Is the market ReallyBad

[baansgr]

So I decided to sell my condo at an attractive price..... What happens three stupid offers and wanting payment plans. Agents doubling up on commission  as they co broke yet sold myself for full asking price..... Maybe TVF members have got it wrong. Market in Jomtien seems rather buoyant,

[topt]

1 hour ago, baansgr said:

sold myself for full asking price

Can I ask what you did to attract buyers since presumably they came independant of an agent?

[Suradit69]

 I sold my condo quite literally in a few minutes about 3 months ago. I decided I wanted to shift to a house I have east of Sukhumvit. Told the Thai lady from whom I bought it 19 years ago ( and with whom I've maintained a friendship over the years) that I wanted to sell but I would need a deposit so I could add on a bedroom, bath, covered patio and kitchen at the house and it would be a couple of months before I could move while construction was going on. She agreed and paid me more in baht terms than I paid her 19 years ago ( even better in dollar equivalent terms because of the exchange rate back then).

 

of course as a 19 year financial investment (which I never considered it to be), the gain was negligible, but it was a gain not a loss. And I used it for 19 years rent free.

 

i don't know what short term or long term effect these issues with long stay extensions will have, but have to assume they could mean fewer new arrivals will want to commit to purchasing rather than renting for awhile.

 

my decision to sell and move was based on a number of personal factors, but it seemed it would be better to do sooner rather than later.

[jackdd]

4 hours ago, Suradit69 said:

of course as a 19 year financial investment (which I never considered it to be), the gain was negligible, but it was a gain not a loss. And I used it for 19 years rent free. 

I think your math is lacking a bit. If you would put 1 million in a 2% fixed deposit account in a bank after 19 years you would have nearly 1.5 million. So if you sold it for the same price as you bought it you lost effectively about 33%. In 19 years you didn't pay any common fees and never spent money for renovations or new furniture?

[UKJASE]

we sold ours using the local forums on facebook, thus avoiding any agents fees.  easy to list, and here in hua hin there are at least 5 hua hin sections / groups in english, and more than that in thai.  once the groups have been joined, one advert can be posted to all the groups in one easy process

 

get advert translated to thai, and bingo, half the population has easy access to your ad

[Suradit69]

1 hour ago, jackdd said:

I think your math is lacking a bit. If you would put 1 million in a 2% fixed deposit account in a bank after 19 years you would have nearly 1.5 million. So if you sold it for the same price as you bought it you lost effectively about 33%. In 19 years you didn't pay any common fees and never spent money for renovations or new furniture?

I said it was not a financial investment,but in simplest math terms if you sell something for more than you paid for it, it's a gain not a loss.  If you want to factor in a depreciation allowance the gain would have been greater. When I bought the condo things like the bathtub and kitchen cabinets were brand new. When she bought the condo back from me she got an old tub and cabinets.

 

if you want to get into expenses, those were for services for me including security, building maintenance, lighted common areas, the swimming pool, etc.all of which enhanced my stay.   But if you want to go that route, had I rented the condo for 19 years, using a modest monthly rent of 15,000 it would have cost me about baht 3,400,000. Neither has any direct bearing on the fact that I was paid a higher price for the condo than I originally paid for it, we hich I pointedly dismissed as a gain in terms of a financial investment.

 

" ... Never spent money for renovations or new furniture?"

 

i moved furniture, fridge, my clothes, even my toothpaste to the house. Why would that have anything to do with sale price of the condo. I sold a number things and gave some stuff to those who helped the move.

 

Sorry it got your knickers in a knot. I hope you didn't injure yourself in the rush to spew on what I considered a positive experience. I sold my condo as soon as I wanted. The sale price exceeded what I paid for it. I used the condo for 19 years. Of course there were various expenses, but they came nowhere close to what I would have paid over that time in rent.

 

Bitter old dears on Thai Visa seem to insist everyone be as unhappy as they are.

Edited February 7, 2019 by Suradit69

[Kenchamp]

41 minutes ago, Suradit69 said:

I said it was not a financial investment,but in simplest math terms if you sell something for more than you paid for it, it's a gain not a loss.  If you want to factor in a depreciation allowance the gain would have been greater. When I bought the condo things like the bathtub and kitchen cabinets were brand new. When she bought the condo back from me she got an old tub and cabinets.

 

if you want to get into expenses, those were for services for me including security, building maintenance, lighted common areas, the swimming pool, etc.all of which enhanced my stay.   But if you want to go that route, had I rented the condo for 19 years, using a modest monthly rent of 15,000 it would have cost me about baht 3,400,000. Neither has any direct bearing on the fact that I was paid a higher price for the condo than I originally paid for it, we hich I pointedly dismissed as a gain in terms of a financial investment.

 

" ... Never spent money for renovations or new furniture?"

 

i moved furniture, fridge, my clothes, even my toothpaste to the house. Why would that have anything to do with sale price of the condo. I sold a number things and gave some stuff to those who helped the move.

 

Sorry it got your knickers in a knot. I hope you didn't injure yourself in the rush to spew on what I considered a positive experience. I sold my condo as soon as I wanted. The sale price exceeded what I paid for it. I used the condo for 19 years. Of course there were various expenses, but they came nowhere close to what I would have paid over that time in rent.

 

Bitter old dears on Thai Visa seem to insist everyone be as unhappy as they are.

Your math is much better than his

[dotpoom]

Rock bottom...it's a buyer's market these days.

[ukrules]

9 hours ago, Suradit69 said:

 I sold my condo quite literally in a few minutes about 3 months ago. I decided I wanted to shift to a house I have east of Sukhumvit. Told the Thai lady from whom I bought it 19 years ago ( and with whom I've maintained a friendship over the years) that I wanted to sell but I would need a deposit so I could add on a bedroom, bath, covered patio and kitchen at the house and it would be a couple of months before I could move while construction was going on. She agreed and paid me more in baht terms than I paid her 19 years ago ( even better in dollar equivalent terms because of the exchange rate back then).

 

of course as a 19 year financial investment (which I never considered it to be), the gain was negligible, but it was a gain not a loss. And I used it for 19 years rent free.

  

i don't know what short term or long term effect these issues with long stay extensions will have, but have to assume they could mean fewer new arrivals will want to commit to purchasing rather than renting for awhile.

  

my decision to sell and move was based on a number of personal factors, but it seemed it would be better to do sooner rather than later.

Around here they like to attempt to try and double the price every few years but the world appears to have run out of suckers.

 

Anything that doesn't sell for years is overpriced, the adverts talk about 'nice furniture' and a 'large screen TV' like that will make any difference to a house that they're attempting to sell for 7 or 8 million Baht. Everybody already has their own furniture. I wouldn't want someone elses crappy old used furniture, I have my own stuff.

 

What my neighbours don't seem to appreciate is that they appear to have paid nearly double what their house was worth 5 or 6 years ago when they bought it. The Baht has gone way up in value and now they want to cash it in - so they added 30% to the ridiculous price they paid years back. LOL

 

[Suradit69]

7 minutes ago, ukrules said:

Around here they like to attempt to try and double the price every few years but the world appears to have run out of suckers.

 

Anything that doesn't sell for years is overpriced, the adverts talk about 'nice furniture' and a 'large screen TV' like that will make any difference to a house that they're attempting to sell for 7 or 8 million Baht. Everybody already has their own furniture. I wouldn't want someone elses crappy old used furniture, I have my own stuff.

 

What my neighbours don't seem to appreciate is that they appear to have paid nearly double what their house was worth 5 or 6 years ago when they bought it. The Baht has gone way up in value and now they want to cash it in - so they added 30% to the ridiculous price they paid years back. LOL

 

Yes in a different market I might want to get multiples of what I paid almost 20 years ago, but for an older condo in Pattaya I figure getting a bit more than I paid to be something to be happy about. The fact that the buyer was willing to give me a sizeable deposit several months before I would move so that I could do some work on the house I'd be moving into was a bonus.

 

I never thought I would sell and never thought of it as an investment. It was a place to stay and I always thought it was dumb luck given the great location and great condo management. So I was happy that selling it worked out as well as it did. Happy in my new location and have no regrets about buying the condo when I did or selling it when it was the right thing to do.

 

 

[Kenchamp]

9 hours ago, Suradit69 said:

Yes in a different market I might want to get multiples of what I paid almost 20 years ago, but for an older condo in Pattaya I figure getting a bit more than I paid to be something to be happy about. The fact that the buyer was willing to give me a sizeable deposit several months before I would move so that I could do some work on the house I'd be moving into was a bonus.

 

I never thought I would sell and never thought of it as an investment. It was a place to stay and I always thought it was dumb luck given the great location and great condo management. So I was happy that selling it worked out as well as it did. Happy in my new location and have no regrets about buying the condo when I did or selling it when it was the right thing to do.

 

 

You say "great location and great management" and that is key when purchasing a condo. You also say it was in an older building which i think can also be an advantage in the current building frenzy that's going on as there probably won't be many unsold units in the building which can create revenue problems for the management.

[Pattaya46]

19 hours ago, UKJASE said:

we sold ours using the local forums on facebook, thus avoiding any agents fees. //

Facebook is neither the only nor the best way to sell... IMHO.

For my condo it's clear that more than 3/4 of sales are found using ads on the board in the lobby.

People already living (or owning) here like the place and talk to their friends about buying opportunities. 

 

BTW seems to have more ads this year on the board, and with higher prices (compared to last year). 

[Lacessit]

I am somewhat puzzled by an older condo in Chiang Rai. Very well located near the market, golf course close by, swimming pool, well-run cafeteria. 35 sqm rooms 800K to 1.2 million baht. Lots on the lobby notice board advertised for sale. Annual condo fees 8 - 9 K baht.

In comparison, the newer condo next to Big C on the main drag is 2.8 million minimum. Same size rooms. Chiang Rai is going gangbusters with development. There's a huge hotel being completed on a bend of the Mae Kok river, must be 1000 rooms.

Why the low prices? What am I missing?

[Nyezhov]

1 hour ago, Lacessit said:

Why the low prices? What am I missing?

Im not in town yet. As soon as I show up, the market will take off.

[KittenKong]

1 hour ago, Lacessit said:

Why the low prices? What am I missing?

Thais often prefer new(er) buildings but that should not affect farang buyers too much. Also, could there be any major expense in the building on the cards? Or some nearby construction planned that might make it less nice to live in?

 

If people are selling it's because they dont want to live there.

[Lacessit]

40 minutes ago, KittenKong said:

Thais often prefer new(er) buildings but that should not affect farang buyers too much. Also, could there be any major expense in the building on the cards? Or some nearby construction planned that might make it less nice to live in?

 

If people are selling it's because they dont want to live there.

You may be right. However, I'm not aware of any major expense ( except perhaps a coat of paint ), and there's no construction I can see that's feasible in that area. I could live there myself quite happily if I wasn't in Chiang Mai.

[Lacessit]

1 hour ago, Nyezhov said:

Im not in town yet. As soon as I show up, the market will take off.

I'm talking about property, not the bar girls on Jetyod Road.

[Kalasin Jo]

On 2/7/2019 at 6:03 PM, jackdd said:

I think your math is lacking a bit. If you would put 1 million in a 2% fixed deposit account in a bank after 19 years you would have nearly 1.5 million. So if you sold it for the same price as you bought it you lost effectively about 33%. In 19 years you didn't pay any common fees and never spent money for renovations or new furniture?

Agreed, but assuming no bank borrowing for purchase and no rent to pay, not quite that bad depending on its equivalent rental value. As an example only: rent 10k pcm = 120k pa ×19 yrs= 2.28 mil.