Investing in Pattaya Real estate?

[Gary]

you have to remember that you CANNOT own land in Thailand. Regardless of what the property developers tell you, there are no 99 year leases and nominee companies are illegal. The only thing you can own is a condo in YOUR name. You will need a verification letter from the condo association stating that the condo you want to buy is within the 49 percent of allowed farang ownership. Don't believe the person telling you that you can have the unit in your name without proof.

[Chris100UK]

Are there instances where a condo owner has to sell to a Thai to maintain the 51% Thai owned ratio?

[js007]

Are there instances where a condo owner has to sell to a Thai to maintain the 51% Thai owned ratio?

 

 

I think they know how many condos can be foreign owned and how many can be Thai owned. So, once you have a foreign owned condo, you can sell it to another foreigner. I guess if a Thai person wanted to buy it, that would free up another condo for a foreigner?

[Siam Sam]

There are much better things to invest your money in. It's relatively easy to rent your property in Pattaya if it's in a reputable area but compared to what you'll initially pay the yields are low so it doesn't make much sense unless you're buying lots of property. Even then I wouldn't advise it, renting in Pattaya is a very competitive market and there are thousands of empty houses and condos. It's a buyer's market. You may well have a hard job trying to sell your property too if it comes to it. Especially at the price you'll want. I wouldn't advise investing in property in Pattaya. Three years ago I bought a condo in a project the construction company hadn't even started building. The plan was to come back to Pattaya two years later to pay the balance owed and live in it for a while. Just before the project was completed the construction company told us they couldn't sell us the condo anymore. Sneaky as fuck what they did but there was nothing we could do about it. A long story but fortunately we got our money back. We were lucky. Turned out to be a blessing in disguise as living in Pattaya for six months almost cost me my marriage. I won't be investing in Pattaya again but we are unperturbed and are planning to start buying condos in Bangkok soon which we believe is less risky. Whatever you do, good luck.

 

Edit - I've just realised the OP was from more than FOUR FUCKING years ago!

Edited April 14, 2018 by Siam Sam

[Idefix]

Are there instances where a condo owner has to sell to a Thai to maintain the 51% Thai owned ratio?

I think they know how many condos can be foreign owned and how many can be Thai owned.

So, once you have a foreign owned condo, you can sell it to another foreigner.

That's not so simple. A few condos have foreign units over the 49% limit, because at one period in the past this quota has been suspended. Now there are officers who try to bring back the quota to 49% even in these condos and (I heard that) a few sales have been suspended or cancelled because of that. Now, being Thailand, there are not many "problems" that can't be solve with an "envelope"...

Edited March 30, 2018 by Idefix

[simplelife]

I'd rank the markets like this:

 

Coastal US: 6/10. Poor cash flow relative to purchase prices

Midwest US: 9/10. Low prices, high rent yields. Low appreciation, but cash flow is king and there's a clean path to scaling.

Pattaya: 3/10. Poor/non existing loan options.terms, low rent yields, poor construction quality, legal difficulties outside condos (which do not capture land).

Edited April 13, 2018 by simplelife

[js007]

I'd rank the markets like this:

 

Coastal US: 6/10. Poor cash flow relative to purchase prices

Midwest US: 9/10. Low prices, high rent yields. Low appreciation, but cash flow is king and there's a clean path to scaling.

Pattaya: 3/10. Poor/non existing loan options.terms, low rent yields, poor construction quality, legal difficulties outside condos (which do not capture land).

 

 

To be sure, if you want to be a landlord and acquire a portfolio of rental houses, some areas of the USA could probably be a goldmine. As you indicate, Midwest US could be good for the right investor. For example, in many cities, you can buy small houses for $40,000, maybe less. And you could rent that same house for $850 a month or more. Not bad if you start out with a house in decent shape and the tenants don't destroy it. Of course, you have to look at the taxes.

[jacko]

 

 

To be sure, if you want to be a landlord and acquire a portfolio of rental houses, some areas of the USA could probably be a goldmine. As you indicate, Midwest US could be good for the right investor. For example, in many cities, you can buy small houses for $40,000, maybe less. And you could rent that same house for $850 a month or more. Not bad if you start out with a house in decent shape and the tenants don't destroy it. Of course, you have to look at the taxes.

I don't know how the system works in the USA but in the UK there are a lot of rental defectors. If you struggle to get a non-paying tenant out for several months that hits your top line hard. Agents are used who know how to deal with it... usually high court evictions but there is no money to be recovered. The agents obviously trim the cream off the income.

[texasfarang]

Pattaya is a construction boom town and every new condo has to decrease the value of the existing units.

 

Every Mall has a model of a new condo community under development with a special deal to buy in now.

 

I cannot imagine a scenario that would make me buy into a condo in a foreign country as the internet has made it so easy to acquire anything on a temporary basis at an affordable price as long as you have cash in your pocket.

[Idefix]

Pattaya is a construction boom town and every new condo has to decrease the value of the existing units. //

Agree that some condos may be impacted by every new one on the market, but IMHO only recent condos (less than 5 years old ?) are impacted.

Any condo more than 5 or 10 year old probably already reached its "cruising price level" and will not be impacted by new ones (that will be in a lot of higher prices range)

[js007]

I don't know how the system works in the USA but in the UK there are a lot of rental defectors. If you struggle to get a non-paying tenant out for several months that hits your top line hard. Agents are used who know how to deal with it... usually high court evictions but there is no money to be recovered. The agents obviously trim the cream off the income.

 

 

I thinker's fairly typical that an agent will charge one month's rent to manage a property for a year. And supposedly, they screen prospective tenants as to credit, history as renters, etc. Depending on state law, the eviction process can be speedy or slow. I think that in some states of cities, landlords maintain a blacklist of problem tenants. Screw up at one place and no other landlord will rent to you.

[BigusDicus]

 

 

I thinker's fairly typical that an agent will charge one month's rent to manage a property for a year. And supposedly, they screen prospective tenants as to credit, history as renters, etc. Depending on state law, the eviction process can be speedy or slow. I think that in some states of cities, landlords maintain a blacklist of problem tenants. Screw up at one place and no other landlord will rent to you.

 

 

I have always insisted on a pristine credit report before I will rent to anyone. Have never had a problem.

[Dynametix]

Is it profitable to invest money in Pattaya Real Estate?

[Grandpollo]

18 hours ago, Dynametix said:

Is it profitable to invest money in Pattaya Real Estate?

How long is a string? I'd expect dick all for capital gains in a market with excess supply but you could be a landlord or AirBnB operator if you lived there to manage it. For a yes no answer I'd lean a lot towards no.

[Bazle]

23 hours ago, Dynametix said:

Is it profitable to invest money in Pattaya Real Estate?

Do you mean as a developer or as a private buyer?

Ever more blocks of condos go up, so I have to assume that there is still money in developing. About 10 years ago, I was told that a condo developer had to sell only about 50% of the units to break even.

As to being a private buyer, I'd say that, generally, the answer is "no". However, there are quite a few fire sales at the moment, and you might be able to pick up a bargain and resell it in a few years time.

[wacmedia]

On 4/15/2018 at 7:35 PM, BigusDicus said:

 

 

I have always insisted on a pristine credit report before I will rent to anyone. Have never had a problem.

Hi,

Some owners are under pressure to have the space occupied. I find the best landlords have no mortgages on most of their properties.

[thai-residence.com]

If we speak plainly there are only two strategies in Pattaya that actually lead somewhere. One is the quiet moment when the ground is still warm and nothing is built yet and you step in at the very start and give the project a year to breathe. The other is the long slow rhythm of ten years with rental income when the apartment pays for its own life and brings a steady return while you watch the waves change their colour. Everything else looks nice on paper but rarely grows into money.

If you want to see how this works in real life there is a short guide here that explains the whole process in a calm and simple way
https://thai-residence.com/info-guide/buy

If you are curious I can also show the projects that are moving right now or pick something under your budget.