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BANGKOK 21 April 2019 07:10

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As in a previous thread, I mentioned that I am thinking of buying  a property in Bangkok (where I live) or Phuket. Either one will be bought to rent out as a small investment property.

 

My question is this:  is it better to spend a bit more and buy an off plan condo/newly built condo in Phuket where you have a guaranteed rental income for 5 or 10 years, incentives such as free electricity and water bills, 4 weeks use of the apartment, etc or buy say a 5 to 10 year old condo in Bangkok relatively near to a BTS or MRT station not too far from where I live?

 

I have a property in the UK and would like to have something for my children over here. Both my wife and children have dual nationality so the condo will go in one or all of their names.  Or would it be better to set up a company and put the condo in the name of the company.

 

Any thoughts, experiences or advice will be appreciated guys, very unsure what to do.

 

JS

 

 

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30 minutes ago, jakestevernson said:

My question is this:  is it better to spend a bit more and buy an off plan condo/newly built condo in Phuket where you have a guaranteed rental income for 5 or 10 years, incentives such as free electricity and water bills, 4 weeks use of the apartment, etc or buy say a 5 to 10 year old condo in Bangkok relatively near to a BTS or MRT station not too far from where I live?

A new Phuket condo costs more than a similar one near the BTS or MRT in Bangkok? Wow. Sounds like they are pricing all those guarantees and freebies into the purchase price, with some to spare.

 

As for which is best, that rather depends on whether you want to spend 4 weeks a year in Phuket or not. I wouldn't. I also dont have much faith in guarantees made by Thai developers.

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The condos with guarantees are way overpriced to account for the return. Also once everything is sold the condo sales/development company can be closed down and the guarantee is not worth the paper it is written on. Also buying off plan has its own risks, from not being built at all, to significant changes to the plans with little or no compensation, poor quality, and multi-year delays. Buy something already built. You know the strengths and weaknesses of the building and the neighborhood.  

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I don't know about Bangkok.

 

I know all about Phuket and I can't imagine a worse financial decision than buying a condo for investment in Phuket. The condo market is in the dumpster. It's extremely difficult to resell. Condos are all at firesale prices. You'll be very lucky to find a renter other than two months of high season. Yes, there are guaranteed return programs but the condos are worth 40% less than what you purchase them for on day one of ownership. Buying a condo for investment is THE worst financial decision you'll ever make. To make matters even worse, there are thousands of new condos about to come on the market. We are currently experiencing mind boggling clean water, sewerage and trash problems. Kamala Beach, for instance, has become a polluted nightmare. 

 

One more little piece of advice. Never buy property in Thailand for too many reasons to even bother going into detail. 

 

 

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2 hours ago, Pinot said:

I don't know about Bangkok.

 

I know all about Phuket and I can't imagine a worse financial decision than buying a condo for investment in Phuket. The condo market is in the dumpster. It's extremely difficult to resell. Condos are all at firesale prices. You'll be very lucky to find a renter other than two months of high season. Yes, there are guaranteed return programs but the condos are worth 40% less than what you purchase them for on day one of ownership. Buying a condo for investment is THE worst financial decision you'll ever make. To make matters even worse, there are thousands of new condos about to come on the market. We are currently experiencing mind boggling clean water, sewerage and trash problems. Kamala Beach, for instance, has become a polluted nightmare. 

 

One more little piece of advice. Never buy property in Thailand for too many reasons to even bother going into detail. 

 

 

Phuket it is then!

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2 hours ago, Pinot said:

I don't know about Bangkok.

 

I know all about Phuket and I can't imagine a worse financial decision than buying a condo for investment in Phuket. The condo market is in the dumpster. It's extremely difficult to resell. Condos are all at firesale prices. You'll be very lucky to find a renter other than two months of high season. Yes, there are guaranteed return programs but the condos are worth 40% less than what you purchase them for on day one of ownership. Buying a condo for investment is THE worst financial decision you'll ever make. To make matters even worse, there are thousands of new condos about to come on the market. We are currently experiencing mind boggling clean water, sewerage and trash problems. Kamala Beach, for instance, has become a polluted nightmare. 

 

One more little piece of advice. Never buy property in Thailand for too many reasons to even bother going into detail. 

 

 

Nonsense from a shoe box renter.

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3 hours ago, Pinot said:

I don't know about Bangkok.

 

I know all about Phuket and I can't imagine a worse financial decision than buying a condo for investment in Phuket. The condo market is in the dumpster. It's extremely difficult to resell. Condos are all at firesale prices. You'll be very lucky to find a renter other than two months of high season. Yes, there are guaranteed return programs but the condos are worth 40% less than what you purchase them for on day one of ownership. Buying a condo for investment is THE worst financial decision you'll ever make. To make matters even worse, there are thousands of new condos about to come on the market. We are currently experiencing mind boggling clean water, sewerage and trash problems. Kamala Beach, for instance, has become a polluted nightmare. 

 

One more little piece of advice. Never buy property in Thailand for too many reasons to even bother going into detail. 

 

 

Please do list the reasons. There may well be other forum members considering purchasing a property. You knowledge will be invaluable guidance for the newer, less likely experienced members of this forum. Isn't that what this forum all about..... Sharing wisdom about all things Thailand related. Looking forwards to your further contributions on this important matter.

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Hi all,

 

In the light of these posts and discussion with friends, I think it will be better to buy something back in the UK.

 

If I was buying a property to move into in Bangkok, then I would be a lot more confident, but with a buy to let here or in Phuket I feel less secure.

 

Thanks for all the advice, it certainly has given me a lot to think about and more research to do.

 

JS 

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21 hours ago, Ulic said:

The condos with guarantees are way overpriced to account for the return. Also once everything is sold the condo sales/development company can be closed down and the guarantee is not worth the paper it is written on. Also buying off plan has its own risks, from not being built at all, to significant changes to the plans with little or no compensation, poor quality, and multi-year delays. Buy something already built. You know the strengths and weaknesses of the building and the neighborhood.  

any prospective buyers-take note of the above...its all correct....

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i would never class anything in thailand, as a sound investment..

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OP Bangkok, forget Phuket, Seaside resort condos are subject to market forces of a long low season so basing your purchase on rental streams says no to phuket, pattaya, hua hin etc.

Condos In BKK linked to a BTS are totally insane right now. The Q condo linked to Nana bts a red light district are selling from 1 to 5 million..USA dollars !!

There is still a good chance of picking up an older condo to refurbish but due the big gap between new and used prices the Thais will soon have no choice but to go second hand pushing that market as well

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On 3/25/2019 at 9:50 AM, KittenKong said:

Sounds like they are pricing all those guarantees and freebies into the purchase price, with some to spare.

 

What about taxes and death being the only true guarantees in life?

 

 

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