tebee Posted March 10, 2014 Share Posted March 10, 2014 My wife has a few houses/condos she rents out around the northern fringes of Bangkok and we have a couple in Europe, where I'm in the middle of renovating one. We rent out at relatively cheap rates to locals rather than to expats. She has been approached by work colleague who wants to sell a small ( 28 sqm) condo in Pathum Thani near the Food Market - he wants 200,000 baht for it, it's not that old, about 8 years and to my western ears that sounds like a very low price. Admittedly the returns are not good, it's rented out for 1,500 baht a month, but I'm surprised you can still find property that cheap anywhere vaugly near Bangkok. A look on DDProperty found some even cheaper ones in the area, but most of those seem to options to buy rather than outright sales . So is this too cheap ? is there likely to be something wrong somewhere or is it just a bargain from someone who is a bit desperate for money. Link to comment Share on other sites More sharing options...
falkan Posted March 10, 2014 Share Posted March 10, 2014 200k and rental return - 2k a month? sounds fishy.. Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 11, 2014 Share Posted March 11, 2014 You get what you pay for, although saying that, if rented all year you would be getting around 8% after any maitenance etc....so not so bad Link to comment Share on other sites More sharing options...
Delight Posted March 11, 2014 Share Posted March 11, 2014 If the condo has experienced no maintenance for 8 years -then it may be in trouble. If the lifts don't work and a culture of' non payment' by co -owners exists -then it may be worthless. This assumes that it has a lift. Link to comment Share on other sites More sharing options...
FiftyTwo Posted March 11, 2014 Share Posted March 11, 2014 If the condo has experienced no maintenance for 8 years -then it may be in trouble. If the lifts don't work and a culture of' non payment' by co -owners exists -then it may be worthless. This assumes that it has a lift. If it can be rented, it has worth. 1k5 return on 200k = 10% Pretty good deal, for not that large a risk. I would take a chance. Link to comment Share on other sites More sharing options...
umbanda Posted March 11, 2014 Share Posted March 11, 2014 If its really can be rented for 1500THB, looks like a very good buy to me. Go for it....after checking all documentation, etc, etc.... Link to comment Share on other sites More sharing options...
vtjforyou Posted March 11, 2014 Share Posted March 11, 2014 Many are as cheap as this one. 1 Link to comment Share on other sites More sharing options...
trogers Posted March 12, 2014 Share Posted March 12, 2014 If the condo has experienced no maintenance for 8 years -then it may be in trouble. If the lifts don't work and a culture of' non payment' by co -owners exists -then it may be worthless. This assumes that it has a lift. That's right! Is there capital appreciation or depreciation? Total return = Rental Income + Capital Appreciation See not only one variable. Consider the other as well. Link to comment Share on other sites More sharing options...
fatdrunkandstupid Posted March 12, 2014 Share Posted March 12, 2014 Post some photos and I will provide my opinion. Link to comment Share on other sites More sharing options...
impulse Posted March 12, 2014 Share Posted March 12, 2014 If the condo has experienced no maintenance for 8 years -then it may be in trouble. If the lifts don't work and a culture of' non payment' by co -owners exists -then it may be worthless. This assumes that it has a lift. That's right! Is there capital appreciation or depreciation? Total return = Rental Income + Capital Appreciation See not only one variable. Consider the other as well. Total return = Rental Income + Capital Appreciation - Taxes - Maintenance - Reserves for Contingencies - Money Spent to Collect Rent - Condo Fees - Insurance -...-...-...+ any Deposits you get keep. Link to comment Share on other sites More sharing options...
ezzra Posted March 12, 2014 Share Posted March 12, 2014 As an owner of several condos in BKK, why would any one bother them selves with collecting 2,000 rent and looking after a cheap condo is beyond me, by the time you factor in the time and energy to look after, maintain and collect rent from such low value property, it become unviable anyway you look at that... 2 Link to comment Share on other sites More sharing options...
Popular Post impulse Posted March 12, 2014 Popular Post Share Posted March 12, 2014 by the time you factor in the time and energy to look after, maintain and collect rent from such low value property, it become unviable anyway you look at that... One of the things I've learned is that the time and energy required to deal with low end real estate is often greater than required to deal with the mid or high end. And for a lot less reward. The question then becomes, for less than $50 a month, how much sleep am I willing to lose? I'm not a detractor of real estate as an investment vehicle, but I'd buy a used scooter for 20K and rent it out long term for 3-5K a month before I'd buy a 200K property to rent it out for 1.5K. Or better yet, 10 used scooters at 200K and rent them out for 30-50K. 4 Link to comment Share on other sites More sharing options...
davejones23 Posted March 12, 2014 Share Posted March 12, 2014 (edited) by the time you factor in the time and energy to look after, maintain and collect rent from such low value property, it become unviable anyway you look at that... One of the things I've learned is that the time and energy required to deal with low end real estate is often greater than required to deal with the mid or high end. And for a lot less reward. The question then becomes, for less than $50 a month, how much sleep am I willing to lose? I'm not a detractor of real estate as an investment vehicle, but I'd buy a used scooter for 20K and rent it out long term for 3-5K a month before I'd buy a 200K property to rent it out for 1.5K. Or better yet, 10 used scooters at 200K and rent them out for 30-50K. The other things to consider are capital appreciation/depreciation and running costs. Hopefully, real estate would appreciate in value, while scooters would definitely depreciate. Renting gout 10 scooters would probably quite labor intensive. You need a shop open every day probably, so that's a big extra cost, as you'd need staff as well. It's not as simple as comparing 20-50K income with 3-5K income. You need to take all the other things into account. Dealing with one tenant would generally be easier than dealing with 10 scooter renters, damaged scooters, stolen scooters,etc. Not saying that it's a bad choice, but depends what sort of life the individual concerned wants. I know I'd never want to rent out scooters, so wouldn't even consider it. You'd probably have a few deaths over the years as well. Wouldn't be your fault, but I wouldn't want to be in that sort of business. Edited March 12, 2014 by davejones23 1 Link to comment Share on other sites More sharing options...
smutcakes Posted March 19, 2014 Share Posted March 19, 2014 At that level its got be worth a punt. 9% gross yield at that rate- you should buy a whole heap of them! Link to comment Share on other sites More sharing options...
onlycw Posted March 26, 2014 Share Posted March 26, 2014 You get what you pay for, although saying that, if rented all year you would be getting around 8% after any maitenance etc....so not so bad That's the real deal - and it stinks financially. There will be HOA fees. and if the Thai management is like my condo's, then they have some 20% defaulters on their hands, meaning the good guys paying for the freeloaders. Stay there an hour during the night. Cooking smells? noise levels? What's your gut reaction? 1,500 gross rent - and the net rent after vacancy, repairs, service calls etc.? 1,000 B? Appreciation likely? why do you think the guy's selling? But if you buy, drive a hard bargain. Maybe you will get it for a much reduced price? Are there dogs allowed? At my condo, they used to be banned. but with tenants come the souped up cars and morons red-lining cold engines and yapping dogs - often all alone on the balcony. Noise pollution would kill the deal for me! One noisy dog next door and no tenant will put up with that. Be careful Link to comment Share on other sites More sharing options...
onlycw Posted March 26, 2014 Share Posted March 26, 2014 If the condo has experienced no maintenance for 8 years -then it may be in trouble. If the lifts don't work and a culture of' non payment' by co -owners exists -then it may be worthless. This assumes that it has a lift. If it can be rented, it has worth. 1k5 return on 200k = 10% Pretty good deal, for not that large a risk. I would take a chance. Nope, not 10% even in an ideal world with no repairs, vacancies or HOA fees. That "culture of non-payment" by Delight is a great point. At my condo, some penthouse owners owe >600,000 B. with some 20% being on the list of non-payers they hang up sporadically but never ever do something like suing or repossessing a unit. Someone must pay - check it out. And you need to get some return for the risk and the hassle. Just the showings are a PITA. You don't value your own time? all for 1,500 B a month?!?? Think again! Link to comment Share on other sites More sharing options...
KhunBENQ Posted March 26, 2014 Share Posted March 26, 2014 (edited) At that level its got be worth a punt. 9% gross yield at that rate- you should buy a whole heap of them! Yep, and that is what many wealthy Thais do (building a "resort"). Very popular. There seems to big a big demand for cheap rental condos nationwide. But do the maths gentlemen, its not 10% but 9%. My deposit account in Thailand gives around 3%. Edited March 26, 2014 by KhunBENQ Link to comment Share on other sites More sharing options...
rhodie Posted March 26, 2014 Share Posted March 26, 2014 (edited) Wrong post Edited March 26, 2014 by rhodie Link to comment Share on other sites More sharing options...
.png.3b3332cc2256ad0edbc2fe9404feeef0.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now