Mentors Posted February 3, 2009 Report Share Posted February 3, 2009 If you adapt Thai living style the cost will be dramatically less. If you are steeped in farang ways, the cost will rise dramatically. We bought a new repossessed house that had never been lived in. We had a farang toilet put in. Our cost were low going in and we make monthly payments. We did buy a motorcycle (repo) and came closed to buying a car (one of the cars that run on propane or something like that). That deal didn't pan out. As for food, we have vendors coming around selling food all the time. Refrigerator is stocked with water and not much of anything else. I walk around with my boxer shorts on most of the time. Neighbors don't mind. in the Southern country side we (2 pax,) need 2'500 -3'000 Baht a week for food etc., petrol, newspapers and beer Link to comment Share on other sites More sharing options...
khunsanuk Posted February 3, 2009 Report Share Posted February 3, 2009 Hi, While I agree, there is one thing you are leaving out of this equation. When renting at the end of those 50 years, you have nothing. When buying at the of those 50 years, you own a 15M (or more) house. Sanuk! Link to comment Share on other sites More sharing options...
.. Posted February 3, 2009 Report Share Posted February 3, 2009 Similar numbers on the big condo I'm in... Good analysis of renting vs buying in an overpriced market. Basically, you need to look at "monthly payment-to-rent" ratios. If you buy with cash, I think you're a fool, so consider that. I'll explain. First rule of biz is OPM. Other people's money. It is usually cheaper to rent OPM than use your own. I.e., a mortgage at 5%, vs an average ROI with smart investments at 7%. That's 2% per year you are leaving on the table. Free money! Just do the math. Can you make more with the money you have invested vs tied up in a home you may not want or live to see paid off? Ignore the "common wisdom" that owning is better and actually and *honestly* do the math. So ya Sid, put me into the "always rent in LoS" camp. In BKK, the numbers simply do not work any other way. Upcountry may be different, but that's not my bag, so I don't know (nor care). Cheers, SD Link to comment Share on other sites More sharing options...
sidsanuk Posted February 3, 2009 Author Report Share Posted February 3, 2009 Hi, While I agree, there is one thing you are leaving out of this equation. When renting at the end of those 50 years, you have nothing. When buying at the of those 50 years, you own a 15M (or more) house. Sanuk! KS. That was my 'back of the envelope' figures above. Unless house values are well ahead of cpi, you actually lose money owning v renting. Once house value growth is a couple of % above cpi, you make a lot more owning. Which is your point. Link to comment Share on other sites More sharing options...
khunsanuk Posted February 3, 2009 Report Share Posted February 3, 2009 Hi, What is cpi? Sanuk! Link to comment Share on other sites More sharing options...
.. Posted February 3, 2009 Report Share Posted February 3, 2009 Consumer price index? But that's the issue here in LoS. Property starts high, so the increase in value is like 1%/yr, vs several %/yr in more stable countries (without taking in account the cultural issue of Asians hating "used" things). There is no tax, so holding it has no penalty. This distorts the usual "Western" calculations about ownership. Cheers, SD -- again: stupid to own in LoS IMHO Link to comment Share on other sites More sharing options...
gobbledonk Posted February 3, 2009 Report Share Posted February 3, 2009 Consumer Price Index Have always found our CPI stats to be pretty bloody rubbery - the price of meat alone has gone up by about 300% in the last 10 years ... The OP has a huge advantage over me - being married, the lure of the bars will not be an 'all night, every night' attraction. If I knew then what I know now ... :smirk: Link to comment Share on other sites More sharing options...
cavanami Posted February 3, 2009 Report Share Posted February 3, 2009 50 years renting? WTF, I am waaaaaaay dead before that!!! No need for any calc. Link to comment Share on other sites More sharing options...
The_Munchmaster Posted February 3, 2009 Report Share Posted February 3, 2009 ....When renting at the end of those 50 years, you have nothing. When buying at the end of those 50 years, you own a 15M (or more) house.... Or you're 6 feet under. :smirk: Link to comment Share on other sites More sharing options...
The_Munchmaster Posted February 3, 2009 Report Share Posted February 3, 2009 For me, if I retire to LOS I will rent rather than buy. Why tie up so much money in a property, money that I could be using to enjoy my retirement and that I can't take with me, when I could be paying rent on a monthly basis. If I die with millions tied up in a property, that's money that I have could have used. What's the point of leaving it behind? Link to comment Share on other sites More sharing options...
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