Cost of buying/starting small business generation 30K/mth profit?

[belg]

I saw a recent ad in the Chiangmai Mai classifieds of TV. A guy is selling 5 condo units for 7 million bt. The monthly rental is 50,000. Problem solved you get the returns of more then what you want.

Defo the best way for passive, least hassles income here methinks. I mean, why go through all the anguish of mixing about with a business and dodgy locals if one wanted to sit back and smell the roses? I know a chap who has three units at a smidge over a mil each in a newer apartment out of town, spruced them up and rents for 10-12k a piece... 12.5% tax I think it is.

Op is not interested in ROI, but if you have the capital, it makes sense as bricks & mortar has generally always been a winner and you will have something to fall back on (likely extra) when you cash out.

There are not many other sure-fire options in today's fast-moving world, and especially for us lot in this land. You can legally own condos and other than a lawyer for contracts, you won't need to be messed around with people day to day. In 20 years time, many many businesses will have failed, but your condo will (should) still be standing.

While they are pulling in easy baht, you could build a site, perhaps targetting consultancy or blogs on computer repair & whatnot. With the likes of Joomla and Wordpress (wysiwyg editors) coming as standard with hosting packages, a basic site can be knocked up in a few hours by just about anyone without knowledge of HTML coding.

what if :

the unit is not rented for months, you still will pay the monthly fee and that can be also a few thousands

the renter DOES NOT PAY you, is THAI and connected to the police....

the renter does destoy your condo and / or steals furniture, tv, airco ...

still no worries at end of each month ????

[BuffaloRescue]

you want ot do a business that might be profitable and hardly or not seen in thailand ? PROBIOTICS... excist in all western countries, but even BLACKMORES does not import or sale them overhere...

many health concience farangs want to buy they but you cannot find any shop that sells them overhere...

or other supply that is available in GNC in the US, but not in Thailand, a lot of stuff here is 3x the price of the US = thais taking the profits...

Yeah

Or selling/distributing all kinds of supplements

Its much cheaper to order most stuff from iherb.com than it is from local suppliers in Thailand.

Possible online business idea. Work from home, get the mrs packing boxes etc.

Some issues with Thai FDA though I think supplements need approval hence the high price

[donniereadit]

I saw a recent ad in the Chiangmai Mai classifieds of TV. A guy is selling 5 condo units for 7 million bt. The monthly rental is 50,000. Problem solved you get the returns of more then what you want.

Defo the best way for passive, least hassles income here methinks. I mean, why go through all the anguish of mixing about with a business and dodgy locals if one wanted to sit back and smell the roses? I know a chap who has three units at a smidge over a mil each in a newer apartment out of town, spruced them up and rents for 10-12k a piece... 12.5% tax I think it is.

Op is not interested in ROI, but if you have the capital, it makes sense as bricks & mortar has generally always been a winner and you will have something to fall back on (likely extra) when you cash out.

There are not many other sure-fire options in today's fast-moving world, and especially for us lot in this land. You can legally own condos and other than a lawyer for contracts, you won't need to be messed around with people day to day. In 20 years time, many many businesses will have failed, but your condo will (should) still be standing.

While they are pulling in easy baht, you could build a site, perhaps targetting consultancy or blogs on computer repair & whatnot. With the likes of Joomla and Wordpress (wysiwyg editors) coming as standard with hosting packages, a basic site can be knocked up in a few hours by just about anyone without knowledge of HTML coding.

what if :

the unit is not rented for months, you still will pay the monthly fee and that can be also a few thousands

the renter DOES NOT PAY you, is THAI and connected to the police....

the renter does destoy your condo and / or steals furniture, tv, airco ...

still no worries at end of each month ????

add in that if your looking for that sort of profit your probably renting to a foreigner. hard to get long term tenants that stay in on place for a long time. they tend to move around. that eaves you with several months rent paid and a month or two empty, cuts out on the profits. no to mention having to use a broker network or agents and pay commission each time a new tenant is needed.

[nickmanchester2]

"I'm just looking for a perpetual ATM so I don't care if it breaks even in 15 or even 20!"

OK Ron, if you are willing to live on 30k a month, then you are not going to be paying a lot of rent right?

food - 6000b

bills - 2500b - water, electricity, internet data package for smart phone

rent - 5000b

insurance - 750b http://www.thaihealth.co.th/product_simply_eng.php

visa - pretty cheap for a 50+?

transport - 1000b

entertainment - I am going to give you a few good nights out Ron, its 15,000 a month!

I say, if you want to break even with a business in 10 years, get a 500,000b condo (i have seen em) and after 10 years, that will have paid for itself - never mind 15 or even 20! - the loss of interest from the back is not going to be much on that 500,000b.

Next list this condo on AirBnB for 500b a night and when its rented, you can whisk yourself away on a free night/week - depending on how long your renters want to rent your place for - somewhere and use the 500b for accommodation.

The next step is to look for a profitable website for sale on a site like Flippa.com - one which has been making money consistantly for a while, from a good seller and does not need you to do much. I am sure they are out there Ron, but I am not as reckless as you, so I don't want to risk my money however please do your diligence.

Or become a teacher

[puukao]

I will once again make reference of passive income: however, this time I will wonder if it makes more sense to buy apartments in your home country. Maybe buy with some other people, in a well populated area. Say it costs you $400,000 USD. In 15-20 years it will be paid off and that rental income will be a nice retirement annuity. $1,000 USD a month easily possible, likely much more. Since in home country, laws will protect you much more.

my IQ is a minimum of 135; parents never told us the true number since I have 2 siblings. no need to open up that can-of-worms. I am also pretty lazy, so i like passive investments. i do enjoy reading and exercise, just not working for the man. hate authority!!! i am not a sheep!!!!! haha.

off to play hockey.

ron, i think we would get along. best of luck to you

[BKKdreaming]

I think whatever you invest in Thailand you need to be able to walk away from , real estate , businesses or Thai Girls !

The rules can change , making outsiders having to pay fees , extra taxes or not even being able to own property or a business ,

Who knows the future , better to spread your assets over a couple countries

[BillyBobThai]

Gut feeling, this is not going to turn out well.

[worgeordie]

I think the OP should have enough ideas now ,be they good or bad,

would think the nearest business model he is looking for would be in

property rentals,it would return the income he is looking for,not much

effort,plus hopefully he would have gains on the property if he ever

needed to liquidate in the future.

You can do it yourself,don't have to employ anyone who could steal

from you,leave that to the tenants!, but at least you will have security

deposit,and just 1 or 2 customers to deal with,I loved doing business

it was the customers that were the problem.

regards Worgeordie

[Mark1971]

Well that's a matter of opinion. Most people my age have kids. Maybe they are widowed or divorced and they may have the ex-from-hell but they have family. My parents have passed on so I am alone. It really hits home when my bank asks for a contact or beneficiary and I have to pick a friend I met less than a year ago! Don't get me wrong I had a great time partying but I have nothing left but the memories (and a really small amount of cash considering how much I earned over almost 3 decades).

Ron,

I worry that you are going to end up in a very vulnerable position, if the business you buy fails.

You don't even have a family to fall back on, if things go wrong.

From your posts I estimate that you have about 5 Million Baht.

Your chances of making this last 30+ years in Thailand are very low.

All it would take is a period of illness / poor health, to ruin your plans.

Do you have any other income or future pension?

Will you have 1st class medical insurance?

Thailand is a really good place to live if you are single, rich & in good health.

Thailand is a terrible place if you are old, single, with little income or assets & your health deteriorates.

The best way to make money is doing what you have been trained & are experienced in doing.

You have a limited number of years left in which you can work.

My advice is to get your head down for 3-5 years at your normal job, live frugally & try to save >60% of your salary.

If you can double or triple your existing savings, you will have a much higher chance of success.

Good luck.

[Kilgore Trout]

I'm looking to start or buy a small business that I don't have to work too hard at, doesn't hurt anyone and isn't involved with bar girls or partying. It doesn't have to make me rich, just enough to live comfortable somewhere in Chiang Mai province, which is variable depending on the business.

So... any suggestions on business/locations and their ballpark buy/start price to generate 30K per month net profit?

Added: BTW: I'm not interested in the ROI. Most investors are looking to recoup their investment in 5-10 years. I'm just looking for a perpetual ATM so I don't care if it breaks even in 15 or even 20!

Successful businesses are ones where the owner/operator is passionate about what they do

Since you only care about making a profit I would say any business you open is doomed to fail

Try a fixed interest bank account insteadB)

Sent from my GT-I9300T using Thaivisa Connect Thailand mobile app

[F4UCorsair]

Forget property!! Fixed interest won't return enough.

Try Australian shares. Set up a company in Thailand, invest in blue chip Australian shares, only the high dividend ones, the four big banks, Telstra, Woolworths, and a few others (do some research), and you pay no tax as an offshore company, provided you own less than 10% of paid up capital and that's not difficult.

You can expect a minimum 7-8% including franking credits, and then there is capital gain, but don't go outside the top 20 companies (market capitalization).

Property is for dunces, and business for the passionate. As somebody else pointed out, if you're not a hard worker and passionate about it, you are doomed to fail in business.

Edited February 10, 2014 by F4UCorsair