Work permit not required to rent out condos, confirms Phuket labour chief

[taxin]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

[LannaGuy]

Of course. No relevance whatsoever between employment and owning property for investment.

"No relevance whatsoever between employment and owning property for investment." - so, the foreigner who lives on Phuket, and owns one or more condo's, and continuously rent's it / them out to tourists, by actively marketing, advertising, taking bookings, making inspections, receiving money, cleaning, repairing, banking etc etc - IS NOT working here.

Really?

You do realize there is an official statement at the top of this thread right?

The real estate agent does all of the above for me. Unless of course you think that withdrawing rent money from an ATM should require a work permit? That could get tricky

"The real estate agent does all of the above for me." - you do realize there are a lot of foreigners here doing it all themselves.

So, are they "working" or not?

To me it seems through an agent is not working and doing it all yourself is? isn't there a clause somewhere specifically banning foreigners from dealing in real estate? (same with selling rice and dealing in Buddha antiques etc.?)

[Peterw42]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

The population of Phuket is around 600,000 people.

Lets say 3 people to a dwelling, 200,000 dwellings.

Therefore, around 1% of phuket property is for sale. Not exactly the market crash NKM is dreaming of.

One condo complex can have 500 condos. Maybe a big complex just came on the market.

[NamKangMan]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

The population of Phuket is around 600,000 people.

Lets say 3 people to a dwelling, 200,000 dwellings.

Therefore, around 1% of phuket property is for sale. Not exactly the market crash NKM is dreaming of.

One condo complex can have 500 condos. Maybe a big complex just came on the market.

"The population of Phuket is around 600,000 people." - please provide link. Are expats and unregistered Thai's included in your "600,000 people?" I doubt it.

"Lets say 3 people to a dwelling, 200,000 dwellings." - why would we say that?

"Therefore, around 1% of phuket property is for sale." - please provide link.

[NamKangMan]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

My opinion is based on all the for sale signs, a look at some of the larger real estate websites, articles in the media, word of mouth, a changing tourist demographic, cheap rents, the constant and never ending construction here etc etc.

I use my landlord as an example, not the basis of my opinion.

"every other property owner is doomed" - never said the condo owner is doomed, just their property.

"You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?" - see below link.

This was by their own admission. "2000 condos and 300 house were left unsold last year" - and how many more have come onto the market since? The figures are probably a lot higher as they do not take into account an owner advertising their condo for sale in any manner they see fit.

http://www.phuketgazette.net/phuket-news/Experts-predict-Phukets-housing-market-headed-positive/64192#ad-image-0

This article was also of some interest.

http://www.phuketgazette.net/phuket-property/By-book-market-ripe-the-picking/64184#ad-image-0

It says: "For instance, a 130sqm, foreign freehold 2-bed condo with a partial sea view in Rawai was recently sold for a heavily discounted price of 4.5 million baht. Using conservative rental rates and even at only 60 per cent occupancy, net returns are projected to be nearly 6 per cent per annum (see image 2, rental rates range from just 1,500 to 3,000 baht per night)." but, you will not be able to rent it out for the night, if the under 30 day rule is enforced, so where does that leave these figures?

Edited July 20, 2016 by NamKangMan

[Peterw42]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

My opinion is based on all the for sale signs, a look at some of the larger real estate websites, articles in the media, word of mouth, a changing tourist demographic, cheap rents, the constant and never ending construction here etc etc.

I use my landlord as an example, not the basis of my opinion.

"every other property owner is doomed" - never said the condo owner is doomed, just their property.

"You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?" - see below link.

This was by their own admission. "2000 condos and 300 house were left unsold last year" - and how many more have come onto the market since? The figures are probably a lot higher as they do not take into account an owner advertising their condo for sale in any manner they see fit.

http://www.phuketgazette.net/phuket-news/Experts-predict-Phukets-housing-market-headed-positive/64192#ad-image-0

This article was also of some interest.

http://www.phuketgazette.net/phuket-property/By-book-market-ripe-the-picking/64184#ad-image-0

It says: "For instance, a 130sqm, foreign freehold 2-bed condo with a partial sea view in Rawai was recently sold for a heavily discounted price of 4.5 million baht. Using conservative rental rates and even at only 60 per cent occupancy, net returns are projected to be nearly 6 per cent per annum (see image 2, rental rates range from just 1,500 to 3,000 baht per night)." but, you will not be able to rent it out for the night, if the under 30 day rule is enforced, so where does that leave these figures?

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

[NamKangMan]

@ NKM, it seems your overall opinion is based purely on the example of your previous landlord, and that every other property owner is doomed and will follow suit.

You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?

My opinion is based on all the for sale signs, a look at some of the larger real estate websites, articles in the media, word of mouth, a changing tourist demographic, cheap rents, the constant and never ending construction here etc etc.

I use my landlord as an example, not the basis of my opinion.

"every other property owner is doomed" - never said the condo owner is doomed, just their property.

"You seem to like quoting this figure of 2,000 condos and 300 houses for sale, may I ask where you obtained this info from ?" - see below link.

This was by their own admission. "2000 condos and 300 house were left unsold last year" - and how many more have come onto the market since? The figures are probably a lot higher as they do not take into account an owner advertising their condo for sale in any manner they see fit.

http://www.phuketgazette.net/phuket-news/Experts-predict-Phukets-housing-market-headed-positive/64192#ad-image-0

This article was also of some interest.

http://www.phuketgazette.net/phuket-property/By-book-market-ripe-the-picking/64184#ad-image-0

It says: "For instance, a 130sqm, foreign freehold 2-bed condo with a partial sea view in Rawai was recently sold for a heavily discounted price of 4.5 million baht. Using conservative rental rates and even at only 60 per cent occupancy, net returns are projected to be nearly 6 per cent per annum (see image 2, rental rates range from just 1,500 to 3,000 baht per night)." but, you will not be able to rent it out for the night, if the under 30 day rule is enforced, so where does that leave these figures?

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

[LivinginKata]

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

I second good luck with that. We have a number of apartments of that exact specification. We ask 28k on long term. For the past 5 months all empty - no takers. Your 30 - 40 k is just dreaming.

[NamKangMan]

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

I second good luck with that. We have a number of apartments of that exact specification. We ask 28k on long term. For the past 5 months all empty - no takers. Your 30 - 40 k is just dreaming.

What's your exit strategy, LIK?

[LivinginKata]

What's your exit strategy, LIK?

Non of your business .... but I will say that I have no need of an 'exit strategy' ...

[theguyfromanotherforum]

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

I second good luck with that. We have a number of apartments of that exact specification. We ask 28k on long term. For the past 5 months all empty - no takers. Your 30 - 40 k is just dreaming.

That's the problem with renting out in Thailand. Condos can sit empty for months, even years. When I moved to Thailand I rented out my condo in Canada and could cherry pick my tenants. Rented my place in less than a week and still have the same guy after 3 years. Not making much money, if any on this rental, however, my mortgage is getting taken care of nicely and my condo is not rotting from the inside like it would in Thailand due to poor maintenance.

[LivinginKata]

That's the problem with renting out in Thailand. Condos can sit empty for months, even years. When I moved to Thailand I rented out my condo in Canada and could cherry pick my tenants. Rented my place in less than a week and still have the same guy after 3 years. Not making much money, if any on this rental, however, my mortgage is getting taken care of nicely and my condo is not rotting from the inside like it would in Thailand due to poor maintenance.

Here in Patong and Kata just 10 years ago there was really no problem with demand. About 5 years ago supply far exceeded demand due to over building and global recession. The immigration tightening of the rules did not help much - many left when the month arrival stamp, education visa, and uncertainty about tourist visas were introduced.

[NamKangMan]

What's your exit strategy, LIK?

Non of your business .... but I will say that I have no need of an 'exit strategy' ...

Fair play that it is none of my business, but ALL foreigners need an exit plan, or Plan B, in Thailand, LIK.

One example why is, "The immigration tightening of the rules did not help much - many left when the month arrival stamp, education visa, and uncertainty about tourist visas were introduced."

Your words, not mine.

Who knows what visas, and for what reasons, could be next in their sights. We all are only here because we all have a small sticker in our passports. Not the most solid of foundation.

Edited July 20, 2016 by NamKangMan

[NamKangMan]

That's the problem with renting out in Thailand. Condos can sit empty for months, even years. When I moved to Thailand I rented out my condo in Canada and could cherry pick my tenants. Rented my place in less than a week and still have the same guy after 3 years. Not making much money, if any on this rental, however, my mortgage is getting taken care of nicely and my condo is not rotting from the inside like it would in Thailand due to poor maintenance.

Here in Patong and Kata just 10 years ago there was really no problem with demand. About 5 years ago supply far exceeded demand due to over building and global recession. The immigration tightening of the rules did not help much - many left when the month arrival stamp, education visa, and uncertainty about tourist visas were introduced.

"About 5 years ago supply far exceeded demand due to over building and global recession." - I agree, but even now, construction has not decreased. if anything, there is more construction occurring than 5 years ago.

There are simply no market economy forces to support such oversupply.

I am suspicious of what those in power here have as their "end game." for Phuket, because it really makes no economic sense.

It's at the stage they are even devaluing their own property portfolios.

[trogers]

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

I second good luck with that. We have a number of apartments of that exact specification. We ask 28k on long term. For the past 5 months all empty - no takers. Your 30 - 40 k is just dreaming.

That's the trouble with real estate in holiday spots. My Bangkok 2-bedroom 121 sqm has been renting and is still rented out at Bt45k to the same tenant for five years.

[NamKangMan]

A 2 Brm 130sqm condo with sea views would probably rent for 30k-40k a month, long term rental. Thats around a 8-10% return.

I will buy 3, thats a good return.

Good Luck with that.

I second good luck with that. We have a number of apartments of that exact specification. We ask 28k on long term. For the past 5 months all empty - no takers. Your 30 - 40 k is just dreaming.

That's the trouble with real estate in holiday spots. My Bangkok 2-bedroom 121 sqm has been renting and is still rented out at Bt45k to the same tenant for five years.

"That's the trouble with real estate in holiday spots." - sure, but it would not have been difficult to look at the mistakes made in the past in other tourist hot sport destinations around the world, and then only allow sustainable development, thus, maintaining property values through demand.