Rent divided by Buy Price Numbers for condos in Bangkok

[Bulldozer Dawn]

9 minutes ago, blackcab said:

 

The only thing I would do is check with the land office whether that land is marked as a forest.

 

I'm currently dealing with someone who paid 150 million for some NS3G land. They applied to upgrade it to NS4 and they have hit a brick wall, with the land office saying the land could be confiscated as it used to be a forest a long time ago.

 

So it's good to check.

 

I have not yet been to the land office to do my due dilligence.  However, I spent a good deal of time there last year to check and the complete the sale of the little unfinished house and land.  The staff were helpful and actually photocopied pages out of legal text books about the life usufruct and gave them to me.  

 

And so I am now well aware of the nuances between NS3G and NS4.  

 

My understanding is that when a land owner wants to bust up a bigger block using NS3G is preferred because less tax is payable.

 

I have no problem with NS3G.  It is mapped fine on the deed, the block has stamped pegs in place, and if you want to convert to NS4 you can do so.  The wait time here is circa 6 months.

 

You can also have a usufruct stamped on a NS3G.

Edited February 18, 2017 by Bulldozer Dawn

[chrisandsu]

1 hour ago, Bulldozer Dawn said:

Chanote is solid.  400K for 400 square meters.  So 1000 baht per meter.  Flat square block fronting a concrete road 5 minutes from the beach.  Hardly astronomical I would think.  

It's not in the grand scheme of things . In general it is very expensive. I'm presuming it's on the outer edge of hua hin ? 

[JB300]

Real estate is just one class of asset for investment among many, giving slow and steady returns for relatively low risk.
 
It's all to do with risk and returns, like the different investment strategies between retirement funds and hedge funds.
 
When you invest in property cycles, you have to go international. Different capital cities are at different stages of their cycles.
 
For example, Singapore may be bottoming out this year, after prices have fallen for over 2 years. The only obstacle is the additional stamp duties.

Singapore, Tell me about it, taxes are 18% unless you're (2) PRs (then it drops to around 8-10%) or a citizen

You could buy a condo in Thailand for the tax you'd pay buying the equivalent condo in Singapore

[chrisandsu]

2 hours ago, JB300 said:

 

Singapore, Tell me about it, taxes are 18% unless you're (2) PRs (then it drops to around 8-10%) or a citizen

You could buy a condo in Thailand for the tax you'd pay buying the equivalent condo in Singapore

 

Try earning the same money in thailand as you do in Singapore . 

[JB300]

Try earning the same money in thailand as you do in Singapore . 

That (& the fact that I pay much less tax) is why it's cheaper for me to live in Singapore than Bangkok.

But when this 2 year project is finished, I'm retiring (only doing this one as a favour to a mate) & will be out of here, I thought to Thailand but not so sure anymore.

[trogers]

3 hours ago, JB300 said:

 

Singapore, Tell me about it, taxes are 18% unless you're (2) PRs (then it drops to around 8-10%) or a citizen

You could buy a condo in Thailand for the tax you'd pay buying the equivalent condo in Singapore

 

I guess you are referring to the additional stamp duties. Yes, this was imposed since 2011 to tame speculation, and that's why property prices fell since 2013.

 

Should this stamp duty be lowered or lifted, the market can be on another upswing from the bottom.

 

No point buying a condo in Thailand with the tax saving from Singapore if this condo becomes vacant and a depreciating asset.

 

We always calculate on a return of capital less expense and tax, which can be considerable in an upswing, and definitely a negative in a downswing.

Edited February 19, 2017 by trogers

[wreckingcountry]

Prices of brand new condos are laughably over inflated! But there are wealthy Thais who will buy and other units remain empty for a long time


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[trogers]

11 hours ago, Bulldozer Dawn said:

I bought the other little house last year for 410K all in.  I spent about 200K to finish it off and currently rent is for 5K a month on a 1 year lease.  So I am getting a gross return of circa 10%.

 

I learned a lot from that project.  I think I can have a similar little house built for about 350K.  But in the location of this new block, I should be able to get 6-7k per month.  So the project would owe me circa 750K to complete with a similar potential return.

Be careful on how much of repair work would be needed on a single floor landed property. May add up to 20-30k a year.

[Bulldozer Dawn]

4 hours ago, trogers said:

Be careful on how much of repair work would be needed on a single floor landed property. May add up to 20-30k a year.

Not in my experience.  These are basic rendered brick thai style homes finished to a reasonable standard with nice tiling.  If thai tenants (and with kids) maintenance is a lot higher of course.  But to be frank.  These homes are just cement boxes.  There is little in the way of fixtures.  I have been in my current home now for just on two years, a new build.  Zero maintenance so far.  Ants are a continual problem.  Not termites, just ants.

 

I am going to have another look at the land today.  I  think I will buy and build a little house just as a project.

 

This time I am not going to have it tiled but rather do a retro style with polished concrete like this guy has done:

 

Cool Studio

 

I imagine that will help to keep the costs down?   Polished concrete much cheaper than tiles? 

 

I think your estimate of maintenance costs is not relevant in this area.  One of my Thai neighbours just had a small four room (25x25) hongtel built.  The total labor cost for  the burmese team to lay all concrete, blocks, render, and roofing was just 110K.

Edited February 19, 2017 by Bulldozer Dawn

[wreckingcountry]

Just? That only Labor? Not so cheap


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