Condo bargains

[Thai Visa Express]

I thought this may be of interest to members if anyone knows of any great deals on condos please list them here.

 

As a lot of us are in EU/UK etc we need some feedback .

[hedonist]

You mean to buy, or let, either on a long lease or holiday length/

 

Hedonist

[yankee99]

As i have been actively getting a feel for the market the last few weeks i have a opinion...First at between 45,000-60,000 a sqm i say way over priced. I have looked a vt2 vt5 & vt6....Now Vt5 c & d have sold the 49% off plan (foreign ownership) the other 51% seems to be empty as thais are not buying at theses prices. So you could walk in to the view talay sales office buy a shell unit in company name for rhe off plan price appx 33000 a sqm and figure 10000 to make it livable. There are also some shells being flipped. I looked at one in vt5 10th floor foreign name asking 1.9m this is about 300k more then the guy originally paid...

 

Vt6 is another story. You can still buy in foreign name. I looked at the units available and would speculate that about 40% is sold. I also speculate that this number may change because no one will want the units on the north side lower floors...I looked at a flip top floor 48sqm facing north with low quality kitchen bath and tile asking price 2.9million.

 

In regards to view. I really dont consider vt2 as a sea view. I mean you can see the water but a telescope might be better. This also applies to vt5 bldg d. Also the lower north floors of vt6 unless you have xray vision...

 

So the question is what will happen. Personally a deal for pattaya would be in the 25,000-30,000 baht a sqm depending on floor view and quality of unit. I am wondering how long the view talay people will sit on the thai units before a price cut. I think the best deal if you are a gambler would wait and buy a shell from view talay in company name if the price comes down. This is also the cheapest way to purchase a unit now...

 

regarding vt7 all the better views (facing jomtien beach) are sold. What i have learned that no one has a guarantee of foreign ownership. When the building is finished about 12 to 18 months the first to arrive at the land office for transfer get foreign ownership. This means if you cant come here or dont have a agent or funds and let time pass you may miss the boat.....

[Alex the Hedonist]

i did a ton of research also...one word....RENT.

[FatherMojo]

...What i have learned that no one has a guarantee of foreign ownership. When the building is finished about 12 to 18 months the first to arrive at the land office for transfer get foreign ownership. This means if you cant come here or dont have a agent or funds and let time pass you may miss the boat.....

 

 

Yep. I went into the VT on Beach Road, next to the new mall and asked about foreign ownership a couple of years or so back. I was told that there was no guarantee of who gets what. First come, first served at the land office.

 

 

FatherMojo

[BobbyTits]

I think the best deal if you are a gambler would wait and buy a shell from view talay in company name if the price comes down. This is also the cheapest way to purchase a unit now...

 

 

the last thing you would ever want to do is own a condo in a company name - if you can't get a unit in your own name then don't buy it.

 

[som nam na]

So the question is what will happen. Personally a deal for pattaya would be in the 25,000-30,000 baht a sqm depending on floor view and quality of unit.

 

i did a ton of research also...one word....RENT.

 

Renting is definitely the best option for some people .............. but not for all

 

If your funds are in EUR or USD then cost to purchase is not so bad but if you have GBP then the the cost has risen significantly.

 

The recent drop in interest rates has made owning a Condo more attractive provided it is purchased at the right price. Yankee99 has it right, if you decide to buy a condo look for diamonds in the rough. By way of example I purchased a one bed condo in VT 2B last year and had it renovated it to a good standard at an all in cost of THB 35,000 per m2. The Condo is rented out when I am not using it and should give an annual return of 5 - 10% depending on occupancy rate.

 

The Condo is in a foreign name and gives me a base in Thailand (subject to visa status) which means I get my R+R leave flights to BKK paid. The condo is part of a longer term plan and I don't intend selling it, so if it is not rented out it isn't a worry.

 

I would certainly be interested buying an additional studio condo at the right price for cash.

Edited January 24, 2009 by som nam na

[yankee99]

Renting is definitely the best option for some people .............. but not for all

 

If your funds are in UK pounds then the present exchange rate also means the cost of owning a Condo has risen significantly. However if your funds are in Euro or USD then its not so bad. The recent drop in interest rates has made owning a Condo more attractive provided it is purchased at the right price. Yankee99 has it right look for diamonds in the rough (condos not Lady's)

 

By way of example I purchased a I bed condo in VT 2B last year and had it renovated it to a good standard at an all in cost of THB 35,000 per m2. The Condo is rented out when I am not using it and should give an annual return of 5 - 10% depending on occupancy rate. This is part of a long term plan and I don't intend selling it. It gives me a base in Thailand and if not rented out it isn't a worry.

 

I would certainly be interested buying an additional studio condo at the right price for cash.

 

 

I also have another thought on being a landlord...renting a few units for extra income....Vt5 vt6 vt7 vt8 if you assume 49% sold. which they are not. this leaves 1000s of rooms available for someone to do something with...vt5 has over 800 empty shells vt6 vt7 vt8 have more...

 

btw i just got a email for a unit in vt8 for 1.6million which is 570,000 below the view talay selling price. I have not even researched this building....

[som nam na]

I also have another thought on being a landlord...renting a few units for extra income.... btw i just got a email for a unit in vt8 for 1.6million which is 570,000 below the view talay selling price. I have not even researched this building....

 

Renting out a Condo doesn't suit everyone but I think it can work if you have sufficient spare cash, a favorable exchange rate and buy at the right price in the rigyt location. Also that you don't need the money so can afford to have the unit not rented out for periods of time.

 

Also best not have too many condos and keep a low profile unless it is done legally as a business. There are also the problem tenants to consider ... I am sure some BM's will be able to post some horror stories.

 

Gabor posted an interesting story of selling his Condo and the "going rate" which is worth a read, not sure if it was on Addicts but it was on Secrets.

Edited January 24, 2009 by som nam na

[bgtourist]

Som nam na , I'm interesed to do something like this in the far future but i did not understand some of writing, sorry for my bad Englisch or understanding.

 

 

when I am not using it and should give an annual return of 5 - 10% depending on occupancy rate

 

is this without all costs?

 

The Condo is in a foreign name and gives me a base in Thailand (subject to visa status) which means I get my R+R leave flights to BKK paid

 

I do not understand , can you eplain please?

 

Also best not have too many condos and keep a low profile unless it is done legally as a business. There are also the problem tenants to consider ... I am sure some BM's will be able to post some horror stories.

 

What do you mean?

 

I would also consider to buy something in Ban Chang or other quiter places, maybe a bad idee?

[som nam na]

Som nam na , I'm interesed to do something like this in the far future but i did not understand some of writing, sorry for my bad Englisch or understanding.

 

when I am not using it and should give an annual return of 5 - 10% depending on occupancy rate

 

is this without all costs? Yes including all costs + depreciation, but actual return (could be 0%) will depend on occupancy rate.

 

The Condo is in a foreign name and gives me a base in Thailand (subject to visa status) which means I get my R+R leave flights to BKK paid

 

I do not understand , can you eplain please?

I work in the oil industry so my employer pays my leave flights (90 days on 14 off) back to home base from wherever in the world I am working. Having the Chanote for ownership of the Condo allowed me to have my Employer agree Thailand as my home base and pay my tickets to Bangkok.

Also best not have too many condos and keep a low profile unless it is done legally as a business. There are also the problem tenants to consider ... I am sure some BM's will be able to post some horror stories.

 

What do you mean? There is always a high risk of having a tenant who causes damage

I would also consider to buy something in Ban Chang or other quiter places, maybe a bad idee? Don't know perhaps other BM's who live there could help you out?

 

Renting out a condo is not something you should do unless properly thought through. I still follow the rule of "don't bring into Thailand funds you can't afford to lose / walk away from"

Edited January 24, 2009 by som nam na

[en184]

I own a nice condo in pattaya - but, i wont consider renting it, unless it is rented to a close friend, who i can trust. Tennents are too much hassle, and also, it might not be available when i need it.

 

Also furniture and stuff, if it is good quality, can be quite expensive. Would not want the condo to be ruined by an uncaring tennent.

 

 

 

It is a good time to buy, but only look at either beachfront or quality buildings.

 

Dont bother with the cheaper stuff. There is a reason its cheap.

[bgtourist]

Som nam na, thank u very much for your reply, i think i will wait some time to buy something, i think it will be a problem to own a condo where you only can live in maybe 3 or 4 months a year, the other motnhs i still to work. So i will wait some time.

[Alex the Hedonist]

good decision...wait.

 

i can see the possible arguement IF you live there full time and can manage multiple units for rent, aggressively marketing them on the net and elsewhere, generating a reasonable cash flow to cover payments and upkeep (you will always have upkeep n repair).

 

i have invested in foreign condos in central america and made a killing, both from apprecation and rents...but timing is everything...i started buying 10 years ago and started pulling out about 3 years ago and have now sold everything except some long term land plays that were bought very cheap and i waited for suburban creep...the simple fact is that all the economic engines that were generating the cash for a broad spectrum of folks to buy 2nd and 3rd homes/condos/rentals around the world is now missing on 6 of 8 cylinders...and now is not the time to buy unless its 35-50% under valued or better...or you are buying it for personal use and just dont give a shit about it depreciation...we are a long way from the bottom boyz.

 

its simple supply and demand...there is TONS of supply right now...and very little demand, and the demand on the horizon is going to be impacted by the worsening world recession that a lot of folks havent even begun to feel yet...we've only seen the tip of this iceburg. again, as i said in my first post, where is the demand going to come from? Russians are devaluing their currency weekly and oil isnt going back to 100 anytime soon...the aussie dollar and british pound are tanking, the euro isnt far behind...the usa's economy is still heading down and wont turn around for at least 3 more quarters...not to mention all the pensioners who's companies may go bankrupt or whose outside portfolios have been cut in half.

 

I hate to be a dark cloud, believe me, i too was thinking of buying this past summer...im glad i didnt...dodged a real bullet...im guessing we can be buying units at 30% or less what they are now by next year.

[yankee99]

good decision...wait.

 

 

 

I hate to be a dark cloud, believe me, i too was thinking of buying this past summer...im glad i didnt...dodged a real bullet...im guessing we can be buying units at 30% or less what they are now by next year.

 

IMHO 30,000-35,000 a sqm would seem like a decent price. This for a good location with some sort of view 10th floor up. Again only a decent price not a bargain! 25,000 a sqm would lean toward bargain price. At 25k you are still paying 1.2m for a studio

[wildrover]

good decision...wait.

 

i can see the possible arguement IF you live there full time and can manage multiple units for rent, aggressively marketing them on the net and elsewhere, generating a reasonable cash flow to cover payments and upkeep (you will always have upkeep n repair).

 

i have invested in foreign condos in central america and made a killing, both from apprecation and rents...but timing is everything...i started buying 10 years ago and started pulling out about 3 years ago and have now sold everything except some long term land plays that were bought very cheap and i waited for suburban creep...the simple fact is that all the economic engines that were generating the cash for a broad spectrum of folks to buy 2nd and 3rd homes/condos/rentals around the world is now missing on 6 of 8 cylinders...and now is not the time to buy unless its 35-50% under valued or better...or you are buying it for personal use and just dont give a shit about it depreciation...we are a long way from the bottom boyz.

 

its simple supply and demand...there is TONS of supply right now...and very little demand, and the demand on the horizon is going to be impacted by the worsening world recession that a lot of folks havent even begun to feel yet...we've only seen the tip of this iceburg. again, as i said in my first post, where is the demand going to come from? Russians are devaluing their currency weekly and oil isnt going back to 100 anytime soon...the aussie dollar and british pound are tanking, the euro isnt far behind...the usa's economy is still heading down and wont turn around for at least 3 more quarters...not to mention all the pensioners who's companies may go bankrupt or whose outside portfolios have been cut in half.

 

I hate to be a dark cloud, believe me, i too was thinking of buying this past summer...im glad i didnt...dodged a real bullet...im guessing we can be buying units at 30% or less what they are now by next year.

Excellent post.Low occupancy and the vast choice of unfurnished units in any price range should warn off buyers for now.Still they build more...wtf.

[Thai Visa Express]

I was offered the Avenue at 1.9 million off plan but the rate was 68 to the £ then anyone buying now is crazy ?