Over a Bay in Phuket : $3,800,000

[Mid]

Over a Bay in Phuket
05/04/12

Price: $3,800,000
Location: Phuket
Type of Home: Waterfront

Along the northwestern coastline of Phuket, Thailand, this Chinese-Thai styled villa faces the Andaman Sea.
This two-bedroom villa in Phuket has a pool and views of the sea. It was completed in 2010 and has been on the market since November 2011.





online.wsj.com

[dirtydog]

Not a very nice beach though

[Bettyboo]

I'd say it's worth about a quarter of that, on a good day...

[Mid]

without endorsing the local Mafia , it is easy to see where the greed comes from when the locals are confronted with such conspicuous consumption

[harrybarracuda]

I wonder if it comes with the Yellow Book.

[Mid]

I wonder if it comes with the Yellow Book.

Does Real Estate qualify for the $1,000,000 investment visa ?

[Fondles]

Lot of loot for something that only has 2 bedrooms and one bathroom.

[Neo]

How high is the Tsunami high water mark?

[FailSafe]

It's on a bit more than one rai, which probably goes for 20mil (maybe 25mil) in that setting on Phuket, and it looks like a pretty nice house.

From an investment perspective, a buyer would probably like to see (and would most likely be 'guaranteed') ~6% rental return (it's unlikely to be anyone's primary residence as it's part of a resort, though it's possible)- that's ~7mil per year- you could manage that with a 65% occupancy rate averaging USD1K per night- it might actually be not too bad of an investment depending on the villa rental market in that area.

[harrybarracuda]

You invest in it then.

I'd want the Yellow book.

[benbaaa]

Wanna buy a villa? Just $3.8m.

Cool.









Small print: It won't actually be yours.

[FailSafe]

You invest in it then.

I'd want the Yellow book.

If I wanted to do it I would invest in the land and build it myself for less than half the asking price- I was just pointing out the fact that the property might still be a reasonable investment at that price (I don't know for sure, but it's possible)- unless it's an absolutely stellar deal, I wouldn't buy anyone's project in LOS.

[ltnt]

Jeezz, I was thinking Baht....5555, 3.5 B not bad...

[Spin]

Small print: It won't actually be yours.

Isn't there a law here that says a 40 million investment means you get to own up to one rai? thats 1.2 million USD.

[benbaaa]

Yeah, and there's a law that prostitution is illegal and you have to wear a helmet when you're on a motorbike.

[Marmite the Dog]

How long before the bathroom floor needs digging up to fix a poorly glued water pipe?

[petercallen]

Price is OK if it has ocean views but it looks like a managed estate which charge monthly fees and also supply the electricity and water at the price they decide to charge, it may be lease hold not free hold, lots of thing to check when buying a house in Thailand

[FailSafe]

^

Yup- if you click on the pics it gives more info- it mentions it's on the grounds of a resort (you get full use of resort facilities), but the resort itself isn't named- it's probably a 30-year (or shorter) lease only as the land is very unlikely to have been sectioned off on a separate chanote for individual sale from the rest of the property (which itself is probably on a lease).

It's most likely a 'pass' at that price.

[Butterfly]

Small print: It won't actually be yours.

and how should it be a problem ? Thailand is a magnet for suckers with too much cash,

[taxexile]

who in their right mind would spend $4 million on a depreciating asset, with little security of tenure on a mafia run island in an unstable third world country when similar properties are available in "proper" countries?

[FailSafe]

^

At 2mil it could be worth it- if you could manage to net USD1K per night for 75% of the year, you would end up with nealy 7mil at the end of a 25-year lease- those numbers might not be attainable, though (and, in fact, probably aren't)- you can make money with a rental villa (even if it's on a lease) in the right circumstances, though.

[Spin]

who in their right mind would spend $4 million on a depreciating asset, with little security of tenure on a mafia run island in an unstable third world country when similar properties are available in "proper" countries?

Guys addicted to bannork slagdogs, perhaps?

[harrybarracuda]

You invest in it then.

I'd want the Yellow book.

If I wanted to do it I would invest in the land and build it myself for less than half the asking price- I was just pointing out the fact that the property might still be a reasonable investment at that price (I don't know for sure, but it's possible)- unless it's an absolutely stellar deal, I wouldn't buy anyone's project in LOS.

Then you'd be able to get a Yellow book.

Which is what I said in the first place.

[petercallen]

^

At 2mil it could be worth it- if you could manage to net USD1K per night for 75% of the year, you would end up with nealy 7mil at the end of a 25-year lease- those numbers might not be attainable, though (and, in fact, probably aren't)- you can make money with a rental villa (even if it's on a lease) in the right circumstances, though.

How do you work your figures works out to approx 274 days a year at 1K USD a day, $274000 or baht 8494000 after 1year, property paid for plus huge profit

[FailSafe]

^

At 2mil it could be worth it- if you could manage to net USD1K per night for 75% of the year, you would end up with nealy 7mil at the end of a 25-year lease- those numbers might not be attainable, though (and, in fact, probably aren't)- you can make money with a rental villa (even if it's on a lease) in the right circumstances, though.

How do you work your figures works out to approx 274 days a year at 1K USD a day, $274000 or baht 8494000 after 1year, property paid for plus huge profit

Well, let's use 8.5m baht per year net profit and assume 2m USD to buy into the villa- multiply that by 25 years, and you get 212,500,000 baht (~7mil USD)- if you paid 2mil USD (~60m baht) that would leave a profit of 152,500,000 baht (~5mil USD) on your 60m investment.

There would of course be other expenses and I'm sure the resort takes a healthy cut for a 'management fee', but if the market was booming you would be able to make a few bucks.

It's quite possible that it would end up being a big loser (even at 2mil- at 3.8mil it seems extremely risky- the original owner is probably into it for over 3mil- my guess is 100m baht)- it's not impossible to make money on it, though (there are of course better investments in LOS).