london

HC82,

depending on where you are in Bangkok, prices have either remained steady or at best are up around 15%.

If you are looking at selling, really, you are making that decision as you would have need for the funds now.

No-one can predict the future, you have to make as informed a decision as you can.

For me, it all boils down to your actual return on your investment. If you can better that, then sell. If you can't, then hold.

Femi fan,

it sounds to me as though you just don't want any hassle with these funds.

You have a happy and settled life in CM and really would just prefer a touch more security.

My opinion is that you should just sit on the funds for a while. Leave them in the bank(s) whilst being aware of the limit of guarantee for the funds you have on deposit. (ie, if the bank goes bust, how much of your deposits are guaranteed by the government)

There's no need to rush into anything.

After say 6 months, then reassess things. In this period, economies can change very quickly. Sit back and observe.

Finally, don't seek advice on these forums. You would need to know a lot more about the backgrounds of those people advising you about your money....and that includes me as much as anyone else !

"price forecasts are a mug's game."

How very true !

"Prime property prices in Bangkok are grew faster than any other city in the world during the 12 months ending June 2012"

Interesting...and I'd probably have to agree that the top end, "Prime" have done just that.

I have seen that there have definitely been price rises with increasing rentals in BKK. I know that my rentals have gone up in the last year.

But more generally, on a country by country basis in this region, from experience, I would have to say that Malaysia and Indonesia have left Thailand way behind in the price rise area.

My BKK properties have probably increased around 20% over the last 2 years, but my Malaysian holdings have outpaced that increase and those in Indonesia have left both in the shade.

That said, I wish I had Prime London real estate now.....that has increased by a huge amount over the last 12 months....but who's to say what may happen next ?

Classifieds, in the local papers, notice boards at supermarkets, walk in condo receptions and ask and also look at agents. 10k will get you a reasonable place in Jomtien. Normal is one month and one month in advance. Some posters will say stay away from agents as they are more expensive, that just isnt true, commissions are paid by the owner. If you go it alone you have no comeback when anything needs doing and it is unlikely you will get all your deposit, if any back, whereas through an agent you will not have these problems. Electric should be around 4 baht a unit and water 20 Baht, make sure you ask first.

Agree.

Those renting directly (to avoid 1 month rent agent fee) and advertise with handwriten cardboard signs won't give any contract or may conjure up something in Thai.

If they were keen to avoid 1 month fee to an agent, how eager they may be when deposit return time comes?

OR maintain the property at a decent standard !!

Could be, but at a PE of x38, its not a bargain.......

...any hypothetical "foreign conglomerate" would be bonkers to pay that sort of multiple in this industry

exactly !

Could be, but at a PE of x38, its not a bargain.......

38x PE ?

Crazy !

Robo, there are many.

I had originally used Baker and McKenzie as I have used them internationally, but for the the last one I bought, I used a firm Bangkok Jurist on Silom Rd.

Very pleased with their professionalism.

I must say that for a "temporary" station, it was always pretty permanent looking.

I wouldn't be surprised if these plans are altered again....after all, what wil happen to the thousands of workers going from ST to the boat ? I can't see them taking the 700m walkway thats promised.

Also, imagine the additional vehicles (buses etc) needed to transport them to the boat station....happy days.

I'm sure too that Asiatique, the new market on the river, will be having a word in some influential persons ear, as will the 5 star hotels that have boat services to ST.

Time will tell, but I wouldn't be too confident of it being closed, no matter what is written in the papers.

RoboLB,

just saw your post.

Most importantly, your budget is fine. You don't expect the world for 2 million baht.

For the money you are looking to spend, I would suggest you keep it under 5 million and look at a good sized 1 b/r in a well maintained ESTABLISHED block.

Don't buy off the plan.

Pick the areas that YOU like and could see yourself living in. From what you have said, I would have assumed that the better areas of Sukhumvit, not too far from the centre of things, may suit you best. Thong Lor or around Emporium would be good for you to look at.

Also, don't dismiss the riverside. There are a number of very good buildings there too....but its what suits you best.

Good luck.

Mike111, what are you actually wanting to achieve?

Do you want to buy to rent out and live on the rental, which I thought was your original requirement?

Do you want to have a lower rental return and get better appreciation ie: in a higher capital cost unit?

Or do you want both?

Frankly, IF you can get 10% appreciation on any property anywhere in the world at this time, well done. Khun Jean has given you an important insight above: his rental is 10% BUT the appreciation only keeps pace with inflation. Really, this is as good as you can REALISTICALLY expect. If you get any more, then thats a huge plus, but I haven't seen it recently.

I'd be interested to know where appreciation is currently 10% pa.

If you are concerned about build quality, don't buy that particular development. Simple.

In fact, apart from the climate here, its NOT necessarily the build quality that makes a building look old.....its lack of a well funded maintenance programme for the building. That is vital. From my experience, many Thai's just want to buy and are not interested in the value of maintenance. This IS an issue.

But you can't have it both ways. Maintenance costs money.

If your CAM fees are high, theres a reason for it....maintenance.

This cuts into your annual rental return, BUT increases the likelihood of higher appreciation.

Hong Kong ? London ?

Having experience in both markets, there is a slight cost differential between them and Thai property.

Invest in the East, PattayaPhom is 100% on the money.

Any developer that guarantees you a fixed period of rental income, be it 1 year or 2 years at "x" % is indicating that they can't sell the units. Its THAT simple.

Why else offer that "incentive" ?

The fact is that this supposed "return" is already incorporated into the price. YOU are paying for it.

Darrel is 100% correct: don't touch it with a bargepole.

IF you feel that you aren't going to go back to the UK AND IF you are sure you are going to stay here, then why not put your funds into THB ?

It seems the practical thing to do.

There are too many ifs and buts to currency speculation, so just do what is simple if its right for you.

Last condo I sold was approx 2 years ago.

No discount to asking price: over 4 million baht.

Time to sell: 1 week, with cash in hand 1 week later.

Not all transactions go that smoothly, but as has been said by PattayaPhom, good locations sell anytime.

Mike111, apologies for the late reply...travelling.

Yes, the 6% is pretty much it from my experience and if you can get that, or better, from a term deposit, then why would you bother?

Re Appreciation: yes, its there, but to predict how much in 10 years is difficult. My experience is that it is a conservative appreciation, possibly 5%pa....perhaps more in other developments. However, that said, I am very happy with a 5% pa appreciation and a 6% yield. It is an effective 11%pa.

I can't legally buy houses here, so I don't. Not interested in something that is not simple.

I ONLY invest in Condos in the Thai RE market for the above reason. If that ever changed, then I would possibly look at houses.

This topic has been discussed time and time again.

Mike111, the real questions are (not for publication, but for you to work out):

1) what amount of your nett wealth do you want to tie up in Thailand?

2) what would happen IF the properties aren't rented for a period of time?

3) if the worst possible scenario happened and you lost everything in Thailand, what difference would it make to your lifestyle?

4) do you know, not as a tourist but someone who lives there, Thailand?

5) have you previous property investment experience ?

I have invested in Thailand for over 15 years now and, providing you don't put all your eggs in one basket, would advise anyone to do it IF THEY KNOW WHAT THEY ARE DOING.

There have been doom and gloom people here since day 1. They are happy renting and thats fine.

Depending on your expectations, I would budget for a 6% return. If you get better, well done. If you don't, well, you may do better with your money elsewhere.

Lastly, where are you going to live? In a rented apartment or are you going to use one of the ones you buy as your residence?

At the end of the day, can any one place be 100% safe and secure for investment?

The key must be diversification across many economies....

.......or don't invest at all.

From your original question it would appear that you have little knowledge of investing in businesses in Thailand or of values in Asia as a whole.

Have you actually run or invested in a company/business previously (NOT as an employee) ?

In your home country, would the equivalent of 1 million baht (less than $30,000) give you the funding needed to invest or run a business?

Asia is changing rapidly.

10 years ago, 1 million baht may have got you into a bar or something similar, now, its really loose change.

Have you actually lived in Thailand ? Not on a holiday....LIVED ?

Where would you stay?

Visa situation?

Believe me, as has been said above by Brit1984, you may lose it all, not to Thais, but your own countrymen.

Markeewan,

you say: I am now looking for somewhere that I can rent to overseas tourists via a rental management program. Maybe I can use it for part of the year myself. If the holiday rentals cover the repayments, then I am essentially getting the place for free. At least that is how I look at it.

In other words: short term rental.

Be careful, as this is illegal. There have been many others doing this and the Hotels have lobied the government to outlaw this practice.

Time Traveller and Furbie are spot on.

Re the LTF: if you withdraw prior to the 5 years there is a loss of the tax benefit.

My advice though is slightly more conservative. Just keep your money in the bank and a percentage of it in short (3 - 6 month) term deposits.

Why?

At this stage, there are too may clouds on the horizon (Europe, the US) and as you are a novice investor, these are times when even the hardened investor starts to worry.

Wait until things settle down in Europe and the US. It may be a year or two, but at least you will have a good reserve to do something with when the time is right rather than potentially losing say 30 - 50% of your investment.

Oh, IMO, under no circumstances buy individual stocks at 100 pounds a pop. Its too small an investment considering the fees.

I think the OP is asking about renting......at least I hope he is !!

Even at 25,000 baht per month its on the low side for anything low/medium quality, let alone good, in BKK.

There are so many simialr posts, really, I think that most of what the OP is asking has been covered many, MANY times before.

Should he buy or shouldn't he buy? Why not? He has the income and this isn't going to cause him grief if things go pear shape.

The amount he is looking at spending is the price of a good medium car in Australia.

The key is location...... and can he sit on it being unrented for a period of time?

Yes, he has to declare any income to the ATO.

Having a bit of experience in Indonesia and quite a bit of investment, I still feel that as things are today, it is better to err on the side of caution.

That said, I am VERY pro Indonesia and feel that investing there for the longer term is a very good proposition.

But at present, I would be cautious. I can see that many people will lose a lot of money in the next few months by "investing" for return rather than for safety.