Good beach side condo-hotel investiment?

[umbanda]

First....I do not have any financial interest or connection with the building management.

I responded to 2 posting of members looking for a vacation advice, and makes me look online again for a place I rented in December 2012 to spend one month in Cha Am. The Cattareya Condo-Hotel Look online using just cattareya and dot com.

At that time I tough that for several reasons Cha Am had good potential, being a lot cheaper and so close to Hua Hin and BK.

I rented a nice studio in this condo-hotel by the beach for 6.000thb for one month in 2012. Now looks like the rent is 7.000thb, and probably more in high season. At that time, those studios were for sale for about 800.000thb, and by my numbers were a good buy....but I didn't. Now are selling for 1.400.000thb. At that time also 2 stories furnished townhouses 50 mts from the main beach were renting for 6000th/month on a yearly lease, and selling for under 1.5 million. Now?..I don't know.

This building it is not a luxury place, probably because the rent is cheap, used mainly for female university students and farangs owners, but looks good, big parking, ocean views from every room, and have a wonderful pool (always empty or used by few farangs). Can be rented easily to farangs or students. In my opinion the ratio value/rent still good for a condo by the beach.

Edited September 27, 2014 by umbanda

[JeremyBowskill]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

[ldnguy]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

Edited September 27, 2014 by ldnguy

[danbradster]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

If it's a good deal now after almost doubling in a year, it must have been an extremely good deal the year before, which I doubt. More likely is that it's overpriced now.

[trogers]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

If it's a good deal now after almost doubling in a year, it must have been an extremely good deal the year before, which I doubt. More likely is that it's overpriced now.

Rental yield of 6% gross is not a good deal, rent at 7k and selling at 1.4m, because holiday rentals have long low seasons and being left vacant.

And being near the sea means higher maintenance costs, both in the unit and the common areas.

[PattayaPhom]

Units in Catteraya havnt been THB 800,000 since 2007, there are still a few websites advertising that are years old. An empty unit in need of modernisation is just over 1 Mil. The communual areas are let go, lifts not working sometimes and the constant stream and noise of howling students. Great location, bad building for either living or holidays.

[umbanda]

Units in Catteraya havnt been THB 800,000 since 2007, there are still a few websites advertising that are years old. An empty unit in need of modernisation is just over 1 Mil. The communual areas are let go, lifts not working sometimes and the constant stream and noise of howling students. Great location, bad building for either living or holidays.

You may be right....I do not live in the area, but in 2012 I saw a similar unit in a similar building 2 blocks from the beach in Hua Hin and the price of a resale unit was 2 mill and the monthly rent 14000thb. And..I really didn't liked Hua Hin...Cha Am have the Thai feeling I like. Why vacationing in Thailand on a beach that looks and feels like a busy California's one....with California's prices and California's shopping around?....Just my opinion....

By the way...In 2012 I didn't saw any maintenance problem in Cattareya..and the students, mostly females, were not spending too much time around, only in weekeend. Also I like that young crow around there....It is matter of taste..and money...I think...

Edited September 28, 2014 by umbanda

[JeremyBowskill]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

Don't let me stop you putting yer hand in yer pocket.

[ldnguy]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

Don't let me stop you putting yer hand in yer pocket.

I already have. I've bough properties that have already tripled in price and they went up 5 fold after that and are still rising. I wasn't referring to this condo but property in general. If what you said was true then all UK property would be cheap because most of it doubled in price decades ago.

What you say just doesn't make sense. My grandparents paid £200 for their house, so you wouldn't have bought at £400, but it's now on sale for over £100k. Plenty of other examples. You remind me of all those people that missed out on great properties because they said they were overpriced. Now they complain that they're even more overpriced. There is no reason for property to stop rising in price once the price has doubled (or close to doubled). Usually the opposite will be true. If a property has double in price then the area must be getting popular and more price rises can be expected.

[ldnguy]

Units in Catteraya havnt been THB 800,000 since 2007, there are still a few websites advertising that are years old. An empty unit in need of modernisation is just over 1 Mil. The communual areas are let go, lifts not working sometimes and the constant stream and noise of howling students. Great location, bad building for either living or holidays.

You may be right....I do not live in the area, but in 2012 I saw a similar unit in a similar building 2 blocks from the beach in Hua Hin and the price of a resale unit was 2 mill and the monthly rent 14000thb. And..I really didn't liked Hua Hin...Cha Am have the Thai feeling I like. Why vacationing in Thailand on a beach that looks and feels like a busy California's one....with California's prices and California's shopping around?....Just my opinion....

By the way...In 2012 I didn't saw any maintenance problem in Cattareya..and the students, mostly females, were not spending too much time around, only in weekeend. Also I like that young crow around there....It is matter of taste..and money...I think...

Yes, location is a very personal thing. Many Thais obviously like the area and Thais are the main buyers there. You are very lucky if you prefer a cheaper area, as easier on the wallet.

[JeremyBowskill]

Rent ratio is about right I guess but it would boil my p!ss to pay near double for something a year or so later.

If something is a good buy, then why would you care what it cost a year ago. All that matters is whether it's a good deal now.

But this doesn't look like a good deal at all to me.

Don't let me stop you putting yer hand in yer pocket.

I already have. I've bough properties that have already tripled in price and they went up 5 fold after that and are still rising. I wasn't referring to this condo but property in general. If what you said was true then all UK property would be cheap because most of it doubled in price decades ago.

What you say just doesn't make sense. My grandparents paid £200 for their house, so you wouldn't have bought at £400, but it's now on sale for over £100k. Plenty of other examples. You remind me of all those people that missed out on great properties because they said they were overpriced. Now they complain that they're even more overpriced. There is no reason for property to stop rising in price once the price has doubled (or close to doubled). Usually the opposite will be true. If a property has double in price then the area must be getting popular and more price rises can be expected.

i said "in a year or so", what your grandparents, uncles,brothers, sister did six decades ago wasn't in question.

We are talking about a leasehold on a box room, not prime UK real estate also.

Edited September 28, 2014 by JeremyBowskill

[ldnguy]

Don't let me stop you putting yer hand in yer pocket.

I already have. I've bough properties that have already tripled in price and they went up 5 fold after that and are still rising. I wasn't referring to this condo but property in general. If what you said was true then all UK property would be cheap because most of it doubled in price decades ago.

What you say just doesn't make sense. My grandparents paid £200 for their house, so you wouldn't have bought at £400, but it's now on sale for over £100k. Plenty of other examples. You remind me of all those people that missed out on great properties because they said they were overpriced. Now they complain that they're even more overpriced. There is no reason for property to stop rising in price once the price has doubled (or close to doubled). Usually the opposite will be true. If a property has double in price then the area must be getting popular and more price rises can be expected.

i said "in a year or so", what your grandparents, uncles,brothers, sister did six decades ago wasn't in question.

We are talking about a leasehold on a box room, not prime UK real estate also.

If someone bought a box room a year ago from a distressed seller and is now selling for double the price, it could still be great value. You need to judge whether it's a good deal now. Last year's price is irrelevant. The price last year may have been well below real value. I don't mean this condo, but in general. What you say just doesn't make any sense.

[JeremyBowskill]

Don't let me stop you putting yer hand in yer pocket.

I already have. I've bough properties that have already tripled in price and they went up 5 fold after that and are still rising. I wasn't referring to this condo but property in general. If what you said was true then all UK property would be cheap because most of it doubled in price decades ago.

What you say just doesn't make sense. My grandparents paid £200 for their house, so you wouldn't have bought at £400, but it's now on sale for over £100k. Plenty of other examples. You remind me of all those people that missed out on great properties because they said they were overpriced. Now they complain that they're even more overpriced. There is no reason for property to stop rising in price once the price has doubled (or close to doubled). Usually the opposite will be true. If a property has double in price then the area must be getting popular and more price rises can be expected.

i said "in a year or so", what your grandparents, uncles,brothers, sister did six decades ago wasn't in question.

We are talking about a leasehold on a box room, not prime UK real estate also.

If someone bought a box room a year ago from a distressed seller and is now selling for double the price, it could still be great value. You need to judge whether it's a good deal now. Last year's price is irrelevant. The price last year may have been well below real value. I don't mean this condo, but in general. What you say just doesn't make any sense.

It makes perfect sense these projects are 2 a penny, go find another new build or off plan project and get the same for 800k somewhere else. Or if you are dead set on this building hang out for another distressed seller (assuming that's the case). At a guess, I would have said this building has found its price point in the market and buying at that price would probably mean you were buying at the top end.

I too have bought plenty of properties both here and in the UK. I managed to retire at 28, so my nonsense must have been more luck than judgement I guess.........

[ldnguy]

I already have. I've bough properties that have already tripled in price and they went up 5 fold after that and are still rising. I wasn't referring to this condo but property in general. If what you said was true then all UK property would be cheap because most of it doubled in price decades ago.

What you say just doesn't make sense. My grandparents paid £200 for their house, so you wouldn't have bought at £400, but it's now on sale for over £100k. Plenty of other examples. You remind me of all those people that missed out on great properties because they said they were overpriced. Now they complain that they're even more overpriced. There is no reason for property to stop rising in price once the price has doubled (or close to doubled). Usually the opposite will be true. If a property has double in price then the area must be getting popular and more price rises can be expected.

i said "in a year or so", what your grandparents, uncles,brothers, sister did six decades ago wasn't in question.

We are talking about a leasehold on a box room, not prime UK real estate also.

If someone bought a box room a year ago from a distressed seller and is now selling for double the price, it could still be great value. You need to judge whether it's a good deal now. Last year's price is irrelevant. The price last year may have been well below real value. I don't mean this condo, but in general. What you say just doesn't make any sense.

It makes perfect sense these projects are 2 a penny, go find another new build or off plan project and get the same for 800k somewhere else. Or if you are dead set on this building hang out for another distressed seller (assuming that's the case). At a guess, I would have said this building has found its price point in the market and buying at that price would probably mean you were buying at the top end.

I too have bought plenty of properties both here and in the UK. I managed to retire at 28, so my nonsense must have been more luck than judgement I guess.........

I've no idea why you keep going on about this building. I have no intention of investing in property in Thailand.