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Post by realisedurgency on Nov 18, 2016 17:58:14 GMT 7
I have from time to time considered if a condo in Thailand would be a good investment, and there is the usual list of reasons not to that this video I seen today reminded me of:
For me I'm thinking of it mostly from a numbers point of view. Mainly, how far wrong could I go if I stuck to a 1% rule (monthly rent = 1% of property price)?
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Nov 18, 2016 18:43:00 GMT 7
Would you really take financial advice from a video of a merman? The guy doesn't have legs!
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Post by realisedurgency on Nov 18, 2016 18:44:51 GMT 7
No that's why I asked here.
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Post by Fletchsmile on Nov 18, 2016 19:56:59 GMT 7
Seems like some decent reasons to me.
I'm not a big fan of investing in property - particularly here in Thailand although I do think about occasionally. Really can't see me ever considering Pattaya.
To add more reasons against:
Liquidity is also a big factor to me as well. Even if you can sell it will take time.
Another one is that property is not my area of expertise - probably the biggest factor stopping me invest too much in it.
Still further is that you can't exactly buy small amounts or sell part of a condo. So you can end up with concentration risks on large value assets
On the positive side:
We bought a condo in Bangkok about 9 years ago. In my wife's name with a mortgage guaranteed by me for the first 3 years, which we paid off. I like the concept of nesting rather than investing when it comes to a home.
We might struggle to sell it, but on the other hand to buy another one would cost more today.
Also THB has strengthened considerably vs home currency so I'm glad I'm not renting based on home currency income.
Nice also to know the wife and kids have a roof over their head if I'm not around. Really nice having a family home that's ours. So I consider it an investment in life and our quality of life. Any financial gain is a bonus.
For property investment in Thailand I like TMB Property Income Fund. It has a lot of the advantages of property exposure and ownership without many of the drawbacks. eg
- liquidity = can sell any time
- you can add more or sell part at any time rather than have to pay one big sume
- no tax on gains if you sell
- can diversify across a higher number of properties to remove concentration risk
- There's an RMF version you can get tax relief on (but can't take income and locks in to age 55+)
- no hassle with admin maintenance, tenants, neighbours to deal personally with etc.
- no issue with foreign ownership
Yield of around 5% to 6% plus capital growth is comparable to buying single properties for rental. So I'd ask myself do I really want all the hassles of individual investment properties
owned by me.
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Post by rgs2001uk on Nov 18, 2016 22:17:03 GMT 7
I have from time to time considered if a condo in Thailand would be a good investment, and there is the usual list of reasons not to that this video I seen today reminded me of: For me I'm thinking of it mostly from a numbers point of view. Mainly, how far wrong could I go if I stuck to a 1% rule (monthly rent = 1% of property price)?Guess you dont know much about rental prices in Thailand, dont believe what you read elsewhere. Condo, easy to buy, not easy to sell. A few years back I rented a 200 s/m house in Bkk, resale value, 5 million, rental per month, 10,000 baht. If you want to go that way, I would suggest buying up cheap 350,000 baht condos in places such as On Nut and rent them out for 3,000 baht per month, bear in mind its dead money, you will have a hard time selling them. If you can get 5% pa consider yourslf lucky, there is an oversupply of condos all over. If you get really lucky you might find some farang mug to rent to. Up my way, 2 million baht townhouses rent for about 6,000 baht per month. Single storey houses (value 3 or 4 million)rent for about 6-8,000 baht per month. Double storey houses Value (5-8 million), 8-12,000 baht per month. If you want to get into the Thai market, I strongly suggest you learn to read Thai, get yer ass to the local 7 and pick up a magazine called, ตลาดบ้าน, talaat baan, housing market, it will be the best 30 baht you have ever invested. |
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Post by realisedurgency on Nov 18, 2016 23:23:28 GMT 7
rgs,
The 1% rule is just a rule I picked up from listening to an American real estate investor, not a value that is easily found in Thailand. Looking online the only properties in Thailand that did come close to a 1% rule were cheap condos, and your On Nut suggestion seems in line with that, as nothing else is close. The liquidity issue would not bother me too much if I was to buy something that cheap. That said Fletchsmile has done a good job of convincing me a property fund is the way to go.
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buddahas
Crazy Mango
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Post by buddahas on Nov 19, 2016 0:03:59 GMT 7
For now I'm sticking with my Canadian rental. Sure, maintenance fees are higher and I have to pay tax, so after the mortgage payment I only break even. I am also renting it $100 below market value, but in return I have a great Tennant that never complains, always pays rent on time, maintenance fees actually keep my 15 year old building look better than 1 year old "hiso" building in Bangkok and as someone mentioned liquidity is not an issue as I can sell it for asking price within 1 day.
On the other hand I would really like to buy a shoebox condo in Patters for myself only. I know it's a terrible investment, but I'd like to have a place with a beach view.
What to do?
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Deleted
Deleted Member
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Post by Deleted on Nov 19, 2016 5:31:06 GMT 7
^^do what makes you happy.
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Post by Soutpeel on Nov 24, 2016 4:37:44 GMT 7
Certainly in the Thai context, i wouldnt bother with condos, over supply in Thailand, typically over priced for what you get, if your buying one to live in thats one thing as an investment vehicle ? Not for me in Thailand
Other places maybe.....why would you take investment advice from a shirtless tosspot standing on a roof in Pattaya anyway
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Post by realisedurgency on Nov 24, 2016 20:24:34 GMT 7
Tosspot has done a follow up on Bangkok.  |
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Post by rgs2001uk on Nov 24, 2016 22:05:29 GMT 7
^^^^ watch tosspots first video posted, he cant even pronounce Pattaya properly, about 5 seconds in.
Why would I listen to a man who cant even speak Thai, I doubt if he can even read or write the language, happy to be proven wrong.
Tosspot doesnt have a clue as to why Thais buy condos, and why they always will.
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Post by rgs2001uk on Nov 24, 2016 23:06:57 GMT 7
Heres a tip for Tosspot, get yer ass out Ram way for the following reasons, none of which apply to ferangs.
1 Airport Link.
2 NIDA.
3 The Uni.
4 The hospitals.
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