is it easy to rent out simple style condos in Pattaya/Jomtian ?

[flakes]

HI,

So now you asking for a 9 % real estate investment deal.While my OP was like is it easy to rent out rooms in Pty or BKK..? These 2 questions are somewhat connected.

I get al the time emails from UK based real estate trading companies offering me 10% net quaranteed for ten years if i buy their student rooms..its many companies offereing this they are all from UK..I can send you their links etc etc..You want ? it more then 9 %

They only built and then to let out to students and these units seem make bigger returns then ordinary houses...but not sure about capital appreciation..

I dont do this because i am not familiar with England and the England real estate and locations then on paper it look ok but i suspect some sort of a scam in the end.

In Pattaya well it could be View talay 2 building buy a freehold 35 sqm unit for 1,4 M BHT fix it up for 100,000 BHT then start to rent it out for 12-14 k monthly.Maintenance fees are 500 BHT monthly..

Lets say u get 13000x12 months = 156000 minus maintenance fees one year = 6000

150,000 :1,500,000 = !0% then if you deduct 1% for maintenance insurance etc you be making 9 % net

There are more deals like this building in pty but there is a but

I dont expect any capital appreciation at all in these old builsings ...And if for some reason you are unlucky with renting it out and you can only rent it out 5 month a year then u only make 4% and then u better off put you money in the bank.

So in order to make 9% you need a small unit and it need to be rented out 90 till 100 % of the year that not so easy.

That why my OP was is it easy to rent out and i think with all the construction going on in Pattaya renting out will only get mroe difficult in the near future due to over building here..

reminder In the next 4 years there will be 20,000 new units being completed in Pattaya and who will live in these units i dont know...

[Rakathaorai]

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 !

It's advice not advise!

I don't see any forthcoming there however it would be interesting to here in which location you are getting 9% net return (plus hopefully some capital appreciation)

I'ts hear not here!

lol touche

Ironic i made the same mental lapse 55

Oh & it's it's not I'ts!

to be continued ......

Edited December 12, 2013 by Rakathaorai

[koeko]

Stay away from Majestic and Park Lane

Why?

[drx13]

See "World's Worst Tenants"

Sent from my P2000 using Thaivisa Connect Thailand mobile app

[koeko]

See "World's Worst Tenants" Sent from my P2000 using Thaivisa Connect Thailand mobile app

What does it have to do with Majestic and Park Lane?

Help me understand...

Edited December 12, 2013 by koeko

[Rakathaorai]

Golden rule in real estate -buy at the bottom, sell at the top! Right now it's at the top and you're crazy to even think about as Thailand is about to fall off a cliff economically, too much credit out there which cannot be serviced, not competitive enough, too much corruption and not looking politically as well balanced as it might!

Crash baby crash!

http://www.forbes.com/sites/jessecolombo/2013/11/04/thailands-bubble-economy-is-heading-for-a-1997-style-crash/

No, I meant who would pay 15K per month rent for a condo that was only worth 2MB to buy? I certainly wouldn't.

he is renting out a condo that now 5 years later is worth 4M probably ...

Many people seem to make this mistake of seeing the current rent as a percentage of the purchase price. You have to see it as a percentage of the current value. Why? Because if you sold the property in order to invest in something else you would have today's price, not the price you paid when you bought it. And the return you would get on that money will be according to what it is worth today. If you dont work it out that way then you cant actually calculate a proper rent at all.

Condo bought for 2.5MB in 2000. Rented out for 125K/year at that time. That's 5%.

Condo today worth 5MB, and current rent at 250K/year. That's still 5% and not 10%. The rest of the gain is capital appreciation.

You actually say this yourself in your last sentence: you judge a correct rent for today according to what the property is worth now, not according to what it was worth x years ago.

correct amondo!