Anyone Here Have Success With Buying, Renovating and Selling Property

[Robert2006]

When real estate investing is concerned it seems people think good deals are somewhat easy to find, I can assure you they are not. Unless you get lucky finding a good buy is a lot of work, like sometimes having to look at 100 to 200 properties to find a deal that makes sense.

When I find a property I’m interested in I determine what I want to pay for it and I instantly make an offer, a written offer, usually in the form of a simple “letter of intent”. You should be making at least 5 offers a week because most of them will be rejected. You need to be good at estimating property values, that skill comes from looking at property every day, day in and day out. If you can get a group of investors together, (your own private equity group) sometimes you can get good deals from banks, as an example buying 10 to 15 properties all at one time from a banks foreclosed property collection. During the due diligence period have your team estimate the renovation; your attorney check for clear title, if there are expensive surprises renegotiate your price or walk away. Personally I like speed so I’ll give a 14 day inspection period, close in 21 days, no one’s time is wasted theirs or mine. You must have your team in place and ready to do quick evaluations, if I need more than 14 days I extend the inspection period.

This is the ditch digging of the real estate investment business, no one likes to do it, its tedious and time consuming but it works. Most investors are too lazy to spend the time and effort it takes to find the good deals, you should be working at it 6-8 hours a day. Just keep looking and making offers and you will find success and remember the money is made when you buy.

This is basically what I used to do back in the UK. I used to quite like looking at houses all day, so while it was hard work sometimes, it wasn't so bad. I just put offers in on the ones I thought would work and occasionally someone said yes. That's all you need really. Just don't dwell on the rejections, move on, forget about them.

I've seen some people find one house and get fixated on it and stop looking at others. That's not the way to do it.

Great advice. Thanks.

I too learned to enjoy looking at large amounts of property; it must be done so why fight it, it’s the beginning of the process without it there is nothing. The other vital element is having a good evaluation and renovation team in place, and a good attorney. Renovation costs and legal issues have to be determined accurately and quickly to define if there is a deal or not. Make a mistake here and it can hurt you, this is why your team is so important. Everyone working on your project needs to be paid fairly or the mission will suffer, that’s why you have to be sure your get the right price when you buy or you can end up doing all the work for nothing.

Your team has to be able to finish the renovation quickly so you are back on the market as soon as possible; I prefer properties I can renovate and get back on the market in two to three months. I like to be all in with my profit and be able to market the property 15 to 20% under market value, that’s a home run as far as I’m concerned. Then on to the next deal it’s a technique you really never stop refining each deal will have its own story, I could literally write a book about each deal.

I’ve always thought it amusing when “investors” look at 10 to 15 properties and say there are no good deals on the market. Then usually when they buy a property they overpay for it and spend a year in the remodel, finally they get back on the market at full market value or higher and the property takes forever to sell. If I were to simply define what real estate investing is for me, it is finding a deal that I can get in and out of rapidly and be able to sell below market value quickly and still make my money.

[TheCruncher]

If it was easy, everyone would do it, which would mean no properties for renovating would be available anymore and thereby pushing up the price, which in return would make it not so easy anymore.

[rgs2001uk]

When real estate investing is concerned it seems people think good deals are somewhat easy to find, I can assure you they are not. Unless you get lucky finding a good buy is a lot of work, like sometimes having to look at 100 to 200 properties to find a deal that makes sense.

When I find a property I’m interested in I determine what I want to pay for it and I instantly make an offer, a written offer, usually in the form of a simple “letter of intent”. You should be making at least 5 offers a week because most of them will be rejected. You need to be good at estimating property values, that skill comes from looking at property every day, day in and day out. If you can get a group of investors together, (your own private equity group) sometimes you can get good deals from banks, as an example buying 10 to 15 properties all at one time from a banks foreclosed property collection. During the due diligence period have your team estimate the renovation; your attorney check for clear title, if there are expensive surprises renegotiate your price or walk away. Personally I like speed so I’ll give a 14 day inspection period, close in 21 days, no one’s time is wasted theirs or mine. You must have your team in place and ready to do quick evaluations, if I need more than 14 days I extend the inspection period.

This is the ditch digging of the real estate investment business, no one likes to do it, its tedious and time consuming but it works. Most investors are too lazy to spend the time and effort it takes to find the good deals, you should be working at it 6-8 hours a day. Just keep looking and making offers and you will find success and remember the money is made when you buy.

This is basically what I used to do back in the UK. I used to quite like looking at houses all day, so while it was hard work sometimes, it wasn't so bad. I just put offers in on the ones I thought would work and occasionally someone said yes. That's all you need really. Just don't dwell on the rejections, move on, forget about them.

I've seen some people find one house and get fixated on it and stop looking at others. That's not the way to do it.

Great advice. Thanks.

I too learned to enjoy looking at large amounts of property; it must be done so why fight it, it’s the beginning of the process without it there is nothing. The other vital element is having a good evaluation and renovation team in place, and a good attorney. Renovation costs and legal issues have to be determined accurately and quickly to define if there is a deal or not. Make a mistake here and it can hurt you, this is why your team is so important. Everyone working on your project needs to be paid fairly or the mission will suffer, that’s why you have to be sure your get the right price when you buy or you can end up doing all the work for nothing.

Your team has to be able to finish the renovation quickly so you are back on the market as soon as possible; I prefer properties I can renovate and get back on the market in two to three months. I like to be all in with my profit and be able to market the property 15 to 20% under market value, that’s a home run as far as I’m concerned. Then on to the next deal it’s a technique you really never stop refining each deal will have its own story, I could literally write a book about each deal.

I’ve always thought it amusing when “investors” look at 10 to 15 properties and say there are no good deals on the market. Then usually when they buy a property they overpay for it and spend a year in the remodel, finally they get back on the market at full market value or higher and the property takes forever to sell. If I were to simply define what real estate investing is for me, it is finding a deal that I can get in and out of rapidly and be able to sell below market value quickly and still make my money.

^^^^, to satisfy my curiosity, how many properties have you bought, renovated and sold in Thailand, in say the last 5 years?

Where would in your opinion present the best opportunities right now, Chiamg Mai, Bangkok, Pattaya or Phuket?

How long did it take you to get up to a working level of Thai, including reading?

How much creedence do you give to sites such as Prakard?

The one thing I have learned about the Thai property game, no -one knows what the "market value"

actually is.

One example, cant be assed to type them all, one condo in Pattaya has the same rooms for sale ranging from 5 to 7.5 million for the same 100 sm rooom.

Not mentioned but one reason some farang can take a hit on the sale price, they are thinking in $$$$ terms.

Property was bought at a good exchange rate for lets say 4.5 million baht or $100k, years later property was sold for 3 million or $100k, the attitude is basically we lived rent free for x years.

[henksteeghsth]

Good luck with it but one buy wen you sure it`s a good location

Many houses for sale in the same soi or neighborhood always say it`s go down with that soi or neighborhood.

Renovation is good but get a building company and let them give you a quotation before you buy.

resale is hard, ask also prices from other houses in the same neighborhood,

then you know what your marge is.

Edited October 13, 2014 by henksteeghsth

[siamsomjit]

Not a good plan. Unless you have A location property. Thai people like new and they might as well do because new is usually the same price as restored. Know several people who tried. Takes too long to sell. Would not do it myself....

[builderstu]

My wife and I looked at the idea of renovations but we also believe that it's hard to sell an old property to Thais. There are many superstitions and some of them worry that they buy a house that previous owners can't afford and the bad luck might carry to them and they lose the house to. Plus then you have that worry about the pees and that.

We eventually decided against that option, even though we could get cheap properties. We opted for new builds, build to sell. We buy cheap land, and build cheap houses. They are of quality, but cheap Thai style houses. We do this up country and we sell, and sell good. We keep our prices low and keep the greed out of it. Generally we look for around 750k - 1mil profit after everything. We buy land large enough to take around 5- 9 houses and build and move on. It can sometimes be difficult with red tape but if you want the profit then you got to do it.

For me this is a better option, plus you could make good money if you complete one site (5 units) per year at mid rang profit.

[onekoolguy]

This is the business that I have been in for the past 35 years in the USA. I'm also interested in doing a few here for something to do. However there is a learning curve in every new market.

A small group of us that were in the same business, in my old home town, would meet for lunch every Wednesday and discuss current deals and the market in general. Very informal but lots of good information to share.

It seems like there may be a few real estate people here that are interested in the local market. Maybe we should meet somewhere for lunch and share some ideas?

[seancbk]

I, for one, have bought, renovated, and sold for a profit.

Differnce for me though, is the properties I bought, I have lived in them, so did not have to carry another property for renovation purposes! And if the property doesn't sell, so what, its my home! Always need a place to sleep!

Also ...when it comes time to sell....well...said it before ....will say it again...Easy to buy ...Hard to sell.

Hope you have an "eye" for the good deals because you may get stuck with a "lemon". As always, the caveat in real estate is "location, location, location"

Lastly ....don't overpay (obviously) but here in Thailand ....the Thai's seem to ask ridiculous prices for property ....not so easy to find the distress seller.

Good luck though!

What sort of price range have you had success in?

A friend is looking at an unfinished penthouse (bare concrete shell) which is on the market for 38 million.

We figure once fully finished and fitted out there should be a reasonable profit to be made.

Also considering buying a row of 6-8 shophouses and completely upgrading them into ultra modern homes.

[Kaymcdonnell]

Good luck

unreliable workers, and Thais wanting new stuff (properties) make it very difficult

II know some reliable workers, so that's not a problem for me.

Maybe most Thais want new property (or maybe not), but it's a myth that they don't buy old property. I know many Thais that have bought old property. I didn't see much difference here to the UK. Lots of new condos in places like Bangkok, so of course people will be buying them, but plenty buying older houses in central Bangkok. Most Thai people that I ask about this say it's not true, and I suppose they know best. As they say, the proof of the pudding is in the eating. A Thai person just bough an old house in my street, so there you go.

All the profit is mostly in the land, buy a bargain piece of land, build a small house and sell that off plan. I am into real estate and I see a number of people doing very well doing this

[Robert2006]

When real estate investing is concerned it seems people think good deals are somewhat easy to find, I can assure you they are not. Unless you get lucky finding a good buy is a lot of work, like sometimes having to look at 100 to 200 properties to find a deal that makes sense.

When I find a property I’m interested in I determine what I want to pay for it and I instantly make an offer, a written offer, usually in the form of a simple “letter of intent”. You should be making at least 5 offers a week because most of them will be rejected. You need to be good at estimating property values, that skill comes from looking at property every day, day in and day out. If you can get a group of investors together, (your own private equity group) sometimes you can get good deals from banks, as an example buying 10 to 15 properties all at one time from a banks foreclosed property collection. During the due diligence period have your team estimate the renovation; your attorney check for clear title, if there are expensive surprises renegotiate your price or walk away. Personally I like speed so I’ll give a 14 day inspection period, close in 21 days, no one’s time is wasted theirs or mine. You must have your team in place and ready to do quick evaluations, if I need more than 14 days I extend the inspection period.

This is the ditch digging of the real estate investment business, no one likes to do it, its tedious and time consuming but it works. Most investors are too lazy to spend the time and effort it takes to find the good deals, you should be working at it 6-8 hours a day. Just keep looking and making offers and you will find success and remember the money is made when you buy.

This is basically what I used to do back in the UK. I used to quite like looking at houses all day, so while it was hard work sometimes, it wasn't so bad. I just put offers in on the ones I thought would work and occasionally someone said yes. That's all you need really. Just don't dwell on the rejections, move on, forget about them.

I've seen some people find one house and get fixated on it and stop looking at others. That's not the way to do it.

Great advice. Thanks.

I too learned to enjoy looking at large amounts of property; it must be done so why fight it, it’s the beginning of the process without it there is nothing. The other vital element is having a good evaluation and renovation team in place, and a good attorney. Renovation costs and legal issues have to be determined accurately and quickly to define if there is a deal or not. Make a mistake here and it can hurt you, this is why your team is so important. Everyone working on your project needs to be paid fairly or the mission will suffer, that’s why you have to be sure your get the right price when you buy or you can end up doing all the work for nothing.

Your team has to be able to finish the renovation quickly so you are back on the market as soon as possible; I prefer properties I can renovate and get back on the market in two to three months. I like to be all in with my profit and be able to market the property 15 to 20% under market value, that’s a home run as far as I’m concerned. Then on to the next deal it’s a technique you really never stop refining each deal will have its own story, I could literally write a book about each deal.

I’ve always thought it amusing when “investors” look at 10 to 15 properties and say there are no good deals on the market. Then usually when they buy a property they overpay for it and spend a year in the remodel, finally they get back on the market at full market value or higher and the property takes forever to sell. If I were to simply define what real estate investing is for me, it is finding a deal that I can get in and out of rapidly and be able to sell below market value quickly and still make my money.

^^^^, to satisfy my curiosity, how many properties have you bought, renovated and sold in Thailand, in say the last 5 years?

Where would in your opinion present the best opportunities right now, Chiamg Mai, Bangkok, Pattaya or Phuket?

How long did it take you to get up to a working level of Thai, including reading?

How much creedence do you give to sites such as Prakard?

The one thing I have learned about the Thai property game, no -one knows what the "market value"

actually is.

One example, cant be assed to type them all, one condo in Pattaya has the same rooms for sale ranging from 5 to 7.5 million for the same 100 sm rooom.

Not mentioned but one reason some farang can take a hit on the sale price, they are thinking in $$$$ terms.

Property was bought at a good exchange rate for lets say 4.5 million baht or $100k, years later property was sold for 3 million or $100k, the attitude is basically we lived rent free for x years.

Well to satisfy your curiosity when I moved to Thailand I was retired, my real estate investing career was conducted in the USA. I think I know where you going, that the technique I used will not be effective in Thailand. Of course there will be issues specific to each market but what I’m describing is a generic technique to find the deals and price them in any market. I am merely offering a look at the way I operated my business, these are just my suggestions take them or leave them. I am not a novice investor, I’m fourth generation in a family of real estate people, and I started when I was 18 years old and worked the business until I retired. However I am now dabbling in the business again (in the USA) since in February after 8 years in Thailand I had to leave.

Where to invest in Thailand? I like to work larger population areas because there are more properties, buyers and sellers. Location is a factor but it’s primarily an issue of how to find the deals that can be bought at prices that allow this work. It’s primarily a problem of overpaying for the property or under estimating the renovation or both. If you buy your properties for the right price and estimate your expenses correctly so you can come back in under market value you will reduce your problems reselling.

The reason few investors can determine actual “market value” is because most don’t look at enough property. Appraising property is not an exact science, it is an art, it’s an opinion of value; it is in effect an educated guess. That is why it is so important to look at as much property as possible to get to know your market. Especially in Thailand were sale data does not always reflect the actual sale prices and there is not an online database available to search for sale price information.

As far as not knowing how to speak the language is concerned that would limit effectiveness, it would be a challenge conducting a real estate investment business in Thailand without the ability to communicate in Thai. The key to a successful investor is his negotiation skills, everything in real estate requires the finesse of a skilled negotiation, and if you can’t speak the language you can’t negotiate. For me personally it is beyond critical to understand the language of the country where I live, I speak, read and write Thai. I rely heavily on my negotiating skills in my life, I guess because of my background I look at every interaction as a form of negotiation. The ability to handle my own negotiations was so important to me that when I moved to Thailand I enrolled in a language school my first week and I never stopped my schooling the entire 8 years I lived there. It took me three years to effectively communicate in Thai, the most tedious three years of my life, while my girlfriend handled my negotiations. The loss of control I experienced not being able speak Thai for my first few years in Thailand was a condition I consider totally unacceptable.

[beachproperty]

I, for one, have bought, renovated, and sold for a profit.

Differnce for me though, is the properties I bought, I have lived in them, so did not have to carry another property for renovation purposes! And if the property doesn't sell, so what, its my home! Always need a place to sleep!

Also ...when it comes time to sell....well...said it before ....will say it again...Easy to buy ...Hard to sell.

Hope you have an "eye" for the good deals because you may get stuck with a "lemon". As always, the caveat in real estate is "location, location, location"

Lastly ....don't overpay (obviously) but here in Thailand ....the Thai's seem to ask ridiculous prices for property ....not so easy to find the distress seller.

Good luck though!

What sort of price range have you had success in?

A friend is looking at an unfinished penthouse (bare concrete shell) which is on the market for 38 million.

We figure once fully finished and fitted out there should be a reasonable profit to be made.

Also considering buying a row of 6-8 shophouses and completely upgrading them into ultra modern homes.

For me this is not really a business....more of a hobby. Something to keep me busy!

Started out with a small townhouse.....prime beach location!...buy price 2 million baht....minor fixup (300,000 baht)....sales price 4.4 million baht.

Am presenly doing a new build project (6 units....600sqm)....again beach front.... all in costs 9.5 million baht (includes price of land) ....value ??????? (really don't care as this is part of my retirement plan, but my guess based on nearby comps.....at least 16 million baht)

As for your friend.....can only wish him luck....There is a market for everything at the right price, for me though its always been value for money....low price, great location

[TheCruncher]

I know of a guy who did this for a living for the past 11 years, with good success..........................................in the past.

For the last 2 years he's sitting on 4 completed properties, houses and condo's, and doesn't even get an acceptable response to his ads.

[Greg Nixon]

My Thai wife bought two properties in Mukdahan for 300,000 THB each. That was about 5 or 6 years ago. Based on local sales and asking prices, I estimate they are worth about 600,000 THB each. they have been painted, tiled and landscaped. More renovations to come. In my experience houses can double in value in 10 years and if the neighbours renovate extensively as they are doing here, the area can become hot. Equivalent properties in Mukdahan central sell for as much as 3.5 million Baht with no yard. Just 15 minutes away these properties with a small yard are a bargain. I do not plan to profit from these properties but they do add to my wife's long term security. That gives me peace of mind. No insurance required. I will never collect on life insurance on my own life.

[trogers]

I know of a guy who did this for a living for the past 11 years, with good success..........................................in the past.

For the last 2 years he's sitting on 4 completed properties, houses and condo's, and doesn't even get an acceptable response to his ads.

As I have said, this business model is cyclical.

[belg]

many houses for sale in my moo baan

new phase, some guy bought a unit, 12 million baht is the going rate ... his price, unfurnished : 18 million

woehahaha

guess it will be one of those for sale houses from the beginning till 5+ years

[elliottm]

You will need a Thai company to employ you with the necessary Work Permit to do up & re-sell your non main residence properties (search on here for the number of Thai employees and taxes you will need to pay).

Construction is a restricted trade so you will not be able to renovate these yourself.

[swissie]

I know of a guy who did this for a living for the past 11 years, with good success..........................................in the past.

For the last 2 years he's sitting on 4 completed properties, houses and condo's, and doesn't even get an acceptable response to his ads.

Exactly..... in the past. Today: GAME OVER !

Cheers.

[swissie]

You will need a Thai company to employ you with the necessary Work Permit to do up & re-sell your non main residence properties (search on here for the number of Thai employees and taxes you will need to pay).

Construction is a restricted trade so you will not be able to renovate these yourself.

Amazing. It took 45 posts to tell the OP the bare essentials concerning his venture. End of comment.

Cheers.

[builderstu]

So it seems there are a few folk out there that are interested in doing renovations, why not form a group and advertise for distressed sellers. There will be people out there, you just gotta look for them. My trade back home was financially distressed sales, we advertised and found hundreds of leads per day, but then we did cover the whole of UK. We were able to buy properties at knock down prices some even at 40% of value. For sure there will be people needing to sell here and there is profit to be had, but you got to buy cheap and keep costs down and sell cheap otherwise you get stuck with a property that will cost you money in the end. I guarantee that there are folk needing to sell, maybe not in the hundreds and not at 40% of value, but for sure you will pick them up. These people go to real estate agents and they say they want X, agent says but its worth Y, seller says I need to sell so sell at X. Agent then walks away and tries anyway to sell at Y making a huge profit, if and when it sells. Cut them out and advertise for these folk. You will find them.

[TheCruncher]

So it seems there are a few folk out there that are interested in doing renovations, why not form a group and advertise for distressed sellers. There will be people out there, you just gotta look for them. My trade back home was financially distressed sales, we advertised and found hundreds of leads per day, but then we did cover the whole of UK. We were able to buy properties at knock down prices some even at 40% of value. For sure there will be people needing to sell here and there is profit to be had, but you got to buy cheap and keep costs down and sell cheap otherwise you get stuck with a property that will cost you money in the end. I guarantee that there are folk needing to sell, maybe not in the hundreds and not at 40% of value, but for sure you will pick them up. These people go to real estate agents and they say they want X, agent says but its worth Y, seller says I need to sell so sell at X. Agent then walks away and tries anyway to sell at Y making a huge profit, if and when it sells. Cut them out and advertise for these folk. You will find them.

I don't believe that if owner says he want to sell at X the agent try to sell at Y anyway, because agent wants commissions fast and easy, and he know how hard it is to sell at the moment.

Take a look at classifieds sites at the listings from brokers, and notice that 90% of the listings have been added 2 years or more ago.

Reason is because owner wants Y regardless of agent saying that if you want a sale you'll have to go down to X.

Brokers don't live from their listings, they live from their sales.

[trogers]

So it seems there are a few folk out there that are interested in doing renovations, why not form a group and advertise for distressed sellers. There will be people out there, you just gotta look for them. My trade back home was financially distressed sales, we advertised and found hundreds of leads per day, but then we did cover the whole of UK. We were able to buy properties at knock down prices some even at 40% of value. For sure there will be people needing to sell here and there is profit to be had, but you got to buy cheap and keep costs down and sell cheap otherwise you get stuck with a property that will cost you money in the end. I guarantee that there are folk needing to sell, maybe not in the hundreds and not at 40% of value, but for sure you will pick them up. These people go to real estate agents and they say they want X, agent says but its worth Y, seller says I need to sell so sell at X. Agent then walks away and tries anyway to sell at Y making a huge profit, if and when it sells. Cut them out and advertise for these folk. You will find them.

I don't believe that if owner says he want to sell at X the agent try to sell at Y anyway, because agent wants commissions fast and easy, and he know how hard it is to sell at the moment.

Take a look at classifieds sites at the listings from brokers, and notice that 90% of the listings have been added 2 years or more ago.

Reason is because owner wants Y regardless of agent saying that if you want a sale you'll have to go down to X.

Brokers don't live from their listings, they live from their sales.

And the reason the seller in Thailand usually sticks to X and not sell at Y is that there is no direct pain for holding the vacant property from substantial tax and insurance cost. Edited October 14, 2014 by trogers

[TheCruncher]

So it seems there are a few folk out there that are interested in doing renovations, why not form a group and advertise for distressed sellers. There will be people out there, you just gotta look for them. My trade back home was financially distressed sales, we advertised and found hundreds of leads per day, but then we did cover the whole of UK. We were able to buy properties at knock down prices some even at 40% of value. For sure there will be people needing to sell here and there is profit to be had, but you got to buy cheap and keep costs down and sell cheap otherwise you get stuck with a property that will cost you money in the end. I guarantee that there are folk needing to sell, maybe not in the hundreds and not at 40% of value, but for sure you will pick them up. These people go to real estate agents and they say they want X, agent says but its worth Y, seller says I need to sell so sell at X. Agent then walks away and tries anyway to sell at Y making a huge profit, if and when it sells. Cut them out and advertise for these folk. You will find them.

I don't believe that if owner says he want to sell at X the agent try to sell at Y anyway, because agent wants commissions fast and easy, and he know how hard it is to sell at the moment.

Take a look at classifieds sites at the listings from brokers, and notice that 90% of the listings have been added 2 years or more ago.

Reason is because owner wants Y regardless of agent saying that if you want a sale you'll have to go down to X.

Brokers don't live from their listings, they live from their sales.

And the reason the seller in Thailand usually sticks to X and not sell at Y is that there is no direct pain for holding the vacant property from substantial tax and insurance cost.

That would be so in the rest of the world, but in Thailand if there was a tax on vacant properties, they would just use as an excuse to rise the price even higher.

[trogers]

So it seems there are a few folk out there that are interested in doing renovations, why not form a group and advertise for distressed sellers. There will be people out there, you just gotta look for them. My trade back home was financially distressed sales, we advertised and found hundreds of leads per day, but then we did cover the whole of UK. We were able to buy properties at knock down prices some even at 40% of value. For sure there will be people needing to sell here and there is profit to be had, but you got to buy cheap and keep costs down and sell cheap otherwise you get stuck with a property that will cost you money in the end. I guarantee that there are folk needing to sell, maybe not in the hundreds and not at 40% of value, but for sure you will pick them up. These people go to real estate agents and they say they want X, agent says but its worth Y, seller says I need to sell so sell at X. Agent then walks away and tries anyway to sell at Y making a huge profit, if and when it sells. Cut them out and advertise for these folk. You will find them.

I don't believe that if owner says he want to sell at X the agent try to sell at Y anyway, because agent wants commissions fast and easy, and he know how hard it is to sell at the moment.

Take a look at classifieds sites at the listings from brokers, and notice that 90% of the listings have been added 2 years or more ago.

Reason is because owner wants Y regardless of agent saying that if you want a sale you'll have to go down to X.

Brokers don't live from their listings, they live from their sales.

And the reason the seller in Thailand usually sticks to X and not sell at Y is that there is no direct pain for holding the vacant property from substantial tax and insurance cost.

That would be so in the rest of the world, but in Thailand if there was a tax on vacant properties, they would just use as an excuse to rise the price even higher.

Behaviour would change and adapt fast should there be substantial property tax, and the tax authority has the power to foreclose and auction the property to recover unpaid taxes.

[ldnguy]

You will need a Thai company to employ you with the necessary Work Permit to do up & re-sell your non main residence properties (search on here for the number of Thai employees and taxes you will need to pay).

Construction is a restricted trade so you will not be able to renovate these yourself.

Amazing. It took 45 posts to tell the OP the bare essentials concerning his venture. End of comment.

Cheers.

Some people only see problems. Maybe it's an excuse to not do something. I don't need a work permit.

[ldnguy]

Some great replies so far, so thanks for all of those. I like the idea of buying land and building a house, as that might be an easier way to sell. Might also be a better profit. I'll start looking into this.

[klikster]

I have made money on 2 properties. Lived in them while upgrading a bit.

You don't make your profit when you sell, you make it when you buy.

[ldnguy]

I have made money on 2 properties. Lived in them while upgrading a bit.

You don't make your profit when you sell, you make it when you buy.

Can you provide more info? What area? What was buy and sell price? How much did renovations cost? How long did it take to sell them? How did you find them?

[Globalist]

I would think the high tax on sale would kill the business case, unless of course you can get around it somehow.

At least for condos, the tax is based on the selling price (!), not the profit.

It is gradually reduced over 5 years, so it's expensive to sell quickly.

[ldnguy]

I would think the high tax on sale would kill the business case, unless of course you can get around it somehow.

At least for condos, the tax is based on the selling price (!), not the profit.

It is gradually reduced over 5 years, so it's expensive to sell quickly.

You just take the tax into account. I don't see it as a real issue. People have done this successfully, so obviously it's possible.

Will those who say it can't be done please step aside while others are getting on with doing it.

Edited October 17, 2014 by ldnguy

[ldnguy]

Something I've noticed in many replies is that if people aren't able to make this work they assume no-one can make it work, even if there is evidence that people did get it to work. Maybe some people can't accept that others can do what they can't.