Buy to Let in Thailand?

[Rupert2]

I have moved back to Hawaii - so I got a studio - already rented for the year - managed for 1K bhat per month if you want.

rent is 7K per month. sell for 1.1 mil. VT1B.

[P45Mustang]

If you have a medical problem best not to ask a quack?

[noodle]

 

I

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.

/quote] 

The land office only know their valuation price and the price stated by the parties on the sale document. Not necessarily the same as what changed hands.

[Cosmo88]

I believe that 3 MTHB is too little to get anything with a decent quality and yield.

You will end up in the low-end condo category in quite poor locations in Pattaya or Bangkok, and there is a huge oversupply of those. They may also be poorly constructed and the property management may be bad or in the worst case non-existent.

From 5 MTHB and upwards you can make a better investment, IF you focus on developer quality and location.

Edited March 17, 2014 by Cosmo88

[noodle]

 

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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

 

OK, I'm curious.

May I ask where in Pattaya (not dark side) can one buy land and build 8 rooms for 3mil?

I'm guessing 4/2 story so about 25/50TW land?

[Delight]

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.

With respect to agents my view is that they find and then 'rent you' a tenant.

That is all that you can expect.

If you choose not to use an agent ,as 'whoisyourdaddy' suggests-then your course of action is straight forward.Find your own tenants

[PattayaPhom]

 

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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

 

OK, I'm curious.

May I ask where in Pattaya (not dark side) can one buy land and build 8 rooms for 3mil?

I'm guessing 4/2 story so about 25/50TW land?

2 storey construction costs are 50% more than single. Why not the Dark Side? many Thais live and work there so an ideal place.

[PattayaPhom]

I believe that 3 MTHB is too little to get anything with a decent quality and yield.

You will end up in the low-end condo category in quite poor locations in Pattaya or Bangkok, and there is a huge oversupply of those. They may also be poorly constructed and the property management may be bad or in the worst case non-existent.

From 5 MTHB and upwards you can make a better investment, IF you focus on developer quality and location.

Returns on cheaper properties can be more than expensive ones

[whoisyourdaddy]

2 storey construction costs are 50% more than single. Why not the Dark Side? many Thais live and work there so an ideal place.

Many do no seem to understand that chasing tourist money is no way to make money.

One has to cater to both markets , residents and tourists and dark side is perfect for long term rentals.

[bangkapi]

Location, location, and location.

[Cosmo88]

I believe that 3 MTHB is too little to get anything with a decent quality and yield.

You will end up in the low-end condo category in quite poor locations in Pattaya or Bangkok, and there is a huge oversupply of those. They may also be poorly constructed and the property management may be bad or in the worst case non-existent.

From 5 MTHB and upwards you can make a better investment, IF you focus on developer quality and location.

Returns on cheaper properties can be more than expensive ones

Yes it is true that smaller flats typically yield more (in %) than larger ones, provided the location is good.

However, my point was rather about lower-end developments vs. higher-end developments.

When one considers the overall investments made over time, including time/effort spent, repairs, resale price, and the generally higher risks of various forms of sudden costs or other trouble etc, I firmly believe that lower-end properties will on average turn out to be worse investments than higher-end properties.

Edited March 20, 2014 by Cosmo88

[noodle]

 

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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

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OK, I'm curious.

May I ask where in Pattaya (not dark side) can one buy land and build 8 rooms for 3mil?

I'm guessing 4/2 story so about 25/50TW land?

2 storey construction costs are 50% more than single. Why not the Dark Side? many Thais live and work there so an ideal place.

 

Thanks, yes I agree about the dark side.

I was just finding it difficult to see how it could be done west of Sukhumwit.

[besth]

tnx.

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

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

I would say between 6 and 8% more of a reasonable estimate. You will

have expenses and empty periods at several times during the lifetime of

your investment.

I won't comment on the buy/don't buy in Thailand, even less on the "3 million

won't get you a lot" Duh, as you correctly were asking about % ROI.

Good luck with whatever you decide.