Rental Demand/Investment For Condos?

[python 27]

Hi all,

 

I am currently selling my UK property as I wish to downsize. The proceeds from this will pay for my new UK property with no mortgage.

 

I am also leaving my current employer mid next year and will receive a settlement "handshake".

 

It is my goal to live in Pattaya. I could afford 2-3 mill Bht condo or house but due to family etc in UK could only be there 3 - 4 months a year.

 

Would this be a good investment? and do you think it would be easy to lease on a monthly basis? Could anyone recommend an agent for such. All thoughts welcome as I am sure you realize this is a big decision. Then I still have to inform my Mrs!!

 

Thanks in advance,

 

Regards to all.

[Owen` 2]

Ran into a phraseology issue a few months ago on a question like this.

 

You can't buy a "house" in Thailand because farangs can't own property outside a corporation. You can buy a condo.

 

There is a difference.

 

Others will provide other answers, one of which is the Search button. A lot of guys ask this kind of thing.

[captcraig2 120]

2 to 3 million baht house?

 

I'll rent it long term for 5k baht a month!

 

 

In my opinion I think the rental market right now is pretty soft...I may be wrong but it seems like there is never a shortage of available properties.

 

But it's all a matter of price....cheap...you'll rent it.....medium....might take a little time but you will rent it....High end......could sit empty for many months.....very high end....means you can afford for it to sit empty!

[wacmedia 277]

Hi,

 

Maybe better option, downsize in Blighty but retain present house and rent it out.

[torrenova 644]

Yields on property are low and as you can't rent it our for a full year your market is limited. Your saving will be on the rent you save living in your property.

[Shit_Happens 31]

Have a look at Gabor's last post on the property market. He has posted a couple of links that will answer some questions.

[BigDUSA 71]

The guys who live here know all about the cheap hotel rooms on 3rd Road that go for 5-8K per month. Why pay more for a small studio?

[Gabor 296]

I have a condo for rent out, reasonable priced in VT2. From november until march, april no problem to rent out, then it is mostly empty. An other view: If you rent it out, you can't know who will be the renter and happened with me, that the renter left the condo in very bad condition. If you are not there, you must have an agent and pay for him %. As an investment. It was a good choice about 2 years ago, now I don't see dramatically increase of the prices.

[Shit_Happens 31]

Hi all,

 

I am currently selling my UK property as I wish to downsize. The proceeds from this will pay for my new UK property with no mortgage.

 

I am also leaving my current employer mid next year and will receive a settlement "handshake".

 

It is my goal to live in Pattaya. I could afford 2-3 mill Bht condo or house but due to family etc in UK could only be there 3 - 4 months a year.

 

Would this be a good investment? and do you think it would be easy to lease on a monthly basis? Could anyone recommend an agent for such. All thoughts welcome as I am sure you realize this is a big decision. Then I still have to inform my Mrs!!

 

Thanks in advance,

 

Regards to all.

Hi Python,

I must qualify my response by saying that I do not have a true grasp on the Pattaya/Jomtien market the same as a local would plus you are planning this for next year and a lot could happen by then.

My observations are that the market has been increasing around 10% per year for the last 3 to 4 years and the forcasters are saying another 20% by the end of 2007 but after that, who knows?

My own experience is that I bought a studio condo in Viewtalay 2 in 2003 for 1.1M. This was rented full time for 2 years. I kept the rent low to attract long term tenants and had 1 person for 6 months and a guy for 18 months. The rent was 9K a month the first year and then 10K a month for the second year. I sold the condo August 2005 for 1.4M. So for me it was good.

If the forcasters are right it might pay you to buy something now in your price range that is rented and if you do want to live there sell it in the future and buy something you want (you might have to use an overdraft on your UK property but the rental income should cover the interest). You would take advantage of the capital growth over the 2 years plus have the rental income in the bank in Thailand for when you arrive.

As to an agent, well there are a few that you would not want to deal with. All I can say is check around. I have a friend in Pattaya who has some good and bad experiences. PM me if you would like his email address.

Good Luck

[kdc1899 1]

Hi Python,

I must qualify my response by saying that I do not have a true grasp on the Pattaya/Jomtien market the same as a local would plus you are planning this for next year and a lot could happen by then.

My observations are that the market has been increasing around 10% per year for the last 3 to 4 years and the forcasters are saying another 20% by the end of 2007 but after that, who knows?

My own experience is that I bought a studio condo in Viewtalay 2 in 2003 for 1.1M. This was rented full time for 2 years. I kept the rent low to attract long term tenants and had 1 person for 6 months and a guy for 18 months. The rent was 9K a month the first year and then 10K a month for the second year. I sold the condo August 2005 for 1.4M. So for me it was good.

If the forcasters are right it might pay you to buy something now in your price range that is rented and if you do want to live there sell it in the future and buy something you want (you might have to use an overdraft on your UK property but the rental income should cover the interest). You would take advantage of the capital growth over the 2 years plus have the rental income in the bank in Thailand for when you arrive.

As to an agent, well there are a few that you would not want to deal with. All I can say is check around. I have a friend in Pattaya who has some good and bad experiences. PM me if you would like his email address.

Good Luck

That "forecaster" must have 20 condos sitting idle to claim 20% or any % on the positive side during this early stage of over capacity and rising mort rates, cycle.

 

 

In a couple of years you will be able to buy back your condo for 750,000 baht.

Look at all the empty, unfinished buildings in Jomtien.

Look at the rising crime rate.

Look at the nasty air.

Smell the sewers as you try to eat your food in an open air resturant.

Look, smell, taste the raw sewerage beach from Satahip to Chonburi.

If you didn't buy in 2000 and sell in late 2005 you missed the boat.

 

Kho Chang (with it's limited buildable land capacity) may offer saftey from equity depreciation.

[Shit_Happens 31]

That "forecaster" must have 20 condos sitting idle to claim 20% or any % on the positive side during this early stage of over capacity and rising mort rates, cycle.

 

 

In a couple of years you will be able to buy back your condo for 750,000 baht.

Look at all the empty, unfinished buildings in Jomtien.

Look at the rising crime rate.

Look at the nasty air.

Smell the sewers as you try to eat your food in an open air resturant.

Look, smell, taste the raw sewerage beach from Satahip to Chonburi.

If you didn't buy in 2000 and sell in late 2005 you missed the boat.

 

Kho Chang (with it's limited buildable land capacity) may offer saftey from equity depreciation.

It sounds like your one of those " the cup is half empty kind of guys"

From the tone of your post it is probably safe to say we will not be seeing you in Pattaya again.

[kdc1899 1]

It sounds like your one of those " the cup is half empty kind of guys"

From the tone of your post it is probably safe to say we will not be seeing you in Pattaya again.

I love Pattaya. I'll be there every two months for two week whoremonger visits.

I just wouldn't buy anything in any second world country (or any country) at the end of a real estate boom.

Koh Chang, with it's clean air and beaches and it's limited number of lots will be tempting when the number of "reduced price" revisions stop increasing (usually a good sign that price decreases have ceased).

We are in the early cycle of "reduced price" revisions.

 

[Shit_Happens 31]

I love Pattaya. I'll be there every two months for two week whoremonger visits.

I just wouldn't buy anything in any second world country (or any country) at the end of a real estate boom.

Koh Chang, with it's clean air and beaches and it's limited number of lots will be tempting when the number of "reduced price" revisions stop increasing (usually a good sign that price decreases have ceased).

We are in the early cycle of "reduced price" revisions.

 

Hi kdc1899

You sound like you know what you are talking about. I qualified my original post be stating that I am no expert.

Due to the increasing prices and my concerns that they are not sustainable I have revised my plans to move to LOS in 3 years time. I believe my advice for the purchase of one property is sound as the original poster wants a place to live. But I had thought to move in a few years and purchase 5 studios to rent out but I will also need capital growth to supplement the rental income. I do not feel comfortable that in another 3 years there will be sufficent capital growth.

I am now investigating alternative means to achieve enough income to live on without 100% relying on the property market.

A 4 story shop house has been suggested. My wife and her sister can run a food shop come noodle bar whatever out of the shop and the upstairs could be converted to a 8 room guest house. This has gotta be costed out as yet.

Any other boardies got any idea? Please not Bar suggestions. Hours to long and temptations to great.

[kdc1899 1]

Hi all,

 

I am currently selling my UK property as I wish to downsize. The proceeds from this will pay for my new UK property with no mortgage.

 

I am also leaving my current employer mid next year and will receive a settlement "handshake".

 

It is my goal to live in Pattaya. I could afford 2-3 mill Bht condo or house but due to family etc in UK could only be there 3 - 4 months a year.

 

Would this be a good investment? and do you think it would be easy to lease on a monthly basis? Could anyone recommend an agent for such. All thoughts welcome as I am sure you realize this is a big decision. Then I still have to inform my Mrs!!

 

Thanks in advance,

 

Regards to all.

30,000 Baht per month would rent a stunning condo.

 

30,000 Baht X 3 months = 90,000 Baht.

 

90,000 Baht X 10 years = 900,000 Baht.

 

2,000 Baht per day to spend living life.

 

2,000 Baht per day X 90 days = 180,000 Baht.

 

180,000 Baht X 10 years = 1, 800,000 Baht.

 

1,800,000 Baht

+

900,000 Baht

 

= 2.7 million Baht

 

Of course all this means nothing if you are really bringing your wife to Pattaya.

???????????????????????????????????????????????????????????????????????????

 

I was surprised how many Euros had there significant other with them in Pattaya.

 

Kinda like bringin a gun to church.

Or wearing suntan lotion in a movie theatre.

Or bringing a designated driver to a 3 month cruise.

Or.......

[kdc1899 1]

Hi kdc1899

You sound like you know what you are talking about. I qualified my original post be stating that I am no expert.

Due to the increasing prices and my concerns that they are not sustainable I have revised my plans to move to LOS in 3 years time. I believe my advice for the purchase of one property is sound as the original poster wants a place to live. But I had thought to move in a few years and purchase 5 studios to rent out but I will also need capital growth to supplement the rental income. I do not feel comfortable that in another 3 years there will be sufficent capital growth.

I am now investigating alternative means to achieve enough income to live on without 100% relying on the property market.

A 4 story shop house has been suggested. My wife and her sister can run a food shop come noodle bar whatever out of the shop and the upstairs could be converted to a 8 room guest house. This has gotta be costed out as yet.

Any other boardies got any idea? Please not Bar suggestions. Hours to long and temptations to great.

I wish I knew about Pattaya and Phucket, Kho Samui, etc 5 years ago.

I did good speculating in the Florida boom but like you I have no clue where to work $$$ now or in the near future.

I'm still unclear on the laws and/or enforcement related to running an internet porn site from Thailand.

 

It seems that an internet related venture that is based in Thailand but not dependent on Thai's spending their meager funds on the venture would be the way to go for me.

 

You could always day trade equitys and derivatives.

 

I must say; I truly don not know what I'm talking about. I've just got lucky in the past 6 years.

[Owen` 2]

I wish I knew about Pattaya and Phucket, Kho Samui, etc 5 years ago.

I did good speculating in the Florida boom but like you I have no clue where to work $$$ now or in the near future.

I'm still unclear on the laws and/or enforcement related to running an internet porn site from Thailand.

 

It seems that an internet related venture that is based in Thailand but not dependent on Thai's spending their meager funds on the venture would be the way to go for me.

 

You could always day trade equitys and derivatives.

 

I must say; I truly don not know what I'm talking about. I've just got lucky in the past 6 years.

 

My 2 cents worth.

 

1) The final comment indicates the poster is one smart cookie. A lot of people investing in anything wander into excellent deals, make a lot of money and then conclude to themselves that they are geniuses. Luck is not genius. Trying to do it a second time has been the source of a godawful number of losses throughout history.

 

2) I deal with a lot of US citizens who live outside the US and my observations suggest that the number one source of income for "white collar" (don't know what the UK calls this, it just means non manual laborers) expat retirees is consulting through the internet for their former employers. They review documents, contribute to writing proposals for competitive bids, provide direct support to customers and sometimes even do a trip back to some big meeting (all expenses paid). They can wind up working maybe 10 hours a month and get paid 25% of their previous income -- with an overseas tax exclusion on it.

 

3) Think Singapore. It's a couple of hours south of BKK and it is English speaking and a very rich country. There may be ways to make money there while living in Thailand.

[SunnyValentine 173]

Ok, here#s my 25 satang worth:

Bought a Condo off plan in January 2004, for a price of 3.3 Millions. (Large 1-br in View Talay Residence 2)

Moved to Pattaya half Year later, rented a house in Jomtien (3 br, great location, but medium quality furnished) for 25000 a month for one Year.

During that time, I decided I do not want the condo any more.

After about 5 or 6 month, I fianally sold my contract (with about 50% already paid, still before completion) for a total of 4.6 Mill.

So made around 80% of the invested capital in less than 2 years.

 

End of November last Year I had to move out of the house, looked for a condo in Jomtien (1 Bedroom, nice standard, nice complex). There weren#t too many offers within reasonable price, but I managed to secure a 1 Year contract for a decent 1BR condo in Chateu Dale for 22000 Baht after two days searching.

There are similar Condoes on the market for 30000 or more in my tower, but most of them empty.

Looks like I just got lucky!

 

Sunny