Buy to Let in Thailand?

[P45Mustang]

Hi All

Does anybody have knowledge or experience of this please?

I am British, partner is Thai. Available funds up to 3m THB.

Location dependent on best ROI in respect of income generation.

Cheers

P45

[robertthebruce]

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

[P45Mustang]

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

Tnx.

Any idea on level of return?

ie. realistic rental income from a 1 bed aptmt in say Pattaya or Phuket?

[robertthebruce]

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

Tnx.

Any idea on level of return?

ie. realistic rental income from a 1 bed aptmt in say Pattaya or Phuket?

Not of the top of my head, but have a look at the various websites, and you might get an indication there, but my experience is that, its not that much... for your capital outlay...

[whoisyourdaddy]

for 3 mil, you can get a decent 1 bed that will rent for up to 20K-25K per month(location and building size) Nova Atrium 25k

for 3 mil, you can get 3 studio's that will rent 8-10K each

for 3 mil you can get a town house which will rent for 15-20k

for 3 mil you can get a small 2 bed, which will rent for 22-25k

All of these in Pattaya

Edited March 13, 2014 by whoisyourdaddy

[P45Mustang]

for 3 mil, you can get a decent 1 bed that will rent for up to 20K-25K per month(location and building size) Nova Atrium 25k

for 3 mil, you can get 3 studio's that will rent 8-10K each

for 3 mil you can get a town house which will rent for 15-20k

for 3 mil you can get a small 2 bed, which will rent for 22-25k

All of these in Pattaya

tnx.

Long term residential let, or holiday let?

Any difference?

[whoisyourdaddy]

for 3 mil, you can get a decent 1 bed that will rent for up to 20K-25K per month(location and building size) Nova Atrium 25k

for 3 mil, you can get 3 studio's that will rent 8-10K each

for 3 mil you can get a town house which will rent for 15-20k

for 3 mil you can get a small 2 bed, which will rent for 22-25k

All of these in Pattaya

tnx.

Long term residential let, or holiday let?

Any difference?

Long term, minimum 6 months,

Holiday Let would be higher prices, but also more headaches for you, as local agents are not the most reliable bunch,

[P45Mustang]

So a 3mil investment could generate up to 300,000THB per annum?

ie.10% return, less admin/agents costs.

[whoisyourdaddy]

So a 3mil investment could generate up to 300,000THB per annum?

ie.10% return, less admin/agents costs.

That is about correct, however again i would really urge you NOT to use any agents, they are simply useless,

They will not look after the property

They will not chase unpaid rent

They will not check the property properly upon checking out

They may well steal the money either directly or indirectly, claiming tenant has not paid

They may well advise you property is empty, while it is rented and they are pocketing the money.

The usual procedure here is that agents find tenant, get the 1st month rent and you never see them again.

[P45Mustang]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

[whoisyourdaddy]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

Absolutely

[sotsira]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

That's assuming that you can get a full 12 months rental per year.

A prudent calculation would be a annual return of 200k which turns

out an ROI of about 6-7%

[PattayaPhom]

Be careful on here of the negative comments from those with two happneys to rub together. Pattaya you can get 8-10% return from long term lets. View Talay or Rimhad is best...if your wife is Thai, you may want to consider building Thai style rooms, 3 mil should get you land and build for 8 rooms with approx 15% return. Not sexy but it works. 67 Million Thais in this country all needing somewhere to live.

[KittenKong]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

Absolutely

Believe that and you will believe anything.

The world and his wife are currently buying off-plan condos in Pattaya/Jomtien with a view to renting them out for fantastic returns, yet even at the peak of high season the existing condos do not all find tenants and in the low season even fewer are occupied. So just who is going to be renting all these new ones (if they actually all get built) and at what price?

[KittenKong]

Be careful on here of the negative comments from those with two happneys to rub together.

Be even more careful of agents spouting totally imaginary figures in order to pump the market up.

If it was really so easy to do this then would not the agents be buying all these rental properties themselves instead of desperately trying to shift them to some mug who just got off the banana boat?

Some of the most impecunious and incompetent people on the planet are scratching a living in Pattaya trying to sell real estate.

[Torrens54]

So a 3mil investment could generate up to 300,000THB per annum?

ie.10% return, less admin/agents costs.

That is about correct, however again i would really urge you NOT to use any agents, they are simply useless,

They will not look after the property

They will not chase unpaid rent

They will not check the property properly upon checking out

They may well steal the money either directly or indirectly, claiming tenant has not paid

They may well advise you property is empty, while it is rented and they are pocketing the money.

The usual procedure here is that agents find tenant, get the 1st month rent and you never see them again.

I agree, manage the rental yourself, or get your wife to do it, as you may be asked to show a Work Permit at a later date if they think you are "working" on Managing your Rental Property.

Wouldn't trust an Agent in a Mad Fit!

[whoisyourdaddy]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

Absolutely

Believe that and you will believe anything.

The world and his wife are currently buying off-plan condos in Pattaya/Jomtien with a view to renting them out for fantastic returns, yet even at the peak of high season the existing condos do not all find tenants and in the low season even fewer are occupied. So just who is going to be renting all these new ones (if they actually all get built) and at what price?

Ohh the usual suspects .

Naturally if you put for rent sign in your window , property will be empty for long time. Yet if you some some brain and do some marketing just as with anything else, property will always be rented for most part of the year.

Would not take a rocket scientist to check out classifieds for well priced condo 's to see the shortage of rental choices, especially 1 bed

[ezzra]

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

Indeed, as an investor in the real estate market, 3 mil will buy you a house in the peripheries of

up country town with minimum ROI, not worth the hassle of dealing with tenants,

put in a saving account that bear 2.8% with the bank of Audhaya (Krug sri bank )

[whoisyourdaddy]

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

Indeed, as an investor in the real estate market, 3 mil will buy you a house in the peripheries of

up country town with minimum ROI, not worth the hassle of dealing with tenants,

put in a saving account that bear 2.8% with the bank of Audhaya (Krug sri bank )

Lol, more nonsense.

Townhouses in center of Pattaya 2.1m-3m, rented all year round.

Place where I live , 2.5 m and have a queue of people wanting to rent,15k per month

[jimbeam1]

tnx.

Bottom line for me is best way of generating income from a 3mil investment.

10% relatively risk free ( points above noted) looks reasonable?

Absolutely

Believe that and you will believe anything.

The world and his wife are currently buying off-plan condos in Pattaya/Jomtien with a view to renting them out for fantastic returns, yet even at the peak of high season the existing condos do not all find tenants and in the low season even fewer are occupied. So just who is going to be renting all these new ones (if they actually all get built) and at what price?

Exactly that.

Jb1

[Jerry Cornelius]

If your home currency is the British Pound, then less than 10 years ago you would have been looking at properties priced at 4 million THB. You would also have got a hell of a lot more for your money.

If you're looking at a long term investment in Thai Real Estate nowadays, then the pickings are slim. You may get a better ROI than investing in the UK banking system but the benefits are slight in the short term whilst the risk is higher. In the longer term the merits and demerits of having invested in Thailand should transpose themselves.

Investing in Thai Real Estate worked for us but I wouldn't do it now. I just don't see the prospective growth in ROI that we have experienced in the past. The initial cash outlay is just too great nowadays.

We targetted a purely Thai customer base for the simple reason that they make up the vast majority of the folks that live here.

Best of luck if you decide to proceed with your investment idea. I hope you achieve the longer term success we did.

When you visit the Land Office to register your ownership, ask; the price that it (the land) last transferred for, they're obliged to tell you. Then work out the ROI.

Jerry

Edited March 14, 2014 by Jerry Cornelius

[MAMMartin]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Hi

To be honest, with that kind of capital there would be very small returns ..

I would suggest keeping your money, and trying to save more and buy in the UK,

All the best

Cheers

Robert

Tnx.

Any idea on level of return?

ie. realistic rental income from a 1 bed aptmt in say Pattaya or Phuket?

Not of the top of my head, but have a look at the various websites, and you might get an indication there, but my experience is that, its not that much... for your capital outlay...

@ Robertthebruce "very small returns" but "off the top of your head" no idea! define small - the percentage return would be roughly the same regardless of the size of investment.

@P45 - depends how you use the money. Example: 3million in Bangkok will get you a 1bed/studio apartment within an easy shot of a sky train or subway station. Typical rental around 14,000 to 18,000. About 5% which is fairly typical in Thailand. If you were to look at older properties you can often get more for you money. Note as well that is 5% based on 12months let. You need to allow for service fees and possible empty months to get a more accurate figure.

Another option - if your partner is your wife and you can show an income other than the rent - is to get a mortgage. 3m as a 30% deposit would leverage you 10m. Then you can get a 50wah plot of land develop into a 6 floor walk up with 4 rooms per floor that rent for 6k to 7k. Total investment just shy of 10m.

10mths of Income - 1.4m (4rooms x 6 floors x 6k pm)

Mortgage on 7m = approx 45k pm = 540k

Profit before tax and expenses = 900k pa (75k pm)

You could even make the 7th floor one big apartment for yourself.

[Steen1507]

From our experience here as a rental/lease persons (from Australia) we know there is a lot of people looking for a good place to Lease on long term.
So I beleive it is just a case of *finding* the right tennant, and you can get 20k x 12 per year.
It has to be within the bahtbus route either Jomtien or Pattaya. Then you will always have it rented, and with 2 month rent down as *bond* you cant loose. But yes you do need to be here your self or have somebody you trust to look after it and collect rent.

[denby45]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Be careful on here of the negative comments from those with two happneys to rub together. Pattaya you can get 8-10% return from long term lets. View Talay or Rimhad is best...if your wife is Thai, you may want to consider building Thai style rooms, 3 mil should get you land and build for 8 rooms with approx 15% return. Not sexy but it works. 67 Million Thais in this country all needing somewhere to live.

Please explain how the figures work.

for me 8 rooms would generate only 16,000 a month.

Thai's pay around 2000 at most

Yearly income would be 192,000

192,000/3,000,000 = 6.4%

That's with zero costs.

Den

[PattayaPhom]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Be careful on here of the negative comments from those with two happneys to rub together. Pattaya you can get 8-10% return from long term lets. View Talay or Rimhad is best...if your wife is Thai, you may want to consider building Thai style rooms, 3 mil should get you land and build for 8 rooms with approx 15% return. Not sexy but it works. 67 Million Thais in this country all needing somewhere to live.

Please explain how the figures work.

for me 8 rooms would generate only 16,000 a month.

Thai's pay around 2000 at most

Yearly income would be 192,000

192,000/3,000,000 = 6.4%

That's with zero costs.

Den

Because 3mil would get 8 air con with hot water 36sqm which rent 4.5~5k a month. Been doing it years now with 24 rooms in total and next completion late this year

[akentryan]

You didn't specify and area. We have a 2Br 2Ba townhouse near Rama VII bridge in Bangkok. For sale at 2.5M partially furnished. Rent in the area is minimum of 15K per month.

[Benmart]

Wait a bit my friend before jumping into this market. The forecast is partly cloudy with the chance of a thunderstorm.

[whoisyourdaddy]

You didn't specify and area. We have a 2Br 2Ba townhouse near Rama VII bridge in Bangkok. For sale at 2.5M partially furnished. Rent in the area is minimum of 15K per month.

OP mentioned Pattaya or Phuket , but your also sounds same as Pattaya prices and rents

[P45Mustang]

Thanks for replies everybody.

Appreciated.

Not sure if 3mil investment in BTL is better than 3mil investment in a herd of buffaloes in the boonies.

All comments appreciated.

Cheers

P45

[whoisyourdaddy]

Thanks for replies everybody.

Appreciated.

Not sure if 3mil investment in BTL is better than 3mil investment in a herd of buffaloes in the boonies.

All comments appreciated.

Cheers

P45

That is a lot of buffaloes for 3 mil