Farang dreams of landlording

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Farang dreams of landlording

Postby gorm » Sun Oct 11, 2009 5:25 pm

Hello

I found this good forum after searching far and wide for good information about building
in LOS. I have been reading for hours in various threads :)

I have a question about building cheap boxrows of rooms similar to what jazzman built for his motel.

viewtopic.php?f=3&t=1454

My proposed area is close to udon thani.

Is there a market for rooms like these among the local populance? Perhaps slightly bigger rooms
with kitchens for long time renting.

I got quoted that "reasonable rents" for an "apartment" is about 2000 bath per month. (to be fair i don't know if the person i talked to know what the word apartment means). 2000 sounds abit low to be able to make a living from it unless you have millions to pour in to 200 units and build a large getto.

Is there a future in such an enterprise? I would probably assume i would need to hire one or two locals to be the face
of the company as not to be too obviously farang owned housing.
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Re: Farang dreams of landlording

Postby Nawty » Mon Oct 12, 2009 8:48 am

You might be lucky to get 2000b a month upcountry.
conwood is not real wood.....break it down 'con' to deceive...'wood'
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Re: Farang dreams of landlording

Postby BKKBILL » Mon Oct 12, 2009 10:56 am

Welcome aboard Gorm. My wife had a condo in Rayong and was getting 2,000 Baht monthly. That is when she could rent it.
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Re: Farang dreams of landlording

Postby MGV12 » Mon Oct 12, 2009 11:18 am

gorm wrote:Hello

I found this good forum after searching far and wide for good information about building
in LOS. I have been reading for hours in various threads :)

I have a question about building cheap boxrows of rooms similar to what jazzman built for his motel.

http://www.coolthaihouse.com/forum/view ... f=3&t=1454

My proposed area is close to udon thani.

Is there a market for rooms like these among the local populance? Perhaps slightly bigger rooms
with kitchens for long time renting.

I got quoted that "reasonable rents" for an "apartment" is about 2000 bath per month. (to be fair i don't know if the person i talked to know what the word apartment means). 2000 sounds abit low to be able to make a living from it unless you have millions to pour in to 200 units and build a large getto.

Is there a future in such an enterprise? I would probably assume i would need to hire one or two locals to be the face
of the company as not to be too obviously farang owned housing.


Welcome on board gorm -- good that you have a 'dream' [if you never have a dream how can your dreams come true?] this one however needs very, very careful thought before committing your money to it. We live close to a thriving university and there is a constant demand for rental units but even here you need to think about it a lot --- land prices are inflated in prime locations, there are many Thais who have the money to build [maybe they or their family also own prime land] and they also see the profit opportunity. In my opinion the only way to even consider moving forward is if you are able to offer something others don't -- renters, especially students, are happy to pay a little more for a unit which stands out by way of design, features or additional services as generally; rental units in LOS are mostly all the same, merely a roof over the head. "Cheap boxrooms" is unlikely to work for you in my opinion.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
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Re: Farang dreams of landlording

Postby dozer » Mon Oct 12, 2009 7:25 pm

there are many Thais who have the money to build [maybe they or their family also own prime land] and they also see the profit opportunity.
What happens here just outside Pattaya is that Thai's that own small pieces of land (not suitable for farming) don't make any income off said land. They are faced with a choice, either sell the land or try to come up with some alternative. Consequently those that do not wish to sell the land end up putting up the row type apartments, for a cost of about 2,000 to 3,000 per sq meter, which would average about 64,000 or more for one apartment of 32 sq meters. They rent said units for either 1,000 or 1,500 per month. It only kind of 'pencils out' when you don't take the land cost into consideration, otherwise the ROI is dismal (at least around here where land prices are high). It always leaves me scratching my head. I believe it would make more sense to try something along this line where the land costs are cheap, as for some reason the rents received between low cost land areas and high cost seem to be in the same ball bark. The other thing to note is around here (outskirts Pattaya) all of the apartments always seem to be full, so you would think the rents would get bumped up but from what I've seen they don't seem to. One would probably need to find a low cost land area with a high demand for rental units for it to be a worthwhile endeavor in my opinion.
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Re: Farang dreams of landlording

Postby gorm » Mon Oct 12, 2009 11:15 pm

Thanks for the replies.

I was wondering why nobody talked about local renting but there is an answer now. I started thinking about
renting to locals because building farang style houses and renting them is like starting yet another bar or resturant.

I guess i will have to wait and see were the market is in 15 years after i have started to get in to my golden years
and hopefully have a bigger war chest :D
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