PROPERTY MARKET: ?Now is the time to buy?

[Oldtimer]

I own a home in Phuket not to make money off, but just because I want a place that exactly suits me when I am on the island. Also I like to leave everything in the home, so that I can travel with a carry on.

 

Having said the above, losing money shouldn't be part of the proposition either. So one has to buy smart, not at the top of the market. I thus wouldn't be a buyer now in Bangkok but perhaps Pattaya area. As far as Phuket is concerned, I am amazed at the number of new villa resorts under construction.

[..]

Zorro said:

I see very few advantages in buying property in Thailand.

It is really easier to rent even if you are living in Thailand.

Rental costs are relatively cheap and you can move around as you see fit.

I agree especially if you are talking about Bangkok, in the city, near anything, that is. When I owned rental property, a quick "back-of-the-envelope" sanity check for buying a place to rent was if the market could support a monthly rent of 1/200 of the purchase price. Of course there were other factors, but that was the initial thing to see if it was worth going any further.

 

Therefore, if I was going to buy a house in the States for $200K, I would want to be able to rent it for $1,000/mo minimum. Not too hard to do.

 

Now if I look at my Thonglor neighborhood, we see 2BR condos selling for B12M. That means that you would have to rent that place out for B60K. Not likely, since most places in the neighborhood go for B25-35K.

 

Therefore, it is cheaper by far to rent in that situation, especially if one thinks that the property market is overvalued (as I do).

 

YMMV.

 

Cheers,

SD

[SingaporeSteve]

I also agree with you - BKK has a surplus of properties all chasing IMHO fewer and fewer expats which will create a downward presure on pricing for the forseeable future.

 

In and around Pattaya you can easily achieve double the return based on your rule of thumb guide. e.g spend $200,000 and get a rent of US$2,000 per month. Even easier if you have work permit and gain a mortgage - money down around 50%, repayments of around $1600 month on 5 year term and even excluding capital appreciation, some nice foreign expat tennant has paid you equivalent of $100,000 over 5 years for your initial investment of US$100,000 - 20% return on capital invested as a cautionary figure (i.e not the full monthly rent income) is quite a good move in MHO.

 

Of course, for that you get a smart 4 bedroom house with pool and large garden, which if bought in the right area is likely to increase in value as well over the medium to long term.

 

Cheers

[New Petchburi Pete]

Hey Zorro,

 

Have you seen Seargent Garcia lately? :: It was a neat show!

 

We rented 4 separate units over a span of 3 years or so ... 2 on New Petchburi Rd, and 2 in suadum's neighborhood ... also we could see & walk to, or take the 1 Bt. ferry across Klong San Saeb to New Petchburi Rd. (I miss certain things about that part of town! ).

 

What bothered me most about renting, was that in LOS, tenants basically have no rights ... at least under the leases I had to adhere to. If an A/C unit needed repair, we had to pay, etc., etc. We got tired of getting screwed on repairs to items that we did not buy or own. Now, we didn't pay high rents as we attempted to save (despite my habits!). Suadum, you're familiar with the condo building of which I speak ... remember we had practically the same view of Riviera. When we moved, there was a 2 bdrm, 2 bath condo for sale priced at 3.5 million Bt. in my building ... and not worth anywhere near that in my opinion!

 

What really pissed me off was getting shafted on two security deposits by the 'juristic' person (bitch) who controlled/fleeced the operation. I still can't fathom how she continued to get away with her 'deeds,' ... and, there was no recourse!

But, her husband was a very decent gent from Las Vegas ... very sociable man of color. Suadum, I'm sure you met Louis ... he always said "hello" to everyone ... nice personality. I miss talking to him! He was into music, and did give me a copy of an original CD he/his band recorded ... not too shabby!

 

My doctor(s) strongly urged me to bail out of BKK before it took too much of a toll on the rspiratory system. Fact: respiratory distress can/does lead to cardiac distress; and, with my med. history, that was the last thing I needed.

 

When we were able to afford to escape,we made the move to Pattaya. At first, we rented to scour the area for decent houses worth buying. I always recommend renting vs. buying, until one lives in an area long enough to check everything out.

 

When the right opportunity (for our needs) arose, we bought a very nice home in East Pattaya. I've previously stated all the reasons for buying in this area ... only minutes to Jomtien Beach ... few more minutes to downtown Pattaya :hubba: The move made sense for us. As I've stated before, it's an excellent area to invest in ... although we didn't buy the house as an investment. We wanted a nice home to reside in for many years.

 

We're very happy with the home. It was only 5-6 months old, located in a much sought after development, consisting mostly of farang-Thai couples/families. We now have more cash available than when we rented. Of course, realistically, cost of maintenance will increase as the house ages. We have a small, but quite attractive yard for our son. There's two communal pools, etc. Plus, we're located close to very good food (several decent markets in area) at prices considerably cheaper than markets in BKK. The cost of living is much less than that in Bangkok ... especially as I "adjust' to married life with a son.

 

Financially, we made the right move at the right time. Not everybody has a simiar opportunity. We're close to major shopping, international schools, very good restaurants and not too far from Bangkok-Pattya Hospital (new cardiac center). & trauma center ... needed it two months ago. ... excellent treatment/care.

 

I can get the coldest available Tiger Beer (quad yai) for 58 Bt., same with Heineken!... on Soi Kao Talo off Sukhumvit. I can enjoy driving in the surrounding countryside ... in BKK I would only use the truck infrequently, except for on sundays.

 

I'd be the first to agree that purchasing is not the best option for everyone, especially with respect to BKK. Several realtors say that, although condo prices are rising (but not as quickly compared to BKK), many expats buy, since it's a far better investment than letting your money sit in a bank while it essentially earns no interest.

 

Prices of quality homes in the 3-6 million Baht range are considered by realtors (although they're not always right) to be a wiser investment than some of the much costlier, trophy-like homes that some are building/buying. Prices are rising steadily at a realistic rate. Should the market crash, we'd still have a very nice home to live in.

 

I've been hung up in the States for too long. I miss my wife and son, and can't wait to reunite & unwind in my castle.

And we got a good deal ... not really a 'castle' compared to some of the high end stuff out there ... bought wisely, within our means; and we're thrilled with the place. ... can't wait to come home ... touch down in BKK on Oct. 9 at 9:30am ... nice time to arrive. Yes, the journey home from Boston is a long one; but, keeping focused on returning to LOS makes it all worthwhile.

 

BTW, the New England Patriots kick off the NFL season tomorrow night against the Indy Colts ... should be a dandy. I'm going out with some friends to enjoy the game. If there are any 'board' members (? dddave) who are around Boston, and would like to join us, send me PM. We'll be hitting some place on either Rt.1 or Rt. 114.

 

Will the Pats repeat as Super Bowl champs as some are actually predicting? ... you know the drill: on paper it seems thay they could pull it off, but ... tough schedule, early season bye plus everyone sky high to knock them off ... as always, it can come down to injuries, penalties, mistakes, turnover ratio & luck! Super Bowl champs in 3 of the last 4 seasons ?... a daunting task to say the least. ... but, I do believe in miracles!

BTW, a least I'll get to see three games before I return.

 

Speaking of miracles ... could this be the year the Boston Red Sox exorcise the 'curse of the Bambino' ? ... right now, they're the hottest team in baseball! ... as die hard Sox fans know all too well, it's best not to get your hopes too high. But, 'cowboy up,' ... they're ahead of Oakland (playing on West Coast) as I pen this ... if they win tonight, they'll only be 2 games behind the Yankees!

 

Now the Bosox lead Oakland 8 to zipat the end of six innings I'm getting tired, it's 11:55pm. Check the papers tomorrow. Better yet, for those in LOS, you're now 11 hrs. ahead of me ... so send me pm to let me know who will win.

[Zorro]

NPP

As long as you are happy that is all that matters and it does sound like you have done your homework.

My problem with Thailand is that as a farang you basically have no rights.

I am not saying you cannot make a good return on an investment in Thailand just that it is much riskier than other places.

Quite frankly i don't need the hassle.

I have done very well out of property in Australia where i have some legal rights and as such don't need to take any unecessary risks in LOS.

[New Petchburi Pete]

I would have to agree with you on the general risk factor ... except for Pattaya, S. Pattaya/East Pattaya/Jomtien & the surrounding area!