Where To Invest In Rental Property In Pattaya ?

[Piet969]

This is a question to expats in Pattaya.

Hello, I'm 42 years old - have visited Pattaya for 7 years now, and I want to invest in property in Pattaya the coming 10 years so to build up a rental property portfolio - and ultimately live from rental income in Pattaya. I'm looking to invest in property which is very common and very well suitable to rent out full 12 months.

Given this focus - my questions are the following:

1. In what area of Pattaya should I invest to have most changes on 12 months occupation for a good average rental price (high season + low season) and why ? (Wong Amat - Central Pattaya - Pratumnak Hill - Jomtien) ?

2. What type of property is most comon for permanent rental occupation (studio - 1 bedroom - 2 bedroom) Why ?

3. Would this be a succesful plan (rental property portfolio in Pattaya) ? Why or why not ?

4. Is it easy or hard to find tenants in Pattaya ?

5. What is important for me to know (which I don't find on the internet as only insiders know) ?

I appreciate all your answers and views...

[toenail]

There are countless places here in Naklua, Pattaya, and Jomtien to rent...anywhere from 3000 baht a month to 50,000 baht a month. The condos/rentals that are a sure bit to rent out (during tourist season, Oct. thru April,) would be condos on the beach. I personally do not feel having rental property in Pattaya is a good investment, too much competiton and most of the cliental is here to party in your rental unit. I think building rentals near the industrial zones would bring in more income but you have to be Thai to do this.

[pauljones]

Wait until after the next coup. It will be a a buyers market.

[PattayaPhom]

Why target the tourist economy, go for the domestic market....as already suggested, small Thai rooms that rent for 2k or 3k a month....it works and even when there is a tsunami, airport closure or bird flu...they are still full....and you dont have to be Thai to do this.

[lovetotravel]

It's a buyers market right now. Thousands of unsold or resale units are available, with a smaller number of renters. Many units sit empty. If you can handle, potentially, a year of no income, then long term it "might" be a good investment. You've really got to do your homework. Location, location, location. And a well appointed unit.

[Darrel]

It's a buyers market right now. Thousands of unsold or resale units are available, with a smaller number of renters. Many units sit empty.

Indeed, yet the asking prices are still way over the top, perhaps by 30-40% or more. And by all accounts there are some 10,000 units or more in the pipeline to be built over the next couple of years.

This does not bode well to me. Maybe everyone is counting on even more Russians coming here. That doesn't bode well to me either.

I will be extending my rental contract (which gives the owner a return of under 4% on his current asking price for the unit).

[pipo1000]

It's a buyers market right now. Thousands of unsold or resale units are available, with a smaller number of renters. Many units sit empty. If you can handle, potentially, a year of no income, then long term it "might" be a good investment. You've really got to do your homework. Location, location, location. And a well appointed unit.

So in one year the oversupply of those thousands of unsold unit will all be solved?

[Spalpeen]

Do you have a Thai wife or other trusted and competent contact that you can use? This makes a big difference.

As someone already said, the tourist rental market is way over supplied, seasonal, and property prices are at least as likely to fall as they are to rise. Targeting the cheaper end of the Thai residential market is also a good suggestion.

But my main point would be - location. Look at the area, drive around it, try to buy or build in an area that will improve in the future. Think of the rent as an income but the real gains are to be found in price appreciation.

[gerry53]

It's just a suggestion but why don't you invest in the Stock Exchange of Thailand? Some of he major banks have mutual funds investing in the top Thai companies, some with no taxation for farangs. It should give you a superior return compared to the Pattaya area condo market with it's thousands of newer units coming online every month - yet they can't sell the existing new units. This condo fever can't continue forever - the signs are everywhere. Do you really want to spend your days here collecting rents, hearing excuses and fixing things with multiple units? If still interested in condos wait until after a correction and buy them cheaply - as mentioned previously they are way overpriced at the moment.

Good luck.

[pattaya_girl]

I bought my Townhouse Central Pattaya 10 years ago, I paid 800.000 bt. Yesterday a house sold (in one day) a few doors from mine, at the price of 1.7 million, and it is very run down. wow.

[londoedan]

This does not bode well to me. Maybe everyone is counting on even more Russians coming here. That doesn't bode well to me either.

I will be extending my rental contract (which gives the owner a return of under 4% on his current asking price for the unit).

I don't know, it might bode well for those of us that want to buy in the next year or 2: perhaps when there is a bit of a correction downwards ?

I've been renting for 3 years now and am very happy where I am - but I would like to buy somewhere in the near future for a bit of permanence.

Simon

[Darrel]

I don't know, it might bode well for those of us that want to buy in the next year or 2: perhaps when there is a bit of a correction downwards ?

.... I would like to buy somewhere in the near future for a bit of permanence.

I might consider buying if there is a big correction downwards. At current prices buying anything that isn't a firesale is total insanity, in my opinion. You can get two nice sea-view condos in Spain for the price of one here.

Permanence sounds nice on paper, until it translates into permanently owning a unit with a mad Russian karaoke fiend living upstairs, or a unit where the nice sea view from the balcony suddenly becomes a building site for a 50-storey condo. In such cases precarity has its advantages.

[Thraz]

I do not know the property prices in Europe, however I find 1.5 million baht (or smth around $40000) a very reasonable price for a western pocket, for a 35 sq m. off-plan fully furnished condo with the seaview. I just want to understand psycology of the people. Why do western people do not want to invest? Why do much poor russians do?

[lovetotravel]

It's a buyers market right now. Thousands of unsold or resale units are available, with a smaller number of renters. Many units sit empty. If you can handle, potentially, a year of no income, then long term it "might" be a good investment. You've really got to do your homework. Location, location, location. And a well appointed unit.

So in one year the oversupply of those thousands of unsold unit will all be solved?

I didn't say that. I said the OP might have a vacant unit for a year with no income. Potentially longer? As for sales, it's going to be some time before the oversupply is sold. Especially with so many new buildings under development.

I bought my Townhouse Central Pattaya 10 years ago, I paid 800.000 bt. Yesterday a house sold (in one day) a few doors from mine, at the price of 1.7 million, and it is very run down. wow.

I did great on real estate purchased 10 years ago, or more. If bought today, good luck with price appreciation. I know many who can't sell it for what they paid for 2 years ago!

But, some are still making money on real estate. You just have to figure out the angle!

[lovetotravel]

I do not know the property prices in Europe, however I find 1.5 million baht (or smth around $40000) a very reasonable price for a western pocket, for a 35 sq m. off-plan fully furnished condo with the seaview. I just want to understand psycology of the people. Why do western people do not want to invest? Why do much poor russians do?

I wouldn't buy off plan here. Not unless it's a major developer. Too much of a risk right now. Too many horror stories.

Westerners have more options than Russians, visa wise. And the Russian economies (all the 'stans, etc) for the most part are doing quite well. Oil, natural resources, etc.

[crille30]

well I would invest/buy in Center Pattaya,one bedroom condo.I l looking for rent one and cant find anything for good price(arond15k)around 50+sqm, so buy quickly and I rent it for minimum one year .But i mean this serios ,Buy 1-2bedrooms,studio are to many,I find hundreds of them empty but they ask to high rent, but very hard to find 1bedroom condos,There is but there are rented out so that should mean something?

Edited May 28, 2012 by crille30

[FarangBuddha]

Funny how you all bite when a newbie and his first post is thrown into the water

[PattayaPhom]

Do you have a Thai wife or other trusted and competent contact that you can use? This makes a big difference.

As someone already said, the tourist rental market is way over supplied, seasonal, and property prices are at least as likely to fall as they are to rise. Targeting the cheaper end of the Thai residential market is also a good suggestion.

But my main point would be - location. Look at the area, drive around it, try to buy or build in an area that will improve in the future. Think of the rent as an income but the real gains are to be found in price appreciation.

Why does teh OP have to be married or have a competent contact?..if There are a large number of shoeboxes comng on the market in the next few years, stay clear of them. An established condo close to ammeneties should rent easily but the returns will be minimal compared to building your own rooms...

[prefabs]

I do not know the property prices in Europe, however I find 1.5 million baht (or smth around $40000) a very reasonable price for a western pocket, for a 35 sq m. off-plan fully furnished condo with the seaview. I just want to understand psycology of the people. Why do western people do not want to invest? Why do much poor russians do?

two word answer

OFF PLAN

[Darrel]

I bought my Townhouse Central Pattaya 10 years ago, I paid 800.000 bt.

If you arent Thai then you didnt buy it; someone else did. And if you are Thai then you cant properly compare your property with the property that farangs can legally buy.

[pattaya_girl]

I bought my Townhouse Central Pattaya 10 years ago, I paid 800.000 bt.

If you arent Thai then you didnt buy it; someone else did. And if you are Thai then you cant properly compare your property with the property that farangs can legally buy.

I paid 800.000 bt for my Townhouse, 10 years ago and that was the going price at the time to Thai or Non Thai - Today's going price for the same is 1.7 Million ( to Thai or non Thai )

Ok then, i paid out 800.000 Bt 10 Years ago, if i decided to sell tomorrow, i could sell for 1.7 Million, I have a buyer wanting it as its such a good location, Central.

Hope that is better worded for you Sir

[pauljones]

Over the years, there have been numerous threads about a property and trouble with the neighbors...noise etc.

The standard advice is to MOVE.

My advice DO NOT BUY.

[Naam]

I bought my Townhouse Central Pattaya 10 years ago, I paid 800.000 bt.

If you arent Thai then you didnt buy it; someone else did. And if you are Thai then you cant properly compare your property with the property that farangs can legally buy.

I paid 800.000 bt for my Townhouse, 10 years ago and that was the going price at the time to Thai or Non Thai - Today's going price for the same is 1.7 Million ( to Thai or non Thai )

Ok then, i paid out 800.000 Bt 10 Years ago, if i decided to sell tomorrow, i could sell for 1.7 Million, I have a buyer wanting it as its such a good location, Central.

Hope that is better worded for you Sir

some beancounters keep on flogging horses which are already decaying and with every posting they make on "farangs and property" they are indirectly implying that they own free, clear, unfettered and forever the property they bought in a distant land abroad.

what they seem to forget is that they own shit nothing once they are on the way to the crematorium or graveyard.

[Darrel]

some beancounters keep on flogging horses which are already decaying and with every posting they make on "farangs and property" they are indirectly implying that they own free, clear, unfettered and forever the property they bought in a distant land abroad.

what they seem to forget is that they own shit nothing once they are on the way to the crematorium or graveyard.

True enough, but I'm more interested in owning what I own during my lifetime and as my affairs are well in order I tend not to worry too much about what will happen when I'm dead. Any farang buying a house here (as opposed to a farang-quota condo, or a house in most other countries) cant even have the pleasure of owning it during his lifetime. In fact he cant even have the pleasure of right of abode in it, unless he is one of those rare birds with permanent residency. I wonder what all the company-name house owners think about on the minibus to Poipet?

And even though it doesnt apply to me, those with families might also be interested in the continuity of their ownership after death. Buy a farang-name condo here or a house elsewhere and you can probably leave it to whoever you choose without gifting them a can of worms as well. That is something to consider whilst booking the taxi to the crematorium.

[happyaussie]

Good on you. I have a portfolio in Pattaya, Bangkok and Phuket and generate enough to keep the fridge full. But the only way it works is if you are debt free and have a reliable agent to manage the properties.

Capital appreciation is sketchy. As others say, there's a lot of properties coming on line. So location is crucial.

In a nutshell, if you are careful you will make good money. Regardless of what the skeptics say.

[Darrel]

I have a portfolio in Pattaya, Bangkok and Phuket and generate enough to keep the fridge full. But the only way it works is if you are debt free and have a reliable agent to manage the properties.

I have money in the bank and in other paper investments and they generate enough to keep the fridge full, pay my rent, and cover regular trips to the Hilton buffet also, along with all my other monthly expenses.

I do this without needing any agents, and without paying any commission to anyone.

I also do this without infringing any laws anywhere on the planet, and entirely in my own name.

YMMV

[vpi78]

OP,

You'll never get useful information on boards like this one about property in Thailand. It's almost like arguing about religion.

Some are devoted renters, others like the psychological effect of owning.

A curious effect is many of the more strident "Never buy ... " just rent in Thailand crowd don't own much of anything anywhere.

[Darrel]

..... many of the more strident "Never buy ... " just rent in Thailand crowd don't own much of anything anywhere.

I wonder how one can tell that?

[petai]

i really am a newbie in this property investment market but i tend to agree with mr. happyaussie

maybe i'm such a lazy person that's why i choose to do it through agents LOL

[DrTuner]

Why does it have to be Pattaya ? Many growing cities in Thailand to choose from.

If it has to be Thailand at all, couple of pluses I could think of would be investment visa (works with condos, doesn't it ? Not 100% sure) and if paying taxes from the rents, having tax receipts to show for in case needed byvgovernment paper pushers.

Apart from the above, I'm not happy with the risk/reward ratio of such investments, so I invest overseas in various instruments that suit me better.