Rental Return/yield On House In Pattaya

[NordicMan]

The wife and I are considering to buy a house in Pattaya for renting out. We do not plan to live in it during holidays.

Our budget would be up to about 5mill baht.

What is a common rental yield, or monthly rent, on a house of approx this value, with a private swimming pool and garden patch?

What occupancy rate can we expect?

I do understand that the income and occupancy fluctuates a lot and involves some luck, but I am looking for some averages to help base a decision on.

Are rental yields higher in Hua Hin?

We prefer to get something in a touristy area reasonably close to bangkok, so ended up considering primarily pattaya but also hua hin. Phuket etc. are a bit too far away for easy access.

many thanks

NM

[Pakboong]

The wife and I are considering to buy a house in Pattaya for renting out. We do not plan to live in it during holidays.

Our budget would be up to about 5mill baht.

What is a common rental yield, or monthly rent, on a house of approx this value, with a private swimming pool and garden patch?

What occupancy rate can we expect?

I do understand that the income and occupancy fluctuates a lot and involves some luck, but I am looking for some averages to help base a decision on.

Are rental yields higher in Hua Hin?

We prefer to get something in a touristy area reasonably close to bangkok, so ended up considering primarily pattaya but also hua hin. Phuket etc. are a bit too far away for easy access.

many thanks

NM

[Pakboong]

The wife and I are considering to buy a house in Pattaya for renting out. We do not plan to live in it during holidays.

Our budget would be up to about 5mill baht.

What is a common rental yield, or monthly rent, on a house of approx this value, with a private swimming pool and garden patch?

What occupancy rate can we expect?

I do understand that the income and occupancy fluctuates a lot and involves some luck, but I am looking for some averages to help base a decision on.

Are rental yields higher in Hua Hin?

We prefer to get something in a touristy area reasonably close to bangkok, so ended up considering primarily pattaya but also hua hin. Phuket etc. are a bit too far away for easy access.

many thanks

NM

Unless your wife is Thai, forget it. Read the other related posts on this site regarding house purchases.

[NordicMan]

The wife and I are considering to buy a house in Pattaya for renting out. We do not plan to live in it during holidays.

Our budget would be up to about 5mill baht.

What is a common rental yield, or monthly rent, on a house of approx this value, with a private swimming pool and garden patch?

What occupancy rate can we expect?

I do understand that the income and occupancy fluctuates a lot and involves some luck, but I am looking for some averages to help base a decision on.

Are rental yields higher in Hua Hin?

We prefer to get something in a touristy area reasonably close to bangkok, so ended up considering primarily pattaya but also hua hin. Phuket etc. are a bit too far away for easy access.

many thanks

NM

Unless your wife is Thai, forget it. Read the other related posts on this site regarding house purchases.

Pakboong, thank you for your response.

My wife is Thai.

I have read a good number of related posts.

Do you have any information you could share?

many thanks

NM

Edited June 13, 2006 by NordicMan

[eljeque]

Bad return on investment.

Difficulties in ownership.

Headaches in locating tennants.

Cannot trust many agents in town with keeping tennants in the home, or giving you your fair share without manufacturing bills from thin air, or keeping the rental income in their pockets.

Renters will not take care of the home and neither will the agents.

If the property is owned by a company that you have formed here, then you will pay 10,000 / year in taxes/fees.

There is already an oversupply of property;

a decrease in the already low number of interested buyers;

and a low rate of return on the property.

You would receive, if things went really well, 6% / year after paying fees, maintenance, etc. And, it is hel_l to resell property here.

Property is overpriced worldwide right now, and that includes Thailand and Pattaya even though the people here seem to think that they are shielded from the world, although they have simply lost perspective. Economic events internationally affect the ability of foreigners to buy property here, and that affects your resale value.

Invest your money elsewhere.

[Phil Conners]

Expect about 0.5% return, i.e. if you buy a house @ 5m expect you'll realistically get 25,000 baht/month in rent. That is on one year leases and you will have to calculate with at least 1-2 months between leases where it's empty.

You can ask more but there are a LOT of empty houses in the Pattaya area due to owners expecting too much.

Agents will take a cut out of this. Do not believe them when they say they can get you a higher rent. As the previous poster already mentionned, you should not expect they do much in terms of taking care and looking after your property.

Edited June 16, 2006 by madsere