Question for landlords in Bangkok

[theguyfromanotherforum]

How difficult is it to rent a condo near BTS/MRT? I would like to spend around 4 million baht purchasing 2 condos. I am fed up with the savings account return I currently get in Canada, which is less than $80 a month for $200,000 invested in "high interest account". Was thinking something safe like Lumpini.

If anyone could answer these questions for me:

How long does your unit sit empty between tenants?

What is a reasonable rent to expect on 2 milion baht condo?

Do tenants usually trash your place and how hard is it to keep deposits?

Do you rent to foreigners or Thai?

Do tenants pay on time?

Id there something like condotel in Bangkok where the management will rent your room for 50% fee and take care of everything. I know there are some in Hua Hin.

Any other tips would be appreciated.

[dean008]

I dont think you will find one for the price you mention in the area you mention.

I have a couple of condos in Pinklao, a 1 bed and a 2 bed. The one bed is rented for 8500 a month and is worth 2-2.2million (If I tried to let it for 9,500 I could but it would be empty for a few months) the 2 bed is where I am living at present and is worth 3.9-4.1 million and would rent quickly for about 16,000 a month.

I have generally rented to foreigners (pure coincidence)

I have always been paid on time

the place has never been trashed, and I have never had to withold a deposit

void periods. If 10 people are asking 9,500 a month and you ask 8,500 a month you will no doubt rent it out quickly and have short void periods, ask 10,000 you will have long void periods. I prefer to get 500-1000 baht less a month then having a place empty for 2 months.

both 1 bed and 2 bed are for sale

[theguyfromanotherforum]

Discouraging. I had a downpayment for regent condo which go for 1 million and can be easily rented for 6000 -6500 baht. Located near bts. I gave up because of questionable construction even though it was cheap and good location.

[DirtyDan]

To railroad this topic a little... why have you decided on rental property? There are many more options than "high interest" savings accounts vs. real estate, especially if you have $200K to play with!

Have you ever spoken with the wealth management folks at your Canadian bank (not the tellers up front, but the private banking folks that deal solely with $200K+ clients)? When you have $50K+ to invest, the high yielding mutual funds will allow you the opportunity to buy in and most return 15%+ pa - a much better "investment" than worrying about dishonest tenants skipping rent on a depreciating asset. If you would like I can PM the name of a really good Canadian CFP to you.

[theguyfromanotherforum]

I would not like to purchase an investment in Canada because next year I will most likely declare myself a non resident. I am sure this will affect my status. Also, stocks are at record highs, I am scared I might be buying at the very top.

To be honest, I would be very happy with 4% guaranteed return (no risk).

[theguyfromanotherforum]

Just saw google add add on my right side of Thai visa, lol. Unio by Ananda. 1 million baht, gym,pool, 900 meters from BTS. Surely I can rent that POS for 5000?

[trogers]

Just saw google add add on my right side of Thai visa, lol. Unio by Ananda. 1 million baht, gym,pool, 900 meters from BTS. Surely I can rent that POS for 5000?

There is a difference between being 900m away and being just 100m away, esp during the rainy season.

So you want to be a landlord. Who would be your target tenants? Location is the key...

Edited August 3, 2015 by trogers

[dotpoom]

"Do tenants usually trash your place and how hard is it to keep deposits?"

Seems a strange sort of question....like you intend to try to keep all deposits?

If you meant in the case of damage having been done to a condo, I would imagine very easy....just keep it in your pocket.

I let agents take care of my condo(s), if have more than one to rent. They have no problem making sure it is kept in the same condition as they received it for a fee of 10%. Best money ever spent...free of worry and dealing with abknockous tenants.

[theguyfromanotherforum]

No, I do not intend to keep deposits, I just want the place left in good condition with usual. normal wear and tear.

Are agents in Thailand reliable? In Canada they are just about useless and infact, unreliable. I would even say a liability.

10% is peanuts for a piece of mind like you say.

Edited August 3, 2015 by theguyfromanotherforum

[timendres]

To railroad this topic a little... why have you decided on rental property? There are many more options than "high interest" savings accounts vs. real estate, especially if you have $200K to play with!

Have you ever spoken with the wealth management folks at your Canadian bank (not the tellers up front, but the private banking folks that deal solely with $200K+ clients)? When you have $50K+ to invest, the high yielding mutual funds will allow you the opportunity to buy in and most return 15%+ pa - a much better "investment" than worrying about dishonest tenants skipping rent on a depreciating asset. If you would like I can PM the name of a really good Canadian CFP to you.

Anyone believing that a 15% return is low risk needs to seek better advice. But you should certainly be able to get between 3% and 5% and still be able to sleep at night.

I also know that being a landlord is more difficult than most people realize, and the returns are not what people think. The real money in real estate comes from leverage and having others pay off your debts. The reward comes at the end, not during the process. So you really need to have a long time horizon for this investment, or your risk increases. That said, some people just get lucky on property appreciation and good tenants. And you should always pay more for a better property (location, location, location), as opposed to spending less on for more crap.

And, also, I believe there are many other investments that you should consider along with real estate. This is a time to invest a couple thousand in some professional advice.

[AyG]

To be honest, I would be very happy with 4% guaranteed return (no risk).

There's a far simpler way to invest in property: buy a property fund. TMBAM has one I have bought into: TMB Property Income Plus Fund (TMBPIPF).

It's dividend yield is currently 5.48% (source: Bloomberg). The capital value may go up and down, but the income stream should be fairly constant. (The only slight concern there is that the fund invests in Singapore REITS as well as Thai ones, so there's some exposure to the THB/SGD exchange rate.)

http://www.tmbam.com/pdfs/Factsheet%20-%20T05_en.pdf

[theguyfromanotherforum]

Anyone believing that a 15% return is low risk needs to seek better advice. But you should certainly be able to get between 3% and 5% and still be able to sleep at night.

I also know that being a landlord is more difficult than most people realize, and the returns are not what people think. The real money in real estate comes from leverage and having others pay off your debts. The reward comes at the end, not during the process. So you really need to have a long time horizon for this investment, or your risk increases. That said, some people just get lucky on property appreciation and good tenants. And you should always pay more for a better property (location, location, location), as opposed to spending less on for more crap.

And, also, I believe there are many other investments that you should consider along with real estate. This is a time to invest a couple thousand in some professional advice.

This is exactly what I have been thinking. I already have one condo in Canada (very small, but also in prime location) and have a tenant paying my mortgage.

I think I should just go into more debt and purchase another Canadian condo.

[Globalist]

For 4 MB you may get ONE decent small 1BR condo in central BKK within 2 min of BTS/MRT.

Going for condos further out from the centre or further away from BTS/MRT carries much higher risk, even if they're half the price or less.

Edited August 23, 2015 by Globalist

[theguyfromanotherforum]

Really? Because eventually when I move in I wouldn't want to live in the Centre. Or watching the China crash perhaps the prices will dive in bkk too.

Edited August 24, 2015 by theguyfromanotherforum

[rocketboybkk]

As said in other posts it very easy to buy any property in Thailand

BUT when you need your cash out it might take years to sell.

Easy to buy hard to sell.

It's not the route I choose

Why not buy a property in Canada & rent that?

I have a house in the UK rented £1000 pcm

I also have a 1 bed flat rented in UK £750 pcm

I know I can sell them

Together they're worth about £475k gbp

It's a non thinker

Would I sell & spend all that money on property in Thailand?

Never ever

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[rocketboybkk]

What age bracket are you in op?

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