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Thread: reality or stupid idea?

  1. #1
    mermaidnz
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    Default reality or stupid idea?

    every week i come up with a new idea to either make money or have fun.and every week i get totally excited by my new idea,till i think of something better the prob with this, is that i have very little conception of what is a possible reality and what is just a silly idea thats out of reach.

    im hoping someone can shed some insight to this idea.

    to buy and average to shit free standing house with 2 car garage and very little property in auckland,im looking at forking out $350,000-$420,000 NZD (thats about $280,000 USD + ?) to me that sounds like a god damned rout!!!

    so i looked at houses in brisbane- the same distance from the cbd, i can pretty much buy my dream home,with more land,more rooms etc, for the equivilent of $300,000 NZD. as my partner and i had planned on spending $350,000, i have come up with a brainwave.

    and this is the bit im not too sure exists in reality or not....

    i found a studio apartment in Pattaya a costal town in thailand just out of bangkok, for a measly,omg you wont believe this, $16,000!!!! i know i could rent it out to a local for $350-$400 NZD a month rent, i know its not alot of cash, but its for the love not the money!

    the apartment is in sound condition,no structual damage etc...comes fully furnished- but i think id spend about $1000 renovating it anyways. ie paint and newer furniture.
    i found out its legal for a foreginer to own an apartment in thailand, but not a house and land.so that bits cool. i was thinking its best to just buy something like that outright, so many finding an investor to go say halves in a "timeshare" of the property would be an idea. so someone else pays %50 of the property, we split the profits 50/50 and if we decide to use it as a holiday home- each get 6months of the year there.

    i feel like my ideas are always far fetched....is this one too?

    would it make sence to go for the thai property first ( as its cheaper and we have more chance of buying it outright) or save up for the aussie deposit and buy both at same time?

    im lucky, my partner works at a bank too

  2. #2
    God/dess Emily's Avatar
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    Default Re: reality or stupid idea?

    A lot of people have made a lot of money out of buying properties and renting them out....and others have taken a bath! it sounds like a good deal and if you are ready to manage a property that far away, then go for it. Just remember that you or someone you trust has to be there for emergencies.

    That sounds like a great investment, but I think there is no greater investment than real estate as your primary residence. If it were me, I'd save up for a house for me, borrow off my down payment (equity) to buy the rental...but I really have never done anything like that. I have just read a lot about it.

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    Default Re: reality or stupid idea?

    Do your home work on both.

    Make sure there are no leans .
    Get a real estate inspector and Appraiser to evaluate value
    Was the home a forclosure?
    Why is it for Sale?
    Why is it priced well?
    Look into local tax laws/rates.
    What repairs are needed? Any major leaks, foundation problems? Termites? Plumbing? Ect...
    How long have they been on the market? Is it vacant and how long vacant?
    Do you have dependable maintenance and upkeep arrangements such as a handy man for repairs?
    How much will I make Renting it out?

    Just to name a few. Good deals come around and you have to jump on them or you miss the opportunity. However, you need lots of details and knowledge or it could become a nightmare.. Tenats are another issue. Be sure to qualify them by Rental history, income, job time, credit, and criminal back ground. A company can do this for a small fee and bill it to tenant. Get sufficient deposits (security and pet if you allow) and the first month upfront. Make sure your lease is legal and will hold up in court. Oh and don't make the frist mistake I did........................

    Dont rent to someone that doesn't qualify from your heart because they have bumpy credit or rental history and excuses for it.Stick to business and your gut instinct. If they screwed someone else over on rent, damages, so forth they will do it to you more than likely. Good Luck!
    Last edited by Brandi004; 10-03-2005 at 04:18 PM.

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    Default Re: reality or stupid idea?

    Also alot of legal issues come in if you decide to go in with a partner, Friend, or an investor . Not sure on Real Estate laws over there . You will be connected to this property and all partners involved as long as you own the house/Apartment until some one buys out. Alot can happen in the case of death, taxes,personal disputes, and credit if its financed. I have also found that very few partners have the same work ethic. If an investor is involved you likely are liable to him/her for payments even if the renter has not paid you or it sits vacant. If you can pay cash out right on your own there would be less liability and problems.

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    God/dess GoldCoastGirl's Avatar
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    Default Re: reality or stupid idea?

    If you going to invest in Australia or even your own home land (New Zealand) ... Rach.. you MUST visit Property Investing.com as you need to know a hellava lot more about buying a property as an investment or a 'first home' than I think you know.

    "Knowledge is power... applied knowledge is gold" however you first have to have the knowledge before you can apply it... make sure you know what you are getting yourself into in re: investing in property or buying a first home... don't get burned.
    Last edited by GoldCoastGirl; 10-03-2005 at 11:04 PM.


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  6. #6
    God/dess montythegeek's Avatar
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    Default Re: reality or stupid idea?

    Mermaidz
    A property in Thailand selling for 16K is not gonna get $350-$400 a month rent. The interest on a local buying it would cost say 7-8% per year. A local with cash flow would pay $1380 per year in interest o $107/month to buy the property, pretty much the same as you would. Add in $50 to 70 for other expenses/cost and you are looking at under $200/mo and the 50-70 is cost, not profit. Now the negatives. The local has no doubt tax advantages plus they do not have to deal long distance with any problems. Less advanced economies tax what they can see and touch, namely property and customs-and you are talking property. Now if you want a vacation home or a part year rent (at peak season with you using off peak) it sounds like a great deal.

  7. #7
    mermaidnz
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    Default Re: reality or stupid idea?

    monty, ive checked out (online obviously) the pattaya rental prices, and a simillar apartment, same size,condition,area of pattaya etc, seems to pull B10,000 per month. thats roughly $350 per month NZD. soz i should have clarifiedd i forgot to work it out in usd for you guys

    locals getting tax advantages, doesnt seem to exist. i thought something like that would happen too, but so far i cant seem to find any credible evidence to support this.

    the more i look into it all,the better it sounds!!

    my partner asked his boss yesterday about it all...and some bad news did arise we cannot get a home loan in new zealand for a property overseas without having a property here first.sucks cos i dont WANT to waste money buying here. the only way around that, is to reopen my bank accounts in australia - and take out a home loan there for property there.
    as for the thai place- i think we might just buy one outright next year.

    the cost or travelling to somewhere i love,is shit all! $900 NZD return flights,usually WITH 7-8 nights accommidation in bangkok. i think it would be a great thing for the future, when kids come along- mission every year to the family "apartment in thailand" ohhhh it sounds so exotic!! give the kids some insight to other cultures.
    also, bali is turning into an asshole area with the extreamist religions....and its much less prevellent in thailand to see any violence.

    ramble ramble... heheh

  8. #8
    Featured Member lunchbox's Avatar
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    Default Re: reality or stupid idea?

    Don't forget the maintenance fees.

    I'm wary of buying anything where you don't own the property outright as in the whole building, and the ground under it.

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    God/dess Emily's Avatar
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    Default Re: reality or stupid idea?

    Quote Originally Posted by lunchbox
    I'm wary of buying anything where you don't own the property outright as in the whole building, and the ground under it.
    why? what difference does it make?

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    God/dess GoldCoastGirl's Avatar
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    Default Re: reality or stupid idea?

    When you buy an apartment, you are buying "air" (as in space)... when you buy a house you are usually buying the house and land in one.. hence something more concrete. Generally speaking, houses are a better investment overall than apartments .... well... here in Australia at least.. in over-crowded cities certain TYPES of apartments are 'gold'.

    Once again, Rach, make doubly sure you know more about property than just how to purchase something and pay it off. There is so much more to it... the tax implications in re: your income and so forth.


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  11. #11
    God/dess montythegeek's Avatar
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    Default Re: reality or stupid idea?

    Remember each round trip ticket eats up 3 months rent or 6 months after-mortgage-payments receipts and I will bet that is with a long-advance reservation. Poof goes the profits!! If you pay down the mortgage with all nondirect-offset receipts (like taxes) you own it free and clear in 7-8 years. Check how high the property taxes are!!! I bet they give locals and homesteaders (owner occupied) a big break or they could not be that wide a gap between interest cost and rental rates.

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    God/dess Emily's Avatar
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    Default Re: reality or stupid idea?

    I realize the physical difference between an apartment/condo and house, but I fail to see how one is a better investment over the other. Many people who have invested in condos out here have made a ton of money because people still want to live in them.

  13. #13
    mermaidnz
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    Default Re: reality or stupid idea?

    vee- i know what your trying to say,and understand and even agree on that point normally. the difference is, for a farang to buy house and land in thailand there are HUGE legal things to go thru,including pretty much "gifting" that land to a local for their benifate.its too damn complicated for me to be bothered with,otherwise i would.if i ever make a thai friend i can trust,id consider this option.

    for now, i quite liek the idea of having a small place to call "holiday home" kinda thing, that later when i have kids,we can spend all xmas holidays there,living like locals.

    im not intending to make a profit out of it,and really dont care too much if i LOST most of the money. im looking at it more as life skills and culture skills for my future kids. sounds weird i know. but the idea of semi bringing up my kids in a culture like that,will force apon them amazing values and skills a weastern culture just wont give them.plus id love for them to speak native thai too.

    im looking at values other then cash you cant put a price on lifestyle and street learning.

    i only plan on renting it out to a local for 3-6 years just to keep it full,and not closed up and abandoned looking (squatters will invade otherwise!) then ill rent it out short term,and spend the rest of the time there myself.

    the more i have looked into this the past few days,the more i can see how easy it is. ive worked out,this time next year i can buy one outright cant be bothered in loans.

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