[ub2yoo]

Originally Posted by Nicke

I would not recommend bar business, I am doing OK thanks to the forum but the profit after rent, keymoney, salaries is pretty small. Without the forum, I would be back in Sweden for sure.

Most bars lose money due to high rent and keymoney. Keymoney, money paid upfront, its the reason why people can live on their income during the lease, but cant afford to pay another lease as they cant save to cover for the lease.

So I would say keymoney practise in Thailand is a clever thing, because if you paid real rent every month people would understand more quickly it doesnt work out. But thanks to pre-paid rent (keymoney) they make their living on their income but not enough to cover for the pre paid rent when lease is out.

I have seen lot of bar owners and guest house owners over the years, its not easy, come and go. The guys with hotels/guesthouses who survive is the guys who owns it, rather than a lease. Also 20+ rooms should be a minimum. Forgot a guesthouse with just 6-12 rooms, no one make it.

For bars, crazy prices being asked these days. 3m baht asked for a small bar in Tiger these days is just crazy IMHO. If you ask me, a bar should not cost more than 1.2-1.5 m baht for a 3 year lease if you want be able to make money.

The problem is demand, always people around who pay crazy money as they want to live here. But they dont think they will go back 2-3 years later as they dont make any money, unless they have other incomes or money to cover for the loss and/or run the business for fun.

You really should make that one a sticky! Very interesting and it makes so much sense. Thanks.