2bed, centrally located, near bts etc.)

is condo investment in bangkok completely dead or not?

thanks

[PattayaParent]

You'd get a better deal on a buy to let in your home country.

[london]

This question has been asked many times previously.....MANY.

You have said that you have read a lot of the Forums already, so really, you should know each side of the coin by now.

Just do what you feel comfortable with.

[sulasno]

currently the returns are not attractive unless you are hoping for capital gains as well

[ppam888]

It is kinda my home country. Im pretty much inexperienced in this. but any idea how long this 'condo glut' has been around in Bangkok? When do you think the market will change and a condo investment will be worthwhile? its definitely not gonna stay like this forever right?

Thanks

[PattayaParent]

It is kinda my home country. Im pretty much inexperienced in this. but any idea how long this 'condo glut' has been around in Bangkok? When do you think the market will change and a condo investment will be worthwhile? its definitely not gonna stay like this forever right?

Thanks

Just look at how many new condos are being built around Bangkok at the moment.

If there's a glut now then there's not going to be any less of a glut by building more.

[zorro1]

You'd get a better deal on a buy to let in your home country.

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

PPam888, there are plenty of properties around your price bracket especially with the extension of the BTS.

by splitting up your investment you are doing the right thing , as they say dont put all eggs in one basket eg, had you have put all your dough in the markets 12 months ago you would be down 30-80%, but not the case with property

[Darrel]

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

Actually you can get a perfectly decent town-house in many farang countries for that sort of price. Not necessarily in the most desirable parts of those countries, but even so.

Thailand is not a very cheap place for property, or for many other things for that matter.

[zorro1]

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

Actually you can get a perfectly decent town-house in many farang countries for that sort of price. Not necessarily in the most desirable parts of those countries, but even so.

Thailand is not a very cheap place for property, or for many other things for that matter.

You would need to compare any where else to Bangkok to keep apples with apples

Yes partially true I forgot about USA ghettos.

Certainly you cant buy anything anywhere in oz or Britain to compare with bangkok

where is the OP from?

Edited November 1, 2011 by zorro1

[PattayaParent]

You'd get a better deal on a buy to let in your home country.

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

PPam888, there are plenty of properties around your price bracket especially with the extension of the BTS.

by splitting up your investment you are doing the right thing , as they say dont put all eggs in one basket eg, had you have put all your dough in the markets 12 months ago you would be down 30-80%, but not the case with property

Property prices have dropped in UK and US in the last 12 months and some sources believe they will drop further in the next 12 months.

There are many university cities in UK where you can get a property for circa $100,000 to rent out to the student population. The difference is that in the long term the values are likely to increase as they are already low, whereas in Bangkok they are already high and will be difficult to sell.

[zorro1]

You'd get a better deal on a buy to let in your home country.

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

PPam888, there are plenty of properties around your price bracket especially with the extension of the BTS.

by splitting up your investment you are doing the right thing , as they say dont put all eggs in one basket eg, had you have put all your dough in the markets 12 months ago you would be down 30-80%, but not the case with property

Property prices have dropped in UK and US in the last 12 months and some sources believe they will drop further in the next 12 months.

There are many university cities in UK where you can get a property for circa $100,000 to rent out to the student population. The difference is that in the long term the values are likely to increase as they are already low, whereas in Bangkok they are already high and will be difficult to sell.

BKK = LONDON/SYDNEY/NEW YORK if he can buy within 10 mins by public transport to any of the 3 for 100k i will eat my hat!

It however could be a good time to start slowly investing in the stock market. im looking at re entering about now

[ppam888]

So the general view is that the market really sucks at the moment - which i do agree. But generally do prices ever drop? In the past, have the prices bangkok properties fallen with oversupply or falling rents?

Are there still bargains out there to be found for investors to make money on?

Thanks

[zorro1]

So the general view is that the market really sucks at the moment - which i do agree. But generally do prices ever drop? In the past, have the prices bangkok properties fallen with oversupply or falling rents?

Are there still bargains out there to be found for investors to make money on?

Thanks

They crashed in 1997. Thailand had little exposure to supbrime fiasco so in turn it didnt crash along with the west this time around. Thailand in general dont drop prices but just wait it out untill the market turns but Im sure if you looked hard you will find a desperate over committed westerner who wants out.

They keep pumping out new condos though and wouldnt do so without substantial commitments off the plan so there are plenty of buyers

I would look at ASIA in GENERAL and see if there is any price slashing ( there isnt). Its important to compare Thailand to the rest of Asia. Its quite surprising that cambodia is very expensive

[PattayaParent]

You'd get a better deal on a buy to let in your home country.

How will he get a better deal investing 2.5/3 mill in his home country? It might get him a higher end trailer caravan at best

PPam888, there are plenty of properties around your price bracket especially with the extension of the BTS.

by splitting up your investment you are doing the right thing , as they say dont put all eggs in one basket eg, had you have put all your dough in the markets 12 months ago you would be down 30-80%, but not the case with property

Property prices have dropped in UK and US in the last 12 months and some sources believe they will drop further in the next 12 months.

There are many university cities in UK where you can get a property for circa $100,000 to rent out to the student population. The difference is that in the long term the values are likely to increase as they are already low, whereas in Bangkok they are already high and will be difficult to sell.

BKK = LONDON/SYDNEY/NEW YORK if he can buy within 10 mins by public transport to any of the 3 for 100k i will eat my hat!

It however could be a good time to start slowly investing in the stock market. im looking at re entering about now

Bangkok may be a capital city but it is in no way comparable to London, Sydney or New York.

[ppam888]

So the general view is that the market really sucks at the moment - which i do agree. But generally do prices ever drop? In the past, have the prices bangkok properties fallen with oversupply or falling rents?

Are there still bargains out there to be found for investors to make money on?

Thanks

They crashed in 1997. Thailand had little exposure to supbrime fiasco so in turn it didnt crash along with the west this time around. Thailand in general dont drop prices but just wait it out untill the market turns but Im sure if you looked hard you will find a desperate over committed westerner who wants out.

They keep pumping out new condos though and wouldnt do so without substantial commitments off the plan so there are plenty of buyers

I would look at ASIA in GENERAL and see if there is any price slashing ( there isnt). Its important to compare Thailand to the rest of Asia. Its quite surprising that cambodia is very expensive

thanks for this. just read from property-report.com on guide to buying condos in bkk (im guessing this article was written in 2009):

In Bangkok, the average selling price (as at January 2007) stood at THB 80,020/sqm, representing an 11 per cent increase from January 2006. Over the past two years, prices have increased at an average rate of 10 per cent per annum, which is much lower than 2003 and 2004 when prices rose by 27 per cent and 30 per cent per annum respectively.

seems like a bubble. any ideas about the market between 2009-present?

[zorro1]

You have to compare BKK to other capital cities or the OP may as well build a mansion in ISAAN. Its all relative PP

Your right though, new york in particular is a shi# hole

recently stayed in a mates flat just 20 min from london central. its for sale @ 750,000 pound

Sydney? I was renting a 70 sqm loft in a renovated church at the rocks for $750/week or buy $700k

Bangkok for value leaves the rest in the dust. And you cant beat the location/lifestyle.

[PattayaPhom]

BKK is still good value and prices will keep rising, waiting you will loose out.

[PattayaParent]

So the general view is that the market really sucks at the moment - which i do agree. But generally do prices ever drop? In the past, have the prices bangkok properties fallen with oversupply or falling rents?

Are there still bargains out there to be found for investors to make money on?

Thanks

They crashed in 1997. Thailand had little exposure to supbrime fiasco so in turn it didnt crash along with the west this time around. Thailand in general dont drop prices but just wait it out untill the market turns but Im sure if you looked hard you will find a desperate over committed westerner who wants out.

They keep pumping out new condos though and wouldnt do so without substantial commitments off the plan so there are plenty of buyers

I would look at ASIA in GENERAL and see if there is any price slashing ( there isnt). Its important to compare Thailand to the rest of Asia. Its quite surprising that cambodia is very expensive

thanks for this. just read from property-report.com on guide to buying condos in bkk (im guessing this article was written in 2009):

In Bangkok, the average selling price (as at January 2007) stood at THB 80,020/sqm, representing an 11 per cent increase from January 2006. Over the past two years, prices have increased at an average rate of 10 per cent per annum, which is much lower than 2003 and 2004 when prices rose by 27 per cent and 30 per cent per annum respectively.

seems like a bubble. any ideas about the market between 2009-present?

Still a bubble.

[PattayaParent]

You have to compare BKK to other capital cities or the OP may as well build a mansion in ISAAN. Its all relative PP

Your right though, new york in particular is a shi# hole

recently stayed in a mates flat just 20 min from london central. its for sale @ 750,000 pound

Sydney? I was renting a 70 sqm loft in a renovated church at the rocks for $750/week or buy $700k

Bangkok for value leaves the rest in the dust. And you cant beat the location/lifestyle.

Then you'd better compare it to Mogadishu, Dacca or Lilongwe to get a more realistic comparison.

Bangkok just doesn't have the quality or infrastructure or standard of living as the places you quote.

[Darrel]

Bangkok for value leaves the rest in the dust. And you cant beat the location/lifestyle.

Hmm. That's subjective.

Personally I think Bangkok is an absolute dump and I wouldn't live there if I was paid to.

[Darrel]

thanks for this. just read from property-report.com on guide to buying condos in bkk (im guessing this article was written in 2009):

In Bangkok, the average selling price (as at January 2007) stood at THB 80,020/sqm, representing an 11 per cent increase from January 2006. Over the past two years, prices have increased at an average rate of 10 per cent per annum, which is much lower than 2003 and 2004 when prices rose by 27 per cent and 30 per cent per annum respectively.

Presumably those figures relate to new sales from developers? I would be much more interested in learning the prices for resales, as only these indicate the real value of property. And when I say prices for resales I mean the actual price they sell for, not the asking price on the agent's website.

And of course in Thailand this is one figure that no one knows as the real sale price of used property is not listed anywhere.

[rgs2001uk]

So the general view is that the market really sucks at the moment - which i do agree. But generally do prices ever drop? In the past, have the prices bangkok properties fallen with oversupply or falling rents?

Are there still bargains out there to be found for investors to make money on?

Thanks

What are you aiming for?

Do you want capital growth or regular income?

If you think you are going to buy property here and flip it for 100%+ in the next 3,4 or 5 years forget it.

Yes there are still bargains out there to make money on, your problem is you dont know the property market, the areas or the properties to buy, and quite frankly your budget limits your choices.

Who says "the market really sucks at the moment", buyers or sellers?

As usual its all about location, if you foolishly bought some poor constructed building at the far ends of On Nut waiting for the sky train to arrive you may well be regretting the desicion.

I dare say people who bought prime properties in places like Chit Lom are pleased enough with their choice.

Why exactly are you considering property here, do you live and/or work here?

Are you buying a property to live in for the next x years and wondering if you will be able to shift it when your company relocates you?

Too many unknown variables to guide you in your quest.

[zorro1]

You have to compare BKK to other capital cities or the OP may as well build a mansion in ISAAN. Its all relative PP

Your right though, new york in particular is a shi# hole

recently stayed in a mates flat just 20 min from london central. its for sale @ 750,000 pound

Sydney? I was renting a 70 sqm loft in a renovated church at the rocks for $750/week or buy $700k

Bangkok for value leaves the rest in the dust. And you cant beat the location/lifestyle.

Then you'd better compare it to Mogadishu, Dacca or Lilongwe to get a more realistic comparison.

Bangkok just doesn't have the quality or infrastructure or standard of living as the places you quote.

Mogadishu ROFL. Really? .

public transport in sydney is woeful with Bangkoks rail network amongst the best in the world better than syd,nys,ldn.. taxis are modern here and cheap , buses run non stop, transport thailand wide is super efficient only a few hundred bht. Airline out of BKK takes you anywhere or domestic air is excellent and cheap.

world class shopping centres and 5 star hotels are everywhere and quite often you dont need to touch the streets as the bts was well planned to exit INTO the malls.

Why wouldn't you compare BKK to NYC,SYD or Londion? Bangkok wins hands down and it will only improve on good infrastructure for a developing country

Good luck with Mogadishu , let us know how you go

Edited November 1, 2011 by zorro1

[zorro1]

RGS you said

"if you foolishly bought some poor constructed building at the far ends of On Nut waiting for the sky train to arrive you may well be regretting the desicion".

on the contrary . The BTS has arrived and gone another 3 stations past on nut. Those that bought close to the new bts years ago will do okay

[PattayaPhom]

You have to compare BKK to other capital cities or the OP may as well build a mansion in ISAAN. Its all relative PP

Your right though, new york in particular is a shi# hole

recently stayed in a mates flat just 20 min from london central. its for sale @ 750,000 pound

Sydney? I was renting a 70 sqm loft in a renovated church at the rocks for $750/week or buy $700k

Bangkok for value leaves the rest in the dust. And you cant beat the location/lifestyle.

Then you'd better compare it to Mogadishu, Dacca or Lilongwe to get a more realistic comparison.

Bangkok just doesn't have the quality or infrastructure or standard of living as the places you quote.

Londons Tube compared to BKKs MRT and BTS system, I know which one is far superior.....Asia and especially Thailand has changed dramatically over the past decade...its not just a place old pervs come for a bit of cheap hows ya father anymore..

[zorro1]

lets leave it to the experts eh?

Thai capital named 'World's Best City'

Friday, 8 July 2011

Thailand's capital Bangkok has been named the world's best city by influential US travel magazine Travel + Leisure.

Announced as part of its World's Best 2011 Awards issue to be published July 22, the prestigious title was awarded based on the votes of thousands of Travel + Leisure readers who voted for cities around the world.

It is the second year in a row that Bangkok has been named in the top spot, despite a period of civil unrest last year which did considerable damage to Thailand's international reputation as a tourism haven.

The only other Asian city to make an appearance in the top ten was Siem Reap, a major tourist attraction for many on the backpacking trail around South East Asia thanks to its proximity to the famous Angkor Wat temple.

World's Best Cities

1. Bangkok, Thailand

2. Florence, Italy

3. Rome, Italy

4. New York City, USA

5. Istanbul, Turkey

6. Cape Town, South Africa

7. Siem Reap, Cambodia

8. Sydney, Australia

9. Barcelona, Spain

10. Paris, France

Asia Top 10

1 Bangkok

2 Siem Reap, Cambodia

3 Kyoto, Japan

4 Hong Kong

5 Tokyo

6 Shanghai

7 Ho Chi Minh City, Vietnam

8 Beijing

9 Hanoi, Vietnam

10 Singapore

:clap2:

Edited November 1, 2011 by zorro1

[craigt3365]

I've started to poke around with this also. I recommend getting in touch with a few estate agents and go out with them looking at some properties. It's a real educational experience doing this.

In Pattaya, they are pushing off plan units heavily, as they get 8-10% commission on these...and there are a lot of them currently available. What did surprise me is how well they are selling. Sure, it's taken a few years to sell all the units, but a few places I visited were 100% sold out on the first phase/first building.

Rents are very soft due to soooooo many new units. So your returns will be lower also. In that kind of market, you have to get a unit in a great location otherwise it will sit vacant...as I have seen many do. But people are renting. So there is a demand.

I have a friend who just bought a house in Las Vegas for around $250k and is $500 a month cash positive on it from day one. She put 25% down. Not a bad deal.

[Darrel]

lets leave it to the experts eh?

........... the prestigious title was awarded based on the votes of thousands of Travel + Leisure readers who voted for cities around the world.

Expert magazine readers?

[Darrel]

In Pattaya, they are pushing off plan units heavily, as they get 8-10% commission on these...and there are a lot of them currently available. What did surprise me is how well they are selling.

I met a few of these buyers at a new building launch party the other day. I dare say that there may be some experienced investors buying also, but the three that I spoke to seemed to be a bit green. Two of them were on their first long visit to Thailand and the other had only been here a few times. All had bought for "investment" and were hoping to rent out when the units are finished in a year or two's time. I wish them luck but they may be in for a surprise.

I also saw a resale studio in a popular Jomtien building that had just been reduced from an absurd 1.8M to a more reasonable (but still high) 1.4M. The place wasn't exactly luxurious to start with, but the last tenant seemed to have given it the coup de grace, leaving cigarette smoke stains and burns everywhere, and someone had left a tap on causing a flood and destroying all the rather cheap chipboard furniture. I dont know how much deposit he left behind, but I doubt that it would cover the cost of replacing even crappy rental furniture. One tenant like that could make a real mess of one of these modern units with melamine finishes and laminate flooring.

[zorro1]

lets leave it to the experts eh?

........... the prestigious title was awarded based on the votes of thousands of Travel + Leisure readers who voted for cities around the world.

Expert magazine readers?

LOL . perception is everything . One thing for sure is the old Thailand of the ping pong show and the very sad

(now banned) elephants walking down sukhumvit has changed for ever. Some may be surprised to learn that both nana plaza and the ....wait for it...beer garden are both for sale. kind of explains the new residential apartments for sale around soi 4

Edited November 1, 2011 by zorro1