Okay the thing that is missing here is the cost of flipping condos based against the ROI. You have to consider all cost. 1. Maintenance fees for owning the condo. 2. Taxes when the condo was purchased. 3. Any repair and maintenance cost - especially if you're renting the unit out, there will be repairs unless you let the condo fall apart. 3. When you sell the condo, you will pay 3-5% in real-estate brokerage fees. 4. Pay taxes again given typically taxes are split 50/50 between the buyer and seller. So, it's not just a pure purchase price versus sales price calculation. There are other cost. And yes, you can get 8% ROI a year on renting a condo out, but after expenses, including management fees, your ROI typically drops to 3-5%.
@@commanderbishop I agree with you. Mostly I aim for capital valuation and the longer you keep the condo less you will pay taxes. Rent from my perspective are just payouts that keeps you patient to sell
I think that completely depends on the condo. The one I live in has an entire wall of closet space, tempting me to go on a shopping spree to fill it up 🤤
Yes you definitely need a Thai partner or pay an interior designer/architect for renovation that you approve. Never let the designer choose in any surface materials/colour, you must decide as Thai taste is very different to western taste. Furniture, there are 2 Ikea stores in Bangkok and many competing appliance retailers. The bed, American king size are standard and not European sizes. Does the building have a goods elevator often found in the trash room area for materials handling/workers.
Thanks for asking about higher pricing for foreigners. I did pay more for my off the plan purchase, and then saw the same project posted in Thai at a lower price..
Mistakes to avoid, be careful of unethical, non-transparent management companies that over staff and over charge. Be careful of “capital gains”. I’ve now been invested in Thailand for 10 years. One property I had for 5 years and I was only able to get 10% increase in price, which basically covered taxes. If you’re trying to buy in Thailand for capital gains. It is not worth it. If you are buying to rent out the property, it is ok. But in my opinion, there are much better markets out there for real estate. Only invest in Thailand if you are going to live yourself. Or rent it out. If you buy it and it sits empty for 10 months out of the year and it’s your “vacation home” and you try to sell it for a high profit later on… yea your capital gains won’t be very good. The era of cheap Chinese money flowing in is over.
In the USA, no one knows if their view will get blocked either. They can tell you what they want by in the future the city gives exceptions or change the zones and you have a building blocking your million dollar view.
Older condos are hard to rent out, there is less marketing. So that will be a problem if you want cashflow. If you want to rent it out monthly it might be hard to market it.
I don't think it's about old vs new. Rather, it's about attractive vs unattractive. You can have a brand new condo that is horribly furnished, in a position in the building that faces the wrong direction, or with a bad layout, and you'll have trouble renting it out. Meanwhile, I've seen wonderfully renovated older units that are in unbeatable locations get rented out just days after advertising. Agents can help you a lot.
That’s why we should understand what our future tenants need before investing in buy to let investment. New condo is ready made product where able to get cash flow because it’s new and close to BTS station. Also, benefits of sellers in terms of having new property to stay if they are in Thailand. However, as price of brand new condos are already high, lots of competitors,so it is hard to expect capital gains when selling out. Real estate portfolio should be mixed with cash flow properties and capital gain. Old condo if we can buy lower than market price, renovate and rent out for tenants who need bigger space could be source of cash flow,also high opportunity for capital gain.
Jett - would you elaborate on ROI on rental income from condo investment in Bangkok? From my basic understanding ROI on rental income is less than 3% gross of value of the condo. In most countries, ROI on rental is 5-6%. This tells me condo value in bangkok is overpriced thus the reason for such a low return of less than 3% gross. Considering you still have to pay common fees and taxes for. 3% is not a good investment for anyone to invest in condos in Bangkok.
@@JettGunther looking through listed condos for sale and comps for rent in the same building. For example, a $200,000 condo would rent for $500 per month yielding 3% a year gross on avg. For luxury condos that number even seems less and Of course I’m talking about basic long term rentals.
@@JettGunther Jett - In addition to my comments, luxury condos in bkk like the Four Seasons Residence, a 2 bedroom unit is selling for about 58M bhat and similar two bedroom units in the same building are renting for about 170K bhat per month. If you do the math, that yields about 3.5%. In my opinion less than that because I’ve been looking to rent a unit there and negotiated the rental price down to 150k. Which brings the yield down to 3% gross pre monthly maintenance cost and taxes. So when you tell me that most make more than that in such a concise manner, I can’t fathom to understand your argument.
@@JettGunther Jett - In addition to my comments, luxury condos in bkk like the Four Seasons Residence, a 2 bedroom unit is selling for about 58M bhat and similar two bedroom units in the same building are renting for about 170K bhat per month. If you do the math, that yields about 3.5%. In my opinion less than that because I’ve been looking to rent a unit there and negotiated the rental price down to 150k. Which brings the yield down to 3% gross pre monthly maintenance cost and taxes. So when you tell me that most make more than that in such a concise manner, I can’t fathom to understand your argument.
Branded residences such as the Four Seasons are a different beast. They have a premium that makes yield calculations seem very low. That being said, their appeal is that they're highly desired and could fetch better profits in terms of flipping. As for general yields, this interview clearly points out the opportunity in finding good value second hand condos. You can also check out her previous video czcams.com/video/3QEVVvUCOp4/video.html
I have made this comment on another JT video. There is no such thing as 'foreign quota' units. All units are the same. Foreign quota relates purely to floor area. When 49% of the total floor area has been sold to non -Thais, the remaining stock can only be bought by Thais. Now, a developer might choose to market their project overseas first; that is a marketing strategy. The reality is that very few projects have anything approaching 49% foreign quota. Foreign pricing exists. I have personal experience. I declined the offer. The unit was bought by a Thai for around 2 million less; it is now on sale for less than he paid. My advice to anyone buying from a developer is to be very careful. I lived in a project, built by an SET developer, who was left with 15% of the units after the building had been completed. These units were offered at a 20% discount on the original price. One week I was told all the river view units had been sold, only to discover, two weeks later, that they had a river view unit for sale. It is a game of cat and mouse. Sup with a very, very long spoon.
Foreign Quota Condos typically come furnished whereas the Thai quota condos come unfurnished. In addition construction materials can be different too such as flooring materials. All these contribute to cost differences. And to the uncouth casual observer jumps to an ignorant conclusion. I see this happening all too frequently in Thailand.
I am sorry Mr. Gunther, However, I am very offended that I am an adult, who has commented upon your videos in the past; and yet now I read that I must be civilised upon writing to you and commenting upon your videos? And needed to click upon a “Got It” button… HOW RUDE!!!!! Whether this IS Google or YOU! …HOW VULGAR AND RUDE. I now wish to make comment upon this video of yours. This video is very educational, and even though I prefer your sale or selling videos of the higher end properties, this elegant Lady’s advice along with your Western knowledge combined to make an unique discussion. Nice one Mate. Oh in case you or Google do not understand my usage of the word “Mate”: This IS an Australian and English usage meaning friend -even “GooD Friend.” I am writing this as I am NOT AMERICAN, NEVER WILL BE AMERICAN and Google ONLY expects us to BE AMERICAN… Very, Very Sorry Google; You might actually learn from the rest of this PLANET. In future should I telephone you directly and waste your time to make comment to and upon you soasto allow you information from persons/people that actually wish to help? Just checking Mate! Good Job on this video if you didnot get it by the way…
Hey Gunther , I agree with you about furniture. A previous vid you compared 3 different interiors. Thick chunky sofa's are wrong for condos. Also going looking around looking , gets you out n about 👍
Amazing & informative as usual ❤❤❤
I love both of you. Next year, hopefully I can see you both. Much love and respect
Jeff, great Q&A, we get the benefit of her 14 years... excellent
Splendid video. I think more and more people from N. America and Western Europe will move to Thailand for retirement.
Jett, you are so professional and well spoken. I hope to meet you when I move there next year...and condo hunting. Your biggest fan.
We'll be here!
Okay the thing that is missing here is the cost of flipping condos based against the ROI. You have to consider all cost.
1. Maintenance fees for owning the condo.
2. Taxes when the condo was purchased.
3. Any repair and maintenance cost - especially if you're renting the unit out, there will be repairs unless you let the condo fall apart.
3. When you sell the condo, you will pay 3-5% in real-estate brokerage fees.
4. Pay taxes again given typically taxes are split 50/50 between the buyer and seller.
So, it's not just a pure purchase price versus sales price calculation. There are other cost.
And yes, you can get 8% ROI a year on renting a condo out, but after expenses, including management fees, your ROI typically drops to 3-5%.
@@commanderbishop I agree with you. Mostly I aim for capital valuation and the longer you keep the condo less you will pay taxes. Rent from my perspective are just payouts that keeps you patient to sell
This is a greatt info for lots of foreigners like me who's planning to explore Thailand in the near future ! Keep up the good work !Thanks!
Glad it was helpful!
Thank you Jett, Thank you Khun Oh for this very detailed and informative video♥️
Thank you Jett. Very informative, Kuhn Oh has a lot of knowledge and it shows. Keep up the great work. 🙏🙏
Thank you!
No one seems to talk about the LACK OF CLOSET SPACE IN THAILAND HIGHRISE CONDOS
I think that completely depends on the condo. The one I live in has an entire wall of closet space, tempting me to go on a shopping spree to fill it up 🤤
Yes you definitely need a Thai partner or pay an interior designer/architect for renovation that you approve.
Never let the designer choose in any surface materials/colour, you must decide as Thai taste is very
different to western taste. Furniture, there are 2 Ikea stores in Bangkok and many competing appliance
retailers. The bed, American king size are standard and not European sizes. Does the building have a
goods elevator often found in the trash room area for materials handling/workers.
Excellent video. She is a wonderful source of information.
Glad you think so!
Thanks for asking about higher pricing for foreigners. I did pay more for my off the plan purchase, and then saw the same project posted in Thai at a lower price..
But was the lower price you saw for a completely different unit within the condo, or was it for the exact same unit?
Mistakes to avoid, be careful of unethical, non-transparent management companies that over staff and over charge. Be careful of “capital gains”. I’ve now been invested in Thailand for 10 years. One property I had for 5 years and I was only able to get 10% increase in price, which basically covered taxes. If you’re trying to buy in Thailand for capital gains. It is not worth it. If you are buying to rent out the property, it is ok. But in my opinion, there are much better markets out there for real estate. Only invest in Thailand if you are going to live yourself. Or rent it out. If you buy it and it sits empty for 10 months out of the year and it’s your “vacation home” and you try to sell it for a high profit later on… yea your capital gains won’t be very good. The era of cheap Chinese money flowing in is over.
Thank you for your input!
Some nice info thanks for the efforts
Always welcome
In the USA, no one knows if their view will get blocked either. They can tell you what they want by in the future the city gives exceptions or change the zones and you have a building blocking your million dollar view.
The agents always lie. I bought one with a 5 square kilometer Garden Park , 3 years later , my view was blocked by the same developer 😂
Excellent content! Subscribed!
Welcome aboard!
Older condos are hard to rent out, there is less marketing. So that will be a problem if you want cashflow. If you want to rent it out monthly it might be hard to market it.
I don't think it's about old vs new. Rather, it's about attractive vs unattractive. You can have a brand new condo that is horribly furnished, in a position in the building that faces the wrong direction, or with a bad layout, and you'll have trouble renting it out.
Meanwhile, I've seen wonderfully renovated older units that are in unbeatable locations get rented out just days after advertising. Agents can help you a lot.
That’s why we should understand what our future tenants need before investing in buy to let investment. New condo is ready made product where able to get cash flow because it’s new and close to BTS station. Also, benefits of sellers in terms of having new property to stay if they are in Thailand. However, as price of brand new condos are already high, lots of competitors,so it is hard to expect capital gains when selling out. Real estate portfolio should be mixed with cash flow properties and capital gain. Old condo if we can buy lower than market price, renovate and rent out for tenants who need bigger space could be source of cash flow,also high opportunity for capital gain.
Thanks for this informative video Kop kun Krub 🙏
Any time
Jett - would you elaborate on ROI on rental income from condo investment in Bangkok? From my basic understanding ROI on rental income is less than 3% gross of value of the condo. In most countries, ROI on rental is 5-6%. This tells me condo value in bangkok is overpriced thus the reason for such a low return of less than 3% gross. Considering you still have to pay common fees and taxes for. 3% is not a good investment for anyone to invest in condos in Bangkok.
Where did you get that number? Most earn more than that.
@@JettGunther looking through listed condos for sale and comps for rent in the same building. For example, a $200,000 condo would rent for $500 per month yielding 3% a year gross on avg. For luxury condos that number even seems less and Of course I’m talking about basic long term rentals.
@@JettGunther Jett - In addition to my comments, luxury condos in bkk like the Four Seasons Residence, a 2 bedroom unit is selling for about 58M bhat and similar two bedroom units in the same building are renting for about 170K bhat per month. If you do the math, that yields about 3.5%. In my opinion less than that because I’ve been looking to rent a unit there and negotiated the rental price down to 150k. Which brings the yield down to 3% gross pre monthly maintenance cost and taxes. So when you tell me that most make more than that in such a concise manner, I can’t fathom to understand your argument.
@@JettGunther Jett - In addition to my comments, luxury condos in bkk like the Four Seasons Residence, a 2 bedroom unit is selling for about 58M bhat and similar two bedroom units in the same building are renting for about 170K bhat per month. If you do the math, that yields about 3.5%. In my opinion less than that because I’ve been looking to rent a unit there and negotiated the rental price down to 150k. Which brings the yield down to 3% gross pre monthly maintenance cost and taxes. So when you tell me that most make more than that in such a concise manner, I can’t fathom to understand your argument.
Branded residences such as the Four Seasons are a different beast. They have a premium that makes yield calculations seem very low. That being said, their appeal is that they're highly desired and could fetch better profits in terms of flipping.
As for general yields, this interview clearly points out the opportunity in finding good value second hand condos. You can also check out her previous video czcams.com/video/3QEVVvUCOp4/video.html
Thanks for the great video, Jett and maybe i would like to sell my one bed-room 43sqm low rise condo near to thonglor bts in BKK kap!🙏
I have made this comment on another JT video. There is no such thing as 'foreign quota' units. All units are the same. Foreign quota relates purely to floor area. When 49% of the total floor area has been sold to non -Thais, the remaining stock can only be bought by Thais. Now, a developer might choose to market their project overseas first; that is a marketing strategy. The reality is that very few projects have anything approaching 49% foreign quota. Foreign pricing exists. I have personal experience. I declined the offer. The unit was bought by a Thai for around 2 million less; it is now on sale for less than he paid. My advice to anyone buying from a developer is to be very careful. I lived in a project, built by an SET developer, who was left with 15% of the units after the building had been completed. These units were offered at a 20% discount on the original price. One week I was told all the river view units had been sold, only to discover, two weeks later, that they had a river view unit for sale. It is a game of cat and mouse. Sup with a very, very long spoon.
Foreign Quota Condos typically come furnished whereas the Thai quota condos come unfurnished. In addition construction materials can be different too such as flooring materials. All these contribute to cost differences. And to the uncouth casual observer jumps to an ignorant conclusion. I see this happening all too frequently in Thailand.
Some condos indeed do what you said. It really depends on each building.
Is it possible to get a loan for a condo..? If you are from the US..? What would be a down payment... maybe 20%..?
Unfortunately, financing is not available for non-Thai residents.
I like her!!!!
Me too!
I am sorry Mr. Gunther, However, I am very offended that I am an adult, who has commented upon your videos in the past; and yet now I read that I must be civilised upon writing to you and commenting upon your videos? And needed to click upon a “Got It” button… HOW RUDE!!!!! Whether this IS Google or YOU! …HOW VULGAR AND RUDE. I now wish to make comment upon this video of yours. This video is very educational, and even though I prefer your sale or selling videos of the higher end properties, this elegant Lady’s advice along with your Western knowledge combined to make an unique discussion. Nice one Mate. Oh in case you or Google do not understand my usage of the word “Mate”: This IS an Australian and English usage meaning friend -even “GooD Friend.” I am writing this as I am NOT AMERICAN, NEVER WILL BE AMERICAN and Google ONLY expects us to BE AMERICAN… Very, Very Sorry Google; You might actually learn from the rest of this PLANET. In future should I telephone you directly and waste your time to make comment to and upon you soasto allow you information from persons/people that actually wish to help? Just checking Mate! Good Job on this video if you didnot get it by the way…
Thank you for the kind words mate. You can drop any suggestions in the comments.
Too stressful, I will not buy.
Very informative could you give me the Adress of this agent In case I need to move to Thailand where can I fed her
I meant where can I find her
Thank you for watching!
Invest in property with Khun Oh 👉 docs.google.com/forms/d/e/1FAIpQLScZrWJR8QecvNohmjgKMl92GejapWHglRgbl57IWUODao5akg/viewform
She's in Bangkok. We don't give out our exact addresses online for privacy/safety reasons. You can use the form I sent you to get in touch with her.
Hey Gunther , I agree with you about furniture. A previous vid you compared 3 different interiors. Thick chunky sofa's are wrong for condos. Also going looking around looking , gets you out n about 👍
informatives Video, aber ich fühlte mich nicht wohl, als er sagte, er würde Airbnb juristischen Personen melden🤐
Let me subscribe to your channel