Investment property for sale Eastern Seaboard

[SingaporeSteve]

Khunsanuk has given me permission to post this commerical ad to see if their are any interested board members. Firstly this is in no way a scam. I have been working for a major multinational company for the last 12 years and with a financial backer, have devised and built a high quality housing estate for expats to rent outside of Pattaya. Luckily all are one floor so hopefully we should not have any suspicious deaths and just to be sure we will only have downlights (no hanging suicides from light bulbs) and no metal frame bedsteads with which to hook up handcuffs.

 

 

We are building 8 large houses in an exclusive gated community just outside Pattaya and adjacent to the Regents International School and Macbraphan Resevoir. The location is perfect for high end corporate rentals from professionals working on the Eastern Seaboard with sizeable housing allowances. Our intention is to keep five of the houses oursleves and offer for sale to investors, the remaining 3 houses. The 3 houses are on the largest plots and have the potential to be highly sought after properties.

 

The community is gated with full security 24 hrs a day and is linked to 8 CCTV cameras recording all movements around the high perimeter walls. Of the houses for sale they are on the following basis:

 

House No 1. Fully built and completed already

A 4 bedroom + study house with large open plan lounge dining room, seperate large fully fitted European kitchen with double oven, 6 burner hob, dishwasher, double door side by side refrigerator, microwave and granite work surfaces. seperate and very large laundry/utility room. Seperate Maid room + shower.

 

The 3 Bathrooms (2 en-suite)are fully tiled and feature American Standard sanitary ware with Grohe taps. Every bathroom has high capacity Siemens 12KW water heaters. All bathrooms have Duscholux glass shower surounds and two feature seperate baths as well.

 

This house sits on 323 TW of land and is not overlooked. The fully landscpaed gardens feature a 5m x 8m pool and 5m x 4 m sala with antique wooden stripped floor. A complete irrigation system is fitted in the garden featuring pop up sprinklers which are set to come on at pre-determined times.

 

The house has 8 Daikin Air con units and is fully alarmed. Remote control electric gates and double car port attached to the property complete the picture. House has 3 phase power and is fully earthed. Construction is double concrete block with cavity wall and roof is fully insulated using polyeurothane foam insulation.

 

The estate is very private and features wide tarmac/bitumen roads with grass verges and tress either side. All services (electric, water etc) are fully underground.

 

We have an onsite bi-lingual management office staffed by former front office personnel from some of Bangkok's better hotels (Marriott, Sheraton Sukhumvit etc) who will provide a concierge service to residents 6 days a week. Security is provided 24 hours a day by guards working a 3 shift (8 hr) system. We are also installing a computer monitoring system that means the guards need to bleep their own swipe cards at regular intervals around the estate to ensure that they move around and that they do not sleep.

 

The price for the house is 9,950,000 baht and monthly management fee's would be as follows:

 

Gardening/pool maintenance 4,000 baht month excluding chemicals

Communal area maintenace, Security,lighting, rubbish collection etc, 2000 baht a month.

Client interface service (e.g concierge office) 2000 baht

 

The monthly rent for this house will be in the region of 100,000-120,000 baht a month on a long term basis. There is a shortage of quality large (4& 5 bed) houses on secure Western villages which is why rents are so high.

 

This is owned by a Thai corporation where the sole signing director would be the buyer. The company is capitalised at 3,000,000 baht and could support a work permit. YOU MUST DECLARE the rental income through the company and pay Thai corporate taxes in order to have no hassles. You should also seek independant advice from a lawyer to validate the information here. The house has full architecht drawn blueprints as well as correct planning approval and house book.

 

There are no other villages anywhere on the Eastern Seaboard that cater in the same way to professional expats. You should allow 750,000 baht for high quality furniture to go into the house in order to rent for this price range.

 

This is a genuine opportunity for someone wishing to generate a reliable and safe income level without any hassles. The house as mentioned is already built and ready to rent.

 

For no obligation viewing, pls send me a pm and I will be happy to show you around.

 

2 Further houses are currently under construction and these will be listed shortly. We are not listing the properties until they are completely built and finished. As mentioned we are keeping 5 and these are held in a seperate company with provides my work permit. My role is as Director of the estate. Given I need this project to generate my new income, you can be sure we aint mucking about with this nor is this a pie in the sky "buy off plan, get rich quick scheme". If working in Thailand we can also introduce you to Siam Commerical Bank with a view to taking out a mortgage (through the owning company) as I already have held a number of mortgages with them in the past. Typically they will lend 50-60% of appraised value repayable over typically 5 years. If this was feasible, the mortgage could be paid off within 5 years by diverting the rent to repay the mortgage which in itself is efficient for the taxation of the owning company.

[chilli13]

interesting. would you have or know of any less exclusive investment condo's in bkk in perhaps the 2mill. baht range?

[SingaporeSteve]

IB13 - I have looked at BKK before and shyed away for a number of reasons primarily because of over supply and low % returns. Some of the new condo's that are being built are squarely in the 40-60,000 baht a month market and I am concerned that they will suffer price pressures as more and more come on line.

 

If your lucky you could pick up a clean condo in somewhere like Saranjai (might be spelt wrong) in Soi 6 but its a fairly old building and maximum rent would be around 30,000 month for a nice unit.

 

Personally, I'd steer clear of Bkk as the returns are too low for the outlay and risk of keeping it rented. Thats why we are doing this project as there is a big demand from western wifes who do not want to live next door to a guy and his 19 yr old girlfirend from a gogo in Pattaya and the wife makes the housing decisions every time and poor well paid exec just goes along with her to have a happy and quiet life.

[torrenova]

Steve,

 

I seem to remember you selling a house some time ago (or am I delusional ?). Is this your new line of work ? If so PM me as I know at least one person looking for land / housing / building projects.

 

Whilst I see the profitability of buying land, building and selling, perhaps even keeping some property for one's own investment or to live in, how do you judge the level of demand for such expensive rentals and their long term viability ?

 

At 100k per month and even assuming a 3yr contract thus giving 100% occupancy, I can't get a yield over about 7 to 7.5% gross.

 

I agree that the tax efficiency of offsetting income against interest charges is useful, but the short term of the mortgage limits the usefulness of this as the majority of monthly repayments would be capital. The rental income would also not be sufficient to cover the monthly repayments over 5 years and repay a 50% mortgage at 6%.

 

An interesting proposition and perhaps for a 100% investor but what about corporate taxation and capital appreciation in the short to medium term ? if there are no houses such as these then you can bet your bottom dollar that someone will come along and build something bigger and better very soon.

 

Very interesting though Steve.

[SingaporeSteve]

Torrenova, Have a chat with the leading rental agents in town for professional expats. They will share their opinion on the shortage of excellent expat houses. Also ask them their opinion on whats wrong with the current top tier villages. Its primarily infrastructure and non responsive owners.

 

We have invested a huge amount of money in this project - nothing has been done cheap. Even our photgrapher for the brochure is Canadian, the PR lead guy is Australian and branding is being handled by a British agency. We are not renting a house per say but more helping an international expat find somewhere they want to call their home. Not easy as I am sure you can appreciatte. We only need eight families out of a current group of some 600 work permit holding families residing on the Eastern Seaboard. Think where the CEO of BMW or GM is living - 120,000 baht is well within their budget - thats our target market. They want guards that guard, water that works consistently, large gardens, private pools, but above all an environment where they feel comfortable and like their neighbours.

 

These people are not BUYING the house, they are renting it so their priorities are different to a buyers.

 

I dont really want to comment too much on mortgages its not my area of expertise other than being a punter. My sums though mean that the mortgage could be paid off purely by rent income but its a dangerous scenario as you would need to consider down time in terms of renting out the house. Also banks dont lend on a 'buy to let' basis so the persons salary in Thailand would need to more than cover the monthly repayment. Looking over the long term, there is a demand for these houses here and with the new airport opening, capital values are likely to continue rising. In my opinion its certainly a better bet than buying somewhere in Phuket.

 

Hope this helps

[pe7e]

Hi,

Are the houses you are building available for purchase by owner occupiers or are you only planning on having them available for rent via your management company

Pete.

[SingaporeSteve]

pe7e said:

Hi,

Are the houses you are building available for purchase by owner occupiers or are you only planning on having them available for rent via your management company

Pete.

 

 

Pete, The house can be purchased by anybody. It lends itself to an investor from a management perspective but for the same reasons it would also be very attractive to an owner occupier that does not want to do any work. If its an owner occupier, they would have the choice concerning the pool&garden cleaning and obviously would not need a client interface service (which is primarily, arranging for rent to be paid and then credited to the owners bank account, handling misc repairs e.g lightbulbs etc).

 

The only word of caution I would add is that we will have to closely examine any owner occupier type buyers in the same way we will prospective tennants. By that I mean and with full respect to you and other interested parties we are not going to sell this house to someone who is likely to hold all night parties with rent boys by the dozen in and out of the pool etc. That would just screw up the concept of what we are doing, nor are we interested in selling a house to someone where the police are likely to stage a drug raid in the middle of the night. Both of these scenarios have happended on other estates in Pattaya as unfortunately having money in this town does not always equate to character. I have already had one guy wanting to buy this house who shall we say plays about with and shares/deals illegal substances and we carefully advised him against the purchase.

 

Hope this helps andn thanks for the question.

 

Cheers

[pe7e]

Hi,

Thanks for the reply, you have not put me off! I like the concept of your development especially the high grade security and the general ethos of the development, from my experience people will pay a premium for quality. I will be in Pattaya during September on a fact finding tour, prior to moving out there early next year and would like to take a look, I will contact you when I have firm dates.

Pete

[SingaporeSteve]

Thanks for everyone's interest in this property. It has sold to a HKG based investor who is planning on renting it out.

 

One more house will be offered in January 2005.

 

Cheers

[SingaporeSteve]

OK 2nd house ready for sale but this time we are doing it slightly differently. This time we have found a tennant and are selling the property with this sitting tennant.

 

The property is 4 bedroom + study + 12m lounge/dining room, pool, 8 air con, fully fitted European Kitchen, fully equiped laundry, maid room etc and is 366 SQ meters. Sala in the garden and terraces adds about another 80 sq m.

 

House is partially furnished and basically they bought their own sofas and dining sets. Pretty much everything else we supplied such as wardrobes, Beds, TV sets, curtains etc. Of course its all high quality gear.

 

Tennant has signed an 18 month lease with an option to extend for an additional 18 months at same rent. Rent is 80,000 baht per month, so 960,000 per annum. Price of the house, furniture, company etc is 9,950,000 baht.

 

The tennants are an Australian family with him working in Chonburi for an Australian multinational. 2 kids attend the Regents School. Just moved over here and they moved into the property at the beginning of February 2005. They are the 4th family to be living at our project. All others are western families. Estate is all but completed and really we just have 2 houses left to rent out, of which we expect one to go within the next 3 weeks subject to agreeing contractual terms.

 

We are holding a 2 month security deposit for this property and we have already paid the estate agent referal commission. Our property management fees would be 8,000 baht per month, covering communal security, lighting, garden and pool maintenance, client interface, rent collection and maintaining the property - Basically the new owner would have nothing to with the property or tennants other than seeing the rent drop into his account every month. You would of course need to complete company tax return at year end and declare the income and pay corporation taxes on nett profit however there are quite a few legit deductions you can make to ensure that your tax bill is not too high.

 

Incidentally this is not the same house that we advertised before. That one has been purchased and subsequently rented out to an American family.

 

This is a genuine and safe investment for someone who wishes to generate an income - because we manage the property and you play no part in its management, you do not require a work permit based on our and our lawyers interpretation of the law. You should however check that out for your own peace of mind.

 

If anyone is interested pls send me a PM or reply here. Can supply pictures as well if you let me have your email address.

 

Cheers