taxin Posted July 12, 2006 Share Posted July 12, 2006 Is it me or is this guaranteed return thing getting out of hand ? Have just read an article in a Phuket magazine about an up & coming development in Phuket, it states that buyers will get an 8% guaranteed return, not for 1 year but for 3 whole years !!! In the time I have been in Thailand I have seen this climb from a modest 3% to a ridiculous 8%, do people really believe this rubbish ? OK, I dont work in Real Estate but I know that this "Guaranteed" return is simply loaded on the price of the property, which means that a 5 million baht home is now being sold for 6.2 million, simply to cover this "gimmick". The crazy thing about this is the e mail address, which happens to refer to a timeshare company ! So no guesses to what they are doing with your "dream home" when your away ! How can they get away with this ? Surely with the more stringent laws in place this cannot be allowed ? Anyone who can enlighten me on this please do. My sincere apologies to you real estate sales guys out there but this is a joke !!! Link to comment Share on other sites More sharing options...
LaoPo Posted July 12, 2006 Share Posted July 12, 2006 Is it me or is this guaranteed return thing getting out of hand ? Have just read an article in a Phuket magazine about an up & coming development in Phuket, it states that buyers will get an 8% guaranteed return, not for 1 year but for 3 whole years !!!In the time I have been in Thailand I have seen this climb from a modest 3% to a ridiculous 8%, do people really believe this rubbish ? OK, I dont work in Real Estate but I know that this "Guaranteed" return is simply loaded on the price of the property, which means that a 5 million baht home is now being sold for 6.2 million, simply to cover this "gimmick". The crazy thing about this is the e mail address, which happens to refer to a timeshare company ! So no guesses to what they are doing with your "dream home" when your away ! How can they get away with this ? Surely with the more stringent laws in place this cannot be allowed ? Anyone who can enlighten me on this please do. My sincere apologies to you real estate sales guys out there but this is a joke !!! 8% 'Guanranteed' is only 'guanranteed' if a bank 'guanrantees' the 8%.....will any Thai bank do that? LaoPo Link to comment Share on other sites More sharing options...
Chang_paarp Posted July 13, 2006 Share Posted July 13, 2006 Ask the price if you do not want the guaranteed return. Or make an offer of 20% less than the advertised price If the guarantee is 3x 8% you might find that a price may well drop of 20%, puts you in a better postion. 1M + 3x8%= 1,240,000 Offered price 1,2400,00 - 20% = 992,000 Link to comment Share on other sites More sharing options...
taxin Posted July 13, 2006 Author Share Posted July 13, 2006 I notice a hint of silence from the so called "Industry Professionals" that often use this forum ?..... Any comments ?? Link to comment Share on other sites More sharing options...
SamSipEt Posted July 13, 2006 Share Posted July 13, 2006 I notice a hint of silence from the so called "Industry Professionals" that often use this forum ?..... Any comments ?? Sure...they could only agree with your summary of the situation which is spot on. Wait and see next year the prices will have gone up by another 5 percent and as well as the guaranteed returns you will also get free curtains and a washing machine Perhaps in a year later you will also have the free services of a maid for the first year as well Link to comment Share on other sites More sharing options...
snoophound Posted July 13, 2006 Share Posted July 13, 2006 Well its not abnormal to sell with a guarantee. However is it worth the paper its printed on.? Common pratice around the world and many developers are building in Phuket again. Try for a gaurantee thats underwritten by a reputable insurance co or bank. Nett nett ,dont buy if you need the gaurantee its too risky I notice a hint of silence from the so called "Industry Professionals" that often use this forum ?..... Any comments ?? Sure...they could only agree with your summary of the situation which is spot on. Wait and see next year the prices will have gone up by another 5 percent and as well as the guaranteed returns you will also get free curtains and a washing machine Perhaps in a year later you will also have the free services of a maid for the first year as well Link to comment Share on other sites More sharing options...
taxin Posted July 13, 2006 Author Share Posted July 13, 2006 Well its not abnormal to sell with a guarantee.However is it worth the paper its printed on.? Common pratice around the world and many developers are building in Phuket again. Try for a gaurantee thats underwritten by a reputable insurance co or bank. Nett nett ,dont buy if you need the gaurantee its too risky I notice a hint of silence from the so called "Industry Professionals" that often use this forum ?..... Any comments ?? Sure...they could only agree with your summary of the situation which is spot on. Wait and see next year the prices will have gone up by another 5 percent and as well as the guaranteed returns you will also get free curtains and a washing machine Perhaps in a year later you will also have the free services of a maid for the first year as well I dont think warranting the guarantee is an issue really, afterall its only money they are giving back to you what you have already paid. Money they originally overcharged you for in the 1st place ! Point is, is Real Estate in Thailand really that bad that they have to resort to such measures ? Im sure the tax office wont mind though, double taxation at its best ! A nice healthy 15% withholding tax on the 8% wont be sniffed at. Not sure if the buyer would be pleased though ! Link to comment Share on other sites More sharing options...
thaigene2 Posted July 15, 2006 Share Posted July 15, 2006 Real estate in Thailand is in really deep, deep doo-doo now. The Bangkok Post has almost daily glossy cover pages of housign developers trying desparately to attract foreigners again. Amazing. ..I mean HOUSES..not condos. They have photos and glowing desciptions of farang buyers about their developments (starting at 12 million or some such nonsense). Just shows that the Bangkok Post isn't afraid to let its advertisers promote breaking the laws about foreigners buying land/houses. Of course then again, what type of newspaper would cover up its front page with a glossy ad anyway? (I know..one trying to make money..rhetorical) Link to comment Share on other sites More sharing options...
Crossy Posted July 15, 2006 Share Posted July 15, 2006 Just shows that the Bangkok Post isn't afraid to let its advertisers promote breaking the laws about foreigners buying land/houses. When did the law on house ownership change??? Foreigners are, and have always been (in recent times anyway), permitted to own houses or condos. It's only the LAND which we can't own. I suspect that the developers are offering renewable leases on the land for foreign buyers. How legal the 'renewable' part of these leases is open to debate. Link to comment Share on other sites More sharing options...
expatgaz Posted July 15, 2006 Share Posted July 15, 2006 Guarenteed return is total BS as anyone knows.Read the small print, i.e terms of Conditions.Imagine how hard & costly it would be to get your 8% return paid to you by the developer ? They just want to jazz up the fact there having you away for 12 mil seem a little better. Link to comment Share on other sites More sharing options...
fisherd3 Posted July 15, 2006 Share Posted July 15, 2006 I notice a hint of silence from the so called "Industry Professionals" that often use this forum ?..... Any comments ?? Sure...they could only agree with your summary of the situation which is spot on. Wait and see next year the prices will have gone up by another 5 percent and as well as the guaranteed returns you will also get free curtains and a washing machine Perhaps in a year later you will also have the free services of a maid for the first year as well And soon it will be a 30+30+30+30 year lease they recommend Link to comment Share on other sites More sharing options...
Jai Yen Yen Posted July 15, 2006 Share Posted July 15, 2006 And soon it will be a 30+30+30+30 year lease they recommend Yeah, I've got one of them. Cool, eh? Link to comment Share on other sites More sharing options...
backflip Posted July 17, 2006 Share Posted July 17, 2006 I received a brochure from a leading Bangkok real estate broker offering condos at a guaranteed 8%. After you read the fine print, you'll realize that the guarantee is anything but. To guarantee the 8%, you have to buy a certain level of apartment, and decoration...not just a "run-of-the-mill" condo. The fine print goes on to read (something similar to): the 8% return is based on the Bangkok real estate market remaining robust, and that there isn't competition that would lead to a deterioration of rentals...and on, and on. Essentially, you'll get 8% as long as they find someone to lease your condo at a price that will give you an 8% return. Link to comment Share on other sites More sharing options...
taxin Posted July 18, 2006 Author Share Posted July 18, 2006 I received a brochure from a leading Bangkok real estate broker offering condos at a guaranteed 8%. After you read the fine print, you'll realize that the guarantee is anything but. To guarantee the 8%, you have to buy a certain level of apartment, and decoration...not just a "run-of-the-mill" condo. The fine print goes on to read (something similar to): the 8% return is based on the Bangkok real estate market remaining robust, and that there isn't competition that would lead to a deterioration of rentals...and on, and on. Essentially, you'll get 8% as long as they find someone to lease your condo at a price that will give you an 8% return. And if the place rents out for much more you still only get 8% ! The decoration add on thing is nothing new, they did it with a lot of the 5 star resort units, give you a 4% Guaranteed return but you had to spend 1 million baht on the resorts "chosen" furniture, furniture you can pick up yourself at Home Pro for 200k ! I would have expected this to be more difficult to do at 8%, particularly when trying to justify charging 2 million for the furniture, but I guess by the looks of it they have other ways of loading the price ! Maybe next it will be a free swimming pool but you have to pay 1 million baht for the water ! Link to comment Share on other sites More sharing options...
Rinrada Posted July 18, 2006 Share Posted July 18, 2006 Only ONE guarantee in life and that is ................ .. another HOT day.... Link to comment Share on other sites More sharing options...
suiging Posted July 21, 2006 Share Posted July 21, 2006 Things that look too good to be true.........are. Link to comment Share on other sites More sharing options...
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