Best rental yields condo in Bangkok ?

[thaihome]

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"!

I have been seeing posts like yours for some 15 years. Still waiting the crash.

TH

[F4UCorsair]

Beware of guaranteed rental returns on new developments. That's a scam that was active in Australia 15+ years ago.

Buy a unit/condo for $400,000 with a guaranteed return for 3 years at 7%, and the selling company/ developer manages the property. That's $28,000 pa, a total of $84,000.

After three years it's handed back to you, and you find you can only get $250 a week, about 3%, so you put it on the market, and surprise!! It's only worth $250,000.

You paid your own rental guarantee for three years, AND blew $150,000 on the deal.

If the developer rented it, for amy amount, it's a bonus for him, because you've paid yoir own rent.

There is no shortage of scammers in the property market.

I was a property investor years ago, but way too much trouble, vacancies, maintenance, damage by tenants, and a damned owners' corporation to deal with.

For my money, it's blue chip Australian shares.

[KittenKong]

Not Bangkok, but in Pattaya the Nordic group is pushing a "guaranteed" 10% return for 5 years with a "guaranteed" money back offer at the end of it.

Makes me wonder why they dont just borrow the money, retain ownership of their own condos and pocket the 10% themselves.

[smutcakes]

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.

Many of the higher yielding funds are leasehold properties so you get no capital growth. I would double check that they are freehold as if you are getting 8%, it would probably mean the developer must have been getting about 12-12.5% prior to selling it to the fund which is high. Leasehold funds generally yield higher as there is no capital growth, and reduced land cost for the developer.

[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.

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..

How hard is that to understand? Eg. You buy for 8 million price increase 10% to 8.8 million. But due to oversupply it is hard to sell, you either sell it at 8 million or sell at a loss if you need the cash urgently at 7.8-7.9 million. This is just one very common scenario, of course there are also lots of other folks who are able to sell and make money. I was just being conservative and cautioning folks who are jumping in to buy 1 beds to invest in. Perhaps you are too optimistic about the property market like many Thais who borrow money to buy and resell or rent out, only to find out it is tougher than it looks...many fall behind on their mortgage payments and some even loose their units, or even give up their deposits before the completion of the unit.

Old condo prices do rise, but at a very slow pace. Due to new condos being slightly overpriced now, old condos (built in 90s) at prime locations are seeing a big bump in the past years.

Thailand is very different from developed Western countries, the market value does not accurately reflect the demand and economic time (for a lack of better word).

[mike324]

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.

Your numbers make perfect sense and its very possible.....

so what is the condos that you have bought at? care to share?

[coxo]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

[vukovar77]

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.

Nobody can guaranteed you 7% return for sure!!!!

Special if you bought new expensive units!!!

On 1997 was very big "bubble burst" in Thailand.Bangkok was called "ghost building" city!!!Many big projects never finished!!!Many,many people lost all invested money in this projects or units!

Some can not have Chanote on their name even now if somehow unit is finished already,cos. bank mortgage!

I was last week in one pretty big building in Bangkok Noi district .Many units still unsold and many units bank sell(some more than 10 years as I was told).Building is build on 1994 ,just before big crisis,but looks very old outside.There is not enough money for maintenance!!!!Position is good near Central Pinklao!

I saw many buildings like this in many parts of Bangkok.

You can buy very cheap this units ,but need to do proper research before and need to renovate inside!

Problem is maintenance outside !

Many new units and oversupply made rent income lower and lower!

If you buy as investment ,you can fail very easy!

My friend ,Thai women,bought nice condo in On Nutt area for 3,5 M baht on bank finance.6 months after anybody can buy in same building same condos for 2,5M baht.Even now,6 years after many condos there unsold!!!

That is Bangkok.We bought small unit 34 m2 in Samut Prakan in my Thai wife name for 360.000 baht,new unit,only for Thais.Nothing fancy but very good maintained with so many amenities and all for free.

Nearby is Muban with fancy houses,about 4 or 5 years old(about 4M baht each house).Maintenance is very bad.Nothing really works.Play grounds for kids and adults are not in use,same like swimming pool.Nothing very close,so you need car for transportation.Houses looks still good outside(not inside) ,but everything around look like ghost area!!!

Many settlements and buildings in Bkk look like that!

And resale market for foreigners are very small!!!

[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.

Nobody can guaranteed you 7% return for sure!!!!

Special if you bought new expensive units!!!

On 1997 was very big "bubble burst" in Thailand.Bangkok was called "ghost building" city!!!Many big projects never finished!!!Many,many people lost all invested money in this projects or units!

Some can not have Chanote on their name even now if somehow unit is finished already,cos. bank mortgage!

I was last week in one pretty big building in Bangkok Noi district .Many units still unsold and many units bank sell(some more than 10 years as I was told).Building is build on 1994 ,just before big crisis,but looks very old outside.There is not enough money for maintenance!!!!Position is good near Central Pinklao!

I saw many buildings like this in many parts of Bangkok.

You can buy very cheap this units ,but need to do proper research before and need to renovate inside!

Problem is maintenance outside !

Many new units and oversupply made rent income lower and lower!

If you buy as investment ,you can fail very easy!

My friend ,Thai women,bought nice condo in On Nutt area for 3,5 M baht on bank finance.6 months after anybody can buy in same building same condos for 2,5M baht.Even now,6 years after many condos there unsold!!!

That is Bangkok.We bought small unit 34 m2 in Samut Prakan in my Thai wife name for 360.000 baht,new unit,only for Thais.Nothing fancy but very good maintained with so many amenities and all for free.

Nearby is Muban with fancy houses,about 4 or 5 years old(about 4M baht each house).Maintenance is very bad.Nothing really works.Play grounds for kids and adults are not in use,same like swimming pool.Nothing very close,so you need car for transportation.Houses looks still good outside(not inside) ,but everything around look like ghost area!!!

Many settlements and buildings in Bkk look like that!

And resale market for foreigners are very small!!!

How would you know, I have been getting it for three years, you full of sh-t and should stop posting your BS, your tax and work permit theory's are BS.

[trogers]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

Seems the maths is okay, but not the data collection. I got my 60 sqm 1-bedroom for Bt2.2m including refurbishing and renting at Bt18k.

[vukovar77]

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.

Nobody can guaranteed you 7% return for sure!!!!

Special if you bought new expensive units!!!

On 1997 was very big "bubble burst" in Thailand.Bangkok was called "ghost building" city!!!Many big projects never finished!!!Many,many people lost all invested money in this projects or units!

Some can not have Chanote on their name even now if somehow unit is finished already,cos. bank mortgage!

I was last week in one pretty big building in Bangkok Noi district .Many units still unsold and many units bank sell(some more than 10 years as I was told).Building is build on 1994 ,just before big crisis,but looks very old outside.There is not enough money for maintenance!!!!Position is good near Central Pinklao!

I saw many buildings like this in many parts of Bangkok.

You can buy very cheap this units ,but need to do proper research before and need to renovate inside!

Problem is maintenance outside !

Many new units and oversupply made rent income lower and lower!

If you buy as investment ,you can fail very easy!

My friend ,Thai women,bought nice condo in On Nutt area for 3,5 M baht on bank finance.6 months after anybody can buy in same building same condos for 2,5M baht.Even now,6 years after many condos there unsold!!!

That is Bangkok.We bought small unit 34 m2 in Samut Prakan in my Thai wife name for 360.000 baht,new unit,only for Thais.Nothing fancy but very good maintained with so many amenities and all for free.

Nearby is Muban with fancy houses,about 4 or 5 years old(about 4M baht each house).Maintenance is very bad.Nothing really works.Play grounds for kids and adults are not in use,same like swimming pool.Nothing very close,so you need car for transportation.Houses looks still good outside(not inside) ,but everything around look like ghost area!!!

Many settlements and buildings in Bkk look like that!

And resale market for foreigners are very small!!!

How would you know, I have been getting it for three years, you full of sh-t and should stop posting your BS, your tax and work permit theory's are BS.

I think that you are rude and uneducated person!

Withholding tax 5% is for company and juristic person!

For others is 12,5%(rental ) which is easy to check out on internet!

If you run rental business,you need to have proper documents according to Thai Law!

If you have company,it is not same,but you have some additional costs and you can own only 49%!

I finished Law university in Europe and I am not sure about your level of education!

Besides rental yield in first few years does not mean much if capital price is going down more sharply !

If you have now more profit than in bank,does not worth much if your condo value will drop much more!

[mercman24]

as a renter i would never rent a new condo, 35 sq m,no thanks for 20,000 plus ? i have a great 1 bed older condo, pool, gym, library, 6 mins from BTS 46 sq m, all for 15,000. at Phra khanong

[coxo]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

Seems the maths is okay, but not the data collection. I got my 60 sqm 1-bedroom for Bt2.2m including refurbishing and renting at Bt18k.

The top four floors are exclusive, better furniture in rooms and the fit out on cabinets is more up market, the hallways have timber paneling on walls and better floor tiles, that is where I bought, hence a bit more expensive.

As far as Vukovar77 is concerned as the chanote titled owner you are the Juristic Person, paying 5%, people like you are dangerous with your miss information and pessimistic approach, how dare you say it is impossible to get 7% when I have been for over three years! Further more 49% of the total units can be owned by foreigners, not 49% of one unit! I can now sell to a foreigner because I am in the 49% or to a Thai, sounds good to me! Life keeps getting better!

[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.

Many of the higher yielding funds are leasehold properties so you get no capital growth. I would double check that they are freehold as if you are getting 8%, it would probably mean the developer must have been getting about 12-12.5% prior to selling it to the fund which is high. Leasehold funds generally yield higher as there is no capital growth, and reduced land cost for the developer.

Incorrect, as it is a traded product over the SET, you must differentiate the difference between market price and value. Capital growth could refer to what investors value the property funds as at the current market condition and of course growth. Even with leasehold properties, as long as rent revenue is increased, the dividends will also increased, which in turn increases the value of this specific property fund and affecting their price. At this current time, there are many with 5-8% dividends, leasehold and freehold, the percentages do not define what type it is, it is basically how the investors value this investment.

Personally I wouldn't touch anything that has no growth, what do I do with inflation? And best of all, there are still 3-4 funds that still have growth of 5-15% per year, why would anyone want to buy one that doesn't have growth.

[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.

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

You will need to open up a stock trading account with the brokers available in Thailand, make sure they are english friendly. Suggested brokers on this forum, most recommend good experiences with Kim Eng Maybank, Phatra, etc.

Sign up for an online account where you do your own trading and buying, total fees will be 0.17% including all relevant taxes.

Most property funds right now are at around 10 to 14 baht per share, and bought in 100 increments. So a measely 2000 baht should get you started in your investment. They don't care how small your shares are, you will receive your dividend usually every 3 months deposited automatically into your banking account.

What you can own is endless, from properties to hotels to shopping malls to commercial office buildings, to skytrains, internet cables, etc. And the beauty is you can sell them anytime, no hassle. I intend to keep mine for years, unless their performance drops.

[trogers]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

Seems the maths is okay, but not the data collection. I got my 60 sqm 1-bedroom for Bt2.2m including refurbishing and renting at Bt18k.

The top four floors are exclusive, better furniture in rooms and the fit out on cabinets is more up market, the hallways have timber paneling on walls and better floor tiles, that is where I bought, hence a bit more expensive.

As far as Vukovar77 is concerned as the chanote titled owner you are the Juristic Person, paying 5%, people like you are dangerous with your miss information and pessimistic approach, how dare you say it is impossible to get 7% when I have been for over three years! Further more 49% of the total units can be owned by foreigners, not 49% of one unit! I can now sell to a foreigner because I am in the 49% or to a Thai, sounds good to me! Life keeps getting better!

I am not saying you can't get your 7%.

But I am disagreeing your statement on not to buy old condos.

A shoebox lined in gold is still a shoebox, even on a diamond studded rack.

[coxo]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

Seems the maths is okay, but not the data collection. I got my 60 sqm 1-bedroom for Bt2.2m including refurbishing and renting at Bt18k.

The top four floors are exclusive, better furniture in rooms and the fit out on cabinets is more up market, the hallways have timber paneling on walls and better floor tiles, that is where I bought, hence a bit more expensive.

As far as Vukovar77 is concerned as the chanote titled owner you are the Juristic Person, paying 5%, people like you are dangerous with your miss information and pessimistic approach, how dare you say it is impossible to get 7% when I have been for over three years! Further more 49% of the total units can be owned by foreigners, not 49% of one unit! I can now sell to a foreigner because I am in the 49% or to a Thai, sounds good to me! Life keeps getting better!

I am not saying you can't get your 7%.

But I am disagreeing your statement on not to buy old condos.

A shoebox lined in gold is still a shoebox, even on a diamond studded rack.

Maybe so but not in my opinion having worked in the construction industry for 40 years, nearly 20 of them here. The maintenance and up keep by the Thai's isn't good, old buildings deteriorate which means the owners will have to pay for major maintenance, eg when the swimming pool tiles fall off, the pumps wear out etc etc, repaint the building and so it go's, major maintenance expense. As pointed out to me years ago, buy new, collect the rent, sell after four years while the property is still deemed newish, collect the capital gain or break even and reinvest in new again, the condo market in Bangkok has shown a small capital gain for 6 years then it starts to decrease in value, that's my strategy anyhow.

[smutcakes]

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.

Many of the higher yielding funds are leasehold properties so you get no capital growth. I would double check that they are freehold as if you are getting 8%, it would probably mean the developer must have been getting about 12-12.5% prior to selling it to the fund which is high. Leasehold funds generally yield higher as there is no capital growth, and reduced land cost for the developer.

Incorrect, as it is a traded product over the SET, you must differentiate the difference between market price and value. Capital growth could refer to what investors value the property funds as at the current market condition and of course growth. Even with leasehold properties, as long as rent revenue is increased, the dividends will also increased, which in turn increases the value of this specific property fund and affecting their price. At this current time, there are many with 5-8% dividends, leasehold and freehold, the percentages do not define what type it is, it is basically how the investors value this investment.

Personally I wouldn't touch anything that has no growth, what do I do with inflation? And best of all, there are still 3-4 funds that still have growth of 5-15% per year, why would anyone want to buy one that doesn't have growth.

Because they get a higher yield? It is difficult to see how leasehold portfolio has capital growth when the assets are depreciated off over 30 years.

there will be vagaries which see the unit price increase slightly as people value the worth of the future income stream differently, but it has zero value after 30 years so any potential capital growth potential would be limited especially after a period of time.

[trogers]

My condo is 'The Bloom' Sukhumvit 71.

At the time of purchase there were heaps of condos offering fixed returns all over Bangkok. 'F4UCorsair' brings up Australia, I don't know why as it is a totally different market and irrelevant. It is very easy in Thailand if you understand basic mathematics, you are buying at a square metre rate, a little research will let you accurately determine if you are buying at a good rate for your location based on other property in the area.

Seems the maths is okay, but not the data collection. I got my 60 sqm 1-bedroom for Bt2.2m including refurbishing and renting at Bt18k.

The top four floors are exclusive, better furniture in rooms and the fit out on cabinets is more up market, the hallways have timber paneling on walls and better floor tiles, that is where I bought, hence a bit more expensive.

As far as Vukovar77 is concerned as the chanote titled owner you are the Juristic Person, paying 5%, people like you are dangerous with your miss information and pessimistic approach, how dare you say it is impossible to get 7% when I have been for over three years! Further more 49% of the total units can be owned by foreigners, not 49% of one unit! I can now sell to a foreigner because I am in the 49% or to a Thai, sounds good to me! Life keeps getting better!

I am not saying you can't get your 7%.

But I am disagreeing your statement on not to buy old condos.

A shoebox lined in gold is still a shoebox, even on a diamond studded rack.

Maybe so but not in my opinion having worked in the construction industry for 40 years, nearly 20 of them here. The maintenance and up keep by the Thai's isn't good, old buildings deteriorate which means the owners will have to pay for major maintenance, eg when the swimming pool tiles fall off, the pumps wear out etc etc, repaint the building and so it go's, major maintenance expense. As pointed out to me years ago, buy new, collect the rent, sell after four years while the property is still deemed newish, collect the capital gain or break even and reinvest in new again, the condo market in Bangkok has shown a small capital gain for 6 years then it starts to decrease in value, that's my strategy anyhow.

That 5% of annual rental income per year, over 5-6 years to pay for refurbishing the common areas would not dent rental yield.

[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.

Nobody can guaranteed you 7% return for sure!!!!

Special if you bought new expensive units!!!

On 1997 was very big "bubble burst" in Thailand.Bangkok was called "ghost building" city!!!Many big projects never finished!!!Many,many people lost all invested money in this projects or units!

Some can not have Chanote on their name even now if somehow unit is finished already,cos. bank mortgage!

I was last week in one pretty big building in Bangkok Noi district .Many units still unsold and many units bank sell(some more than 10 years as I was told).Building is build on 1994 ,just before big crisis,but looks very old outside.There is not enough money for maintenance!!!!Position is good near Central Pinklao!

I saw many buildings like this in many parts of Bangkok.

You can buy very cheap this units ,but need to do proper research before and need to renovate inside!

Problem is maintenance outside !

Many new units and oversupply made rent income lower and lower!

If you buy as investment ,you can fail very easy!

My friend ,Thai women,bought nice condo in On Nutt area for 3,5 M baht on bank finance.6 months after anybody can buy in same building same condos for 2,5M baht.Even now,6 years after many condos there unsold!!!

That is Bangkok.We bought small unit 34 m2 in Samut Prakan in my Thai wife name for 360.000 baht,new unit,only for Thais.Nothing fancy but very good maintained with so many amenities and all for free.

Nearby is Muban with fancy houses,about 4 or 5 years old(about 4M baht each house).Maintenance is very bad.Nothing really works.Play grounds for kids and adults are not in use,same like swimming pool.Nothing very close,so you need car for transportation.Houses looks still good outside(not inside) ,but everything around look like ghost area!!!

Many settlements and buildings in Bkk look like that!

And resale market for foreigners are very small!!!

How would you know, I have been getting it for three years, you full of sh-t and should stop posting your BS, your tax and work permit theory's are BS.

I agree with Coxo. It is possible to get it guaranteed yield. "For sure" is up to interpretation, but its a risk in investing. But coming from reputable companies such as Century21, the risk is lower than individual developers promising the guaranteed yield. The units Coxo bought is not expensive too, its consider the low to mid end for Bangkok condos.

I've been getting guarantee yield for the past 2 years for my condo in Khao Yai - guaranteed 6%.

If your investing strategy is to sell after 3-4 years, then yes Coxo strategy works well. If you think long term then I don't think Coxo's strategy works well.

[trogers]

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.

Nobody can guaranteed you 7% return for sure!!!!

Special if you bought new expensive units!!!

On 1997 was very big "bubble burst" in Thailand.Bangkok was called "ghost building" city!!!Many big projects never finished!!!Many,many people lost all invested money in this projects or units!

Some can not have Chanote on their name even now if somehow unit is finished already,cos. bank mortgage!

I was last week in one pretty big building in Bangkok Noi district .Many units still unsold and many units bank sell(some more than 10 years as I was told).Building is build on 1994 ,just before big crisis,but looks very old outside.There is not enough money for maintenance!!!!Position is good near Central Pinklao!

I saw many buildings like this in many parts of Bangkok.

You can buy very cheap this units ,but need to do proper research before and need to renovate inside!

Problem is maintenance outside !

Many new units and oversupply made rent income lower and lower!

If you buy as investment ,you can fail very easy!

My friend ,Thai women,bought nice condo in On Nutt area for 3,5 M baht on bank finance.6 months after anybody can buy in same building same condos for 2,5M baht.Even now,6 years after many condos there unsold!!!

That is Bangkok.We bought small unit 34 m2 in Samut Prakan in my Thai wife name for 360.000 baht,new unit,only for Thais.Nothing fancy but very good maintained with so many amenities and all for free.

Nearby is Muban with fancy houses,about 4 or 5 years old(about 4M baht each house).Maintenance is very bad.Nothing really works.Play grounds for kids and adults are not in use,same like swimming pool.Nothing very close,so you need car for transportation.Houses looks still good outside(not inside) ,but everything around look like ghost area!!!

Many settlements and buildings in Bkk look like that!

And resale market for foreigners are very small!!!

How would you know, I have been getting it for three years, you full of sh-t and should stop posting your BS, your tax and work permit theory's are BS.

I agree with Coxo. It is possible to get it guaranteed yield. "For sure" is up to interpretation, but its a risk in investing. But coming from reputable companies such as Century21, the risk is lower than individual developers promising the guaranteed yield. The units Coxo bought is not expensive too, its consider the low to mid end for Bangkok condos.

I've been getting guarantee yield for the past 2 years for my condo in Khao Yai - guaranteed 6%.

If your investing strategy is to sell after 3-4 years, then yes Coxo strategy works well. If you think long term then I don't think Coxo's strategy works well.

And Coxo will be giving a guaranteed rental yield to his buyers in the few years down? If not, who would buy at his purchased prices, and I am not even considering any capital gain...

Or would his potential buyers prefer buying new with guarantees from reputed companies, and not buy from Coxo?

[mike324]

The top four floors are exclusive, better furniture in rooms and the fit out on cabinets is more up market, the hallways have timber paneling on walls and better floor tiles, that is where I bought, hence a bit more expensive.

As far as Vukovar77 is concerned as the chanote titled owner you are the Juristic Person, paying 5%, people like you are dangerous with your miss information and pessimistic approach, how dare you say it is impossible to get 7% when I have been for over three years! Further more 49% of the total units can be owned by foreigners, not 49% of one unit! I can now sell to a foreigner because I am in the 49% or to a Thai, sounds good to me! Life keeps getting better!

I am not saying you can't get your 7%.

But I am disagreeing your statement on not to buy old condos.

A shoebox lined in gold is still a shoebox, even on a diamond studded rack.

Maybe so but not in my opinion having worked in the construction industry for 40 years, nearly 20 of them here. The maintenance and up keep by the Thai's isn't good, old buildings deteriorate which means the owners will have to pay for major maintenance, eg when the swimming pool tiles fall off, the pumps wear out etc etc, repaint the building and so it go's, major maintenance expense. As pointed out to me years ago, buy new, collect the rent, sell after four years while the property is still deemed newish, collect the capital gain or break even and reinvest in new again, the condo market in Bangkok has shown a small capital gain for 6 years then it starts to decrease in value, that's my strategy anyhow.

I think your strategy works well if you enter in the market at the right time and have a guarantee yield, sell it after 4 years like you said. If not for the guarantee yield, and todays economic condition, buying a 1 bed is suicide, buying anything real estate for invesment is a big risk. I don't think there are many guaranteed yields at the moment near BTS.

As for buying old buildings, you just have to be selective. Maintence cost don't add up much when divided by all the owners, I've had to pay couple thousand one year as they refurbish the whole building (repaint, tiling, etc). It all depends on the management. For older buildings the monthly common fee is also a lot cheaper, they normally range between 30-40baht / sqm. Newer condos are 45 baht and up.

[mike324]

I agree with Coxo. It is possible to get it guaranteed yield. "For sure" is up to interpretation, but its a risk in investing. But coming from reputable companies such as Century21, the risk is lower than individual developers promising the guaranteed yield. The units Coxo bought is not expensive too, its consider the low to mid end for Bangkok condos.

I've been getting guarantee yield for the past 2 years for my condo in Khao Yai - guaranteed 6%.

If your investing strategy is to sell after 3-4 years, then yes Coxo strategy works well. If you think long term then I don't think Coxo's strategy works well.

And Coxo will be giving a guaranteed rental yield to his buyers in the few years down? If not, who would buy at his purchased prices, and I am not even considering any capital gain...

Or would his potential buyers prefer buying new with guarantees from reputed companies, and not buy from Coxo?

Yup selling would be difficult at market price or what everyone is trying to sell for, but I don't think it will be too hard to sell at his purchase price, as price have increase around 10%.

Yes, many people who buy new forget to factor in the sinking fund they have to pay when buying new.

Troger, can you share which condo you bought at?

[trogers]

I agree with Coxo. It is possible to get it guaranteed yield. "For sure" is up to interpretation, but its a risk in investing. But coming from reputable companies such as Century21, the risk is lower than individual developers promising the guaranteed yield. The units Coxo bought is not expensive too, its consider the low to mid end for Bangkok condos.

I've been getting guarantee yield for the past 2 years for my condo in Khao Yai - guaranteed 6%.

If your investing strategy is to sell after 3-4 years, then yes Coxo strategy works well. If you think long term then I don't think Coxo's strategy works well.

And Coxo will be giving a guaranteed rental yield to his buyers in the few years down? If not, who would buy at his purchased prices, and I am not even considering any capital gain...

Or would his potential buyers prefer buying new with guarantees from reputed companies, and not buy from Coxo?

Yup selling would be difficult at market price or what everyone is trying to sell for, but I don't think it will be too hard to sell at his purchase price, as price have increase around 10%.

Yes, many people who buy new forget to factor in the sinking fund they have to pay when buying new.

Troger, can you share which condo you bought at?

Waterford Park Rama 4. Two 1-bedroom units, 42 sqm costing Bt1.7m including refurbishing and renting out at Bt15k, and the other 60 sqm.

[mike324]

Waterford Park Rama 4. Two 1-bedroom units, 42 sqm costing Bt1.7m including refurbishing and renting out at Bt15k, and the other 60 sqm.

Thanks for sharing, interesting place! I would have thought a location like that would be hard to rent out too. But you never know I guess!

[trogers]

Waterford Park Rama 4. Two 1-bedroom units, 42 sqm costing Bt1.7m including refurbishing and renting out at Bt15k, and the other 60 sqm.

Thanks for sharing, interesting place! I would have thought a location like that would be hard to rent out too. But you never know I guess!

Some foreigners seek peace, quiet and green above closeness to the BTS, especially those who have stayed for a year or two.

[trogers]

Waterford Park Rama 4. Two 1-bedroom units, 42 sqm costing Bt1.7m including refurbishing and renting out at Bt15k, and the other 60 sqm.

Thanks for sharing, interesting place! I would have thought a location like that would be hard to rent out too. But you never know I guess!

Some foreigners seek peace, quiet and green above closeness to the BTS, especially those who have stayed for a year or two.

[mike324]

Waterford Park Rama 4. Two 1-bedroom units, 42 sqm costing Bt1.7m including refurbishing and renting out at Bt15k, and the other 60 sqm.

Thanks for sharing, interesting place! I would have thought a location like that would be hard to rent out too. But you never know I guess!

Some foreigners seek peace, quiet and green above closeness to the BTS, especially those who have stayed for a year or two.

thats a great place to live too given the price and location, especially for folks who have a smaller budget to purchase their own place.

[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.

Many of the higher yielding funds are leasehold properties so you get no capital growth. I would double check that they are freehold as if you are getting 8%, it would probably mean the developer must have been getting about 12-12.5% prior to selling it to the fund which is high. Leasehold funds generally yield higher as there is no capital growth, and reduced land cost for the developer.

Incorrect, as it is a traded product over the SET, you must differentiate the difference between market price and value. Capital growth could refer to what investors value the property funds as at the current market condition and of course growth. Even with leasehold properties, as long as rent revenue is increased, the dividends will also increased, which in turn increases the value of this specific property fund and affecting their price. At this current time, there are many with 5-8% dividends, leasehold and freehold, the percentages do not define what type it is, it is basically how the investors value this investment.

Personally I wouldn't touch anything that has no growth, what do I do with inflation? And best of all, there are still 3-4 funds that still have growth of 5-15% per year, why would anyone want to buy one that doesn't have growth.

Because they get a higher yield? It is difficult to see how leasehold portfolio has capital growth when the assets are depreciated off over 30 years.

there will be vagaries which see the unit price increase slightly as people value the worth of the future income stream differently, but it has zero value after 30 years so any potential capital growth potential would be limited especially after a period of time.

Not necessarily. Those with higher yield are simply those with a "cheap price" with relative to the dividends the fund provides. It does not determine whether the fund would have growth or not. In your example of leasehold depreciating over the 30 years, a discount premium model calculation would be used to calculate the total gains (principal return+dividend) over the entire period divided by the total of 30 years. That will give you a rough idea how much the price should be in comparison to the NAV. However, situations change during this 30 years, some funds go downhill, some funds go uphill. The leasehold of said property is able to increase their rent revenue from the tenants by 5% per year, or better yet, demand is really high, and it just soars. This will affect the revaluation of the property fund itself, thus the "capital appreciation or depreciation/growth".

And to sacrifice growth for higher yields, I'm sorry, that is just poor investing. Investing 101, two choices. Would you pay for an investment that returns high yields with a declining future, or would you pay for an investment with low yields that has positive growth? Warren Buffett says he would never buy a lousy company at a cheap price, he would rather buy good companies at a premium. It's not that hard to win with this logic.

Today you have two funds paying 0.6 dividend per year.

Company A is selling for a price of 5, dividend yield = 12% per year. Declining revenue of 10% per year. If all other factors stay the same, in 5 years time, the dividend on the 5th year would roughly be about 0.354. Want to have a guess what the price would be now? Attractive as usual at 2.95 with 12% dividends.

Company B, what can I say. Capital appreciation (Price) + dividend growth = Win Win situation.

Company A, price dropped, dividend yield also drops.

"Personally I wouldn't touch anything that has no growth, what do I do with inflation? And best of all, there are still 3-4 funds that still have growth of 5-15% per year, why would anyone want to buy one that doesn't have growth."