Best rental yields condo in Bangkok ?

[JohnnyBKK]

Hello,

Which condo offer the best rental yields ?

I would like to buy one or two condos exclusively for rent only.

Thanks

[smutcakes]

What price bracket? Generally unless you bought a while ago then the yields are very low against current purchase prices.

The capital values has increased rapidly over the past decade, but rental rates have remained pretty much the same.

[JohnnyBKK]

Ok i see, we are in a bubble then. Maybe it's better if i wait the bubble to burst than buy now.

[trogers]

Ok i see, we are in a bubble then. Maybe it's better if i wait the bubble to burst than buy now.

I would not say it is a bubble, but an anomaly brought on by the condition of low interest rates and quantitative easing. The value of money has fallen over the past decade and yield on all classes of asset has fallen.

[mike324]

The bubble won't burst, a high yield nowaday would probably be around 5-6% if you talking about being in Bangkok. You will need to buy a old condo built in the 90s, renovate it and rent out. It should be at least 2 bedroom and bigger than 120sqm in order to be competitive. Condo built withint he past 5 years prices have gone up 20-30%, desirable old condo prices are starting to creep up 10-20% as well.

Look for condos with mostly japanese expatriates, ask agents....Japanese don't mind living in older condos and they are pretty stable tenants.

[coxo]

My Condos give me a return of 7% guaranteed by Century 21, had them for three years, forget all the BS talk about bubbles, it's much better than money in the bank and they are in your name. Make sure you are close to BTS or MRT.

[coxo]

Further to that buy new, do not buy old. Prices appreciate a little over six years then level out and even start to decline in value. Ideally buy new, hold it for four to five years and sell, get your money back or even make a little profit, then buy new again.

[smutcakes]

Further to that buy new, do not buy old. Prices appreciate a little over six years then level out and even start to decline in value. Ideally buy new, hold it for four to five years and sell, get your money back or even make a little profit, then buy new again.

I would be pretty surpised if you could get 7% net yield with today's condo prices. Sure there might be the odd one knocking around, but it would be a very good letting and pretty damn rare.

[trogers]

Further to that buy new, do not buy old. Prices appreciate a little over six years then level out and even start to decline in value. Ideally buy new, hold it for four to five years and sell, get your money back or even make a little profit, then buy new again.

I would be pretty surpised if you could get 7% net yield with today's condo prices. Sure there might be the odd one knocking around, but it would be a very good letting and pretty damn rare.

I didn't see any mention of net...

[JacChang]

Property funds are a good alternative if you are interested, easily bought and sold any business day, dividends of 5-8% and growing, expect capital increase of 5-10% per year average. No hassle of finding tenants, fixing things, or any trouble, dividends deposited to your bank account every 3 months. No minimum required amount of investment.

[RBOP]

I purchase a 80sqm 2 bedroom 16 years ago for 1.25 million baht. Im renovating it now and on the market for 3.3 million. Neighbours are renting theirs for 18K/month. Muangthing Thani Lakeview area.

[mike324]

I purchase a 80sqm 2 bedroom 16 years ago for 1.25 million baht. Im renovating it now and on the market for 3.3 million. Neighbours are renting theirs for 18K/month. Muangthing Thani Lakeview area.

16 years ago, that area was practically a ghost town at night, especially right after 1997 all the building sat unfinished. Is it easy to rent out there? I heard there still are over a hundred empty units there.... but I drove past it 2 years ago, area is picking up pretty quick

[RBOP]

I purchase a 80sqm 2 bedroom 16 years ago for 1.25 million baht. Im renovating it now and on the market for 3.3 million. Neighbours are renting theirs for 18K/month. Muangthing Thani Lakeview area.

16 years ago, that area was practically a ghost town at night, especially right after 1997 all the building sat unfinished. Is it easy to rent out there? I heard there still are over a hundred empty units there.... but I drove past it 2 years ago, area is picking up pretty quick

Yes lots of development going on. BTS coming soon to Chaengwattana too.

[coxo]

I GET 7% guaranteed for four years, now in my third year, first year paid in lump sum on settlement at land office upon receiving Chanote in my name. All these arm chair procrastinators are unreal on this forum, I have been getting a nice return which helps me live a relaxing life, a damn site better than money in the bank and the stock market.

[coxo]

Again don't touch old buildings, my one bedroom condo give's me 19k per month, cost 3.4 million brand new fully furnished 100 metres from the BTS, Century 21 rent it out for about 27k per month, complete with huge swimming pool, gym and childs play area, all brand new!

[mike324]

I GET 7% guaranteed for four years, now in my third year, first year paid in lump sum on settlement at land office upon receiving Chanote in my name. All these arm chair procrastinators are unreal on this forum, I have been getting a nice return which helps me live a relaxing life, a damn site better than money in the bank and the stock market.

care to share which condo it is? not saying I don't believe you, just good to know

If I were to invest now, I wouldn't recommend buying 1 bedroom units, there is an oversupply of them on the market. If you read the forum, some folks here are having trouble renting it out even after 6 months.

[Walter Travolta]

Property funds are a good alternative if you are interested, easily bought and sold any business day, dividends of 5-8% and growing, expect capital increase of 5-10% per year average. No hassle of finding tenants, fixing things, or any trouble, dividends deposited to your bank account every 3 months. No minimum required amount of investment.

I could be interested in something like this. What kind of finances would be required?

[vukovar77]

Rental business for farangs???You need work permit and need to pay tax 12,5% per year!!!

Buying new condos now in Bkk and Pattaya and Phuket ,Chiang Mai is very ,very risky and many will lost a big money!

Market is glut with new condos and rental rates fall down pretty much!

You need to buy cheap to have any chance "to survive"!

[uthaithanirules]

My Condos give me a return of 7% guaranteed by Century 21, had them for three years, forget all the BS talk about bubbles, it's much better than money in the bank and they are in your name. Make sure you are close to BTS or MRT.

You havent been getting 7% net

Property funds are a good alternative if you are interested, easily bought and sold any business day, dividends of 5-8% and growing, expect capital increase of 5-10% per year average. No hassle of finding tenants, fixing things, or any trouble, dividends deposited to your bank account every 3 months. No minimum required amount of investment.

Exactly. Why? put all your eggs in one or two baskets when a REIT will do the same with far less hassle

[wowfactor10]

What about the vacancy and re-sale issue with condos Bangkok?

[mike324]

What about the vacancy and re-sale issue with condos Bangkok?

vacancy for 1 beds are very high, even for 2 beds is a challenge in todays market. Although your condo won't loose its resale value as price increases each year, it won't be easy to sell too unless you sell at a loss or you sell for the price bought couple years ago. Currently there is an oversupply of 1 bedroom at the market, part of the reason is that developers allocate more 1 bed in condos as its cheaper for buyers and due to the lower price easier to get financing for many low-mid income buyers. Within the past years, many buyers want to jump on the train to buy and rent for passive income, hence this contributes to the amount of available condo units on the market as well.

[Minnehaha]

Further to that buy new, do not buy old. Prices appreciate a little over six years then level out and even start to decline in value. Ideally buy new, hold it for four to five years and sell, get your money back or even make a little profit, then buy new again.

I would be pretty surpised if you could get 7% net yield with today's condo prices. Sure there might be the odd one knocking around, but it would be a very good letting and pretty damn rare.

I would be shocked.

The places to look for this are only along BTS underutilized stations or near planned stations. Those are the places you will find such ROI.

Wandering off topic ....

For me, the biggest mistake the govt makes is not to develop the river. It is a natural transport system, a draw for its beauty. Residential area along rivers are ALWAYS in demand. The view of water changes with sunlight, weather, boats, etc. The view of the Sukhumvit changes with traffic.

They could put real boats on the river and one could get from Sam Sen to Sathorn for work in 20 minutes.

I have often entertained the idea of buying my own boat and having a driver. It would be an extravagant expense, but I wonder if I could navigate the klongs like klong san saep in a private vehicle. Is it legal? The Chao Phraya is lovely. I like seeing the huge monitor lizards and the rice barges.

[RBOP]

Ok i see, we are in a bubble then. Maybe it's better if i wait the bubble to burst than buy now.

The Government has an incentive program on now for transfer tax of only 0.01%. It expires in April this year. After that its 2%. I have not read anything about a bubble. In fact sales have been quite sluggish which why the Government has this incentive.

[wowfactor10]

Further to that buy new, do not buy old. Prices appreciate a little over six years then level out and even start to decline in value. Ideally buy new, hold it for four to five years and sell, get your money back or even make a little profit, then buy new again.

I would be pretty surpised if you could get 7% net yield with today's condo prices. Sure there might be the odd one knocking around, but it would be a very good letting and pretty damn rare.

I would be shocked.

The places to look for this are only along BTS underutilized stations or near planned stations. Those are the places you will find such ROI.

Wandering off topic ....

For me, the biggest mistake the govt makes is not to develop the river. It is a natural transport system, a draw for its beauty. Residential area along rivers are ALWAYS in demand. The view of water changes with sunlight, weather, boats, etc. The view of the Sukhumvit changes with traffic.

They could put real boats on the river and one could get from Sam Sen to Sathorn for work in 20 minutes.

I have often entertained the idea of buying my own boat and having a driver. It would be an extravagant expense, but I wonder if I could navigate the klongs like klong san saep in a private vehicle. Is it legal? The Chao Phraya is lovely. I like seeing the huge monitor lizards and the rice barges.

Gosh ....far as i know the Bangkok river and klongs are more then full with boats, water taxis and the river banks are mostly built up with residential sky scrappers..Anyway good luck with your own boat and private captain i sure u are the one bringing a great novelty to the Thais!!

[coxo]

With holding tax on a condo is 5% and you do not need a work permit. Where do some get there miss information from and then have the nerve to post BS !!!

Uthaithanirules you can work it out, 3.4 mill for a one bed returning 19,300 per month after tax, 5.8 for a two bedroom returning 33,550 per month after tax, every month whether rented or not guaranteed for four years, now you can tell me my money is better off in the bank earning .25% and depreciating with inflation, no I'm very happy with my property in Bangkok, it's all about location location.

[wowfactor10]

What about the vacancy and re-sale issue with condos Bangkok?

vacancy for 1 beds are very high, even for 2 beds is a challenge in todays market. Although your condo won't loose its resale value as price increases each year, it won't be easy to sell too unless you sell at a loss or you sell for the price bought couple years ago. Currently there is an oversupply of 1 bedroom at the market, part of the reason is that developers allocate more 1 bed in condos as its cheaper for buyers and due to the lower price easier to get financing for many low-mid income buyers. Within the past years, many buyers want to jump on the train to buy and rent for passive income, hence this contributes to the amount of available condo units on the market as well.

Let me absorb your information...Vacancy risk clearly there,Bangkok property prices increasing every year,however if u want to sell your unit some years later u need be prepared sell with a loss due to oversupply and problems renting it out..So somethings does not add up for me....How can prices continue to rise while once u have bought u need to be prepared to sell with a loss?Does it mean only the NEW properties rising each year in price but the secondhand units do not rise..So basically its like buying a car...soon as u buy one the value goes down..Okay i think i understand it now..

[uthaithanirules]

With holding tax on a condo is 5% and you do not need a work permit. Where do some get there miss information from and then have the nerve to post BS !!!

Uthaithanirules you can work it out, 3.4 mill for a one bed returning 19,300 per month after tax, 5.8 for a two bedroom returning 33,550 per month after tax, every month whether rented or not guaranteed for four years, now you can tell me my money is better off in the bank earning .25% and depreciating with inflation, no I'm very happy with my property in Bangkok, it's all about location location.

Ok, I wont bother getting into the nitty gritty, as that sounds alright, as you say better than a bank account.

Thailands negative inflation rate recently, how much you do end up selling them for, all outgoings etc etc

Probably will end up being more like 3%, in real terms, but you might get lucky

[trogers]

Again don't touch old buildings, my one bedroom condo give's me 19k per month, cost 3.4 million brand new fully furnished 100 metres from the BTS, Century 21 rent it out for about 27k per month, complete with huge swimming pool, gym and childs play area, all brand new!

Hmmm...and my old condo of 1-bedroom has already given me 9.8% gross yield from my first tenant who had stayed over 6 years now...

[Caca4u]

I read and reaearched a lot about buying a condo in bkk. Location is key, close to BTS or MRT. I decided not to buy at the end. Thais dont like to maintain and that is a big concern for me.

There is a condo in silom called diamond tower, the location is amazing, older building and large apts but the building is a complete dump. Looks like it will crumble.

[trogers]

I read and reaearched a lot about buying a condo in bkk. Location is key, close to BTS or MRT. I decided not to buy at the end. Thais dont like to maintain and that is a big concern for me.

There is a condo in silom called diamond tower, the location is amazing, older building and large apts but the building is a complete dump. Looks like it will crumble.

Location is amazing for an office building. Does not seem attractive as a residence. What is there in its neighborhood after dark?