Hi,

advice needed...

Has anybody experience with 10% annual returns for property investments in Pattaya?

Some development companies offer this opportunity,but isn't it a scam?

"If something is very good to be true...."

wrong forum, please try to use the relevant forums.

MOVED

Why would they guarantee such a good return instead of keeping the unit for themselves?

It's the discount you would normally get at purchase given to you later...

Due diligence is key. Particularly a review of history of owners prior to pitching up in Thailand - assuming they are foreign. Given that Pattaya is mentioned a northern European connection would be no surprise.

There are thousands of empty condos in Pattaya and BKK and buying a condo as an investment needs to be looked at very carefully, can you sell it easily? Check out other Farang experiences on selling property. I think in Thailand buy if you plan to live in it yourself for a long time or plan to retire at a later stage in the condo. Also only invest what you can afford to loose.

You have to wonder about the financial health of developers offering 10% return on their condos. With the Russians pulling out of purchasing condos in their droves in Pattaya and Jomtien most developers must be having cash flow problems, hence the 10% return.

I wouldn't go anyway near them.

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

25% ROI or ROC?

To be fair, I know the answer already, because if it was ROC, you wouldn't be selling.

To the OP, the main (but not only) "catch" I've seen is that it is only guarenteed for a short period. After that, its up to the market, but you've probably overpaid since the builder had to charge more to cover the risk of giving a guaranteed return.

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

Rubbish

Did you buy it in the 60's?

If so, maybe.

Try taking a developer to court, after you realise you have been duped.

Don't believe a word a developer/estate agent tells you in Thailand, there is no 'functioning' system in Thailand to stop conmen and their lies so anything goes.

Caveat et empore - buyer beware!

Some people have trouble reading the fine print.

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

Can I ask? you are getting a return of 25% because you are as you say "I currently rent it out to myself"

are you over charging yourself on rent?

Happy Grumpy,I want to buy your condo.

Why do you sell it?

Were you born a short while ago

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

Can I ask? you are getting a return of 25% because you are as you say "I currently rent it out to myself"

are you over charging yourself on rent?

I bought it for 10m baht.

I rent it out to myself at 210,000b p/m.

I find the extra income handy and will have it paid off in under 4 years.

if it seems to good to be true then...

Have you DRIVEN around Patts lately?

Go in to those super large condo places and see how many empty ones they have?

Look around and you will find your answers.

10 percent return? Is the place even built yet?

get a calculator and work it out

Simple maths.

To the OP, the main (but not only) "catch" I've seen is that it is only guarenteed for a short period. After that, its up to the market, but you've probably overpaid since the builder had to charge more to cover the risk of giving a guaranteed return.

Doing the math, let’s say the condo is worth 2,000,000 baht and it can be rented out for 6,500 baht/month.

The developer sell it at 2,500,000 baht and gives you a two year 10% ROI guarantee.

So rent for the first two years is 500,000 baht, i.e. what you overpaid, but say the developer rents it out for 6,500 baht/month, their cost is only 343,992, and they’ll probably also charge you a 10-20% “management fee”, limiting their cost to about 250,000 baht. I.e. they made an extra 250,000 baht on this condo by giving you this subsidised rental guarantee.

Furthermore, once the two years are up, you have a renter that paid 6,500 baht because of developer subsidies, so good luck telling them they must now pay 21,000 baht/month for the same unit, especially if the developer is still subsidising other units (those sold later than when you bought).

So you are stuck charging 6,500 baht/month which is rental income of 3.1%, but then you have management costs, wear & tear, etc.

Don't believe the naysayers. I actually have a condo there that returns 25%.

It is currently for sale if you are interested.

I currently rent it out to myself.

25% ROI or ROC?

To be fair, I know the answer already, because if it was ROC, you wouldn't be selling.

To the OP, the main (but not only) "catch" I've seen is that it is only guarenteed for a short period. After that, its up to the market, but you've probably overpaid since the builder had to charge more to cover the risk of giving a guaranteed return.

gufffffffffaw you totally missed Happy Grumpys point

Thanks everybody...