Unique investment opportunity (Jomtien)

[gerry53]

This is a topic from 2011 regarding condos in Jomtien.  This sellers claim of over 51% return within ONE year completely missed the mark as the development 4 years later is not even finished yet?  The reduction of tourists due to the low value of currencies in Russia, Eurozone, Australia and Canada will hurt the project even more.  For the guys who purchased "off plan" using these currencies it will make the secondary payments much larger if they haven't walked away from their investments.

 

It makes me glad I didn't run out and buy 6 units in this "unique investment opportunity"!!!  Potential investors should read these 4 year old posts when economic times were much better so they compare it to todays investment climate in condos of which there is a surplus of available new units with thousands more coming on line soon (well maybe).

 

I had to laugh at the OP's ad stating " sounds too good to be true "??? 

[bobSL1]

Thanks Gerry, i thought so.

 

There is no shortage of Farrangs out there willing to cheat any farrang who will listen to em. Hear many horror stories.

 

Surely at some point the oversupply most produce some bargains ...what do you think a year or two more ?

 

Or will  many developers just not complete the projects ? 

[gerry53]

I drove by this project today and it looks like it will be completed albeit much later than anticipated.  My issue is with salespeople making unrealistic claims of 51% returns after 1 year and to buy quickly before they are all gone.  The hype on these projects and glossy computer generated photo's are very unrealistic.

The same company is building Laguna II and the Maldives but started much later than the Laguna 1 project and things have changed a great deal in currencies and real estate locally, I hope they finish these projects like the many others started nearby..

Some projects have been sold out and I noticed a number of "resales" appearing on websites, obviously original investors getting nervous and rightfully so.

 

I also drove by the nearby Suan Sawan which must be 5years plus overdo and it looks like it is in disrepair and going downhill rapidly in spite of a few claims it is being worked on recently.  I saw some ads listing them recently for 1.2 million baht yet others have sued the developer and won but the deveoper has no money yet it had been fully soldout?

 

Please do your due diligence and these days it is definitely a "buyer beware" time for off plan purchasers.

 

bobSL1 - I don't know what will be completed or not as it is a crap shoot depending on currencies, possible corruption, tourist patterns, Thai economy and politics, etc, etc.

Many of these projects are structured so the farang puts much of the money upfront as deposit, initial and quarterly payments and have an easy 10% (approx.) payment to receive the keys.  The 51% mandatory Thai ownership allows for a few small initial payments with 75% payment for the move in and key.  It doesn't take a rocket scientist to figure out the farang is the guy financing the project and has the most "at risk".  Trying to recover money even with a successful court trial seems only make lawyers rich as deposits have disappeared?

[gimmesum]

Run don't walk from this computer generated cartoon claiming 50 percent ROI one year in a falling real estate market.

[tourasia]

How can you make such a statement without knowing any details?

 

 

If you would be serious and have all the information and then come to such a conclusion, then by all means post it. But please don't just write some popular responses without having a clue.

I think you would get less cynisism if you qualified the statement as 50% ROI for a construction project is almost too silly to believe. I tend to agree with many of the posters and would certainly avoid any off plan investment especially based on the many similar projects that go bust under off plan capital funding. 

[taylor1975]

it was 3.5 years ago .....I don't think the guy cares what he said back then

[gerry53]

I agree but I think it is a good reminder of what can happen when potential buyers believe sales hype when buying off plan.  The same applies even more so in today's oversupplied new condo market in Jomtien Beach. The thread wasn't reopened to point the finger but to get potential buyers to be cautious and do their due diligence - so people in todays market don't get stung.

[LRanger]

Don't expect and unbiased opinion from someone with a vested interest.  Real Estate spruikers have 100% vested interest as they only survive on commission.  100% bullshit artistes.

 

The best money is made on places that no one mentions. 

 

It is not hard really:-

Buy in the golden zone, even it seems a bit more

Buy things that are scarce

Wait, be patient.

Something you can use for your lifestyle and and investment is as good as gold