Patong is dead.

[LivinginKata]

8 minutes ago, phuketjock said:

Forgive me LIK  I thought you gave up your interests in Patong some time ago I was under the 

impression that you only operated in Kata/Karon?

I believe what I said about Nanai is on the money.

 

Our Kata operation (long term rentals)  Is now running at almost zero percent occupancy . We had 6+ good years here in Kata, recovered our outlay costs. For me Patong is our money earner.  So I am not going to knock Patong.

[phuketjock]

5 minutes ago, LivinginKata said:

 

Our Kata operation (long term rentals)  Is now running at almost zero percent occupancy . We had 6+ good years here in Kata, recovered our outlay costs. For me Patong is our money earner.  So I am not going to knock Patong.

I hope you are not on Nanai? or in that area

 

[schlog]

51 minutes ago, phuketjock said:

 

 

I see lots of posts by a certain poster repeatedly talking about closures here and for sale signs there. I frequent the beach road, rat-u-thit road and the third road regularly and I have been searching in vain to find any closures or for sale signs on these road, of course my eyesight is not what used to be so if anyone spots any signs please be good enough to let us know.

 

 

 

Are you serious? Only on beach road you could find easily more then 10 businesses for sale. Starting with the ex absolute hotel....ocean plaza mall.....

[LivinginKata]

7 minutes ago, phuketjock said:

I hope you are not on Nanai? or in that area

 

Yes we are in 2 Nanai areas. Still make money mind you we own land and building debt free. Paying rent or key money is a mugs game.

[phuketjock]

9 minutes ago, schlog said:

Are you serious? Only on beach road you could find easily more then 10 businesses for sale. Starting with the ex absolute hotel....ocean plaza mall.....

A location on these 10 business's would be helpful schlog?? or perhaps a few pics of for sale signs??

Of course you are aware it is low season, the time when many poorly run businesses go under every

year in Patong???

[phuketjock]

2 minutes ago, LivinginKata said:

Yes we are in 2 Nanai areas. Still make money mind you we own land and building debt free. Paying rent or key money is a mugs game.

I wish you the very best LIK and if you are making something you are not losing.

 

 

[schlog]

13 minutes ago, phuketjock said:

A location on these 10 business's would be helpful schlog?? or perhaps a few pics of for sale signs??

Of course you are aware it is low season, the time when many poorly run businesses go under every

year in Patong???

Most businesses up for sale more then 1 year. May you have walk then you will see. This 2 are easy to find. Welcome.

[phuketjock]

2 minutes ago, schlog said:

Most businesses up for sale more then 1 year. May you have walk then you will see. This 2 are easy to find. Welcome.

Sorry schlog that is only 2  and if they are on the beach they are probably way over priced and that is confirmed 

by your statement that they have been on sale for more than 1 year. I still can't see any for sale signs???

[LivinginKata]

11 minutes ago, phuketjock said:

Sorry schlog that is only 2  and if they are on the beach they are probably way over priced and that is confirmed 

by your statement that they have been on sale for more than 1 year. I still can't see any for sale signs???

 

I agree. Not so many for sale signs on display. But I for sure know many owners would like to sell but want premium price ... not realistic .  My Thai wife has a huge sell price expectation. I just laugh at her figures. Luckey I can walk away and not look back. Oh well .

.

 

 

 

 

 

[NamKangMan]

1 hour ago, phuketjock said:

 

Hi all I’m back, did you miss me? Haha

 

You raise a very valid point mm2 and I am sorry I could not, until now, respond to it due to an impromptu offer I couldn’t refuse of an enforced holiday, if you get my drift.

 

I can see that you have had absolutely no response whatsoever from anyone to your first paragraph, not a great surprise I,m sure as I suspect there are not any current owners of business’s who actually operate one in Patong but still feel the need to contribute their second hand hearsay information and try to pass it off as genuine. Let’s see if we can induce any real current Patong business owners to contribute real firsthand knowledge to the thread? I will start by nailing my colours to the mast, if that is the correct term? ( not sure I am ex-army but I am sure you get the drift ).

 

My wife and I own and run three separate SME’s, as they call them here in Thailand, all in Patong, one has been going for about 4 years, one for about 3 years and one for just under 1 year. All the business’s are on Sois just off either side of Rat-U-thit rd. To date, and I touch wood when I say this, all three have, year on year, month on month, never failed to produce a profit. Believe me I am no genius if I can do it anyone can, I believe location, good service and attention to detail are three very important rules that can hopefully put anyone on the road to a successful business.

 

As an aside, and this is not firsthand knowledge so take it as you will, some of our suppliers are telling us that their orders and deliveries are up on the same time period last year. I hope they are right but caution is the name of the game.

 

Further to this one of our ventures involves association with a small hotel which specializes in self catering accommodations, and that business has been going now for about 6 years and has expanded by approx.. 12 to 15%  annually, and maintained an occupancy rate of 80%+ every year.

 

For all you Patong business owners please tell us how your business is doing?

 

"Let’s see if we can induce any real current Patong business owners to contribute real firsthand knowledge to the thread?" - do you real expect these business owners to admit they are going broke????

 

 

[NamKangMan]

1 hour ago, phuketjock said:

Don't get flustered Flustered no massage parlour or hourly rate hotel or guesthouse involved in any of our ventures, nice try though.

    

Just you keep following the pied piper of Nanai.

 

 

For someone continually posting about how business is so good here, perhaps you can tell us what business you are in. 

[LivinginKata]

2 minutes ago, NamKangMan said:

 

"Let’s see if we can induce any real current Patong business owners to contribute real firsthand knowledge to the thread?" - do you real expect these business owners to admit they are going broke????

 

 

Hello NKM.  We are not going broke. But I agree it's a tough business situation.

 

 

 

[NamKangMan]

57 minutes ago, LivinginKata said:

 

Our Kata operation (long term rentals)  Is now running at almost zero percent occupancy . We had 6+ good years here in Kata, recovered our outlay costs. For me Patong is our money earner.  So I am not going to knock Patong.

 

So, with near zero percent occupancy, how long before you "pull the plug" on that part of your operation?

[NamKangMan]

1 minute ago, LivinginKata said:

Hello NKM.  We are not going broke. But I agree it's a tough business situation.

 

 

 

 

That post wasn't aimed at you, LIK. 

 

I believe you have been honest in your posting of your business situation, and I wish you the best for the difficult times ahead.

 

My post was directed at those many farangs that keeps the lights on in their establishment, yet, there is never more than a few customers inside, thus, running at a loss.

 

I'm sure these businesses are being propped up by the owners personal funds, which is an untenable situation, but as mentioned previously in this thread, they really believe they are "living the dream." 

[schlog]

37 minutes ago, phuketjock said:

Sorry schlog that is only 2  and if they are on the beach they are probably way over priced and that is confirmed 

by your statement that they have been on sale for more than 1 year. I still can't see any for sale signs???

Go there if you want to see the for sale signs. Then you will see also 8 more.

Your statement was wrong that no business is for sale at beach road. It is easy as that.

 

[LivinginKata]

What plug do I need to pull.  We live here. No guests is just fine by me.

 

[NamKangMan]

59 minutes ago, phuketjock said:

A location on these 10 business's would be helpful schlog?? or perhaps a few pics of for sale signs??

Of course you are aware it is low season, the time when many poorly run businesses go under every

year in Patong???

 

"the time when many poorly run businesses go under every year in Patong???" - LIK has posted he has been in business here for 19 years, and owns the land and buildings.

 

He openly admits to near a zero occupancy rate in Kata, yes, Kata, not Patong, but are you saying he runs his business poorly????

 

He gave some reasons for the poor occupancy rates, and none of them were the fault of his management. 

 

This is what you NEVER address PJ.  You always say it's the fault of the owner / manager for the business going broke, even though you deny businesses here are going broke - go figure.

 

As I have said, the ground is shifting under the feet of business owners here, and there is nothing they can do about it. 

 

I have also stated in the past, when the music stops, many will be left holding the can here - we are seeing this now. 

[NamKangMan]

7 minutes ago, LivinginKata said:

What plug do I need to pull.  We live here. No guests is just fine by me.

 

 

So, do you just close down the Kata operation?  Do you "moth ball" it, in the hope of better times?

 

Given Phuket's economic outlook, particularly in relation to the tourism industry, what's the point of keeping it on your books?

 

Actually, would you even be able to clear it off your books, should you ever wish to do so?

 

 

[NamKangMan]

36 minutes ago, LivinginKata said:

 

I agree. Not so many for sale signs on display. But I for sure know many owners would like to sell but want premium price ... not realistic .  My Thai wife has a huge sell price expectation. I just laugh at her figures. Luckey I can walk away and not look back. Oh well .

.

 

 

 

 

 

 

"But I for sure know many owners would like to sell but want premium price ... not realistic ." - probably because they bought in at a premium price.

 

So, they can't sell without taking a big loss, can't afford to to keep operating with monthly loses, so what options do they have????

 

It's these establishments that are closing down more and more, by the week. 

[madmax2]

10 hours ago, LivinginKata said:

 

Well, I have for sure operated 2 long term home businesses in Patong for almost 19 yeras now.

 

I have contributed truthfull information on every one of my posts.

 

I well know that our business has declined due to a number of factors, visa problems being the most noteable, strong baht another problem, guests with failing bars etc.

 

I do believe we have reached the bottom a couple of years ago with a 50% occupancy.  I doubt we will ever recover unless we slash prices, that we will not do given we have stayed at the same rates over these 19 years.. 

 

 

What is a home business???

Flats are not homes and have tenants not guests, who rent long term usually

Guests stop in fully serviced resorts/hotels, do you own any of these

[xylophone]

10 hours ago, schlog said:

Are you serious? Only on beach road you could find easily more then 10 businesses for sale. Starting with the ex absolute hotel....ocean plaza mall.....

Agree schlog, there are many businesses for sale and a  friend of mine who deals in them confirms this, as did the guy I mentioned in an earlier post; "An old friend of mine who has just returned to Patong has gotten into the real estate business and told me just the other day that he never realised that there were so many apartments and businesses for sale, with so few buyers. He did however mention that when there was a fairly keen buyer, the seller would not drop the price or negotiate it, so no deal was done and he couldn’t understand this mentality:.

[LivinginKata]

2 hours ago, madmax2 said:

What is a home business???

Flats are not homes and have tenants not guests, who rent long term usually

Guests stop in fully serviced resorts/hotels, do you own any of these

 

Fair question - most of our rental homes are town houses, fully furnished with all accessories. In the past we only rented on at least a yearly contract. Now have to be more flexible on contract length. In our contract they are called Tenants, but that sounds a harsh cold term. I prefer the softer guest term as many of our quests have stayed with us for many many years,  And many return after trying other global locations.

[LivinginKata]

12 hours ago, NamKangMan said:

 

So, do you just close down the Kata operation?  Do you "moth ball" it, in the hope of better times?

 

Given Phuket's economic outlook, particularly in relation to the tourism industry, what's the point of keeping it on your books?

 

Actually, would you even be able to clear it off your books, should you ever wish to do so?

 

 

 

Kata is where we live in one of the town houses. Our handy man lives in a staff room. My wife has a minimart (rented out to a friend) and a coin operated laundry.  We have  long term friends that rent for a month or so. We have returnees every high season.  We keep all units ready for immediate use as plenty of my wife's family and friends like to spend short stays in Phuket given cheap flight available.. We charge them nothing at all.

 

Why would we need to 'clear it off our books'.   Debt free, all costs already recovered. And it's our home ...

[NamKangMan]

18 minutes ago, LivinginKata said:

 

Kata is where we live in one of the town houses. Our handy man lives in a staff room. My wife has a minimart (rented out to a friend) and a coin operated laundry.  We have  long term friends that rent for a month or so. We have returnees every high season.  We keep all units ready for immediate use as plenty of my wife's family and friends like to spend short stays in Phuket given cheap flight available.. We charge them nothing at all.

 

Why would we need to 'clear it off our books'.   Debt free, all costs already recovered. And it's our home ...

 

Read again, LIK.  I never suggested you had a "need" to clear these assets off your books.  I asked, "what's the point of keeping it on your books" which you have answered.

 

You are in a more fortunate position than the majority here, who lease their commercial property.

 

That said, you did mention a near zero occupancy rate, which isn't quite accurate.  I posted under the belief you were now experiencing zero occupancy, and have been for some time.

 

How are the occupancy rates with the high season returnees, and the long holiday rentals of one month? 

[LivinginKata]

14 minutes ago, NamKangMan said:

 

Read again, LIK.  I never suggested you had a "need" to clear these assets off your books.  I asked, "what's the point of keeping it on your books" which you have answered.

 

You are in a more fortunate position than the majority here, who lease their commercial property.

 

That said, you did mention a near zero occupancy rate, which isn't quite accurate.  I posted under the belief you were now experiencing zero occupancy, and have been for some time.

 

How are the occupancy rates with the high season returnees, and the long holiday rentals of one month? 

 

We have zero occupancy rate right now in our rental homes block.  Been  that way for 2 months since the last of the 'high season' guests left. Next high season I expect worse than last year, and that was poor, very poor.

 

Mind you we turn away plenty of enquiries - daily, even weekly booking, no kids, folks I don't like  the look of. Usually we only take recommended by an old guest. This annoys my wife as she would take anyone, but recently she has acknowledge my wisdom given past troublesome guests.

[stevenl]

33 minutes ago, LivinginKata said:

 

<snip> recently she has acknowledge my wisdom <snip>

I'm jealous.

[phuketjock]

14 hours ago, schlog said:

Go there if you want to see the for sale signs. Then you will see also 8 more.

Your statement was wrong that no business is for sale at beach road. It is easy as that.

 

Schlog please don't misquote me I said I had been looking for for sale signs  not that there were no business

for sale on the beach road, I also asked that anyone who seen any to please let us know and you have thanks.

[phuketjock]

14 hours ago, NamKangMan said:

 

"the time when many poorly run businesses go under every year in Patong???" - LIK has posted he has been in business here for 19 years, and owns the land and buildings.

 

He openly admits to near a zero occupancy rate in Kata, yes, Kata, not Patong, but are you saying he runs his business poorly????

 

He gave some reasons for the poor occupancy rates, and none of them were the fault of his management. 

 

This is what you NEVER address PJ.  You always say it's the fault of the owner / manager for the business going broke, even though you deny businesses here are going broke - go figure.

 

As I have said, the ground is shifting under the feet of business owners here, and there is nothing they can do about it. 

 

I have also stated in the past, when the music stops, many will be left holding the can here - we are seeing this now. 

When you start commenting from a credible knowledge base, ie run a business in Patong , then perhaps there is a chance 

that someone may listen to your fantasy rants???

[madmax2]

4 hours ago, phuketjock said:

When you start commenting from a credible knowledge base, ie run a business in Patong , then perhaps there is a chance 

that someone may listen to your fantasy rants???

As a business owner in Patong can you tell me what key money is

Never heard of it in 50 years of running businesses in Aust

[phuketjock]

16 minutes ago, madmax2 said:

As a business owner in Patong can you tell me what key money is

Never heard of it in 50 years of running businesses in Aust

Key money is something that appears to have been invented by imaginative

Thai commercial property owners and it is basically a gift to the owner/lessor by the 

lessee for the vague privilege of renting their property?

They choose the amount and if you want to rent you pay, up to you. It used to be a

one time payment for as long as you leased the property but nowadays some

enterprising (for want of a better word ) Thai owners have found a way to extract

even more money by making the key money payment a 3 year payment or I have even heard of 

annual key money demands, it is something to steer well clear of, basically a grand ripoff

But as long as there is a mug who is willing to pay, and there usually is, they will keep

demanding it. Not something I would ever entertain, if asked for key money I walk away

period.

I too had never heard of it until I came to Phuket.