Investment Condo?

[balo]

You would have a better chance for a return of investment if you buy in tourist places near the sea , like Hua Hin or Pattaya.  Here in C.M I think the market is not that great really . You can rent cheap under 10k for 10 years and invest your 2 million in something else. Good thing about renting is that you can move out any time if you have a noisy neighbor or not happy with the property. 

 

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[little mary sunshine]

2 hours ago, balo said:

You would have a better chance for a return of investment if you buy in tourist places near the sea , like Hua Hin or Pattaya.  Here in C.M I think the market is not that great really . You can rent cheap under 10k for 10 years and invest your 2 million in something else. Good thing about renting is that you can move out any time if you have a noisy neighbor or not happy with the property. 

 

. 

 

 

 

 

 

I don't know about Hua Hin, however a Pattaya is so 

overbuilt with literally thousands of shoebox condos

and stilll building.  Half the units are empty, big discounts

in prices.  Most people you talk with are unhappy with

the quality of their units and say they will lose 40% if they

try to sell.    Lots of NEW rentals for 8-10K per month on a

1 year lease....Big mistake to buy in this market.

[elgenon]

19 hours ago, KhonKaenKowboy said:

I agree...less than 1% of Thais have that much cash available, and they would need financing for a Toyota,also...not much different than America.  Wages are much better, but those are mostly offset with rent that is even higher.  The house I paid 540,000 THB for in 2010,in America, is now worth close to 3.7 million. 

You paid $15,000 for a house?

[performance]

Do not listen to what they say ever.Believe with your own eyes only. 2 million is plenty especially now  there's no large falang numbers willing to risk there money here.Do not rush

[ANN CHOU]

RC was told by the fire department a car and motorcycle covered structure would impede firetruck access in case of an emergency.

Gyms are a dime a dozen around here.  As for the Niman Area...if you want to sit in traffic for an hour to drive 1 kilo, be my guest.

[baywatch82]

If you do good homework - you can do good business also. Don't buy anything in rush. You should visit 20-30 different condos and compare everything. Location is of course the most important when it comes to an investment.

Use as many agents as possible, ask them to show you as many condos as possible. Go to areas you like.

Only areas that make any sense for investment are : Nimmanhemin, around Night Bazaar and old city. Always ask about discount, try to catch a bargain. You need to catch a really good deal, otherwise you will not make a profit, so take your time and do a lot of research.

 

I own 7 rooms, all around Nimmanhemin area. Never had any problem to find a tenant. I also sold 2 rooms before because I was not too happy with it, but as I had a very good deal at the first place, I didn't have any problem selling also.

 

Good research is the key. Don't buy anything for a "normal price". After you have contact with many agents and you know many buildings, locations and you are able to compare, good deals will find you. 2mln baht is good money to start. For this price, you can have 2, maybe even 3 rooms, with annual return 10-15%. Those "shoe boxes" are the best investments. More easy to re-sell, more easy to find tenant, or you can just put it on airbnb and rent it out for holiday people.

[elektrified]

7 hours ago, peergin said:

Chiangmainewbie,

 

Your message set me thinking. I own a condo in Chiangmai which has been empty for a while. I don’t live there anymore so I might as well sell it. The details are:

 

Building: a clean and beautiful building, 13 floors, 2 lifts in excellent condition with regular professional maintenance, a few shops including 2 laundry shops (one self-service, the other run by a lady) and a small convenience store on the ground floor (food, drinks, newspapers, etc.).

 

Location: good, and convenient area: Irrigation Canal Rd (Chonpratan Rd) a 100 m from Huay Kaew Rd.

 

Condo: 1 living room + 1 bedroom + 1 bathroom, a large 67 sq. m., 7th floor, fully furnished including a large fridge, gas stove/oven, washing machine, microwave, tv, air cons, hot water (kitchen + bathroom) etc., very adequate built-in storage space.

 

Management: earlier the owners cooperated in throwing the original management out; the new very caring management consists of owners only, it has been doing a fantastic job during the past 5 years or so; this has resulted in reasonable management fees and no more corruption; the building has been restored to its former glory; there are regular owners’ meetings where every owner has a vote; management sees to it that there are no problems with neighbours, loud noise or other disturbances; important: there is NO backlog in management fees!

 

Swimming pool: clean and well maintained, free.

 

Gym: free.

 

Occupants: university students (CMU), a few business people and some foreigners; no backpackers etc. because the rents are not cheap.

 

Security: 24/7 guards (there are always 2 guards on duty at the same time), key card entry.

 

Price: the price you mentioned is acceptable, no agent’s fees.

 

Please P M me if you want to know more.

 

 

 

 

 

Although I have no interest in a condo (I've only ever stepped foot inside one in my entire life), this is one of the best, most straight-forward posts that I've seen on this forum in at least a year. I have no idea about prices as I have no interest, but it certainly seems reasonable.

[Peterw42]

Investment, or return on investment can take many forms. I had $40, 000 dollars sitting in a bank account in Australia, lucky if I got a 3% return. The same $40,000 in high yield shares, maybe 5 %.

I put that $40,000 into a condo here in thailand, and it pays my rent of 120,000 baht a year. I dont need to find 10k a month to pay rent. 

That $40,000 is giving me (even after condo costs) around a 10% return (tax free). a great return, I dont really care much about its capital value, now or in the future.

 

If I left the money in the bank, and draw down on it to pay my rent. The 40k is gone in 10 years.

 

Money in a condo, ten year from now my rent has been payed and i still have a condo, with some inherent worth. 

Edited November 1, 2016 by Peterw42

[les1]

You are not going to find a perfect location anywhere in the World believe me. We are in Riverside & love it so do many many more.

It is convenient for the City & Gymkhana golf lots of shopping close by. Good sized rooms minimum 46m2. Holiday Inn next door has a good gym reasonably priced. More important things have to be taken care of before shading of motorbikes. For your money personally I think you should take another look at it.

[JaseTheBass]

RC was told by the fire department a car and motorcycle covered structure would impede firetruck access in case of an emergency.
Gyms are a dime a dozen around here.  As for the Niman Area...if you want to sit in traffic for an hour to drive 1 kilo, be my guest.

If you live in Nimman you don't need to drive - everything you need is within walking distance.

Sent from my R2D2 using my C3P0 manservant

[Winkburn]

Riverside Condo is great location on the Ping River. The worst area by far would be  anywhere near the Mimmenheiman The traffic is absolutely dreadful I made that mistake 5 years ago. I was so happy to get away from that dreadful area. I am in Flora quite expensive but I would definitely say that Riverside offers the best value for money and right next door to the Holiday Inn, Rajajev Hospital pharmacies and great market just meters away I lived thee for 4 wonderfull years and sorry I bought in Flora. Riverside if far more modern than Hillside and the traffic much more tolerable. I hope this helps. The common area fees are probably the lowest in Chiangmai at Riverside at just 10 baht per square meter. I believe they have a new committee that are working hard and dedicated to raising the fee and improving the building

 

Edited November 1, 2016 by Winkburn

[Winkburn]

21 hours ago, blazes said:

Answer #8 is spot on.  The quick answer to the original question is quite simply: DON'T.

I have rented for each of the last nine years I have been coming to CM, and it is great to have the freedom to try something different each time, until something tickles your fancy.  I have spoken to too many expats who are stuck in their condos, totally unable to sell.  If you are over the age of 60, there is no way you would want to buy, since if your life expectancy is about 81, those 21 years will in Thailand bring you nowhere near enough return on yr investment (compared to a Western country).  And besides: return on investment is hardly going to be your biggest priority at the age of 81.

 

In brief, let others shoulder the risk.

There is nothing like having your own property to make it the way you like to have it. If you can afford it then making your own place your home in Thailand is very rewarding. I suspect many that are against owning their own property are pensioners with no spare cash, otherwise why wouldn't you retire in your own home regardless of profit life is too short not to fully enjoy it

[blazes]

50 minutes ago, Winkburn said:

There is nothing like having your own property to make it the way you like to have it. If you can afford it then making your own place your home in Thailand is very rewarding. I suspect many that are against owning their own property are pensioners with no spare cash, otherwise why wouldn't you retire in your own home regardless of profit life is too short not to fully enjoy it

 

Well,speaking for myself, I ain't short of cash, but I do want to maintain connections with my own country, and in fact the rent I make on my own condo in my own country more than  pays my way completely for the six months I stay here in LoS.  I am happy to pay 15,000 - 20,000 pm here in CM to stay in the comfortable condo that someone else has created (and is now making some money on her investment).

 

If I pay 15k per month for six months, I am paying 90 k for accommodation in my winter.  It would take 40 winters of paying 90k to buy the condo I am renting.  (and I am 64).  So, it makes no sense to buy.

[peergin]

12 hours ago, elektrified said:

Although I have no interest in a condo (I've only ever stepped foot inside one in my entire life), this is one of the best, most straight-forward posts that I've seen on this forum in at least a year. I have no idea about prices as I have no interest, but it certainly seems reasonable.

Thank you for the compliment (Post # 37). In fact, everything I wrote is true. (I am not in the habit of telling lies. Besides, an interested party can check everything very easily.)

Also, I have owned this condo for quite a while and I am sure I will make a very handsome profit when I sell it. I am very satisfied with this investment. One contributory factor is the flooding that occurred in Bangkok and surrounding areas not too long ago. Real estate prices in Chiangmai then increased dramatically because of the large number of Bangkok people who relocated to Chiangmai.

For the sake of the people who live in/around Bangkok I hope this kind of catastrophe will not happen again but are the recent flood prevention measures adequate? Nature has its own ways.

[KhonKaenKowboy]

17 hours ago, elgenon said:

You paid $15,000 for a house?

in 2010, 540K was 18,000....bought it from the bank, who had loaned 93,000 on it, based on an appraisal of 135K in late 2007.  Walked to a 3 billion usd Japanese style light rail...zipcode was 4% african=american, but whose counting.

[HampiK]

17 hours ago, blazes said:

 

Well,speaking for myself, I ain't short of cash, but I do want to maintain connections with my own country, and in fact the rent I make on my own condo in my own country more than  pays my way completely for the six months I stay here in LoS.  I am happy to pay 15,000 - 20,000 pm here in CM to stay in the comfortable condo that someone else has created (and is now making some money on her investment).

 

If I pay 15k per month for six months, I am paying 90 k for accommodation in my winter.  It would take 40 winters of paying 90k to buy the condo I am renting.  (and I am 64).  So, it makes no sense to buy.

 

But you have to search every 6 month for a new condo? But even, when you would pay 12 month rent, it would be probably more wise to rent for you :)

[HampiK]

14 hours ago, peergin said:

...One contributory factor is the flooding that occurred in Bangkok and surrounding areas not too long ago. Real estate prices in Chiangmai then increased dramatically because of the large number of Bangkok people who relocated to Chiangmai.

 

For the sake of the people who live in/around Bangkok I hope this kind of catastrophe will not happen again but are the recent flood prevention measures adequate? Nature has its own ways.

 

The are where my condo stay never had a flood in the last 5 years. except you count the 5cm water on street for about 20-30 minutes after heavy rain as flood.

But yes, there are areas in Bangkok, which have flood many times. I think this should be considered little bit in a condo. Especially if there are flood in some areas every year....

[little mary sunshine]

26 minutes ago, HampiK said:

 

But you have to search every 6 month for a new condo? But even, when you would pay 12 month rent, it would be probably more wise to rent for you :)

 

 

I have a beautiful condo I rent for 13000B per month.  I could have

bought it for $72000 a little expensive, but the place is all remodeled

and beautiful.  Instead of buying it and being possible stuck in this

market, I was able to get a Bond that pays 3.8% ...I added $4000 and

took the $76K bond.  I get 8444B per month from the bond, Rent is 

13000-8444= 4556 Rent out of pocket.   I have my money and now that

the housing market is going South. ( condos similar to mine are now

selling for $60K+). I know I made the correct decision.  Thinking about 

relocating to CM,  I can move any time, no problems.   This worked well

for me.

 

 

 

[lkn]

36 minutes ago, little mary sunshine said:

I have a beautiful condo I rent for 13000B per month.  I could have

bought it for $72000 a little expensive […] ( condos similar to mine are now

selling for $60K+).

 

If your condo is really that nice and beautiful (and not a 30 sq. m. shoebox located outside the city) then I would not hesitate to buy it, because you don’t get much condo for 2.1 million baht in Chiang Mai.

[little mary sunshine]

42 minutes ago, lkn said:

 

If your condo is really that nice and beautiful (and not a 30 sq. m. shoebox located outside the city) then I would not hesitate to buy it, because you don’t get much condo for 2.1 million baht in Chiang Mai.

87 sqm Here 5 years.  Great owner, I see Him every 6 months when He

collects the rent.  Why buy?  Can't see any advantage.

[piewarmer]

I have been renting in CM Riverside for 5 months, I haven't noticed anything worn out.

To me the place is well managed and maintained.

I wouldn't buy property here anyway,  too dodgy.

[Changmainewbie]

. Thank you to everyone for your helpful contributions. After giving it a lot of consideration, I have decided that the best option for me is to rent in an area to see if I like it before jumping in and buying straight away.

i guess it makes sense to get a feel for the area before buying and possibly regretting it later.

 

cheers

[Dipterocarp]

My CM condo has double in value, since 2008. Could sell easily, not interested. US equities up 200% same period, so not a great investment but need a place to call home anyway.

Renting the same room for 8 years would have cost almost as much as purchase price. I enjoy not needing to make bookings, no check out time, remodel to suit my needs. BTW  If I had rented the same room whole time  I would now be dealing with the hassle of trying to get a Thai woman, who now lives in Europe to pop by Immigration every month to file TM 28 forms/ pay fines., or get some power of attorney garbage. A nightmare according to some renters I have spoken to. One  was forced to make un unplanned visit to Laos to get a new visa. Thai landlord living in BKK won't cooperate. No extension.

 

You should forget about the negative Nancys and buy a  Condo if you want a Condo. Investment potential not guaranteed. The rents still same from 10 years back as far as I can tell. Renting in various to areas to see what you like a good plan. 

Edited November 8, 2016 by Dipterocarp

[NancyL]

Many condo buildings will file the the TM30s for their owners and the renters of their owners.  They don't like Immigration officers coming around their Juristic Person office asking questions about their residents. 

 

Also the rental agents who who represent the property owners should handle TM30s for out-of-area owners.  This is part of why the owners pay them a fee, to handle details like this for them because they're out-of-town.

[NancyL]

Our rent is lower now than when we first arrived over eight years ago for a unit of comparable size in the same building.  Newbies often over-pay and rent through real estate agents, being shown units that are advertised.  After you're here for a while, you'll learn that the best units, owned by the best landlords, don't have to be advertised.  They change renters by word-of-mouth. 

 

Renters and owners alike both develop reputations.  Building staff soon learns who is a good renters -- keeps their unit clean, pays rent on time, handles minor repairs themselves without hassling the owner, gives the staff a nice holiday bonus, etc.  So, when a prime unit becomes available, they'll let the owner know that the renter is desirable and the owner is willing to negotiate on terms in order to obtain a good, stable, long-term tenant.

 

 

[Dante99]

1 minute ago, NancyL said:

 

 

Renters and owners alike both develop reputations.  Building staff soon learns who is a good renters -- keeps their unit clean, pays rent on time, handles minor repairs themselves without hassling the owner, gives the staff a nice holiday bonus, etc.  So, when a prime unit becomes available, they'll let the owner know that the renter is desirable and the owner is willing to negotiate on terms in order to obtain a good, stable, long-term tenant.

 

 

How much is a "nice holiday bonus" per person? Total for all the staff?

I agree it is a good idea, just wondering what is considered appropriate.  Thanks

[NancyL]

Our building has the New Years' bonus thing quite organized and transparent.  As a "hint" the office staff posts the New Years cards on the office window.  

 

The practice is to give your bonus in a New Years card addressed to the entire building staff.  The gal who is the brain trust in the office keeps a log book, listing your name, date and the amount given.  I guess everyone on the staff, and undoubtedly the juristic committee has access to that book.

 

We're giving several thousand baht, but YMMV since we're giving for two people and your condo may have a different size staff than ours.

[Dipterocarp]

On 11/8/2016 at 4:35 PM, Dipterocarp said:

My CM condo has double in value, since 2008. Could sell easily, not interested. US equities up 200% same period, so not a great investment but need a place to call home anyway.

Renting the same room for 8 years would have cost almost as much as purchase price. I enjoy not needing to make bookings, no check out time, remodel to suit my needs. BTW  If I had rented the same room whole time  I would now be dealing with the hassle of trying to get a Thai woman, who now lives in Europe to pop by Immigration every month to file TM 28 forms/ pay fines., or get some power of attorney garbage. A nightmare according to some renters I have spoken to. One  was forced to make un unplanned visit to Laos to get a new visa. Thai landlord living in BKK won't cooperate. No extension.

 

You should forget about the negative Nancys and buy a  Condo if you want a Condo. Investment potential not guaranteed. The rents still same from 10 years back as far as I can tell. Renting in various to areas to see what you like a good plan. 

DELETED.

 

I had many people tell me not to purchase a Condo. The reasons given from the ridiculous "The government will seize foreigner condos" to the banal "Your neighbors will (do this and that) to drive you out.". One thing that actually happened that NOBODY predicted. Apparently I would not be able to continue to rely on visa exempt travel. In my case felt to have been compelled to buy the Elite card.

Edited November 10, 2016 by seedy
FLAMING

[peergin]

On 11/8/2016 at 4:35 PM, Dipterocarp said:

My CM condo has double in value, since 2008. Could sell easily, not interested. US equities up 200% same period, so not a great investment but need a place to call home anyway.

 

I will be making more than that.

 

[Ronuk]

On Monday, October 31, 2016 at 10:27 PM, little mary sunshine said:

 

 

I don't know about Hua Hin, however a Pattaya is so 

overbuilt with literally thousands of shoebox condos

and stilll building.  Half the units are empty, big discounts

in prices.  Most people you talk with are unhappy with

the quality of their units and say they will lose 40% if they

try to sell.    Lots of NEW rentals for 8-10K per month on a

1 year lease....Big mistake to buy in this market.

The mistake is not buying in this market but buying a shoebox condo is. I couldn't care less what people here say. Buying or renting quality housing here costs money....a lot more than 2 million outright or 10,000 bht a month. That money gets you the rubbish nobody else wants.....Hence there is loads of it on the market. Let's be honest, who really wants to live in anything less condo wise, smaller than about 125sqm? Quality will always sell and rent in any market.