flakes Posted November 17, 2013 Share Posted November 17, 2013 I consider to buy some low priced condos in the jomtian area... The main purpose will be to rent out these properties.But i have some doubts. First of all i see now lots and lots of units for rent and sale in Pattya on websites and newspapers . Also within 3-4 years another 10,000 new condo units will be fully built up by then and thus causing even more competion for me. May i ask from the persons in Thailand and especially in Pattaya area who are owning condos here with the purpose to rent them out if it take them long time to find tenants for their properties ? and of their unit sometimes for long periods dont have any tenants ? Greeting Flakes Link to comment Share on other sites More sharing options...
falkan Posted November 17, 2013 Share Posted November 17, 2013 300-500k condos (thai-style) and the rent out for 2000-3000bath a month yes it will work.. Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 300-500k condos (thai-style) and the rent out for 2000-3000bath a month yes it will work.. Where in Pattaya can buy units in the 300-500 price range? is it even freehold ? Mostly I been looking at units in the 1-2 million BHT price range with monthly rental to expect 11000-14000 BHT. However i doubt if they will be rented out the whole year ...Serious doubt it and if for example you cant rent out 3-4 months a year then it becomes a bad investment Link to comment Share on other sites More sharing options...
Khun Jean Posted November 18, 2013 Share Posted November 18, 2013 Mostly there is a shortage in the lower end and a shortage in the very high end. Everything in between has a large over supply. The ones that are affordable AND in a good location are all taken. I suggest waiting until the top in real estate is over (in my opinion we are starting to get at that moment in time when people realize it) and only look at distressed sales. For that you need to be on the spot and have cash in hand. Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 Ok thanks and noted.. I already noticed that in Bangkok most buyers are thais and often they dont buy for rental returns but more as a long term investment for their money.Also they buy units/condos for them selfs or family members to live in. The rental returns in Bangkok are already lower then in Pattaya that why i dont look much in Bangkok. Does anyone know cities in Thailand with better rental returns then in Pattaya ? Link to comment Share on other sites More sharing options...
Khun Jean Posted November 18, 2013 Share Posted November 18, 2013 I don't complain about rental returns in Bangkok. Most renters are working Thais. Office and factory. Never have to worry about occupancy rates. Thais that have money don't like their money to sit idle in the bank. Buying real estate is thought of a more trustworthy place to put your money. They hate paying service costs however, the reason why some of the expensive condos can still look terrible. Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 I see okay... So lets say if u had 6,000,000 BHT to invest.. What type price range of condos would you then buy and what would be your yearly returns? Br Flakes Link to comment Share on other sites More sharing options...
Minpin Posted November 18, 2013 Share Posted November 18, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Okay.... But sorry let me calculate... 12x 3000 = 36000 in a year then divide 36000 :600,000 =0,06 0,06 x 100 = 6 % your returns however still need deduct maintenance fees repairs paint jobs...install internet and maybe you unit will be only occupied 11 months a year.. so i guess if you would rent it out for 3000 BHT a month you would be making 4-5 % annual returns ... Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... Link to comment Share on other sites More sharing options...
KittenKong Posted November 18, 2013 Share Posted November 18, 2013 As a investor i should get arround 9 % and net 8 %... Why? If that was feasible and easy then everyone and his dog would be buying condos and renting them out, wouldn't they? (Actually the current off-plan sales in Jomtien may indeed be mostly people thinking they are going to be able to do exactly this.) Personally I find it far better to keep half my money in the bank at about 4.5% interest and the other half in stocks and shares which return about 4% plus capital growth, for zero work or expense. 2 Link to comment Share on other sites More sharing options...
rgs2001uk Posted November 18, 2013 Share Posted November 18, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Okay.... But sorry let me calculate... 12x 3000 = 36000 in a year then divide 36000 :600,000 =0,06 0,06 x 100 = 6 % your returns however still need deduct maintenance fees repairs paint jobs...install internet and maybe you unit will be only occupied 11 months a year.. so i guess if you would rent it out for 3000 BHT a month you would be making 4-5 % annual returns ... Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... Dream on, its obvious you dont have a clue of what happens every day in Thailand, have been listening to too many property pimps, or barstool know it alls. <deleted> would you install internet, why would your condo only be occupied 11 months of the year? What maintenance fees? As a investor i should get arround 9 % and net 8 %.. Please tell me from where you gleaned this little nugget? 2 Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 Sorry RGS2001UK are u swearing why? i hope they will delete your account from here. Any ways Yes condos have maintenance fees usually charged by amount of sqm... Yes condos normally not rent out 100% of the time lets say u own a condo for 5 years then u lucky if can rent it out 80% of the time so it lowers your rental return average.. Why i need to explain you these basic things ?I thought u was Mr know it all ! yes besides that condos need care and attention A/C breaks down,window leaking , internet lines need be installed etc etc so if u calculate with out all these costs and u have 5 % annual returns then in fact most likely your annual gains will be 3,5 to 4 % now what is not clear for you ? Yes i have condos with 9 % returns and net 8 % annual...it possible better believe that.. It a matter of doing your homework before you buy a property not afterwards. 1 Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 As a investor i should get arround 9 % and net 8 %... Why? If that was feasible and easy then everyone and his dog would be buying condos and renting them out, wouldn't they? (Actually the current off-plan sales in Jomtien may indeed be mostly people thinking they are going to be able to do exactly this.) Personally I find it far better to keep half my money in the bank at about 4.5% interest and the other half in stocks and shares which return about 4% plus capital growth, for zero work or expense. I never said it was easy ,Dogs buying condos gosh really must be a smart animal u got! i only said that if in my pre-calculation i cant see me reach the 8-9% annual returns then i wont begin to buy the property...The Properties offplan sales in Pattaya well i think most of them are thai buyers and from bangkok hahahahaha...(maybe they are not doing their pre-calculation. Link to comment Share on other sites More sharing options...
PattayaPhom Posted November 18, 2013 Share Posted November 18, 2013 (edited) Oh dear, usual suspects about lating doubt on a genuine enquiry from a fellow member. OP, View Talay 1/2 Angket, Rimhad to name a few are all very popular and at most times full regardless of how many lights are on at night and what people on here say. These are in your price range, low maintenace fees and well kept. 8/9% is possible. Angket will have construction starting next door so not so good in the short term. Stay away from Majestic and Park Lane Take your time to look around Edited November 18, 2013 by PattayaPhom Link to comment Share on other sites More sharing options...
rgs2001uk Posted November 18, 2013 Share Posted November 18, 2013 Sorry RGS2001UK are u swearing why? i hope they will delete your account from here. Any ways Yes condos have maintenance fees usually charged by amount of sqm... Yes condos normally not rent out 100% of the time lets say u own a condo for 5 years then u lucky if can rent it out 80% of the time so it lowers your rental return average.. Why i need to explain you these basic things ?I thought u was Mr know it all ! yes besides that condos need care and attention A/C breaks down,window leaking , internet lines need be installed etc etc so if u calculate with out all these costs and u have 5 % annual returns then in fact most likely your annual gains will be 3,5 to 4 % now what is not clear for you ? Yes i have condos with 9 % returns and net 8 % annual...it possible better believe that.. It a matter of doing your homework before you buy a property not afterwards. Too be honest its hard to know who I am talking to here, you or your "friend" Posted by you on a previous topic, My friend sold his property for 7 million BHT. He now wants to re invest it in such a way he be making 7-10% annual returns http://www.thaivisa.com/forum/topic/681659-how-to-invest-7-million-bht/#entry7037998 Sorry RGS2001UK are u swearing why? i hope they will delete your account from here. Not swearing, I have a better command of the English language than that. Why i need to explain you these basic things ?I thought u was Mr know it all ! No need to explain yourself (or your friend has no need) to explain it all, actually I am not the one coming here asking for advice, but I am more than happy to kow tow to your superior knowledge, should it ever manifest itself. A/C breaks down, Why would you install a/c, let the renter install his own, when they leave they take it with them. internet lines need be installed Please tell me, who is your target audience, farang or Thai? How many Thai style apt's have you ever been in, for the life of me I cant remember ever seeing internet installed. Yes i have condos with 9 % returns and net 8 % annual...it possible better believe that.. Excellent stuff, please enlighten us to whereabouts these condos are, I may consider bowing to your superior knowledege and invest myself. It a matter of doing your homework before you buy a property not afterwards. No shit Sherlock. Head for On Nut, buy 20 condos at 350 k, rent them out for 3k baht per month, no need for a/c or internet. Lets use your figures, 20 x 3000 x 12 = 720 000 (720 000/7 000 000) x 100 = 10.3 (rounded up), acceptable or not? The ability to read Thai helps (I feel sure such a shrewd Thai property investor can already read the language). Good luck with your investments, or should I say good luck to your friend? 1 Link to comment Share on other sites More sharing options...
PeterSmiles Posted November 18, 2013 Share Posted November 18, 2013 Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... Then you're on the right forum with your thread, as most on here get a multiple of that. Link to comment Share on other sites More sharing options...
jpduggan Posted November 18, 2013 Share Posted November 18, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya 3000/month on a 600,000baht condo would take 17 years to get your investment back and that's not factoring in annual maintainance fees and other costs. Do you seriously consider that a good place to put your money? Link to comment Share on other sites More sharing options...
rgs2001uk Posted November 18, 2013 Share Posted November 18, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya 3000/month on a 600,000baht condo would take 17 years to get your investment back and that's not factoring in annual maintainance fees and other costs. Do you seriously consider that a good place to put your money? I was taught not to assume, but to check, are you a farang? Why not look at it from a Thai point of view. I buy a condo for 400k baht, my off spring attends Ram uni for 4 years, after 4 years on graduation, I sell the condo for the same price as I bought. No capital gain, but off spring lived rent free for 4 years, repeat and rinse. 3000 x 12 x 4 = 144 000 baht, peanuts. Not forgetting the annual capital appreciation on the land. Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 Hi Friend, Dont worry you are talking to me. Interesting your calculations and i am glad that the level of the conversation is at least going in a slightly positive direction hum.. You calling me a shrewd investor gosh you are the one suggesting to stack up poor thais in small crampy units without any A/C and or Internet..I see myself little more human then that hahaha..(bottom line is either with or without any a/c all properties needs maintenance from time to time... Khotood krap tae aan Phasaa thai pom mai dai.. But you shared some info so i will share some info also. In order to get high rental returns is it important that u must get a low purchase price how do you get a low purchase price is either to buy only the bargains in the market . or better to buy multiple units in one single time from the same seller or developer then u can negotiate huge discounts ,buying offplan is possible too but it is always riskier needs set a safe payment plan.stage payments inline with their building proces and 60-70% up on completion like that it is good. Anyway if you buy 10-25 units with 30% discount then it easier to get 9 % net for rental returns ,in comarison with one single unit in the same development for the high single unit price of the developer.. Who would be my customer thais or farangs well honestly i would say both are welcome. i only asked in this forum with what type of units and what location in Thailand might get a high rental returns It seems to me that it is the smaller cheaper and older units probably in BKK and or in Pattaya...But these will also give you the most work. Okay but i am interested in the 20 or 20 plus units in on nut for 350 K each with tenants lining up for a 3000 Bht monthly deal...How can we proceed? Are we talking freehold units here..? . Link to comment Share on other sites More sharing options...
flakes Posted November 18, 2013 Author Share Posted November 18, 2013 Emh Sorry i copy paste it wrongly but the previous message was send by flakes and it is meant for RGS2001UK Link to comment Share on other sites More sharing options...
davejones Posted November 18, 2013 Share Posted November 18, 2013 You're asking for advice but already claim you know the answers. You already have condos with 9% return, so you know how to get them. So just get another one. Simple. 2 Link to comment Share on other sites More sharing options...
KittenKong Posted November 18, 2013 Share Posted November 18, 2013 I buy a condo for 400k baht, my off spring attends Ram uni for 4 years, after 4 years on graduation, I sell the condo for the same price as I bought. No capital gain, but off spring lived rent free for 4 years, repeat and rinse. Amongst other things you are forgetting the cost of purchase and sale, and the interest you would have lost from not having the money in the bank (you can get 4% for a long TD at the moment). Link to comment Share on other sites More sharing options...
Toosetinmyways Posted November 19, 2013 Share Posted November 19, 2013 300-500k condos (thai-style) and the rent out for 2000-3000bath a month yes it will work.. Where in Pattaya can buy units in the 300-500 price range? is it even freehold ? Mostly I been looking at units in the 1-2 million BHT price range with monthly rental to expect 11000-14000 BHT. However i doubt if they will be rented out the whole year ...Serious doubt it and if for example you cant rent out 3-4 months a year then it becomes a bad investment Imagine, a clever property developer like you needs to ask advice from a forum. Link to comment Share on other sites More sharing options...
Toosetinmyways Posted November 19, 2013 Share Posted November 19, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Okay.... But sorry let me calculate... 12x 3000 = 36000 in a year then divide 36000 :600,000 =0,06 0,06 x 100 = 6 % your returns however still need deduct maintenance fees repairs paint jobs...install internet and maybe you unit will be only occupied 11 months a year.. so i guess if you would rent it out for 3000 BHT a month you would be making 4-5 % annual returns ... Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... It is 1000 baht a month more than a fixed deposit in the bank. 9% return is 4500 baht a month rent. You say Minpins room will be empty 1 month of the year Yours will be empty 12 months a year Who is making money now? Link to comment Share on other sites More sharing options...
flakes Posted November 19, 2013 Author Share Posted November 19, 2013 Hahaahah yes indeed you have alot of imagination Anyways i just try to gain more knowledge here and share what i know with others in this forum. I thought that is the purpose of these online forums but if you want be sarcastic fine also.. I think its stupid and ignorant people maybe as your self that never ask advise... But my free advise for you in this forum is that you should read posts more carefully before you begin to say who is a developer and who is not ! Link to comment Share on other sites More sharing options...
flakes Posted November 19, 2013 Author Share Posted November 19, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Okay.... But sorry let me calculate... 12x 3000 = 36000 in a year then divide 36000 :600,000 =0,06 0,06 x 100 = 6 % your returns however still need deduct maintenance fees repairs paint jobs...install internet and maybe you unit will be only occupied 11 months a year.. so i guess if you would rent it out for 3000 BHT a month you would be making 4-5 % annual returns ... Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... It is 1000 baht a month more than a fixed deposit in the bank. 9% return is 4500 baht a month rent. You say Minpins room will be empty 1 month of the year Yours will be empty 12 months a year Who is making money now? Hi Its flakes here You missing the point hahahah Yes it better to rent it out for 3000 BHT and have it rented out then asking a rent of 4500 and it sitting empty for the whole year..I agree this with you. But what i am saying is that i would not buy that unit that Minpin has bought ,simply because the expected rental returns are not interesting enough. So i will look for another property with higher rental yields.. Link to comment Share on other sites More sharing options...
flakes Posted November 19, 2013 Author Share Posted November 19, 2013 in Bangkok I bought a "condo" for my son. 600,000 baht, 10 minutes On Nut BTS. Building is full all the time. Renters pay around 3000 month. Its not what farangs would class as a condo more like a hotel room. If it is doable in Bangkok it must be doable in Pattaya Okay.... But sorry let me calculate... 12x 3000 = 36000 in a year then divide 36000 :600,000 =0,06 0,06 x 100 = 6 % your returns however still need deduct maintenance fees repairs paint jobs...install internet and maybe you unit will be only occupied 11 months a year.. so i guess if you would rent it out for 3000 BHT a month you would be making 4-5 % annual returns ... Yes that possible also in Pattaya but that not what i looking for... As a investor i should get arround 9 % and net 8 %... It is 1000 baht a month more than a fixed deposit in the bank. 9% return is 4500 baht a month rent. You say Minpins room will be empty 1 month of the year Yours will be empty 12 months a year Who is making money now? Hi Its flakes here You missing the point hahahah Yes it better to rent it out for 3000 BHT and have it rented out then asking a rent of 4500 and it sitting empty for the whole year..I agree this with you. But what i am saying is that i would not buy that unit that Minpin has bought ,simply because the expected rental returns are not interesting enough. So i will look for another property with higher rental yields.. Link to comment Share on other sites More sharing options...
rgs2001uk Posted November 19, 2013 Share Posted November 19, 2013 I buy a condo for 400k baht, my off spring attends Ram uni for 4 years, after 4 years on graduation, I sell the condo for the same price as I bought. No capital gain, but off spring lived rent free for 4 years, repeat and rinse. Amongst other things you are forgetting the cost of purchase and sale, and the interest you would have lost from not having the money in the bank (you can get 4% for a long TD at the moment). The above is true, but what you have forgotten is the 3,000 baht per month that would have to be paid for renting a place. If we assume 4% of 400k = 16k - 15% tax = 13,600 per year. 3,000 x 12 = 36,000 baht per year, 36,000 - 16,600 = 22,400 better off per year. The above doesnt include as you correctly pointed out transfer costs. Link to comment Share on other sites More sharing options...
KittenKong Posted November 19, 2013 Share Posted November 19, 2013 ... but what you have forgotten is the 3,000 baht per month that would have to be paid for renting a place. No, I didnt forget that at all. It is the counterpart to the interest earned on the bank deposit. The only real questions are whether or not the interest earned is much more or less than the rent that would otherwise have to be paid, the amount of all the other costs, and whether or not there is likely to be any capital appreciation. And indeed whether or not it will be easy to sell the place once you are done with it. Some places (like ultra cheap micro-condos near universities) may be easy to buy and sell but other places in Pattaya may be much harder to sell. The OP has a lot more variables to take into account, I think. Link to comment Share on other sites More sharing options...
lovinglifeinthailand Posted November 19, 2013 Share Posted November 19, 2013 Oh dear, usual suspects about lating doubt on a genuine enquiry from a fellow member. OP, View Talay 1/2 Angket, Rimhad to name a few are all very popular and at most times full regardless of how many lights are on at night and what people on here say. These are in your price range, low maintenace fees and well kept. 8/9% is possible. Angket will have construction starting next door so not so good in the short term. Stay away from Majestic and Park Lane Take your time to look around Hey I live at park lane, Its not that bad, has a brilliant pool. Then again I only rent. In a couple of years will need a lot of maintenance inside, have seen better quality furnishings. Op why don't you buy in your own country a much safer investment, and if ever down on your luck will have a place to hang your hat. Link to comment Share on other sites More sharing options...
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