Condo For Investment

[bkkrun]

Hello,

I'm considering to buy a new condo from Bangkok in the price range 1.3 - 2 M Bht and renting it.

Now would like to hear your experiences and opinions about this...

Rental yield? Annual appreciation of condos in bkk?

Insurances to be considered? Taxation? Current supply and demand balance for condo rentals?

[ShopBoy]

do a search in the forum for condo investment

topic being discussed often

[MichaelJohn]

Not going into pages of details ...... over supply, poor returns, problems with clients not paying ...... with relatively high bank interest in Thailand you'll do just as well with your money in the bank.

Sorry to be negative :-(

[WhizBang]

Condo. Investment? Don't think so.

Buy a condo if you intend to live in it for many years, but not as an investment.

I bought my condo about 12 years ago and it is in a very good location, yet I would be surprised if I could sell it for what I paid for it. And even then, it would likely take years and years to sell, if at all.

Bangkok has a massive over supply and a ton of empty units just looking for buyers.

[billoutt]

Historically, money put into rental single-family dwellings is considered a speculation or in many countries, a place to store wealth.

Edited May 4, 2013 by metisdead
Post edited to remove overly large and odd colored font. The default forum font is Arial size 14, black.

[givenall]

One word Don't

[BangkokHank]

I owned a condo in a prime location in the center of Bangkok for 8 years, from 2003 to 2011. It took me 8 months to sell it, and I got slightly less than what I paid for it. To add insult to injury, I had to pay about 6% of the purchase price in taxes when I sold it. (Who says there are on property taxes in Thailand? They get you when you sell.)

At the moment, I think there is an oversupply of units on the market. Add to that the fact that prices are very high due to relatively low interest rates and hot money seeking yields. Buying at a high price when there is oversupply is a recipe for a bad investment, especially when the law requires you to pay cash. (If you could finance the purchase with cheap money, it might be a different calculation.)

If you want to buy real estate in Bangkok, just wait for the scale to tip the other way, like it did in 1997 - and certainly will again. Real estate is cyclical, and right now we're at the high price, high supply time in the cycle.

[rayongchelsea]

I was here in 1997 and looking to purchase. At the time prices did not fall in the "decent areas", the exchange rate was favorable, but prices did not adjust too much. I am very skeptical of there being a correction of any significance as we have experienced in our own countries.

[englishinsiam]

If your cash is coming from abroad then definitely don't due to the strong baht.

We are currently saving money in Thailand to buy our family home and have had to look at downgrading our expectations due to the strong baht.

A mate bought in Spain when the € to £ was 1.7

He sold for less money when the £ dropped to par with the € and made over £30000 not including the rental money he made while he owned it.

Sometimes you have to look outside of the property price and look at the other factors.

Sent from my GT-I9505 using Thaivisa Connect Thailand mobile app

[utalkin2me]

I owned a condo in a prime location in the center of Bangkok for 8 years, from 2003 to 2011. It took me 8 months to sell it, and I got slightly less than what I paid for it. To add insult to injury, I had to pay about 6% of the purchase price in taxes when I sold it. (Who says there are on property taxes in Thailand? They get you when you sell.)

At the moment, I think there is an oversupply of units on the market. Add to that the fact that prices are very high due to relatively low interest rates and hot money seeking yields. Buying at a high price when there is oversupply is a recipe for a bad investment, especially when the law requires you to pay cash. (If you could finance the purchase with cheap money, it might be a different calculation.)

If you want to buy real estate in Bangkok, just wait for the scale to tip the other way, like it did in 1997 - and certainly will again. Real estate is cyclical, and right now we're at the high price, high supply time in the cycle.

It is always good to hear honest reports from others.

I think buying is great if you are planning on holding long term. It is also tax deductible if you earn income here. And it really is nice not to get an annual property tax bill.

[rayongchelsea]

2003 prices for condos were still reasonable and based on what second hand condos are going for now I am surprised there was no appreciation. I bought in 2001 was offered double that a year ago.

Which area was this in..

I only really noticed an up swing in condo prices late 2003 early 2004.

But I think your point is very valid, property appreciation cannot be taken for granted if at all, it maybe specific to certain areas and even certain buildings within that area..

[johnnyk]

There better places to invest in property. Thailand is risky, too much hot money coming in (its what is making the baht strong). Best property investments now IMO are in the US where things are not stacked against outsiders.