Understanding ROI on Thai property — how to run your own numbers

Gross rental yield is annual rent divided by total purchase price. It is easy to quote and easy to inflate — always ask whether the denominator includes transfer costs and furnishing, and whether the rent figure is an asking rate or a signed contract.

Net yield subtracts the real cost lines: common area fees, sinking fund amortization, land and building tax, insurance, repairs and replacement of furniture, letting or management fees, and — most importantly — vacancy between tenants. In practice these deductions materially change the picture versus the gross number.

Total return adds capital gain or loss at exit, minus selling costs (agent commission, seller-side taxes) and currency movement between your remittance and repatriation. A spreadsheet with entry costs, annual cash flows, and exit assumptions gives a far more honest answer than any single yield figure.

Stress-test three assumptions: months of vacancy per year, rent achieved versus asked, and years to resell. If the investment only works when all three are optimistic, the margin of safety is too thin.

GoThailandHome deliberately publishes no yield statistics, occupancy rates, or price forecasts, because credible unit-level numbers require signed contracts and audited costs. Use this article's method with real quotes you collect yourself, and treat any marketing yield claim as an asking price, not a fact.