Anyone Recommend Expat-Condo'S Or Pattaya Prestige?

[machaf]

I'm interested in buying a Condo in Pattaya. It will be an investment (no risk no reward right?)

Both http://www.pattayaprestigeproperties.com/ and http://www.expat-condos.com/index.html are offering guarentee 7% return on your investment. Basically you buy the condo, you sign a 24 months lease back to them, they give you 7% of purchase price each month whether its rented or not.

7% seems on the low side. I'm sure I could do better if I found an independment property manager. However keeping it rented all the time is another story.

Anyone delt with these two places or have any recommendations?

Thanks

[LennyW]

7% in the current condo market in Pattaya is very good to high!! Far too much condos on offer for next to nothing and not enough punters, set to get even worse with another 10,000 or so units set to become available over the next couple of years. Unless you are looking at something in the executive sort of bracket, 2 bedroom, 140SqM + size, forget about it, these 28 - 30 SqM boxes that are flooding the market at present are lucky to get 5-6000 Month in rentals and because of the minimal returns and lack of uptake a lot of these places are set to become slums of the future, the very near future. Sorry.

[machaf]

I was looking at places in Tientong Soi 7 in Jomtien. Close to the beach. I know a guy getting 13,000 a month for his 31 sqm place in this building. Thats why I was thinking 7,000 is a bit low. The leasers websites advertise 13-15k a month in rent, so obviously they're making 6-8k if they keep it rented.

Maybe its the location?

[Darrel]

"guarentee 7% return on your investment"

It's a load of <deleted>.

There are some clowns advertising 12% guaranteed along Thappraya Rd, and that's <deleted> too.

The trick is that the property you buy is way overpriced which pays for part of your "guarantee", you have to let the agent/vendor manage the rental for a fee, and let them do the repairs and maintenance at their own rates, and on top of all that the "guarantee" is not for a set number of years and can cease any time at the discretion of the vendor.

So to put it another way, it's <deleted>.

[yoshiwara]

"guarentee 7% return on your investment"

It's a load of <deleted>.

There are some clowns advertising 12% guaranteed along Thappraya Rd, and that's <deleted> too.

The trick is that the property you buy is way overpriced which pays for part of your "guarantee", you have to let the agent/vendor manage the rental for a fee, and let them do the repairs and maintenance at their own rates, and on top of all that the "guarantee" is not for a set number of years and can cease any time at the discretion of the vendor.

So to put it another way, it's <deleted>.

Listen very carefully. Let's say that I am selling you an apartment for about 2.6 million and offer you this 2-year 7% guarantee. The gross cost to me is ~ 360,000 baht. At worst I might estimate part-rental and a net loss of what, 200k? I will however, have the apartment for rental while it is looking decent and not shabby. You have to pony up the full 2.6 million, but since you are 'guaranteed' 7% you think you are on to a winner. At the end of the two years there is no guarantee. As the developer I might sell the guarantee on to the management company as a separate operation. If there is a payment problem down the line, what are you going to do? Go to court?

[pop3]

Yes, it's <deleted>, explains everything quite correctly. so does Slums of the near future.

If you still want to go ahead you won't have a problem finding a good condo at a give away price.

In for a penny in for a pound and onward to Glory but don't forget to make a book mark of this page so you can come back to it in a year or so and kick yourself for not seeing the wood for the trees.