Is Land Still A Good Investment In Cr?

[buddhafly]

i hope this is allowed its own thread...

with all the new visa problems, and with the scare of potential investigations into shell companies, is land in CR still a good investment?

i would think land always is, as they arent making more of it (except dubai),

there is still the wealthy thais from bangkok market?

and enough foriegners who have managed to remain here with no problems?

and mostly, do you agree that there will be a gradual migration to CR of expats grown tires of chiang mais growth?

[mumbojumbo]

and mostly, do you agree that there will be a gradual migration to CR of expats grown tires of chiang mais growth?

We don't allow any 'expats grown tires' here

[chownah]

Generally speaking I would say that land in and of itself is not a particularly good investment in Chiangrai. Maybe land in certain areas would be a good investment if you happen to buy where development is happening in a big way but generally speaking in Chiangrai land hasn't been an especially good investment since 1997.

They might not be making any more land here but there is alot of it already.

Again, just to keep the flames manageable....I'm not saying that its impossible that someone could make money by buying land as a speculation but overall I would say that land prices are fairly stagnant....much bigger supply than there is demand....also the prices here are already so high that buying land for agricultural purposes does not make economic sense...genrerally speaking....I'm not saying that it is impossible that someone could find a bargain piece of farmland and find a productive use for it and make good money relative to the size of the investment needed to purchase the land....but its not likely....in my opinion....land often goes for 80,000 baht per rai or more and 4% of 80,000 baht is 3,200 baht which is what you would make if you invested your money and got 4% return...this means that whatever you grow you have a built in cost of 3,200 baht per rai per year....ouch!!!

Chownah

Chownah

[OneeyedJohn]

That is a very concise summary of what land is worth, despite the price per Ri. The same logic applies wherever you buy, and at whatever price you buy.

There is however inflation to consider, which may or may not be on the increase, how do we know, but from personal observation wages have gone up from an accepted 120 roughly to 220 roughly Baht per day, in the 5 years since my arrival.

I believe in the 10 year economic cycle, and 1996/7 was only 9/10 years ago.

Edited January 13, 2007 by OneeyedJohn

[buddhafly]

thanks chownah.. good viewpoint.

but in terms of land for housing as opposed to use for farming is what i was thinking more of.

i see countless plots of chanote land available at around 500k per rai. they seem to be selling...

it seems you could buy choice land now at 300k and sell in 5 or 10 years for double that...

[soap]

i agree with chownah,

over a 3 year period 2003-2006 i attended at least 30 bank land and house auctions in chaingrai,i have kept a record of all lots sold and unsold and i would say that only about 7% of the thousands of lots that went through were sold to the floor even after a 50% discount from the court on the book price, most of the 7% were the original debtors who had come to a prior arrangement with the banks. the majority of unsold lots were then bought back by the banks at the discount price i presume to be sold later when market conditions improve,

[chownah]

thanks chownah.. good viewpoint.

but in terms of land for housing as opposed to use for farming is what i was thinking more of.

i see countless plots of chanote land available at around 500k per rai. they seem to be selling...

it seems you could buy choice land now at 300k and sell in 5 or 10 years for double that...

Clearly you have the concept down for making money through real estate speculation. Now you just need to make a plan and execute it. Now it just remains to be seen if you can identify "choice" land and if you can negotiate the reasonable price for it and then if the price really does double in 5 or 10 years......

Chownah