building for rent

Chachoengsao, Chanthaburi, Chon Buri, Prachin, Pattaya, Rayong, Sa Kaeo, Trat

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building for rent

Postby dozer » Thu Aug 25, 2005 6:59 pm

feedback from almong z.

I am interesting on buying shophouse or land and build on it.
My idea is very simple and popullar in Pattaya.-Appartment for rent.
Is it worth it buying a building ready or just the land and build on it.
I am talking about Soi bokhao mostlly and other popullar areas in pattaya.
Also-my budjet is not so high-only 4Milion baht for this investment.this will be my only income.
Please answer me soon as you can seeems to be that you know a lot on Pattaya city.
dozer
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return on investment

Postby dozer » Thu Aug 25, 2005 7:11 pm

A primary consideration when building is obviously return on investment. Normally investors building there own shophouse or townhouse will buy a small piece of land, say 100 sq. wah (400 sq. meters) and squeeze in serveral units (5 or more). The basic rule that drives development is this = materials are cheap, labor is cheap and land is expensive (therefore try to figure out ways of sticking a lot in a little space).

Buying a unit outright for rental is a poor investment because the prices are high and rents are low in comparison.

For someone in your circumstance what I would look at is building Thai style apartments on cheaper land a bit out of town. They are super cheap to construct, basically 50,000 per unit and rents can be about 2,000 per unit per month. Around here there is basically a 0% vacancy rate on Thai apartments (or very low).
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Postby the limey » Thu Aug 25, 2005 11:49 pm

The sensible side of me says to buy the land and build the guest house etc, but then lease the whole lot out for 6 years and carry on working to accrue more capital, then take over the business, that's the sensible suggestion.

Of course if I was you I would build it and run it myself,but then again I was never sensible.
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Ho's houses

Postby robint » Fri Aug 26, 2005 4:48 pm

:D

hi mr D

in pappaya there are never enough rooms for ho's, ever since th garment industry collapsed, they have flooded into pappaya

typically a reasonable 30m2 room with own hong nam is 2000 baht this side of sukhumvit. up to 4 ho's will share

of course the kind of low life these ho's live will be totally alien to our civilised western culture and whether a flang could successfully control such an enterprise is highly doubtful. If you think this is a judgemental predjudice then go take a look at some of the blocks of appartments round soi buakhao and the way they live in slum law of the jungle conditions (drug dealing, gambling, pimps, fights, death, police and worse). Its all in the Pappaya news every week examples from soi khao talok, theprasit, bongkot

I tried to write a book about it once but concluded it was too sordid to appeal to an airport traveller

why not lose money running a go go bar instead

who needs it :D
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Thai Apartments

Postby dozer » Fri Aug 26, 2005 6:00 pm

There are some they built right around the corner from us, at first I had some trepidations, but all is fine with the tenants. I think it is area specific, as if you move down one more street you'll see the apartments are tidy and kept up nicely.

I think you are painting Pattaya with a wide brush that isn't really deserved.
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old fart

Postby robint » Sat Aug 27, 2005 6:13 pm

:D

I liked pattay in the old days 15-20 years ago. it was a real cowboy town maybe a tenth of its present size (i never got past soi 8)

but it was good naughty fun and amateur. it was rare for a flang do come to grief, he had to try the patience of the locals really hard, and we didnt have the skinhead football hooligan scumbags to spoil the place. It was mostly expatriates on R&R and and some holiday makers

As I recall, It was quite an expensive place with 38 baht to the pound. you needed a good wad of money to enjoy yourself. I have a feeling the baht bus was still 5 baht then! You couldnt be a cheap charlie pensioner on soi buakhao then.

you dont want to stray off the main track today in Pattaya, too many guns and knives and drugged up motorcycle khamikhazis about

Manila was the dangerous place in the old days remember?

Well you may think I paint too negative a picture of the place. Perhaps we should just let it remain as a "FOOL'S PARADISE"
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Is Pattaya dangerous

Postby dozer » Sat Aug 27, 2005 7:50 pm

Getting back to the topic at hand, for someone considering investing I would personally choose Pattaya over a lot of other areas. Land in Phuket is already overpriced, here it is still reasonable (for a tourist destination) although continually appreciating. I expect this area will grow considerably over the next few years.

I've been here for a while and although it isn't the safest place -- you got to be careful that your bag doesn't get snached at the market and etc. etc. -- but for a city of this size it seems pretty safe to me.
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