Condo investment..

[cornishcarlos]

Hi Bangkokians,

Just after a bit if advice regarding condo investment.

We have the opportunity to buy a condo that my sister in law bought off plan. She has paid the initial down payment, with build to be finished in September, when the balance will need to be paid. Due to her moving home to start her own physio practice, she doesn't want to commit to monthly payments.

Its in a developing area, quite close to BTS station and rent seems to be around the 10k a month for similar condos in the local neighborhood.

At 1.7mil, its not a bad price and I would expect it to appreciate fairly quickly as the area grows.

Anyone else investing in BKK condos or is it not a good idea ?

Thanks

[The Dancer]

So, if you simply bought to rent out you'd be making about 7% on your investment, which is pretty darned good however you slice the rest of it. I wouldn't hesitate.

Edited May 10, 2015 by The Dancer

[cornishcarlos]

Fair call... That was the plan, plus use it as equity for another purchase. Although if it appreciated enough over the next 2 or 3 years then a sale would return a good sum for little investment, I guess ?

[The Dancer]

Fair call... That was the plan, plus use it as equity for another purchase. Although if it appreciated enough over the next 2 or 3 years then a sale would return a good sum for little investment, I guess ?

Well, to my mind, if the rent keeps pace with price appreciation to the extent you're making 4% or more, I wouldn't be in a rush to sell.

I mean what would you do with the X mil in cash? Interests rates being what they are, putting it in a bank or some place "safe" like that almost amounts to losing money. Of course, thing can (probably will) change in 2-3 years.

[The Dancer]

Btw, and I don't know your personal situation or mean to cast aspersions on anybody, but your in-law should be looking at the same prospects as you are if she chose not to bail out. And 1.7 mil is not a lot of money to rustle up to hold on to the property.

So, I would look carefully first at the situation (legal, construction, etc.) of the unit and building. There have been famous cases in Bkk of horror buildings with owners collectively screwed.

Of course, maybe she just wants a clean break to restart elsewhere and leave all Bkk hassles behind. In which case, you just got a gift:-)

[cornishcarlos]

Btw, and I don't know your personal situation or mean to cast aspersions on anybody, but your in-law should be looking at the same prospects as you are if she chose not to bail out. And 1.7 mil is not a lot of money to rustle up to hold on to the property.

So, I would look carefully first at the situation (legal, construction, etc.) of the unit and building. There have been famous cases in Bkk of horror buildings with owners collectively screwed.

Of course, maybe she just wants a clean break to restart elsewhere and leave all Bkk hassles behind. In which case, you just got a gift:-)

Hey Dancer,

Appreciate your comment and concerns. I would make the same comments in some one elses thread.

Sister in law is moving back down south to open her own physio practice. We have secured the money for building the place for her. Obviously, until the business gets off the ground, which it will where we are, she is concerned that she can't make those payments should it not rent for any reason.

I will get my wife to do some more due diligence but I do know that they have sold out already in the block !

Thanks for comments so far, every one taken note of.

[Deserted]

The returns on property in BKK have been good for some time now, I suppose it is no coincidence that there are huge apt complexes going up everywhere. The only drawback is the apt size seems to be getting smaller and smaller. I have even seen 18 sqm sized ones. That's not an apt for me. How many sqm are you getting for your 1.7 million?

Edited May 10, 2015 by Deserted

[cornishcarlos]

32sqm.. 3rd floor, away from elevator and bins. East facing.

[Blackfox]

May I ask which BTS it's close to?

[ExpatJ]

Fair call... That was the plan, plus use it as equity for another purchase. Although if it appreciated enough over the next 2 or 3 years then a sale would return a good sum for little investment, I guess ?

I would buy for the rental return ONLY if you are happy to keep it for next 10 years or so or longer- there is little or no chance that you will be able to sell it at a profit in 2-3 years (in fact i would bet that you would have to sell it a loss in that time horizon) .

[LuckyLew]

Buy for rental

Are you sure you will be able to rent it?

Lots of open units in Bkk

More on the way

Just my thoughts