Chiangmai Condo, Nimman Soi 11, is changing management

[baywatch82]

The story on the building, that is excellent located, but totally ran down over the last 8 years under unprofessional management.

Very ugly from outside, probably one of the most ugly at Nimmanhemin area, has a bright future from now on.
Unhappy residents, created a committee and submitted documents needed to the Land Office, requesting change of the juristic person.
She has been accused for stealing money, as the building hasn't ever got any improvements last 8 years, she was never been able to provide any financial reports, but surprisingly she became owner of 4 rooms in the building.

She has been given 3 days to hand over office keys, otherwise she will be removed by police.

Mr. Arwut has been involved, the same consultant and property manager, who turned JC Hill Place, City View Condo, Impress Town Condo and Sritana Condo into very nice and well managed places.
Yesterday at the committee meeting, he drafted action plan for the improvements, and agreed to work for Chiangmai Condo as a consultant.

[KhonKaenKowboy]

_{that place makes PP Condo look like the Marriot.}

[Beng]

Would be interesting to knowwhat the company name is and what Mr. Arwut is charging for his services.

If the old manager stole money, there might not be enough left for a major revamp.

[arunsakda]

OMG That is a Condo? This pic is from Chiang Mai Locator. I have passed by for years without ever noticing,

I would have thought a cheap apart.

Is the property even salvageable? How about tearing down and build new high rise on location saving rooms for current owners.

That is prime real estate.

Edited June 5, 2016 by arunsakda

[baywatch82]

Would be interesting to knowwhat the company name is and what Mr. Arwut is charging for his services.

If the old manager stole money, there might not be enough left for a major revamp.

He asked 5000 baht monthly for his consulting.

Many people stopped to pay condo fees as they knew old manager was not doing any use of it. With new manager they will start paying condo fees again, including months and years they didn't pay.

Even if there is no money left and it will take years to make it straight, it will be better than it used to be.

For major re-painting, each room will pay 2000-3000 baht, same as they did at Impresstown condo.

People understand that re-painting this building, which is in great location, will most likely increase value of their rooms, will make easier to rent it out or sale.

[baywatch82]

OMG That is a Condo? This pic is from Chiang Mai Locator. I have passed by for years without ever noticing,

I would have thought a cheap apart.

Is the property even salvageable? How about tearing down and build new high rise on location saving rooms for current owners.

That is prime real estate.

Yes it is, probably one of the oldest in Chiang Mai, built in 1988 (28 years old), with 110 units. So don't be surprised it doesn't look "modern". Simple re-painting will make this buildng look much better, but it will be still only some old building.

[baywatch82]

_{that place makes PP Condo look like the Marriot.}

Whatever you say about it, it is still one of not many places left in CM, where you can buy room as cheap as 500k, and rent it out for 5-6k per month, making that magic 10% number yearly return.

And with new management coming, it makes sens even more.

Edited June 5, 2016 by baywatch82

[Cheesekraft]

can they do this to Viang Ping ? Its in much the same situation..

[baywatch82]

can they do this to Viang Ping ? Its in much the same situation..

I have one room in Viengping Condo.

Trust me, it is not in the same situation.

It got repainted not long ago, swimming pool is operational, reception and security staff are working etc.

I know Manager there is not doing a great job, not doing any meetings and providing financial reports, but he is doing his minimum.

It was a big story about 10 years ago when couple of farangs wanted to remove him, and that Manager won with them and even charged for defamation.

However, yeah, they probably could do something about that, if the owners are determine enough to organize some committee etc.

But from my experience, that must be run mostly by strong and determined thai people, not farangs.

Edited June 5, 2016 by baywatch82

[MadMac]

Whatever you say about it, it is still one of not many places left in CM, where you can buy room as cheap as 500k, and rent it out for 5-6k per month, making that magic 10% number yearly return.

And with new management coming, it makes sens even more.

That's not cheap. And given the low income clientel aka teachers are gone elsewhere I'd bet my luck on something else than renting out a run down apartment block.

[Happy Grumpy]

http://www.chiangmailocator.com/chiang-mai-condominiums-service-apartments-5112:chiangmai-condominium-nimmanhaemin-soi-11

Blimey.

It could certainly do with a lick of paint.

Good luck to them.

[baywatch82]

Whatever you say about it, it is still one of not many places left in CM, where you can buy room as cheap as 500k, and rent it out for 5-6k per month, making that magic 10% number yearly return.

And with new management coming, it makes sens even more.

That's not cheap. And given the low income clientel aka teachers are gone elsewhere I'd bet my luck on something else than renting out a run down apartment block.

Do you mean 500k is not cheap to buy, or 5-6k is not cheap to rent ?

If first, you not gonna find anything cheaper at Nimman. Yes, you can find cheaper in the same run down building, but outside of city, such as PP condo.

If second, then know, that even in Chiangmai condo, some units are renovated and furnished to very good standard. Some people don't mind how the building looks outside, as long as inside is nice and clean, and in good location.

And give some respect to teachers, some of them working at international schools are earning more money than those in the states.

[MadMac]

It's a complete rundown place. You say 500k for one room, I assume that is the standard apartment size of 20sqm with a toilet. They go for 2...3000B a month if you are lucky. Not including the maintenance and repair necessary every 6 months. May still be 5% ROI, perhaps, not too bad, certainly not hitting 2 digits. But eventually you have a point here, thinking about it again

[baywatch82]

It's a complete rundown place. You say 500k for one room, I assume that is the standard apartment size of 20sqm with a toilet. They go for 2...3000B a month if you are lucky. Not including the maintenance and repair necessary every 6 months. May still be 5% ROI, perhaps, not too bad, certainly not hitting 2 digits. But eventually you have a point here, thinking about it again

You see, as you said, you just assume, but you don't know the facts.

I have 2 rooms there, and my friend has 2 rooms there.

Rooms are renovated and nicely furnished, both for 350k each 2 years ago, renting out now for 6000k per month. So it is much more than 10%.

My friend, as he is staying in Australia, renting out his rooms via airbnb (legal issue is a different story) for 700 baht per night, is quite fully booked with only good reviews.

Also, rooms are not 20sq.m. , but 26 sq..m., and this makes some difference.

It is not a complete run down place, like some abandoned buildings around the city. This one still have water, electricity, daily cleaning, night security, CCTV, keycard system, and as I said new management. Yes, this place looks like rubbish from outside, but don't judge the book by its cover. Determined committee and tenants is something that most buildings don't have. Wait, and you will see this place in a few years.

[MadMac]

I'm looking at it purely from an investment point of view and it's not attractive on the first sight. But ok, I got your point and you may be right. If it's going on a hotel like basis you have some more effort, but the daily rate more than compensates that. If management changes to the better, why not.

I'm hesitating on the low price segment as I don't want the locals who come with a fan and TV to run down the place and move on after half a year.

[baywatch82]

I'm looking at it purely from an investment point of view and it's not attractive on the first sight. But ok, I got your point and you may be right. If it's going on a hotel like basis you have some more effort, but the daily rate more than compensates that. If management changes to the better, why not.

I'm hesitating on the low price segment as I don't want the locals who come with a fan and TV to run down the place and move on after half a year.

I am one of those "slams landlords", but it works for me, when it comes to returns and investments.

I don't understand people buying for 2.5 mln baht studios, renting it out for 12k per month.

When it comes to this building, i'm pretty sure it would be abandoned already, but the location saves it all.

Edited June 5, 2016 by baywatch82

[evenstevens]

never can get into my handsome head. why farungs try to invest their (perharps life) hard earnings in the chiangmai, condo rental market which has abundance of vacancys, big or small, available and heaps and heaps more to come onto the market , sure presently some prime locations may reach your magical nett 10 % P.A, but fluff they are in a VERY low minoirty,and harder times are ahead

getting back on topic, nice to see the impending changes at your abode, which may help you ,to reach that magical 10% nett P.A ,

but E/S , thinks your odds are a raw prawn to nothing on receiving that mount everest return here in c/mai ,

a great life evening to all my readers

[MadMac]

Nothing wrong with putting money in stone. If it can be rented out as said, even better. But I personally would not put money in a 30 years old property that likely will be scrapped for a new development soon. You need at least 10 years to make certain you can break even.

[baywatch82]

never can get into my handsome head. why farungs try to invest their (perharps life) hard earnings in the chiangmai, condo rental market which has abundance of vacancys, big or small, available and heaps and heaps more to come onto the market , sure presently some prime locations may reach your magical nett 10 % P.A, but fluff they are in a VERY low minoirty,and harder times are ahead

getting back on topic, nice to see the impending changes at your abode, which may help you ,to reach that magical 10% nett P.A ,

but E/S , thinks your odds are a raw prawn to nothing on receiving that mount everest return here in c/mai ,

a great life evening to all my readers

We thank people like you - renters

For your info - nothing will help me to reach 10%, as it has been reached already and even more.

From the time I came to Chiang Mai until now, my investment is 100% returned, but I still own the rooms which I can sell. But I prefer to live "retire" lifestyle while I'm in my early 30s.

So, thank you again, and I hope more people like you will come.

Edited June 5, 2016 by baywatch82

[evenstevens]

no renter,E/S has a very nice property out in beverly hills maerim

the only thing which is going for you, is the low rental fee for your dog box, as now adays there are stacks and stacks of down and out farungs living on a smell of a oily rag

still from my experience, there are better bets around that area , for a mutch,mutch, larger unit, and includes off street parking,but a couple thousand or so is needed, hardly a king,s ransom is it for the better heeled renters

may the good luck continue on your miniture investment,/ return and strongly feel by not over capitalising, on your investment ,its a very smart ,and the safest way to go, j.m.o

off for my 4 kilometer,brisk walk in absoulately lovely rural surroundings, money cannot buy this sort of life,nuffin like the boonies,and being a beatuiful maermite to boot

[arunsakda]

One CM condo is enough for me, vacant most of the time. Don't rent out, risk and hassle not worth small money, then where would I stay?

Enjoy your boonie walk. I sincerely hope you are not savaged by dogges.

The victim blaming on TVF would be too much to endure,

Edited June 6, 2016 by arunsakda

[KhonKaenKowboy]

The OP doesn't seem to understand the difference in Gross and Net. Net will be half of gross. I can get close to 5% on quality utility stocks, and more on REITs...and both offer long term appreciation. I do like RE, but I also like conservative accounting practices.

[baywatch82]

The OP doesn't seem to understand the difference in Gross and Net. Net will be half of gross. I can get close to 5% on quality utility stocks, and more on REITs...and both offer long term appreciation. I do like RE, but I also like conservative accounting practices.

Yes, I DO understand it very well I pay taxes and I do maintain my units, and I also pay condo fees, and I am still over 10%. JFYI

[Happy Grumpy]

From my experience, used condos in CM are cheap, and the rents (comparable as RoI) are high. Just my experience as an owner of condos/landlord.

Sorry that that will make some posters absolutely livid.

[Happy Grumpy]

I can get close to 5%

[KhonKaenKowboy]

I can get close to 5%

compared to rates in Japan or Germany? Oh, and calculating yields based on nightly rentals is a page out of the Pattaya Con-Artists Club.

[Happy Grumpy]

I can get close to 5%

compared to rates in Japan or Germany?

Chiang Mai.

You're losing badly.

But, whatever makes you happy.

[trilok007]

May I kindly request the original poster if it is okay to PM him to get some more information on this issue please. We are facing similar situation with our condo. Thanks in advance. Also It would be helpful if some one can kindly explain the PM procedure as I am new to the forum.

[KhonKaenKowboy]

I can get close to 5%

compared to rates in Japan or Germany?

Chiang Mai.

You're losing badly.

But, whatever makes you happy.

your responses make almost zero sense. Not one of us only invests locally (except for a few victims). German 10 year is yielding .03% put your bottle bottoms on...there is a decimal point before the zero. 5% is a good return, in something as safe as utilities.

[baywatch82]

May I kindly request the original poster if it is okay to PM him to get some more information on this issue please. We are facing similar situation with our condo. Thanks in advance. Also It would be helpful if some one can kindly explain the PM procedure as I am new to the forum.

Of course. Welcome. Not you first.