The Booming Rental Market in CM.

[theguyfromanotherforum]

Booked with deposit paid to hold until available.

13% roi.

How can you be sure of a 13% ROI when you have only booked the condo?

Would you mind sharing your numbers (acquisition price, expected rental price, expected occupancy rate, common area fees, management fee (if you are going through agent), and size of unit in sq.m.).

I’m considering buying a (new) condo myself, but my estimate is a ROI slightly below 5%, depends on how much of a discount I can get when I buy the unit.

It's a lie. By a condo developer/agent.

[Happy Grumpy]

Booked with deposit paid to hold until available.

13% roi.

How can you be sure of a 13% ROI when you have only booked the condo?

I read it as he owns the condo, he listed it for rent, and someone has booked to rent it when it becomes available at 13% roi.

I’m considering buying a (new) condo myself, but my estimate is a ROI slightly below 5%, depends on how much of a discount I can get when I buy the unit.

Mrs. HG bought a used unit empty, renovated it nicely (real wood, not cheap cr@p etc.), has it fully set up now and those renting the same size units in the building pay around 10% p/a of what she spent buying and renovating it.

Edited March 22, 2016 by Happy Grumpy

[condo bought]

Booked with deposit paid to hold until available.

13% roi.

How can you be sure of a 13% ROI when you have only booked the condo?

I own the condo. I listed it as available for rent from next month. 2 people came to view it, the second paid the deposit to book a one year rental starting next month. There were three more people due to look at it this week.

[Puwa]

Certainly beats working for a living!

[LannaGuy]

Booked with deposit paid to hold until available.

13% roi.

How can you be sure of a 13% ROI when you have only booked the condo?

Would you mind sharing your numbers (acquisition price, expected rental price, expected occupancy rate, common area fees, management fee (if you are going through agent), and size of unit in sq.m.).

I’m considering buying a (new) condo myself, but my estimate is a ROI slightly below 5%, depends on how much of a discount I can get when I buy the unit.

if it helps I'm a seasoned owner of several condos across many buildings at one time or another. the market is not what it was, bargain wise, but for a steady income it has held up for many years and i dont see it changing. ROI 8% net is reality for me and my buddies after taking out agent fees etc. sometimes slightly less sometimes more. on the new condos the return is FAR less and you will be lucky to get 5% due to the inflated prices per square meter and the really poor interiors and most importantly the sizes of the new condos for tenants as many are shoe boxes. good luck and be cautious.

[condo bought]

I agree about the over inflated prices of new condos.

There are some real bargains to be had on used units. Certainly going to bump up the roi.

Don't be in a rush, look around, I wouldn't buy new on a investment property.

I would buy an empty used unit in a good building with good management. Refurbish using good materials. No laminated chipboard furniture and plastic sofas!

Better stuff isn't that much more expensive.

good luck.

Edited March 23, 2016 by condo bought

[WinnieTheKhwai]

Someone tells me 13 roi in this environment (not necessarily a condo environment) I take it as direct insult to my intelligence.

Read scam.

^ A scam is where someone tries to gain something from your on a dishonest basis.

He's not trying to get anything from you.

I believe the 13% ROI, give or take a bit due to the various creative ways people choose to calculate it.

Personally I think I've cracked this thing and wish I could find some more funds to buy more real estate.

[opalred]

do people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river

[ardokano]

>> and a 10 minute distance from Thapae gate<<..we still do not know if that is walking or driving distance.

Walking distance is quite difficult as there is no high-rise development allowed in the old town. Would have to be driving distance.

Very likely near the Railway Station / Makro Superhighway Intersection.

In CM have "high-rise development"?

[anto]

>> and a 10 minute distance from Thapae gate<<..we still do not know if that is walking or driving distance.

Walking distance is quite difficult as there is no high-rise development allowed in the old town. Would have to be driving distance.

Very likely near the Railway Station / Makro Superhighway Intersection.

In CM have "high-rise development"?

Yes well relatively .There is a new 40 floor aprox going up by the Superhighway ,not far from Arcade bus station .Looks hideous .

[mascarabertha]

do people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river

How have the scores of people that you have seen lose money on condos actually lost money. Amateurs and those that are undercapitalised always lose in whatever they do. If you buy a condo as your home, it's your home not an investment.

[uptheos]

do people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river

How have the scores of people that you have seen lose money on condos actually lost money. Amateurs and those that are undercapitalised always lose in whatever they do. If you buy a condo as your home, it's your home not an investment.

And anyway people should use their money however they want, it's no one else's concern.

[anto]

>>o people wear blinkers

ihave been here 14years and seen so many people lose on condos look around
how many empty 10000
people in condo saleswill tell its booming same story world over
if you want to lose money buy
or through your money in ping river<<

I owned 2 Condo in Jomtien/Pattaya .Made a small profit on both when i sold plus had the use of one over 7 years .Now own a house in a suburb of Chiang Mai for 6 years .Houses near me are going for double what i paid .Its not all doom and gloom here .

[theguyfromanotherforum]

>>o people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river<<

I owned 2 Condo in Jomtien/Pattaya .Made a small profit on both when i sold plus had the use of one over 7 years .Now own a house in a suburb of Chiang Mai for 6 years .Houses near me are going for double what i paid .Its not all doom and gloom here .

Only realized profits count.

I think most Westerners are not like Thai who can wait 20 years to sell a condo/house.

[anto]

>>o people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river<<

I owned 2 Condo in Jomtien/Pattaya .Made a small profit on both when i sold plus had the use of one over 7 years .Now own a house in a suburb of Chiang Mai for 6 years .Houses near me are going for double what i paid .Its not all doom and gloom here .

Only realized profits count.

I think most Westerners are not like Thai who can wait 20 years to sell a condo/house.

House in my soi recently sold in one month .Another in next soi took 6 months .(there was problem with paperwork ) .Anyway ,as we are not intending to move in the near future its all relative .Nice to know though that we are rent and finance free .

Edited March 24, 2016 by anto

[Happy Grumpy]

We rented a unit last week, works out at 6.85% RoI after the agent fees (1 month) and annual management fees are deducted.

It was listed for less than a week. We were low balled and accepted due to the convenience of it. We could have been tight and held out for others but couldn't be bothered.

Renting at the asking price (what other units are renting for) and without the agent fees (if the renter came due to our own advertizing and not through an agent) it works out at 9.63% RoI after the annual management fees are deducted.

The other units typically last 2-3 weeks before being rented.

We got a good deal on the unit (used) which obviously helps the RoI.

Hope that helps people.

[KhonKaenKowboy]

6.85 with zero for maintenance. Could be worse, but considering you can get 4%+ in utility stocks, that you could sell in 4 seconds for 7 Dollars.....

[Happy Grumpy]

6.85 with zero for maintenance. Could be worse, but considering you can get 4%+ in utility stocks, that you could sell in 4 seconds for 7 Dollars.....

Sounds great, maybe we'll buy them every month with the rental income.

[KhonKaenKowboy]

6.85 with zero for maintenance. Could be worse, but considering you can get 4%+ in utility stocks, that you could sell in 4 seconds for 7 Dollars.....

Sounds great, maybe we'll buy them every month with the rental income.

I've done the same thing...unless of course you have a/c repair or you need to paint, or remove everything in the home, burn the mattresses and fumigate, or your tenant dies, or a pipe bursts....drink a lot before bed and you won't stay awake worrying.

[Happy Grumpy]

Trollsurance is really quite cheap, as it happens. Sorry, insurance, of course.

[northernjohn]

6.85 with zero for maintenance. Could be worse, but considering you can get 4%+ in utility stocks, that you could sell in 4 seconds for 7 Dollars.....

can you sleep in it?

[LivinLOS]

6.85 with zero for maintenance. Could be worse, but considering you can get 4%+ in utility stocks, that you could sell in 4 seconds for 7 Dollars.....

can you sleep in it?

Can you sleep in a condo you have rented out either ??

[Happy Grumpy]

Sure.

Just leave before they get up.

[KhonKaenKowboy]

just kick some of the staff off the lobby sofas and sleep there.

[WonderousWand]

Condos with air-con and covered parking go for around 3,000-4000bht 250m from KSK.

(with balcony and view of Wat Doi Suthep)

What building, and what size, please?

[LannaGuy]

>>o people wear blinkers

ihave been here 14years and seen so many people lose on condos look around

how many empty 10000

people in condo saleswill tell its booming same story world over

if you want to lose money buy

or through your money in ping river<<

I owned 2 Condo in Jomtien/Pattaya .Made a small profit on both when i sold plus had the use of one over 7 years .Now own a house in a suburb of Chiang Mai for 6 years .Houses near me are going for double what i paid .Its not all doom and gloom here .

[heybruce]

We rented a unit last week, works out at 6.85% RoI after the agent fees (1 month) and annual management fees are deducted.

It was listed for less than a week. We were low balled and accepted due to the convenience of it. We could have been tight and held out for others but couldn't be bothered.

Renting at the asking price (what other units are renting for) and without the agent fees (if the renter came due to our own advertizing and not through an agent) it works out at 9.63% RoI after the annual management fees are deducted.

The other units typically last 2-3 weeks before being rented.

We got a good deal on the unit (used) which obviously helps the RoI.

Hope that helps people.

How long is the lease? How much annual turnover are the other units experiencing? You state units typically sit empty for 2 to 3 weeks before being rented, is that year round or your observation during the just ended high season? How much does it cost to prepare a unit for new tenants? How many tenants leave with unpaid bills and damage to the unit? What would a few hundred thousand baht of damage to the unit do to your ROI?

Until you can answer these and other questions you shouldn't get too comfortable with your 6.85% estimate.

Also, if you don't have a Thai partner or the right visa and permits, what you're doing is illegal.

Edited April 20, 2016 by heybruce

[Happy Grumpy]

OMG.

[puukao]

i sell a class on how to make big money with condos in CM.

only 100,000 baht but you have the potential to make 1 billion baht

first 1,000 students only!!!

[HenryB]

the water problem will not help