Need Help

[Kenneth Lim]

Hi guys, newbie here. First time in real estate investing. Been reading up alot about owning real estate for investing. Currently I am overseas and based in Thailand. I decide to start my very first real estate investing here while in Thailand before I head home.

Below is financial statement of one of the many of properties I have viewed. I am still considering and looking for others better properties. I am looking for education, cashflow as well as capital gain. Please give comments on the financial statement I did below. Please give me comments if there are any mistakes in my calculations. Thank you very much.

Unit: #05-433
Size: 37 SQM
Type: Studio
Age: 3 Years Old
Tenure: Freehold
Price: 1.65 Million Baht
Est Rental Per Month: 13,000 Baht
Est Rental Per Year: 156,000 Baht

CASHFLOW

BASED ON 10% PERSONAL & 90% BANK FINANCE

* 10% Personal - 165,000 Baht
* 90% Bank Finance - 1,485,000 Baht
* Bank Interest Rate - 5%
* Loan Tenure - 30 Years ( 360 Months )
* Monthly Mortgage Payment - 7,971.80 Baht
* Interest Paid - 1,384,850 Baht
* Gross R.O.I - 9.45% Per Year

INCOME & EXPENSES STATEMENT ( PER MONTH BASIS )

Revenues - 13,000 Baht ( Monthly Rental Income )

Monthly Mortgage Payment - 7,971.80 Baht

OPERATING EXPENSES

i) Property Management Fee - 1,950 Baht ( 15% Rental )
ii) Insurance - 45 Baht
iii) Maintenance Fee - 500 Baht
iv) Miscellaneous - 500 Baht

[b]Cashflow - 2,033 Baht ( Per Month )
Cashflow - 24,396 Baht ( Per Year )
Net R.O.I - 14.8% ( Per Year )[/b]

CAPITAL GAIN

VALUE OF PROPERTY ( CENTRAL AREA ) : GROSS RENTAL PER MONTH

1.3 Million Baht - 1.9 Million Baht : 10,000 Baht - 15,000 Baht Per Month

Average Every 1 Million Baht Property - 7,800 Baht Rental Per Month

AVERAGE PAST 5 YEARS GROWTH - 10% EVERY YEAR

Since Every 1 Million Baht Property Yield About 7,800 Baht Rental Per Month

1) 1st Year - 1.65 Million Baht : Rental 12,870 Baht Per Month
2) 2nd Year - 1.82 Million Baht : Rental 14,200 Baht Per Month
3) 3rd Year - 2 Million Baht : Rental 15,600 Baht Per Month
4) 4th Year - 2.2 Million Baht : Rental 17,160 Baht Per Month
5) 5th Year - 2.4 Million Baht : Rental 18,720 Baht Per Month

BASED ON 10% PERSONAL & 90% BANK FINANCE

Gross R.O.I - 9.45% (1st Year) ( Based On 1 Year Rental / 1,650,000 )
Gross R.O.I - 10.30% (2nd Year) ( Based On 1 Year Rental / 1,650,000 )
Gross R.O.I - 11.35% (3rd Year) ( Based On 1 Year Rental / 1,650,000 )
Gross R.O.I - 12.50% (4th Year) ( Based On 1 Year Rental / 1,650,000 )
Gross R.O.I - 13.60% (5th Year) ( Based On 1 Year Rental / 1,650,000 )

EXAMPLE

Gross Rental For 1st Year is 12,870 Baht x 12 Months = 154,440 Baht
Gross R.O.I For 1st Year is 154,440 Baht / 1,650,000 Baht = 9.45%
[u][b]
BREAKEVEN ANALYSIS [/b][/u]

Net Cashflow Per Year ( 165,000 Baht / 24,396 Baht ) = EST 6.76 Years