sidsanuk Posted February 3, 2009 Author Report Share Posted February 3, 2009 Hi, What is cpi? Sanuk! Consumer Price Index. Usually used as a measure of the inflation rate. Link to comment Share on other sites More sharing options...
samak Posted February 3, 2009 Report Share Posted February 3, 2009 Think about this - I am about to rent a house for 25K a month. To buy it would sell for 15 Million. i have not seen any house/condo worth 15 million, that you can rent for 25k per month! usual ratios are around 1 to 100; exception is the upper market segment (where prices have gone up by 100% or more in the last 6-8 years), where people buy because they bet on further price increases. there are not many tenants who can afford those, so you could probably get a house/ condo worth 15 - 20 million for 80 - 120k monthly rent. such a ratio of 1 to 200 is already a very unprofitable business for the landlord! (in your example it was 1 to 600) Link to comment Share on other sites More sharing options...
samak Posted February 3, 2009 Report Share Posted February 3, 2009 I.e., a mortgage at 5%, vs an average ROI with smart investments at 7%. are you reading too many advertisements of financial advisers or stock brokers! with the two stock market crashes in this decade there are not many left, who could achieve a average ROI of 7% with conventional investments! Link to comment Share on other sites More sharing options...
unit731 Posted February 3, 2009 Report Share Posted February 3, 2009 ....I walk around with my boxer shorts on most of the time. Neighbors don't mind. I don't think the OP needed to know that! Some details should be left alone! Link to comment Share on other sites More sharing options...
.. Posted February 3, 2009 Report Share Posted February 3, 2009 I.e.' date=' a mortgage at 5%, vs an average ROI with smart investments at 7%. [/quote'] are you reading too many advertisements of financial advisers or stock brokers! with the two stock market crashes in this decade there are not many left, who could achieve a average ROI of 7% with conventional investments! Uh, I see banks advertising 6% for a simple savings account here in Oz. Besides, that was just an example to encourage someone to do the math vs just accept that buying is better... Cheers, SD Link to comment Share on other sites More sharing options...
khunsanuk Posted February 4, 2009 Report Share Posted February 4, 2009 Hi, "i have not seen any house/condo worth 15 million, that you can rent for 25k per month!" Mine is close. The landlord has offered us to buy the house for 5M Baht, we are paying 10K rent/month. Sanuk! Link to comment Share on other sites More sharing options...
gobbledonk Posted February 4, 2009 Report Share Posted February 4, 2009 Absolutely, SD - I get 7% on my CBA Netbank Saver and I can move any amount out of it into my keycard account anytime I need to - no fixed term, no penalties etc. Astoundingly, they have even spammed me wanting to know if I'd like an automatic 1.5K overdraft on the thing : all this at a time when banks are reportedly not keen to lend money to anyone .... Link to comment Share on other sites More sharing options...
ThaiHome Posted February 4, 2009 Report Share Posted February 4, 2009 I realize that the math for rent versus buy can lead one to rent, but I think another factor, which Iâ??m not sure can be put into the calculation is buying while your earnings power is highest so when you do retire and your income drops off you will not have to pay rent. No fancy ROI or anything, just seems to me to be a way to make sure you have a secure place to stay regardless of the many unknowns (FX, stock markets, interest rates, etc) that can impact what your retirement income will be. TH Link to comment Share on other sites More sharing options...
CTO Posted February 4, 2009 Report Share Posted February 4, 2009 Samak - current house which many have been too I rent for 20K - it is 150 meters from Fortune - sale price is 10M - that's 1 : 500 Houses of same style but worse condition (i.e. falling down literally) are 7 Million. Market was reasonably fluid up till last few months. I think you need to get out more Happy to have you over to house warming so you can see. In Suk old colonial style bungalows with gardens are rented for about 50+k a month. I can't see any of them for sale at less than 25 Million. I think what you find here is rents are more realistic than the the sale price, however in my soi and around me they do go for those high ratio's. My last place in Australia I bought on 10% down payment - the rent covered the mortgage! Huge difference. Link to comment Share on other sites More sharing options...
samak Posted February 4, 2009 Report Share Posted February 4, 2009 Absolutely, SD - I get 7% on my CBA Netbank Saver yep, on the AUD you can usually get high interest - but for non-Aussies that's like playing lottery! much lower interests on other currencies like USD, Euro etc.! Link to comment Share on other sites More sharing options...
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