CaptHaddock

Thanks for this valuable information. I will do just as you suggested. I wanted to check anyone's experience here first to see if it was worth pursuing. Thanks again.

As always, but especially in your case, APPLY TO MORE THAN ONE LENDER. Yes, it will cost you a few hundred dollars more and will be more time and trouble. But it is a large purchase and once you have two approvals you can dicker with them to get a better rate or improve the other terms. For some reason people will carefully compare coffee pots before buying but will take out a loan of several times their income without doing the full cost comparison that you can only do with approval.

Error in Kindle price. Actual price is $299.

Greetings gang.

I know this has been done to death but over

the last 12 months or so, the financial climate

has changed a fair bit.

Eighteen months ago I could get 10% interest

and now lucky to get 5% so this has got me

thinking.

Been in Chiang Mai for nearly a year now.

Rent is 20 000 Baht per month in a reasonably

new building. Condo is a bit small (only 2 of us)

at 65 SQM. Same as everywhere, can move out

a bit and get something bigger and cheaper although

the buildings are pretty run down.

A couple of condo's have become available now at

what I consider to be good prices at approx 3.4 million

Baht.

I wouldn't be buying for capital gain. I just would like

to be able to call something my own.

Like I said, with the falling of interest rates, and the

increase of the aussie dollar, now seems pretty

good time to buy.

How about some advice/opinions?

Regards

Will

Will,

It may have been done to death, but rent vs buying is seldom calculated competently. The first mistake people make is to ignore the opportunity cost of the down payment, like the poster above who believes that an owner is living "free" after paying for the condo. Prospective owners also typically underestimate maintenance and insurance costs.

Below is the link to the best buy vs. rent calculator I have seen, from the New York Times. (It expects dollars but works fine with baht, except for the capital gains exclusion limit.) Taking the example that you posted at face value (can the landlord really get 20,000 baht per month on a condo worth 3.4 million baht for a 7% cap rate--seems quite high) I made some assumptions about the following expecting that as an Australian you have access to investments comparable to those in the US:

inflation (1% long term)

down payment (50%)

interest on ten-year mortgage (5.5%)

maintance & renovation costs (1%)

appreciation (0%)

rent increases (0%)

property taxes (0%)

bond interest (3.48% using the current US 10-year Treasury rate, which you could earn safely on the down payment by buying a 10 year US bond)

Under this scenario, buying pays off after 19 years. That is to say, your net worth would be higher at every point in the next 19 years if you rented. Now the crux of the matter are the assumptions. The assumptions above are generous to the home owner camp, in my opinion. For example, I expect appreciation to be negative and rents to decrease for the coming period, possibly for as long as 18 years as it has in Japan. Ditto for inflation. On the other hand the real rate of return on safe US Treasuries is currently very high and will probably not persist. Aussie bank rates have been pretty high, if I remember correctly. If you make different assumptions then buying may beat renting, but by playing with a range of assumptions you can see how sensitive ownership is to each variable.

14 years or 19 years is a very long time for a break even as an investment. Note that this does not mean that you are ahead the entire value of the condo at that point. It means that your net worth (liquid and illiquid) is one baht more then as an owner than as a renter. It also does not mean that you got the value of living in the apartment free during that period because the fact that you did not pay rent is already reflected.

Of course, the calculator does not attempt to incorporate non-financial risk factors already mentioned by others such as: risk of depreciation due to inadequate building maintenance, risk of loss of privilege of residing in Thailand, risk of unfavorable changes in property taxation, illiquidity, or risk of changes in environment due to inconsiderate neighbors or building management. Nor does it factor in exchange rate risk which could go either in your favor or against you.

So, under these (admittedly, disputable) assumptions, you can say that in exchange for bearing all these risks you get paid one baht more after 19 years. If all goes well. And assuming that you can then sell the condo if you want. Does that sound like an attractive investment to you?

NY TIMES rent vs buy calculator:

http://www.nytimes.com/2007/04/10/business...ref=patrick.net

Cynical

In US, some restaurants staff pay to work which is why thet are so insistent on tips

I have heard of a lot of abuses of restaurant workers, but have never heard of that one. What is your source?

the problem is i feel i am suffocating she tells me all the time she loves me she does not like it if i cook for myself wants to be with me 24hrs a day i do not have any personal time and as well live in a small house compared to back home there really is not anywhere i can escape to

It may not be jealousy so much as the cultural difference in notions of togetherness. It seems typical of Thais to expect to be with family 100% of the time while we Westerners have a need for more personal time and space. Don't know if looking at that way makes the conflict any easier to resolve or not.

On the amazon website. once you find the book you are interested in there is normally a number of 'private sellers' selling the same book (usually second-hand) for a cheaper price. The private sellers have their own postage policies and most will send to Thailand using regular airmail. The privates sellers are usually much better to deal with.

Trust this helps.

Why not take the obvious solution? Buy an Amazon Kindle e-book reader and download ebooks from amazon.com, usually for $9.99 per book. Plus free books from other websites. No waiting, no shipping, no customs. Price of a kindle just dropped to $399, but you will make it back in savings over time. As you might guess, I love my kindle and view it as the solution to book buying ideally suited for expats.

I don't know if the recordings are from the original files or not desi, but there is an email address at the bottom of the page where you might write and ask. I wouldn't make mention of the link to the free .pdf files of their books though as they may have copyright issues over that.

I bought the whole set years ago when cassette tapes were fairly new technology. (Try finding a Sony walkman cassette player these days!) Back then I spent over $300.00 but they were just about the only recorded Thai learning resource available in those days outside of the FSI courses which were also expensive and seriously outdated. The FSI tapes make a reference to Secretary of State Dean Rusk who began in the Kennedy administration.

Two hundred and forty eight bucks is a lot for old material but I feel it is still very good and there is lots of it. Compare 31 tapes vs the 1 that comes with Becker's Thai for Beginners.

I am working my way through the J. Marvin Brown books now. Fortunately, the recordings are now available on CD which I have ripped into my pda. The pda interface makes it much easier to repeat recordings or parts of recordings. I am enjoying it immensely. I wanted a method with lots of drill.

The price is still about the same from Cornell.

Our house has solid teak floors. I think they are plain boards, not tongue and groove so they squeak when walked upon

I thought if I could find an oil to spread on the floor it might fix it.

So I need a light oil which will soak into the floor and lubricate the floorboards.

Any suggestions?

TIA. Colin

In a Japanese temple the priest told me that they used talcum powder to quiet down the "nightingale" floors, which were originally designed as a burglar alarm.

It's not a problem--it's a solution. I have lived in New York City for 25 years without a car. I figure it saves me USD 7,000 to 8,000 per year.

I'm surprised PM Abhisit just hasn't just said <deleted> it, and walked away. he's not a bad or corrupt person from what I cans see (and I am no supporter of this government). His hands are tied and he has a balancing act that prevents him from getting anything accomplished. if he pushes the Reds too much, he'll have bloodshed.If he pushes the Yellows too much, he'll have bloodshed. If he upsets the men that like to wear uniforms, then he may find himself out of office. No win, thankless job. I am sort of begining to feel sorry for him. He's too decent for these people.

Complete nonsense. What is decent about being the spokesman for the military and royalists who removed the democratically elected govt?

You know, it may not even have anything to do with money. Good friends and family rank up there in the list that makes life worth living.

So, what is your definition of wealth? How will you know that you're wealthy

It helps to think clearly. Wealth refers to money. Money is not the only important thing in life, but when you ask about wealth that is what you are asking about.

In my opinion, to be wealthy means to be able to live at a first-world middle-class standard of consumption without working. Wealth can be achieved in numerous ways including moving to a country where that standard of living costs enough less to qualify you.

Now, if I had grown up in Chad, for example, I would probably define wealth as 2000 calories per day, but there you have it.

Cool Thx. the new Toyota Prius, 2010 model, gets 50 miles per gallon. At least the ones being sold in the US.

Not sure how much that is in kilometers per liters.

In Thailand, they have lots of cheap sugar cane there, wonder why they don't make more ethanol (alcohol) for fuel there.

In google, enter "50 mpg in kpl". Cool, huh? Or enter "51282 baht in dollars".

inflation / deflation

what i am missing in this thread and in the relevant quoted sources is the fact that inflation as well as deflation not only can but has different impacts depending on the individual situation of a person/family. i leave out countries and corporates as i am sure neither a country nor a corporation has ever posted in Thaivisa.

as i can't judge others i refer to my situation and those close to me, id est our domestic employees.

Driver: married, one young child, using his motorcycle to commute from his home to the job. inflation would hurt him most if it concerns foodstuff, basic daily amenities and rental cost because that is where his money goes. his salary and benefits, although quite generous, are just enough to make ends meet. deflation would be a blessing for him and his family.

You are making the assumption that the driver's income does not change. While you may be willing to keep him employed without reducing his salary, others in his situation will not be so fortunate. Here in the US, 40% of companies have frozen wages, employment levels have dropped to the 2000 level meaning that all the increase in work force since then is now unemployed, and salary reductions, previously unheard of, are now commonplace. In the face of persistent deflation, even mild, real purchasing power declines, in general. It is a mistake to overgeneralize from a specific case. Ask your driver how his friends are doing.

I realize that medicare will kick in at 65 and part B will be deducted from my SS and will be absolutely useless while abroad. Also the sales tax by the Fed (VAT) while still holding onto the income tax will be a major blow to those who championed the replacement of the income tax with a national sales tax. Obama would certainly get his cake and eat it too. Move over Tricky Dick. You have a replacement! .

1. Medicare is not compulsory. If you don't sign up for it, there will be no deduction from your SS benefit.

2. If a VAT tax is adopted in the US, it will only apply to goods sold in the US. As an expat, a VAT would not cost you a penny, unless you chose to purchase goods in the US for some reason.

3. No significant US political group pursued replacement of income tax with a VAT and elimination of income tax is not under consideration. Many european countries combine both taxes, for example.

<<It is definitely not the case that US citizens resident abroad are always required to pay state taxes. There is no federal law to that effect.>>

yes no Federal law. agreed. but I still think you are subject to State law.

CaptHaddock: Maybe we can just agree to disagree on this. I spoke with my CPA about this extensively and ultimately decided that moving to Texas was the safest option for me.

Just a question to consider: If you are not a NY resident then in what State can you vote in? My acountant says that all USA citizens must be legal resident of one of the 50 States and are then subject to taxation in that State. There is no such thing as a US citizen who is not a "legal" resident of any of the 50 States that I understand it of or where would they be entitled to vote? Which State would handle their absentee ballot?

What I can agree on is that you still don't know what you are talking about. Just why would you consult a CPA for a legal opinion? To take the obvious cases, residents of Puerto Rico and Guam are US citizens, but are not residents of any state. Nor are expats who have established legal residence abroad. At least not those who never resided in VA.

As for voting, it is true that only states and, presumably, territories provide absentee ballots. I don't plan to vote since that might be used to establish tax liability, although I do not know for a fact that absentee voting does establish tax liability. I consulted the rules for determining NY residency and if you have severed your ties as I have described, NY does not claim authority to tax you.

<< When I move to Thailand I am going to surrender my driver license immediately. The states are desperate for money and may become more agressive in trying to foist tax liabilities onto expats. California and Virginia already do this and I expect others to follow their example. On the other hand, if I lived in a state without an income tax I would probably keep the license.>>

CaptHaddock: I am sorry to report that you got this wrong. If you move to Thailand you are still required to pay federal AND State income tax. Yes State income tax.

Move to Alaska or Texas before you retire here. Get a new license and make sure you register to vote. You do not need to be a homeowner. Your "physical address" can be a cheap motel. But if you keep ties to tour old state like getting your mail sent there or still owning your house there then your old state can come after you claiming you are still a resident. They are bloodsuckers. Sever all ties.

With this new Obama health care plan they will be trying to make us pay even if we live here. If there is some exclusion I am probably never going to set foot in the USA again just so they don't try and say I am still resident in the USA.

Wish I could dump my USA citizenship and get a Thai passport but that is another story...........................

It is definitely not the case that US citizens resident abroad are always required to pay state taxes. There is no federal law to that effect. My own state of NY takes that the view that unless you own property in the state, then changing your legal residence to outside of the state is sufficient to establish that you are not subject to NY taxation. Even if you do own property in the state, you are not subject to NY tax unless you spend more than 180 days in the state during one year. I do not own property in the state, will not use a NY state absentee ballot, and will surrender my NY state driver's license prior to leaving. Therefore, I expect to have established legally that I am not a resident of NY and have no intention ever to return.

Now, it is true that some states, notably CA and VA, are more agressive in claiming the right to tax former residents. VA takes the view that you are a VA resident until you have legally established residence in some other state. CA claims taxing authority on the flimsiest grounds that might indication an intention to return to the state at some point in the future. If I were living in either of those states I might decide to establish residence in a no-income-tax state before expatriating. As it is, I think I have protected myself adequately.

I suggest you not express yourself in absolute terms on subjects about which you are not well-informed.

In my view, "dumping" US citizenship would be a singularly imprudent step to take. As far as Pres. Obama's health reform goes, there are many huge issues to be addressed before they get down to the much less important fine details such as obligations, if any, for expatriates. I wouldn't worry about it.

Instead of trying to predict what will happen, how about some of the wise members give their opinion on how to protect ones self and assets in either environment?

Should one be buying land and physical assets while at the same time holding a substantial portion in cash? What percentage of your net worth should you allocate to PM's? What about holding equities? Yay or nay?

Ideas needed on how to be covered in all situations.

There are not many investments that help you in either deflation or inflation. For Americans there are TIPS, which offer the only real protection against inflation among securities. They also protect against deflation, but only if you hold the individual bond until maturity. Canadians have a similar govt bond with inflation protection, but those can lose principal during deflation, unlike TIPS. Don't know about the British version.

However, expats have a tougher problem because it is the local inflation rate that counts, not the one back home.

My own call is for deflation, but since one cannot entirely rule out inflation hedging is attractive. As an American I find bank CDs to be the best solution available, and the longer term the better. For example, you can still get 4% in a 50 month CD from NASA FCU, a credit union. I think the trailing inflation rate now is a little over 1%. So, the inflation-adjusted return is 5% guaranteed for 5 years with the same credit as Treasuries. If, however, the inflationists turn out to be correct and interest rates move up, you can break the cd and get all your principal back at the cost of only a few months of interest.

If I were dead certain of deflation, I would buy 30 year, zero-coupon Treasury bonds, but I am not. Similarly, only someone convinced of inflation would look at land.

Finally, cash is not a bad choice right now.

The main point it to pay close attention and be prepared to change your mind.

The reason for a retired, American expat to sign up for Medicare is to reserve the option to return to the US at some time in the future. Without Medicare it would basically be impossible to return because the eventual costs of health care during old age without insurance would be prohibitive for most people. The OP is not in this category since he has access to NHS. However, when I retire to Thailand I plan to sign up for Medicare just so that I can go back at some point if I have to.

After being in this program for half a year, I can say that it is good, but has its limitations.

Their focus is on reading and writing academic Thai, so if you are interested in listening and speaking skills, this is probably not the program for you.

The vocabulary is rather difficult. I am in Intermediate 1 (the 4h class of 9) and we are expected to learn a lot of complicated words which I rarely use in everyday life. We do presentations in Thai, which I find interesting. But sometimes I wonder about the utility of such work when our pronunciation is generally bad because they just keep moving on and the students focus so much on the reading/writing that their speaking/listening is not clear.

FYI, some of the students go to private tutors just to keep up with this program. Most of my classmates study for several hours at home every day.

Kunjet,

I am interested in the Chula program as well. How are you doing with the 800 new words per 5 week course? Can you really master 30 new words per day? I have experienced an intensive language course, but we didn't approach that rate of acquiring vocabulary.

I am especially interested in reading and writing because I think, in the long run, the student learns such things as sentence structure more thoroughly that way and I like to read. However, I am disappointed that their focus on reading & writing comes at the expense of speaking and listening practice. Do you speak Thai in your daily life? Since my wife is Thai, I am wondering if daily conversation with her and her circle would fill in this gap? What is your experience? Also, since I expect to remain in Thailand after the course, I would expect to develop those skills in the long run anyway.

May I ask why you chose the Chula program? Do you expect to be in Thai academia? As far as I can it, Chula's seems to be the only intensive program in BKK. Is that correct?

How far ahead should I apply for the October program?

Thanks for your valuable information.

Capt H

Yes, and if you needed to go in there to do any future business, you will always be asked for ID and if you opened it with a driver's license (required) they are usually going to expect a current driver's license for ID. Policies vary from bank to bank but I expect many would indeed have a problem with a passport only. Again, go back to my poll, most of us find it very useful to maintain faux US residence identities.

Seems too risky to me. In the worst case it could cost you a lot of money. When I move to Thailand I am going to surrender my driver license immediately. The states are desperate for money and may become more agressive in trying to foist tax liabilities onto expats. California and Virginia already do this and I expect others to follow their example. On the other hand, if I lived in a state without an income tax I would probably keep the license.

At the same time I have already opened several bank and credit union accounts now in anticipation of the move abroad and will open additional financial accounts before I leave.

OK, I have a semi-paranoid thought about this. It is now looking likely that there will be a requirement to have some kind of health insurance. Another poster mentioned that there will be a non-resident exemption. Great! But here is my concern about that. Many of us, in my view, MOST of us maintain US ties in the form of bank/financial accounts and state driver's licenses, etc. The governments are going to have to figure out ways to ENFORCE the health insurance requirement. So perhaps one of those tripwires will be renewing driver's licenses? If not that, I think you can see the kind of thing I am thinking about that could trip us up and potentially put us into the required pool subject to penalties ...

Why would you want to keep a US driver's license? It would expose you to the risk of liability for state income taxes as an indication of an intention to return. I plan to surrender mine in the same year that I expatriate. Also, getting a Thai driver's license would support a claim to residence there.

You are not understanding Amerian mentality. They want qaulity, affordable heathcare not universal healthcare. You accomplished that by cutting out the litigation powers of attorneys, overblown judicial awards in court cases, lowering the amount of money doctors have to pay for their own insurance to cover their butts because of the constant threat of being sued. That will never happen because of the power of the lobbyists and attorneys in Washington.

More popular misinformation. Malpractice insurance adds 3% to the cost of healthcare. Health insurance companies skim 31% of the healthcare dollar.

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Elliot Wave "analysis" is to finance what astrology is to astronomy.

Are you sure most Americans want it, Jingthing?

No, I am not but they voted in Obama and coverage for all Americans was at the top of his agenda. Elections have consequences. I expect him to push hard for this to fulfill his election promise. I am not so optimistic the result will be pretty though.

Oh, we want health care reform all right. Make no mistake about it. Here's a quote from an article in today's NY Times:

The national telephone survey, which was conducted from June 12 to 16, found that 72 percent of those questioned supported a government-administered insurance plan — something like Medicare for those under 65...

http://www.nytimes.com/2009/06/21/health/p.../21poll.html?hp

But that's not surprising. Americans have repeatedly polled in favor of health care reform over the years, but the politicians have been in the grip of the health care lobby. Obama and the others are playing catch up here, following the will of the electorate. Let's hope he succeeds. Notice that even though a large majority of Americans want a single payer system that option will not even be discussed. However, if Obama succeeds in getting a govt insurance option in, that will be the camel's nose in the tent. The private insurer's days of skimming 31% of every health care dollar will be numbered.

I think you missed my point, Thai food is not excellent, but yes Japanese over all is very healthy and I do eat a lot of that. As I said Thai food is loaded with sugar, grease and worst of all msg,

Thai people aren't fat though. That's one change I look forward to when we move to Thailand. Here in the US I am sick to death of seeing fat people everywhere.