leverito Posted May 7, 2016 Share Posted May 7, 2016 (edited) 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...." Edited May 7, 2016 by metisdead Topic title edited to remove all caps. Link to comment Share on other sites More sharing options...
CharlieH Posted May 7, 2016 Share Posted May 7, 2016 wrong forum, please try to use the relevant forums. MOVED Link to comment Share on other sites More sharing options...
trogers Posted May 7, 2016 Share Posted May 7, 2016 Why would they guarantee such a good return instead of keeping the unit for themselves? Link to comment Share on other sites More sharing options...
MROLL320 Posted May 7, 2016 Share Posted May 7, 2016 It's the discount you would normally get at purchase given to you later... Link to comment Share on other sites More sharing options...
dabhand Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
stupidfarang Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
Seizetheday Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
Happy Grumpy Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
vaultdweller0013 Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
rocketboybkk Posted May 7, 2016 Share Posted May 7, 2016 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. Link to comment Share on other sites More sharing options...
peterrabbit Posted May 7, 2016 Share Posted May 7, 2016 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! Link to comment Share on other sites More sharing options...
Happy Grumpy Posted May 7, 2016 Share Posted May 7, 2016 Some people have trouble reading the fine print. Link to comment Share on other sites More sharing options...
stupidfarang Posted May 7, 2016 Share Posted May 7, 2016 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? Link to comment Share on other sites More sharing options...
leverito Posted May 8, 2016 Author Share Posted May 8, 2016 Happy Grumpy,I want to buy your condo. Why do you sell it? Link to comment Share on other sites More sharing options...
JAS21 Posted May 8, 2016 Share Posted May 8, 2016 Were you born a short while ago Link to comment Share on other sites More sharing options...
Happy Grumpy Posted May 8, 2016 Share Posted May 8, 2016 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. Link to comment Share on other sites More sharing options...
marcusd Posted May 8, 2016 Share Posted May 8, 2016 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. Link to comment Share on other sites More sharing options...
WorkingTourist Posted May 8, 2016 Share Posted May 8, 2016 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. Link to comment Share on other sites More sharing options...
kannot Posted May 13, 2016 Share Posted May 13, 2016 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 Link to comment Share on other sites More sharing options...
leverito Posted May 13, 2016 Author Share Posted May 13, 2016 Thanks everybody... Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now