Avoiding the Hua Hin Farang Building Mafia

[Super Joe]

[Mod Edit] comment removed as irrelevant to discussion.

[STEVE G]

....a lack of understanding about overheads & operating costs associated with developing.

Ok, so on average, how much does a developer make on a house in Hua Hin?

[BaaBaa.]

....a lack of understanding about overheads & operating costs associated with developing.

Ok, so on average, how much does a developer make on a house in Hua Hin?

[Super Joe]

Ok, so on average, how much does a developer make on a house in Hua Hin?

To be honest Steve it's not the most important thing what I mean by that is that it's quantity that's important to the smaller property value developer. In the boom years we were earning a lot and the last couple of years losing money, simple as that. Which is why the cost+ model would not work, there's not the stability or continuity of work. The property market is too volatile when you go from 10 houses a year down to 2 virtually overnight. To answer your question I would have a guess that for the 4-10m Baht bracket, that would be relevant to most of us, it's probably somewhere between 20-40% typically. I'm sure there's some exceptions that are higher, but I honestly don't know. I'd take 2008 at 15% above 2010 at 50% anyday, which is what I meant at the start.

So the curve starts to get flattened out as previous sales fill holes in bad years and then you need it to pick up again sometime. If you have most of your resources invested in it and you have to start borrowing at unfavourable rates then it must get pretty grim pretty quick. I know 5x as many who went bust than I do that drive around in flash cars. And I've met more werewolf's than I have developers who made 200% profit margins. We have seen two pretty extreme ends of the spectrum over the last 8 years ofcourse, but if you choose to play with fire...


SJ

[STEVE G]

I would have a guess that for the 4-10m Baht bracket, that would be relevant to most of us, it's probably somewhere between 20-40% typically. I'm sure there's some exceptions that are higher, but I honestly don't know. I'd take 2008 at 15% above 2010 at 50% anyday, which is what I meant at the start.

Yes, I'd considered that it was something around 30%. To be honest, I wouldn't have a problem with paying 15-20% if the job was well done but a major factor in my decision to go it alone was that I wanted a house on a large plot and I could simply not afford to do that through a developer.
Other factors were that everyone I know who had houses built on developments had to deal directly with subcontractors themselves to get the job completed and it became evident that there were large differences in quality depending on various subcontractors on the same development.
I decided that if that was the case I would rather source and control the subcontractor directly. Obviously with a competent developer that would not be the case but everyone I know must have chosen bad ones!

[easyas]

OK, I know this is a thread which heas been dormant for some time, BUT has anybody else heard of (as I have over the past few days) customers being charged for "aggravated labour charges"? Relevance to this thread? The charge was levied by one of Hua Hin's leading farang building mafia.

[splitlid]

Never heard of it. What is it? Is it expensive? Why are you being charged it?

[splitlid]

easyas, did you manage to find out the answers as im pretty interested to find out what it is exactly?