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#1
19-02-2007, 06:42
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Starting buisiness / buying property to let.
I’m looking into investing into some sort of business in Thailand, with a view to reside there. I have around £150,000 GBP to invest and wondered what would be a good direction to move in. Owning property and collecting rent is an option but I’d like to hear the views from BM before going down that line. Any comments views or ideas for investment would be greatly appreciated.
Regards, Lee. Last edited by flube : 19-02-2007 at 16:20. 
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#2
19-02-2007, 08:28
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15,000 GBP.. +- a million baht..
Thats not going to buy any passive income streams.. Lots of people trying to do what your thinking in the tourist zones..
__________________
Men have only 2 emotional states, hungry and horny.. So ladies, if you see me without an erection, make me a sandwich.
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#3
19-02-2007, 08:56
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15,000 pounds will likely get you a very small Thai style house in the middle of nowhere, Renting it out will probably see 5k baht return a month. Best just to bring half your money and stay here for holiday for 6 months.
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#4
19-02-2007, 16:26
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Quote:
 Was a little tipsy last night
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#5
19-02-2007, 16:42
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OK.. Then you can start to evaluate what kind of businesses are on the market by looking at Sunbelt etc..
Rental yields are low IMO.. However asset appreciation has been going gangbusters for a few years.. What skills do you bring to the table ?? Is there anything you are experienced in doing or qualified to do that would be an asset to the business.. Most busniesses are an extension of the owner rather than a purchaseable item (subway franchises 7/11 etc being an exception).. Initially I think its essential to spend 6 months to a year merely living in Thailand (and if your serious about biz here probably studying language also, less so in tourist trades but moreso in non tourism / bar trades) to get a feel for the biz climate and people.
__________________
Men have only 2 emotional states, hungry and horny.. So ladies, if you see me without an erection, make me a sandwich.
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#6
19-02-2007, 17:04
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This is the best piece of advice you are going to get. Don't rush it.
__________________
Women with a past and men without a future grope and shuffle on the dance floor.
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#7
19-02-2007, 18:55
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In definite agreement there - in fact I waited 8 years before doing any serious business here - even then was more for the Mrs than me and while learnig a fair bit will never do significant business here again. It would make much better sense to invest the money (property - rental income) and live here off money from OUTSIDE Thailand. The effort to reward here is skewed against the foreigner and without a Thai wife or long term GF its even tougher. At 27 you will need to make sure you can cater your life much longer down the line. 100k invested properly now could/should give you a very reasonable return in 20+ years time.
__________________
Its My Life ..........!
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#8
20-02-2007, 01:16
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I have no business experience at all, so i should shutup about it. BUT if i did have £150k to spend on investments i sure as hell wouldnt put them in property in Thailand. My first idea would be to look into appartment houses back home. Not sure how much it would be in expenses to keep a 10~ appartment house running but just the rent from 10 appartments should cover a somewhat convenient lifestyle in Thailand. Lets say the appartments would average around £300 a month that's £3000 a month in income, lets say it costs £1000 to keep everything running, and another 500 each month for reparation costs etc.
With all that it still leaves 105.000 baht over each month. Not sure if it would work, but that would be the first thing id look into.
__________________
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#9
20-02-2007, 01:48
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Hi K2 Do you mind giving a little more detail about some of the pitfalls you have experienced? Of course I understand if you prefer not to,however I'm sure the information would be of value to many who are thinking of investing in the future. Apologies if this question is of too personal a nature.
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#10
20-02-2007, 02:22
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Good advice here, dont jump in. Leave your money at home and invest it there and live off the proceeds of that. Thailand is not somewhere for the faint hearted to make a living. One simple question, are you familiar with the visa regulations, if not, start again.
__________________
Look you tools, no mod cap!!!!
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#11
20-02-2007, 04:53
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Do let me know if you find a £150k property investment in the UK that yields (even gross) £36k/year ........ As others have suggested, spending 10% of it on living in LOS for a year is probably a better move.
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#12
20-02-2007, 05:12
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Let me know where in the U.K you can get a 10 apartment house for £150k, in London all that would get is a broom closet !!!! 
__________________
Member of Phuket Hash House Harriers
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#13
20-02-2007, 17:53
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More feasible would be using the capital for mortgaged "buy-to-let" purchases: *These figures are very rough* 10 houses @ 65k (in a regenerating northern town this is realistic) 150k / 10 = 15k deposit per house Mortgage per property = c£250 per month Rental income = c£400 Monthly profit = £150 per property x 10 properties = £1,500 Annual yield from £150k = £18,000 = 12% That is before any maintenance costs / missing rent etc etc. And finding 10 suitable properties, delaing with agents / tenants would be a pretty big task. I think it would only be feasible building such a portfolio over a period of time. But some of the money invested in an annuity plus some for investment such as property (not in Thailand) would be my bet if I were looking to do this.
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#14
21-02-2007, 01:00
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There are 193 country's on this planet. 80% of those country's would love you to bring your business and money over. Thailand aint one of them. Who says you are restricted to UK in anyway? Over here in Sweden you could surely buy a smaller appartment house for that kind of money. Ofcourse not in a capital city, but people do live outside of the capitals aswell you know. Another thing i would consider would be to buy an appartment in one of the larger capital city's here in Sweden, And then rent it out second hand. Not a monthly income, but for example central Gothenburg the prices is going up sooo fast and i dont see any reason why they would stop either. last year a central 40kvm appartment could go up in value with £400-600 per month. There is so much to make money from if you have money to start with
__________________
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#15
22-02-2007, 22:13
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Bit of a miscalculation towards the beginning which fcuks up the rest of it I'm afraid  Where can you get a £50k BTL mortgage where the repayment is £250 per month?? It will be over £400 per month, which means no profit and therefore a yield of nil  Nice try though
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#16
23-02-2007, 05:35
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I have thought about opening a business in Thailand,but seems too difficult and nothing seams clear.I don't think I would be able to make any money in thailand.
It would take a lot of dedication and hard work,and I don't feel like starting over again in a new country. I would rather invest in my own country,which is secure and when I am ready to retire and want to live in thailand,I can live off my investements.
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#17
23-02-2007, 05:38
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Congratulations, someone that has read everything and worked it out for themselves. 
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#18
23-02-2007, 12:32
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Interest only Sirgezza. It is what most of my btl clients did, they worked the monthly profit to fund another property and so on, with no original mortgage repaid, no problems as made enough for the increasing equity.
__________________
If I havn't done it already, then i'm gunna do it today.
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#19
23-02-2007, 15:14
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35yr repayment @ 5% = £250/month 25yr repayment @ 5% = £290/month Interest only = £200/month
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#20
23-02-2007, 20:45
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OP is living in UK where the BOE interest rate is 5.25% and repayment mortgages (BTL) will therefore be around 7%.
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#21
23-02-2007, 20:53
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That's interesting Dodger. Is there any sort of life insurance required or any other payments of some sort over and above the interest? Do the lenders charge a higher rate for interest only mortgages? What maximum percentage of the value will they give in the way of a mortgage? If the housing market takes a bit of a tumble the lenders could get burnt, so with this element of risk, I'd expect higher interest charges. Going back to the original figures quoted some other costs to be included are insurance of property (but not possessions), maybe gas bolier cover and landlord certificate, and also take void periods in to account.
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#22
23-02-2007, 22:18
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I know many wouldn't agree with me but I still think it is possible to start business here and make a reasonable return, but I have to say its up to the person in hand. and the persistence and hard work he puts in.
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#23
25-02-2007, 03:21
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Personally I would just stick the cash in an offshore account and budget your stay on the interest..
You should get around £9,000 a year tax free. Our latest rates
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#24
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