Quote: (12-11-2013 06:10 AM)Brisey Wrote:
Gents, to add a bit more to the charges, I skimmed through my contracts and found the following:
Sinking fund charge - this is the reserve paid for the maintenance and management of the common property. Paid once and calculated per square metre of your apartment size. As an example, for 2 of the studios I have, one charge is 350 per sqm and the other is 400.
Common management fee - this is paid annually and also calculated per sqm of apartment size, again examples in my contracts are 30 and 35 per sqm.
So overall building management fees are relatively low (depending on apartment size). From the one I am currently renting out, I had to enter a leasing agreement with the developer where they take a % of the income and handle everything else. The % will vary on the development.
The rental yields vary depending on the season, high season the room rates are higher, low season the rates are lower.
Hope that helps
http://www.knightknox.com/property/listi...00OhWyiMAF
assuming those fees and this property (rounded tyo 25k usd to make things easier)
30% fee within 28 days of signing = 7.5k
3 x 10% quarterly = 2.5k x 3 quarters = 7.5k <---assuming they mean "quarterly" as in every 3 months that gives us $834 a month.
40% on completion = 10k
In other terms with 30% down and the remaining 17.5k over three quarters = a hair under 2k a month.
Now to tack the fees on (the fees will vary, but im trying to get a ballpark #)
30 sqm = 350 x 30 = 10500 sinking fund fee.
Add the 25k purchase price = 35500 final out of pocket expense (possible closing costs/contract fees/etc)
with a monthly cost of: 30 sqm x $30 = 900 annual /12 months = $75 a month management (condo) fee. Then they get 10% of rental income on top of that.
To see a 10% cap rate, we would have 35500 x .10 = 3550 in rental income after expenses.
Expnses = 75$ a month and 10% of rental income
Rent needs to be 3950 (to account for 10% loss) + 900 (for condo fee) = 4850 annually = $404 monthly = about
13k baht.
Assuming everything else remains constant or damn near constant, the question is can the location justify 13k baht(404 usd)/monthly or an average of the same if varying rents based on seasons.
regardless, your overhead is only $75 a month if it stays vacant.
And I'm also not accounting for any appreciation in value of the condo.
edit - I sent an enquiry to them. hopefully I'll hear back soon and can talk a sales agent to get more info.
God'll prolly have me on some real strict shit
No sleeping all day, no getting my dick licked
The Original Emotional Alpha