AyG
Crazy Mango Extraordinaire
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Post by AyG on Nov 29, 2019 11:56:44 GMT 7
On the original purchase price / historic cost would have given a gross yield of around 6% and more like 4%-5% after expenses I suspect your case may not be typical. There's the whole issue of depreciation. I would posit that most apartments here are virtually worthless after 20 years. The same is true of many housing developments. |
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Post by Fletchsmile on Nov 29, 2019 18:25:39 GMT 7
On the original purchase price / historic cost would have given a gross yield of around 6% and more like 4%-5% after expenses I suspect your case may not be typical. There's the whole issue of depreciation. I would posit that most apartments here are virtually worthless after 20 years. The same is true of many housing developments. I think our case was typical of a decent quality condo. We owned it for just over 12 years and it was in reasonable shape. It wasn't high-end/luxury but somewhere between middle and high end. I think it was typical of that price bracket. Next door was built a couple of years later by the same developer, and also looks fine. Definitely not a depreciating asset.
Key was getting them to increase the central juristic fees. I was the one to propose that a couple of years or so back, to ensure adequate funds to maintain a good state of repair. Many Thais didn't like the idea.
Low and mid condos may well not last 20 years well. Don't know to be honest as that's not really a market I would want to buy in. But if looked after and maintained a decent mid to high end should be fine
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Post by rgs2001uk on Nov 30, 2019 21:44:17 GMT 7
On the original purchase price / historic cost would have given a gross yield of around 6% and more like 4%-5% after expenses I suspect your case may not be typical. There's the whole issue of depreciation. I would posit that most apartments here are virtually worthless after 20 years. The same is true of many housing developments. Cant say I agree with you one that one, up my way, these figures arent exact, single storey house on 60 tw,bought for 600k baht 30 years ago, same price today, 6 million baht. You aint buying the house you are buying the land. Buy the house, knock it down and get Landy in to build a new 2 storey house for 4 million, total cost, 10 million baht, up the road similair house will cost you 15 to 18 million baht. I know Thais who bought these houses 30 years ago, they viewed them as part of their retirement plan, lawyer mate of mine is waiting for his mrs to hit 60 and get her retirement and then they are both off back down south. |
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