Timeshare Payments Via Hong Kong

[Dazinoz]

2 million each from 26 people = 52 million baht condo. It must be one of the best condos in the whole of Thailand.

It was very nice but obviously not worth 52M.

It was large with 2 bedrooms each with ensuite. You had spiral stairs to the roof which had an airconditioned viewing room. Outside was your own private plunge pool and spa with TV, shower and toilet.

When we first bought into it you were supposed to have a SUV and driver that you could use at any time. Also a 37 foot speed boat with captain that you could also use but you had to pay for fuel. We never did use them in the 2 weeks we spent there.

[Dazinoz]

We own 8 weeks. The original 2 weeks were in the Penthouse which Absolute bought back off us. The 8 weeks are 7000/week or 56000B. If I can't sell and can rent 4 weeks at 14000 and use the other 4 weeks myself would be cost neutral (not counting what I have already spent.

Absolute still look after keys and the like as part of their service. If they get renters they take half. If we get renters we keep all.

I have checked my figures and we ended up paying 3.4 million baht for the 8 weeks. Not qite as bad as 4 but still high.

[mccw]

2 million each from 26 people = 52 million baht condo. It must be one of the best condos in the whole of Thailand.

It was very nice but obviously not worth 52M.

It was large with 2 bedrooms each with ensuite. You had spiral stairs to the roof which had an airconditioned viewing room. Outside was your own private plunge pool and spa with TV, shower and toilet.

When we first bought into it you were supposed to have a SUV and driver that you could use at any time. Also a 37 foot speed boat with captain that you could also use but you had to pay for fuel. We never did use them in the 2 weeks we spent there.

That one does sound nice. Is it close to the beach?

I reckon such a place could fetch a decent rental. 30,000 a week maybe. - 7k fee and 3 agents fee leaves 20k profit a week. Maybe you can't rent all weeks. But the 7000 is not so bad in context of the place, facility, car and boat- if you can really use them. Not a good investment but still fun to be had, u could cover the fees from half occupancy or at least enjoy it at minimal cost. Still better than walking away with nothing.

If you can sell it then great. But if your stuck with it, then just enjoy what you've got at minimal expense. Free 4 week lixury holiday ever year. Could be worse.

[mccw]

Posted before I saw your other replies.

So what are you left with now? 8 weeks in a studio costed 3.4million?

Still half rent and half stay is ok if you can't sell it.

[Dazinoz]

Posted before I saw your other replies.

So what are you left with now? 8 weeks in a studio costed 3.4million?

Still half rent and half stay is ok if you can't sell it.

Yes, 8 weeks @ 3.4 million.

Don't forget this is not just the time but an actual share of the cost of the unit so should go up as property values do assuming I can get the money from Absolute.

[Dazinoz]

Just has a look on Asia Web Direct website and they are selling nights in a studio unit in my 8 weeks at 4380B/night or 30660/week or 245280/8weeks.

[mccw]

Posted before I saw your other replies.

So what are you left with now? 8 weeks in a studio costed 3.4million?

Still half rent and half stay is ok if you can't sell it.

Yes, 8 weeks @ 3.4 million.

Don't forget this is not just the time but an actual share of the cost of the unit so should go up as property values do assuming I can get the money from Absolute.

Don't think so; because between all the share holders you've paid probably double or more the market value of the condo if sold as a single owner title.

You got a very bad deal but you can still enjoy it now your stuck with it. But don't go kidding yourself you might be able to turn a profit. If you had a regular rental guest who would take it off your hands for 2.5 or 3mill then swallow your pride and let it go. If u don't need any money back then just enjoy your "free" holidays.

There are websites that resell time shares for a commission. Get googling and see what it's worth.

""Yes, 8 weeks @ 3.4 million."" -not the penthouse though? How is this one place?

[Dazinoz]

P""Yes, 8 weeks @ 3.4 million."" -not the penthouse though? How is this one place?

Sorry don't understand the question.

[mccw]

P""Yes, 8 weeks @ 3.4 million."" -not the penthouse though? How is this one place?

Sorry don't understand the question.

Just wondering what the condo that you have access to now is like.

[BlackPuddingBertha]

Looks like a nice enough place but, as you mention, the promised luxury extras in the brochure can rarely be counted on. Also the final build quality remains to be seen.

Yours seems to be one of the better two-bed units in that building. Sounds good but the % rental return on larger units tends to be much less than that on smaller units. You may struggle to find tenants for such a place even in peak high season.

One of the problems in Thailand is that everywhere you look there is empty land, just waiting to be built on. This means that it may be hard to find buyers for existing places, and it may be hard to find tenants once a dozen more buildings like yours have sprung up next door. (I notice from the developer's map that in front of your building there appears to be vacant land. As someone who has known Pattaya for 35 years the notion of buying next to undeveloped land is a complete non-starter.)

As for possible capital appreciation on a timeshare, I am impressed by your optimism.

[Dazinoz]

A quote from SellMyTimeShareNOW.com website.

"And unlike traditional timeshares, if the property value of a Fractional appreciates (which, notably, is the current trend), so do the owner's individual shares. Notably, due to their high-desirability and exclusivity, many new fractional property units have risen from 12-14% in price. Unlike traditional timeshares, when it comes time to sell fractional timeshare, reselling can prove to be a very lucrative and profitable endeavor."

[mccw]

A quote from SellMyTimeShareNOW.com website.

"And unlike traditional timeshares, if the property value of a Fractional appreciates (which, notably, is the current trend), so do the owner's individual shares. Notably, due to their high-desirability and exclusivity, many new fractional property units have risen from 12-14% in price. Unlike traditional timeshares, when it comes time to sell fractional timeshare, reselling can prove to be a very lucrative and profitable endeavor."

No doubt from the Buyers information part of the web sight. Offer them your share, see what they offer you and let us know please.

[BlackPuddingBertha]

"And unlike traditional timeshares, if the property value of a Fractional appreciates (which, notably, is the current trend), so do the owner's individual shares. Notably, due to their high-desirability and exclusivity, many new fractional property units have risen from 12-14% in price. Unlike traditional timeshares, when it comes time to sell fractional timeshare, reselling can prove to be a very lucrative and profitable endeavor."

Ah. Sounds like Thailand agent-speak. I have very little faith in "could" "can" "may" and "might". I would rather read "is" "does" and "has". Preferably with some proof.

As for the management agency advertising your place for 4380B a night, I'm sure they are. But how many nights are they selling at that price? Or at any price? These are the important questions, I think.

And the bottom line of it all is, if these units are such a good buy and offer such a good rental return to the owner and such likely capital appreciation, why are the people selling them not buying them all themselves instead of trying to sell them? That's what I would do.

[Naam]

Just has a look on Asia Web Direct website and they are selling nights in a studio unit in my 8 weeks at 4380B/night or 30660/week or 245280/8weeks.

they are offering or actual selling?

[davejones]

I have checked my figures and we ended up paying 3.4 million baht for the 8 weeks. Not qite as bad as 4 but still high.

No disrespect meant, but you really need to get a grip on your finances. I'm not sure how someone can buy a share of a condo and not know whether they spent 3.4 m or 4.0 m. Didn't you notice you have an extra 600,000 in your account?

Edited January 20, 2013 by davejones

[khunPer]

»Having learned a bit about taking money in and out of Thailand I think that basically we can only take out as much as we have brought in. Currently our investment is around 4 million Baht. Some of the money was paid by credit card but the majority was paid by wire transfer. My concern was that the company we paid the money to in Thai Baht was sent to their Hong Kong Bank so may not be recorded as being paid into a Thai investment. The company is quite large for timeshare particularly in the Patong area.«

When you invest in Thai property the normal procedure is, to have a form from the Thai bank where you state the money are going to be used for property. The Thai bank will register the form with authorities and you will receive a copy to keep for when you sell property and wish to take ‘the same’ amount out again. There is a time limit from transfer until form has to be submitted, if I remember right, it’s down to some weeks or month.

It is an often-used practice by seller to ask for part of the payment made to an offshore bank, to avoid taxation – may be everything above deposit. The price paid inside Thailand, may be the price registered in the books and/or at the Thai Land Department. When re-selling you can use same method for anything above the registered price plus normal increase. Presumed part-ownership of time-share works out pretty much the same way as ownership of a condo or house.

Your place looks very nice on the web site and the service sounds good. Many up-end places with good facilities will charge 1,000 Euro/week and up for a two-bedroom unit.

[Dazinoz]

I have checked my figures and we ended up paying 3.4 million baht for the 8 weeks. Not qite as bad as 4 but still high.

No disrespect meant, but you really need to get a grip on your finances. I'm not sure how someone can buy a share of a condo and not know whether they spent 3.4 m or 4.0 m. Didn't you notice you have an extra 600,000 in your account?

My original quote of 4 million was what I was told by Absolute that I should get if I sold now (last visit to Phuket in August). I was at work when posting the original post so could not remember exact figure of purchase as was nearly 2 years earlier. Having a look at my accounting software when I got home I noted the exact amount we paid after deposits, upgrades etc. As I stated in my original post i paid a couple of deposits on cards and other major upgrade amounts paid by wire transfers.

So I think I do have a pretty good grip on my finances just my memory at work on nightshift is not as good as my accounting software.

I am really wondering if this ThaiVisa Forum is of much benefit. This was my first post and a lot of the comments have been negative towards me from assumptions that people make without knowing the true facts.

[Dazinoz]

»Having learned a bit about taking money in and out of Thailand I think that basically we can only take out as much as we have brought in. Currently our investment is around 4 million Baht. Some of the money was paid by credit card but the majority was paid by wire transfer. My concern was that the company we paid the money to in Thai Baht was sent to their Hong Kong Bank so may not be recorded as being paid into a Thai investment. The company is quite large for timeshare particularly in the Patong area.«

When you invest in Thai property the normal procedure is, to have a form from the Thai bank where you state the money are going to be used for property. The Thai bank will register the form with authorities and you will receive a copy to keep for when you sell property and wish to take ‘the same’ amount out again. There is a time limit from transfer until form has to be submitted, if I remember right, it’s down to some weeks or month.

It is an often-used practice by seller to ask for part of the payment made to an offshore bank, to avoid taxation – may be everything above deposit. The price paid inside Thailand, may be the price registered in the books and/or at the Thai Land Department. When re-selling you can use same method for anything above the registered price plus normal increase. Presumed part-ownership of time-share works out pretty much the same way as ownership of a condo or house.

Your place looks very nice on the web site and the service sounds good. Many up-end places with good facilities will charge 1,000 Euro/week and up for a two-bedroom unit.

Thank you khunPer, one of the most direct replies to my original post .