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[Piet969]

This is a question to expats in Pattaya.

Hello, I'm 42 years old - have visited Pattaya for 7 years now, and I want to invest in property in Pattaya the coming 10 years so to build up a rental property portfolio - and ultimately live from rental income in Pattaya. I'm looking to invest in property which is very common and very well suitable to rent out full 12 months.

Given this focus - my questions are the following:
1. In what area of Pattaya should I invest to have most changes on 12 months occupation for a good average rental price (high season + low season) and why ? (Wong Amat - Central Pattaya - Pratumnak Hill - Jomtien) ?
2. What type of property is most comon for permanent rental occupation (studio - 1 bedroom - 2 bedroom) Why ?
3. Would this be a succesful plan (rental property portfolio in Pattaya) ? Why or why not ?
4. Is it easy or hard to find tenants in Pattaya ?
5. What is important for me to know (which I don't find on the internet as only insiders know) ?

I appreciate all your answers and views...

[toenail]

There are countless places here in Naklua, Pattaya, and Jomtien to rent...anywhere from 3000 baht a month to 50,000 baht a month. The condos/rentals that are a sure bit to rent out (during tourist season, Oct. thru April,) would be condos on the beach. I personally do not feel having rental property in Pattaya is a good investment, too much competiton and most of the cliental is here to party in your rental unit. I think building rentals near the industrial zones would bring in more income but you have to be Thai to do this.

[pauljones]

Wait until after the next coup. It will be a a buyers market.

[PattayaPhom]

Why target the tourist economy, go for the domestic market....as already suggested, small Thai rooms that rent for 2k or 3k a month....it works and even when there is a tsunami, airport closure or bird flu...they are still full....and you dont have to be Thai to do this.

[lovetotravel]

It's a buyers market right now.  Thousands of unsold or resale units are available, with a smaller number of renters.  Many units sit empty.  If you can handle, potentially, a year of no income, then long term it "might" be a good investment.  You've really got to do your homework.   Location, location, location.  And a well appointed unit.

[Darrel]

lovetotravel, on Today, 08:15 , said:

It's a buyers market right now.  Thousands of unsold or resale units are available, with a smaller number of renters.  Many units sit empty.

Indeed, yet the asking prices are still way over the top, perhaps by 30-40% or more. And by all accounts there are some 10,000 units or more in the pipeline to be built over the next couple of years.

This does not bode well to me. Maybe everyone is counting on even more Russians coming here. That doesn't bode well to me either.

I will be extending my rental contract (which gives the owner a return of under 4% on his current asking price for the unit).

[pipo1000]

lovetotravel, on Today, 08:15 , said:

It's a buyers market right now.  Thousands of unsold or resale units are available, with a smaller number of renters.  Many units sit empty.  If you can handle, potentially, a year of no income, then long term it "might" be a good investment.  You've really got to do your homework.   Location, location, location.  And a well appointed unit.

So in one year the oversupply of those thousands of unsold unit will all be solved?

[Spalpeen]

Do you have a Thai wife or other trusted and competent contact that you can use? This makes a big difference.
As someone already said, the tourist rental market is way over supplied, seasonal, and property prices are at least as likely to fall as they are to rise. Targeting the cheaper end of the Thai residential market is also a good suggestion.
  But my main point would be - location. Look at the area, drive around it, try to buy or build in an area that will improve in the future. Think of the rent as an income but the real gains are to be found in price appreciation.

[gerry53]

It's just a suggestion but why don't you invest in the Stock Exchange of Thailand?  Some of he major banks have mutual funds investing in the top Thai companies, some with no taxation for farangs.  It should give you a superior return compared to the Pattaya area condo market with it's thousands of  newer units coming online every month - yet they can't sell the existing new units.   This condo fever can't continue forever - the signs are everywhere.   Do you really want to spend your days here collecting rents, hearing excuses and fixing things with multiple units?  If still interested in condos wait until after a correction and buy them cheaply - as mentioned previously they are way overpriced at the moment.
Good luck.