14 Rai Of Rice Land For 150,000 Baht

[simon43]

My wife comes from a Moobahn near to Sakhon Nakon in Issan and we get on very well with her family.

Today her mother called her and said that an old couple in the village had borrowed money some years ago (for an unstated purpose). They were now being hassled to make the full loan repayment. They did not have sufficient funds to do this, and wanted to sell 14 rai of rice land for the sum of 150,000 baht, so that they could repay the loan. But no-one in the village has that sort of money to buy the land.

So they have asked if I am interested in buying the land! The 150,000 baht is not a problem for me to pay, but I have no plans to go and grow rice in Issan

What could I do, as an absentee owner, with 14 rai of rice land? I presume just grow rice.... Unless I could find someone in the Moobahn to look after the land, grow rice on it and pay me some small rent, it seems like money down the drain, (or a white elephant).

Furthermore, when I say 'I' own the land I mean my wife owns the land

She has gone off to sulk because I won't help out this old couple. 'I'm not asking you to give the money to them, you will get 14 rai of land' she says...

The price seems very low, but I suspect it could cause me more problems in the future. What about buying the land and then donating it to the local wat, for the benefit of the poor or something?? (I'm sure this has a lot to do with 'face' and my wife would like to own this land, but I prefer to think of more practical and samaritorial (I know there is no such word!!) uses for this land.

Anyway, your advice, comments, flames are most welcome!

Simon

PS - No mention of any sick buffalo . . . . . .

[Dragonman]

My wife comes from a Moobahn near to Sakhon Nakon in Issan and we get on very well with her family.

Today her mother called her and said that an old couple in the village had borrowed money some years ago (for an unstated purpose).  They were now being hassled to make the full loan repayment.  They did not have sufficient funds to do this, and wanted to sell 14 rai of rice land for the sum of 150,000 baht, so that they could repay the loan. But no-one in the village has that sort of money to buy the land.

So they have asked if I am interested in buying the land!  The 150,000 baht is not a problem for me to pay, but I have no plans to go and grow rice in Issan

What could I do, as an absentee owner, with 14 rai of rice land?  I presume just grow rice....  Unless I could find someone in the Moobahn to look after the land, grow rice on it and pay me some small rent, it seems like money down the drain, (or a white elephant).

Furthermore, when I say 'I' own the land I mean my wife owns the land

She has gone off to sulk because I won't help out this old couple. 'I'm not asking you to give the money to them, you will get 14 rai of land' she says...

The price seems very low, but I suspect it could cause me more problems in the future.  What about buying the land and then donating it to the local wat, for the benefit of the poor or something??  (I'm sure this has a lot to do with 'face' and my wife would like to own this land, but I prefer to think of more practical and samaritorial (I know there is no such word!!) uses for this land.

Anyway, your advice, comments, flames are most welcome!

Simon

PS - No mention of any sick buffalo . . . . . .

<{POST_SNAPBACK}>

I sympathise with your dilemma. Must have happened to me half a dozen times. So far have not given in. Not because of the money, and yes the purchase price seems OK, but because of the problems I thought it may cause. Did it once on bargain land I leased for a year. After paying everybody to work on the land lost 10,000 baht. OK it was worth that to shut the missus and family up, but other than that just a job creation scheme for locals

[Thetyim]

If you buy the land for 150k and then give it away do not expect any

respect from anyone in the future.

You will be classed as an idiot.

If you must buy the land (which I am not recommending) then let someone else grow the rice and take half the rice as rent.

[loong]

Do it once and then watch the floodgates open.

If you don't want the land, then why even consider it?

The price of land, the same as other commodities, is dictated to a certain extent, by supply and demand. Also by what someone is willing to pay for it. As there is no-one willing to pay 150,000 Baht for this land, then it is too expensive.

You are not responsible for bailing out other people's irresponsible borrowing.

Why won't the people who are owed the money accept the land as settlement?

I'm sorry to say it, but I think your wife is sulking because she wants to be a landowner and not because you won't help the old couple.

I would advise you to put your foot down now, before you set a precedent.

Don't feel guilty about it, it is not your problem. You did not force the couple to borrow money that they cannot repay. This attitude, in Thailand, of borrowing money, giving no consideration to how to repay is, in my opinion, a major factor in holding back growth in Thailand.

[Krub]

The price is right, your wife will own the land and you can have 1/2 the rice product as rent. If the money is no object to you I do not see any problems at all with the deal.

Do not donate it you will not nro your wife earn any respect at all.

I would go for it

[RamdomChances]

You could rent it out. Around here its about 1000 bhat/rai/year, but dont know about there. Its fairly common in rice growing areas to take a cut of the crop rather than money.

Plant some trees for a long term investment. Plant it with teak for a retierment fund

Use it as colateral ( if it has a chanot) with the bank for any buisiness ventures. You still get to use the land

Just put it up for sale at 300,000 and wait

Dont try and grow rice or anything labour intensive your self and pay someone, its better just to rent the land out or take a crop share.

The buying price sound cheap enough, has it a chanot, its there water supply, can you sink a bore hole? I would of thought not for the last two at that price.

Its quite comman to be able to pick up land cheaply where people have taken loans out and the bank is finnaly foreclosing.

Edit.... the above is only about what you can do with it. The question of whether you want to buy it I'll leave to yourself and others

[simon43]

RandomChances, tell me more about the teak bit! I nothing nothing about teak Is this a serious statement from you?

cheers - Simon

[RamdomChances]

"Is this a serious statement from you?"

Yes mate it is.

If you register the planting of the teak with the forestry commision ( dont know what its called in thai) you can legaly cut it and sell it at a later date. You need at least 10 years though better for twenty. Even at 10 you can sell it to the furniture industry for making teak vaneere(SP). I've got some links somewhere I'll dig them out.

Been thinking about planting them around my boundry as it would still leave all the land free for crops. I've heard that you may be able to get the seedling free. There are a few places here doing it, but you'd have to find out what can grow up there.

RC

[Khutan]

The price is right, your wife will own the land and you can have 1/2 the rice product as rent. If the money is no object to you I do not see any problems at all with the deal.

Do not donate it you will not nro your wife earn any respect at all.

I would go for it

<{POST_SNAPBACK}>

Yes agree 100%, with all of what you say, thats how it works around the place. Someone "rents" the land for a crop and you get half the rice.

Also the land does seem a good price @ about 10,000 a rai.

[chico]

150k for 14 rai is very cheap, even by isaan standards, I guess the people rather want to get a little bit more than they borrowed, before the lender takes it for free.

if you don't want to do anything with it, same suggestion as from others, rent it out, take rice - depending on the deal you will get between 21 and 30 pack (your share) in a normal year, that should repay the buying amount within less than 15 years, and then you can still sell it for much more.

it should have chanot, land with other papers is not allowed to be sold, but thai's are doing it for the last 50 years, and it shouldn't be a problem either.

[ray23]

You could rent it out.  Around here its about 1000 bhat/rai/year, but dont know about there. Its fairly common in rice growing areas to take a cut of the crop rather than money.

Plant some trees for a long term investment. Plant it with teak for a retierment fund

Use it as colateral ( if it has a chanot) with the bank for any buisiness ventures. You still get to use the land

Just put it up for sale at 300,000 and wait

Dont try and grow rice or anything labour intensive your self and pay someone, its better just to rent the land out or take a crop share.

The buying price sound cheap enough, has it a chanot, its there water supply, can you sink a bore hole? I would of thought not for the last two at that price.

Its quite comman to be able to pick up land cheaply where people have taken loans out and the bank is finnaly foreclosing.

Edit.... the above is only about what you can do with it. The question of whether you want to buy it I'll leave to yourself and others

<{POST_SNAPBACK}>

Isn't life funny I have been looking for that deal for two years now. The only way you are going to get a good deal on land in Issan these days is if there is an emergency, that requires cash.

Random Chances is absolutely right, farm land within 20 KMS of Udon sales for 300 K a ria. That is because more and more farrangs are retiring here. The same will happen in that area.

As more farrangs come into Issan to retire these lands just get more and more expensive.

You want to be a hero let the family farm the land or arrange renting it for farming until you are ready to do something wiht it. Be it sale or move on whatever.

You don't want it give me PM and I will go look at it, clear title amd I will invest in it. That is the perfect area for cattle raising if conditions are right.

[olaus]

"wanted to sell 14 rai of rice land for the sum of 150,000 baht,"

Too cheap. In the province of Mahasarakham 14 rai would cost at least 400 000 Baht.

There must be something hidden in this story.

Be careful and try to find out.

[Boo]

land title is the main issue to check out

[terdsak_12]

Put it in your suitcase bit by bit and take it home with you. Bargain price I reckon.

[The Skipper]

Give the wife 150,000bht and then see if she wants to buy it.

[Thetyim]

You don't want it give me PM and I will go look at it, clear title amd I will invest in it. That is the perfect area for cattle raising if conditions are right.

Thats the perfect solution

You will also find out instantly if your other half has an ulterior motive

[RamdomChances]

Here's that link for teak i said I'd find. Its actually talking about the area I live in. They recon a return of 58,000$ /hectar over 20 years with teak as the sole crop, that works out to about 370,000/rai. It does have some drawbacks though, not the least the long return time, and what could happen with the laws in between.

http://www.fao.org/documents/show_cdr.asp?...5E/x4565e10.htm

Too cheap. In the province of Mahasarakham 14 rai would cost at least 400 000 Baht.

There must be something hidden in this story.

Be careful and try to find out.

Land prices vary tremendously wherever, My main road frontage land could sell for 120,000/rai, go further back from the road its 40,000/rai, 15 km out in the dirt raods your talking 15-20,000/rai. I've know people pick plots of land up for around 10,000/rai before if the seller is haveing probs with the bank.

A lot of the time here when they put the paper in the bank the land for the house is on it as well, so when the bank forcloses they split the house off the chanot and sell the rest, that way at least they kep the house.

it should have chanot, land with other papers is not allowed to be sold, but thai's are doing it for the last 50 years, and it shouldn't be a problem either.

If it"s been in the bank it will probably have a chanot, although I belive you can borrow off a "nor sor sam". You can buy and sell land without papers but the risk is your own.

You should be able to get an idea of the value of the land at the local "tee din" land office, the gov gives values for the land although they are usually a fair bit lower than what you could actually get selling it, the banks often use this fig when calculating how much you can borrow off the land.

RC

[Rinrada]

Boo beat me to it....

Buying and selling land especially to N.Ts is to say the "lease" ..re least....ARGGGGG......

I have 2 lots going at the mo (dont worry not sales pitch)on behalf of some friend/clients....one chunk being 1 Rai by the Ping in C.M @ Bt 1 M a Rai (nice location ..but) and the other is 50 Rai just o/s the city on the Lampun rd whick looks great (Photos) and at @ 150,000 bt a Rai....about 10 miles apart and both with full title...however until I see them and and more especially the Land Registry Docs then wont touch with the proverbial 20 foot pole with...etc .......

On my last visit I had lunch with a Chinese Americian who was on the lookout to invest and even offered me (roundabout way ) more the double wot I paid for my wee bit of 17 rai in the mountains...but NO Thanks...wife would have killed me....there are some very good deals out there but as the Thai say ...RA-Wang....

He ..the C/A eventually bought a house and land on the o/s of C.M. which when I had a look at later quickly realised that he had .........lets just say paid over the odds.....easy to do....

Last I heard he was going to demolish the house and build a new one..

Anyway thought you were heading down to open a lea-sure centre in Ko Samui

[mijan246]

Seems very very cheap - friend just bought 6 rai 30kms out of Khon Kaen for 300000 which was a good price negoiated by the mother-in law who owns well placed land all over the place. She is a crafty old thing and capable of looking towards the future. All her offspring have land in the bank that way they can't squander it away - hubby a retired Ajarn with 3 of the offspring teaching and coincidently even managed to marry one of themoff to another teacher (thai guy who I knew from @ James Cook Uni).

[NedKelly]

Is it possible to request that the current owner stay with the land and pay u back.....that way at the end they get their land back ! Of course your interest rate would be zero ...compared to the loan sharks who charge exhorbitant fees.......this is what makes me think this is a scam......if the owners borrowed money 'years ago'.....maybe the 150k is an unreal figure.......

then you have the land title part....what is it ?

Or ignore all these ramblings and buy the land but plant the whole plot with mangoes or other fruits and see what happenes in a few years....land use has to change sometimes..

But if yo ubuy it then its your money and your risk.

[blue eyes]

Howdy Simon43,

It looks to me to be very cheap!I would be leary of this purchase.But if you do buy do not give away.In Thai eyes you will look like an idiot and would lose face not gain it.If you find it is on the up and up I would buy and lease out for part of the crop.I will look into this teak thing that ramdon chances is talking about for my self,looks interesting.There is a company that I have found and am trying to find out if anyone has heared of them or used them,it is www.area.co.th

I have a few plots of land that I am trying to find out the proper value of them in Issan about 60 km north of Korat.

Well I hope everyone has an enjoyable day!

[Thaipwriter]

Give the wife 150,000bht and then see if she wants to buy it.

Pure genius the Skipper, pure genius!

[Kringle]

He11, I would buy it and you won't have a worry and not a soul coming to you complaining. Of course I won't buy it unless there is CLEAN title and it is chanote land which means I can build a house on this land to live in, NOT to just be for working the land. Where is this land and how drought sticken is it? Lots of things to think about before you plunk money down or are you like some of the guys on this forum that have money to just give away?

Would agree with the Skipper except SHE is not giving HER money, just the Skips money.

[billd766]

Here's that link for teak i said I'd find. Its actually talking about the area I live in. They recon a return of 58,000$ /hectar over 20 years with teak as the sole crop, that works out to about 370,000/rai. It does have some drawbacks though, not the least the long return time, and what could happen with the laws in between.

http://www.fao.org/documents/show_cdr.asp?...5E/x4565e10.htm

Hi RC

Thanks for that link. I will show it to my wife when I come home at the end of the month.

Cheers billd766

[Nam Kao]

>>>>Plant some trees for a long term investment

It'll be chopped down and stolen long before it matures

[Thaicoon]

As Kringle said, i would buy it to, this land is most likely out of the way, no road frontage etc, thats why it is cheap, I have just bought another 22 rai in prackonchie, paid 20,000 per rai, that has road frontage, in a village, land will always go up in value, whereever it is, my wife and i now have over 100 rai, when we first started buying plots 10 years ago you could then pick them up really cheap, so if i was you i would snap this up.

[Pattayaman]

3 years ago i puchased 12 Rai in a village just outside Pattaya under the same circumstances,within 3 months i had 6 other offers of land from people with debts against the land,as already said if you do this once the locals will see you as a way to pay back their debts and you end up being a big landowner

[tso310]

As Kringle said, i would buy it to, this land is most likely out of the way, no road frontage  etc, thats why it is cheap, I have just bought another 22 rai in prackonchie, paid 20,000 per rai, that has road frontage, in a village, land will always go up in value, whereever it is, my wife and i now have over 100 rai, when we first started buying plots 10 years ago you could then pick them up really cheap, so if i was you i would snap this up.

<{POST_SNAPBACK}>

Thaicoon, was it that land thats been on the Kasikorn site for a few months ?

[Thaicoon]

No, it is 22 rai of riceland, it is next to another 24 rai of mine, we just use this for rice, but in the future may use them as plots. as got a concrete road frontage, i do not buy any land that has no access.

[mouse]

Buy it! but be sure to have a lawyer do the transaction for you. Forget recovering from farming or a lumber growing operation, cause you will need workers, chemicals and a host of other things that will make you crazy. That's right it is not the money but, the constant--we need this, the land needs that story that will drive you crazy.

Buy it, rent it out for x baht per year and then when ready to retire, go there and build a small ranch, retirement village for farang, or small western style apartment building with pool and all the things a farang desires and wants and rent them out or sell them to farang.