chrisdouglas123 Posted March 1, 2013 Share Posted March 1, 2013 Hi All, I would like some advice or feedback from those of you who have experience... Im thinking of buying a couple of small town houses (prices 1.2 - 1.8 Million baht) in areas around Bangkok, Rangsit for example. These would be the typical 'moo baan' new village houses. Then renting them out for somewhere between 7000 - 10,000baht per month. The houses would be bought in a Thai name, thats not the problem, but has anyone had this 'landlord' experience here? Thank you Link to comment Share on other sites More sharing options...
thenervoussurgeon Posted March 1, 2013 Share Posted March 1, 2013 My sister in law has a house she rents out ,it was hard to find a tenant ,eventually a thai familly moved in ,the place is now a sh-thole and will cost more to renovate than the rent she got ,does that help? 2 Link to comment Share on other sites More sharing options...
aussiebebe Posted March 1, 2013 Share Posted March 1, 2013 My experience is of renting out a condo - not a pleasant experience, and condos are generally easier to rent out than houses anyway. If you just want investment, putting your cash in a bond with a Thai bank will probably earn you more and without all the headache and nonsense with tenants - my advice is to remember that it's hard to put a financial figure on misery, anxiety and wasted time. 1 Link to comment Share on other sites More sharing options...
Hedghog Posted March 1, 2013 Share Posted March 1, 2013 Its not easy to find quality tenants,especially long term. Your returns,projected are not great, I concur with ausiebebe. 2 Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 1, 2013 Share Posted March 1, 2013 7K-10K, makes a difference, 1.2 Mil TH in Rangsit, 10k seems pushing it. Regardless of above comments it is possible for properties to offer a good return and appreciate in value. 1 Link to comment Share on other sites More sharing options...
hagler Posted March 1, 2013 Share Posted March 1, 2013 The secret is to buy at Thai prices and lease at Farang pricing levels. Stick to areas where there is demand from Farang. Has worked for me for a long, long time anyway. 1 Link to comment Share on other sites More sharing options...
yourauntbob Posted March 1, 2013 Share Posted March 1, 2013 Rent is cheap here. Finding tenants can be difficult and even if you do, your rental income is going to be less than what you would need to pay on a 30 year mortgage. Take a look around those areas and see what people are asking for rent. I would bet a 1.5 million townhouse would only go for around 5-6k per month. Link to comment Share on other sites More sharing options...
Khun Jean Posted March 1, 2013 Share Posted March 1, 2013 (edited) 7-10k is i think way to much. In moobans rents of 3-5k seems more common. Thais would not spend one single baht maintaining it, so probably at then end of a few years you need to spend 50-100k to get it into an acceptable shape again, especially when it is a furnished one, and the prices you are thinking about that seems to be the plan. It does not matter one bit if the moo-ban is a nice one or a dump. thenervoussurgeon is right about that. A commercial building would be slightly better, but finding one that has a decent price is difficult. We only invest in small condo's that are cheaper then 500k and that give at least 10% roi. Otherwise i not even bother. Edited March 1, 2013 by Khun Jean Link to comment Share on other sites More sharing options...
loong Posted March 1, 2013 Share Posted March 1, 2013 A foreigner buying land using a Thai nominee is illegal. At least once a year there are threats of crackdowns, so you should be aware that there may be risks when using a Thai nominee. I have not had experience of being a landlord in Thailand, only in the UK. Tenants have no interest in the property and a bad tenant can cause enough damage in a short time that costs many times the rent received to repair. Link to comment Share on other sites More sharing options...
Khun Jean Posted March 1, 2013 Share Posted March 1, 2013 The Thai would be very happy to be the 'nominee'. It is completely impossible to prove that someone is a nominee when it is not a shareholder/company structure. The foreigner has in that case, no money and no value in return. He might get a usufruct or lease in return. That is ok. The Thai is still 100% owner and not a nominee. Just someone who made a contract and got compensation for it. Again the Thai has just received a gift and is 100% owner, not a nominee! Once that is clear, risks can be reevaluated. If you want to do realestate on a larger scale there is no problem forming a company for that. Just make sure the 51% Thai used their own money and have equal voting rights. In my case i use a 49%/49%/2% split of the shares. The 2% is a bookkeeper chosen by me. The other 49% is my wife. Still no guarantees, the 49% is acceptable for me as i used it to establish my risk. After 10 years that risk is now very minimal. Link to comment Share on other sites More sharing options...
davejones Posted March 1, 2013 Share Posted March 1, 2013 My gf has a house worth 1.2-1.6 million in a moo baan is Rangsit. She rents it out for 5,000 a month. About 90% of people who viewed the house only wanted to pay 3,000-4,000. I don't think you have any hope of getting 7,000-10,000, as there are plenty of places to rent for 3,000-5,000. Also, the quality of potential renters was pretty low. She has found a good tenant now, but it took 2-3 months. I wouldn't advise buying there as a buy-to-let. 2 Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 1, 2013 Share Posted March 1, 2013 Listen to Dave. Hes on the ground there Link to comment Share on other sites More sharing options...
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