Bangkok 4-bed at THB 22.68m: does the rent justify the risk?

[RightRoom]

I can either accept the projected THB 167,500 monthly rent and get an attractive headline return, or reduce that assumption and watch the case become much less convincing. Neither feels comfortable without better evidence on actual leasing costs.

The 4-bed Bangkok apartment is priced at THB 22,680,000, putting the gross figure near 8.9%. I have allowed for empty periods, management, ordinary upkeep and a substantial repair, but I may be understating insurance, common charges or the expense of replacing a tenant. Which local cost should I verify first, and what would you need to know before choosing a sensible net-yield threshold?

 

[thinkTheLane]

The gross calculation is fine: annual rent is THB 2,010,000, or about 8.9% of the price. I’d focus less on that figure and more on whether THB 167,500 is an achieved rent rather than an asking estimate. A 4-bed may have a narrower tenant pool, so turnover can hurt. Have you included common-area charges and the full cost of finding a replacement tenant? Is it furnished?

 

[SimpleLane]

I wouldn’t set a target net yield until financing is included. An acceptable unlevered return can become fragile if borrowing costs rise or vacancy coincides with a major repair. Run a year with a rent reduction, an extended empty period and the larger repair together—not separately. Also confirm insurance and property-tax assumptions locally rather than relying on a seller’s estimate.

 

[theo.wells]

I partly disagree that financing should drive the first decision: the apartment should make sense on an unlevered basis before debt is layered on. I’d request the building’s complete fee schedule, recent comparable leases for other large units, an itemised management proposal, and actual insurance and tax figures. Then model tenant turnover separately from ordinary vacancy, because reletting costs and an empty period can arrive together. There isn’t one magic net yield; the key is whether the stressed cash flow still feels worthwhile.