Increasingly Bad Exchange Rates - Thinking About Moving ..

[rainman]

The increasingly bad exchange rate of foreign currencies against the Thai Baht is something that probably affects every farang living in Thailand, but some more than others. While some currencies dropped only a few points, the USD has dropped from around 44.00 to currently around 34.00 in less than two years. For myself and those who have their income in USD this means over 20% less money in less than two years.

I agree that part of it is due to the US economy falling down, but the exchange rates in Thailand are much worse than in other countries, where it has dropped around 3-4% in the same time period.

On top of the bad exchange rates, I have noticed that imported products prices have also increased dramatically. The same bottle of cheap french wine, which I use sometimes for cooking, has increased from 360 baht to 490 baht in less than 2 months. The same with at least a dozen other imported products i regularly buy. And I have observed this in different shops, so it's definitely the overall imports and not a single store.

While my wife and I love Thailand, we both came to the conclusion that it may be time to move to another country, maybe if its only for a few years. Its not like I'm dying because of the few +15,000 baht I lose every month, but why should I lose it if there's another choice? In the end of the year, it does add up and if you throw the political instability into the pot it almost overflows.

Has anyone had similar thoughts?

[qwertz]

The increasingly bad exchange rate of foreign currencies against the Thai Baht is something that probably affects every farang living in Thailand, but some more than others. While some currencies dropped only a few points, the USD has dropped from around 44.00 to currently around 34.00 in less than two years. For myself and those who have their income in USD this means over 20% less money in less than two years.

I agree that part of it is due to the US economy falling down, but the exchange rates in Thailand are much worse than in other countries, where it has dropped around 3-4% in the same time period.

On top of the bad exchange rates, I have noticed that imported products prices have also increased dramatically. The same bottle of cheap french wine, which I use sometimes for cooking, has increased from 360 baht to 490 baht in less than 2 months. The same with at least a dozen other imported products i regularly buy. And I have observed this in different shops, so it's definitely the overall imports and not a single store.

While my wife and I love Thailand, we both came to the conclusion that it may be time to move to another country, maybe if its only for a few years. Its not like I'm dying because of the few +15,000 baht I lose every month, but why should I lose it if there's another choice? In the end of the year, it does add up and if you throw the political instability into the pot it almost overflows.

Has anyone had similar thoughts?

I don't have your problem as an expat moving from one EU land to another but when I retire (soon) I won't move to a another land and depend on life staying cheaper, it's too precarious. As semi retired I can still earn a top up wage by keeping my customers in Germany per email as I translate for a living but if the trend is continuous where you are I'd suggest it's time to move on, there are still alternatives in that part of the world.

[Nebukanezar]

I feel ya on that Rain Man. This has been getting me bent out of shape too. When I got engaged to my fiance' and agreed with her father about the Sin Sot arrangement (details not important on this thread) It was back in Dec of 05, we pushed the wedding back so I could be out of Iraq when we are to wed so the new date is in Feb of next year. Sadly I agreed to a amount in THAI Baht, not dollars, so that even if we get married right now I will be spending around $8,500 MORE just to cover the same amount. I'm scared to think what it will be like in 08 when we finally Thai the knot

I am gonna do 3 things,

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

2) get a Condo in Dubai to wait it out for another year after we marry to see if the global market smacks the baht down like it needs too.

3) Buy a lil land in Thailand on mortgage with a minimum down payment so I don't loose so much when the baht dose fall.

[KhunMarco]

deleted, when brain returned to full functionality

Edited March 31, 2007 by KhunMarco

[Naam]

deleted, when brain returned to full functionality

you took the words out of my mouth

[Naam]

Its not like I'm dying because of the few +15,000 baht I lose every month, but why should I lose it if there's another choice?

is there another choice Rainman? the only country that offers the equivalent of Thailand in living expenses for your dollars are the Philippines.

advantage: rather easy and hassle free residence permit.

disadavantages: to save on living expenses you need to move to a rather remote area with hardly any infrastructure, frequent power cuts, dial-up modem and going three times a year through the alphabet to name tropical storms.

[jumnien]

Most of us came here initially because of an attaction to Thai spirituality and or Thai people and yes, we found it was cheap to live here. When being cheap becomes the primary reason people stay in Thailand they tend to become fearful and unhappy and resentful. I hope there will become cheaper places in the world to live comfortably so that those people can find some kind of peace of mind and stop trying to will Thailand into something that fits their desire. Bon Voyage!

[wasabi]

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

while I am no hotshot investor my hunch is this is not yet the time to buy, could still be a few years off til prices hit bottom.

[bingobongo]

Most of us came here initially because of an attaction to Thai spirituality and or Thai people and yes, we found it was cheap to live here. When being cheap becomes the primary reason people stay in Thailand they tend to become fearful and unhappy and resentful. I hope there will become cheaper places in the world to live comfortably so that those people can find some kind of peace of mind and stop trying to will Thailand into something that fits their desire. Bon Voyage!

most came for spirituality? lol. when your midlife crisis breaks mdeland, please let us know.......

[chanchao]

There's many kinds of spirituality.

Anyway, if a decision to live in Thailand is primarily based on price level, and you see that the price level is getting less favorable, then you face an easier decision than most. Be like water; when the land shifts, move to the lowest spot. There, how hard was that?

Anyway, not every foreigner is American, and not every foreigner even gets most of their money from foreign-currency sources.

[LoveDaBlues]

I feel ya on that Rain Man. This has been getting me bent out of shape too. When I got engaged to my fiance' and agreed with her father about the Sin Sot arrangement (details not important on this thread) It was back in Dec of 05, we pushed the wedding back so I could be out of Iraq when we are to wed so the new date is in Feb of next year. Sadly I agreed to a amount in THAI Baht, not dollars, so that even if we get married right now I will be spending around $8,500 MORE just to cover the same amount. I'm scared to think what it will be like in 08 when we finally Thai the knot

I am gonna do 3 things,

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

2) get a Condo in Dubai to wait it out for another year after we marry to see if the global market smacks the baht down like it needs too.

3) Buy a lil land in Thailand on mortgage with a minimum down payment so I don't loose so much when the baht dose fall.

The following are rough figures. In Dec, 2005 the baht/USD was 41:1. Today 35:1. So based on your above comment (in red):

2,000,000 baht @ 35 = $57,142 USD (today)

2,000,000 baht @ 41 = $48,780 USD (Dec, 2005)

Difference = $ 8,362 USD (roughly the $8,500 from above)

So, you are paying 2,000,000 baht Sinsod? As the thread IS about the bad exchange rate this is not off topic and I'm curious.

[aussiestyle1983]

I feel ya on that Rain Man. This has been getting me bent out of shape too. When I got engaged to my fiance' and agreed with her father about the Sin Sot arrangement (details not important on this thread) It was back in Dec of 05, we pushed the wedding back so I could be out of Iraq when we are to wed so the new date is in Feb of next year. Sadly I agreed to a amount in THAI Baht, not dollars, so that even if we get married right now I will be spending around $8,500 MORE just to cover the same amount. I'm scared to think what it will be like in 08 when we finally Thai the knot

I am gonna do 3 things,

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

2) get a Condo in Dubai to wait it out for another year after we marry to see if the global market smacks the baht down like it needs too.

3) Buy a lil land in Thailand on mortgage with a minimum down payment so I don't loose so much when the baht dose fall.

The following are rough figures. In Dec, 2005 the baht/USD was 41:1. Today 35:1. So based on your above comment (in red):

2,000,000 baht @ 35 = $57,142 USD (today)

2,000,000 baht @ 41 = $48,780 USD (Dec, 2005)

Difference = $ 8,362 USD (roughly the $8,500 from above)

So, you are paying 2,000,000 baht Sinsod? As the thread IS about the bad exchange rate this is not off topic and I'm curious.

If thats true that sooooooo funny

[oooooo]

The increasingly bad exchange rate of foreign currencies against the Thai Baht is something that probably affects every farang living in Thailand, but some more than others. While some currencies dropped only a few points, the USD has dropped from around 44.00 to currently around 34.00 in less than two years. For myself and those who have their income in USD this means over 20% less money in less than two years.

I agree that part of it is due to the US economy falling down, but the exchange rates in Thailand are much worse than in other countries, where it has dropped around 3-4% in the same time period.

On top of the bad exchange rates, I have noticed that imported products prices have also increased dramatically. The same bottle of cheap french wine, which I use sometimes for cooking, has increased from 360 baht to 490 baht in less than 2 months. The same with at least a dozen other imported products i regularly buy. And I have observed this in different shops, so it's definitely the overall imports and not a single store.

While my wife and I love Thailand, we both came to the conclusion that it may be time to move to another country, maybe if its only for a few years. Its not like I'm dying because of the few +15,000 baht I lose every month, but why should I lose it if there's another choice? In the end of the year, it does add up and if you throw the political instability into the pot it almost overflows.

Has anyone had similar thoughts?

swiss citizen, remunerated in USD, 23 yr old university student wife, oh my oh my

[Ulysses G.]

Most of us came here initially because of an attaction to Thai spirituality

April 1st. I get it.

Good one!

[PeaceBlondie]

I came to Thailand for the bland food.

[peter991]

Is there a REASON for the increasingly bad exchange rates. I have read the various threads and can't find an acceptable reason. The Australian Dollar is at a 5 year high against the US Dollar, but is heading for a 5 year low against the Thai Baht. I am visiting Thailand at Easter/Songkran and hoping to retire to LOS in 2 years - but I may have to look at alternatives.

Peter

[kratindaeng]

Most of us came here initially because of an attaction to Thai spirituality and or Thai people and yes, we found it was cheap to live here. When being cheap becomes the primary reason people stay in Thailand they tend to become fearful and unhappy and resentful. I hope there will become cheaper places in the world to live comfortably so that those people can find some kind of peace of mind and stop trying to will Thailand into something that fits their desire. Bon Voyage!

most came for spirituality? lol. when your midlife crisis breaks mdeland, please let us know.......

55555555!

[Naam]

I came to Thailand for the bland food.

:D

[billd766]

I am a Brit but living in the central region 6km outside of the village.

Like a lot of people I am suffering from the baht / pound exchange rate but as I rarely use imported stuff because most of our shopping is done in the village markets it is not as bad as it could be.

I came to live in Thailand as my wife is Thai, we have land and property here, our son is now 2 2/3 and I have absolutely no desire to go and live elsewhere.

We used to drink imported Chivas Regal, went to 100 Pipers 8 year old and now quite happily drink Sangsom for me and Regency brandy for my wife.

We just tighten our belts and live with it.

I was here in 1997 when the baht went from 42/43 to around 90 to the pound and in the last 10 years it has slowly fallen to around the low 70s and been as low as 65.

I will ride it out and eventually it will gain a bit and be back to a reasonable level in the next few months.

Or at least that is what I hope.

What I don't want to see is the baht crashing again as in 1997.

It is good for us farangs, not too bad for around 3% of Thais and disastrous for the rest and for Thailand in general.

My heart and soul is in Thailand and will be until I die and then my spirit will be here forever.

[Nebukanezar]

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

while I am no hotshot investor my hunch is this is not yet the time to buy, could still be a few years off til prices hit bottom.

You may very well be right, however I'm looking at forclosures mainly, I may be able to pick up something decent and cheap, mabey a few duplexes in Philly or Detroit, section 8 them right fast and slum lord it from the other side of the world.

Section 8 by the way for thouse that don't know is a program were by the govt agrees to pay home owners a fair rent for their homes and assign poor pepole to them who pay nothing or a small fraction of the rental price direct to the govt. The govt in turn pays the home owner full rent each month on time irregaurdless of the payment of the tenant.

I wonder if Thailand has something like this.... I wish they did.

[keddy]

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

while I am no hotshot investor my hunch is this is not yet the time to buy, could still be a few years off til prices hit bottom.

You may very well be right, however I'm looking at forclosures mainly, I may be able to pick up something decent and cheap, mabey a few duplexes in Philly or Detroit, section 8 them right fast and slum lord it from the other side of the world.

Section 8 by the way for thouse that don't know is a program were by the govt agrees to pay home owners a fair rent for their homes and assign poor pepole to them who pay nothing or a small fraction of the rental price direct to the govt. The govt in turn pays the home owner full rent each month on time irregaurdless of the payment of the tenant.

I wonder if Thailand has something like this.... I wish they did.

Some people do come here for the spirituality and I don't mean cheap bottle of alcohol. Everyone can learn something from some Thai attitudes and Buddhism, particularly letting go of vexation and unnecessary pre-occupation with the minutae of life. Maybe it takes a midlife crisis to realize that all this stupid clinging to previous 'lifestyles' and identities is just another illusion and distraction. I know the happiest faces I've seen, which spring to mind are those with seemingly the least, while there are countless washed up, miserable souls with money, a lot of them, falangs who mope about not getting their expectations satisfied and don't have a clue. As that mop top with the glasses who had been known to chase his own tail, more than a few times, once said 'I just have to let it go'

[Nebukanezar]

I feel ya on that Rain Man. This has been getting me bent out of shape too. When I got engaged to my fiance' and agreed with her father about the Sin Sot arrangement (details not important on this thread) It was back in Dec of 05, we pushed the wedding back so I could be out of Iraq when we are to wed so the new date is in Feb of next year. Sadly I agreed to a amount in THAI Baht, not dollars, so that even if we get married right now I will be spending around $8,500 MORE just to cover the same amount. I'm scared to think what it will be like in 08 when we finally Thai the knot

I am gonna do 3 things,

1) buy investment property in America (perfect time real estate now is a buyers market there for a number of reasons)

2) get a Condo in Dubai to wait it out for another year after we marry to see if the global market smacks the baht down like it needs too.

3) Buy a lil land in Thailand on mortgage with a minimum down payment so I don't loose so much when the baht dose fall.

The following are rough figures. In Dec, 2005 the baht/USD was 41:1. Today 35:1. So based on your above comment (in red):

2,000,000 baht @ 35 = $57,142 USD (today)

2,000,000 baht @ 41 = $48,780 USD (Dec, 2005)

Difference = $ 8,362 USD (roughly the $8,500 from above)

So, you are paying 2,000,000 baht Sinsod? As the thread IS about the bad exchange rate this is not off topic and I'm curious.

If thats true that sooooooo funny

Good Math Gentlemen, and no I don't feel the need to defend it. It is what it is and I am quite comfortable with it at the 2 mill. However it's the $8500 just Vaporizing over the year that has me twisted.

[KhunMarco]

Good Math Gentlemen, and no I don't feel the need to defend it. It is what it is and I am quite comfortable with it at the 2 mill. However it's the $8500 just Vaporizing over the year that has me twisted.

Amazing Thailand

[jdinasia]

[jetjock]

You may very well be right, however I'm looking at forclosures mainly, I may be able to pick up something decent and cheap, mabey a few duplexes in Philly or Detroit, section 8 them right fast and slum lord it from the other side of the world.

Good Math Gentlemen, and no I don't feel the need to defend it. It is what it is and I am quite comfortable with it at the 2 mill. However it's the $8500 just Vaporizing over the year that has me twisted.

Your idea on picking up some real estate in Detroit sounds like a good one and could turn out to be a winner. The RE market there is currently collapsing due to the shutdowns and cutbacks in the auto plants. Some people are picking up forclosure houses as low as $28000 USD and virtual mansions for $150 to 200 K. This could be the right time in the RE cycle to buy there.

As for your sinsod amount, as the Thai's say 'up to you--up to you' ! And as P T Barnum once said ..... ???

As for the monetary markets, in the long run most currencies have a cycle of rising and falling so I would not be hasty to quickly paint a Chicken little scenario for the USD compared to the Thai Baht .

[jdinasia]

The increasingly bad exchange rate of foreign currencies against the Thai Baht is something that probably affects every farang living in Thailand, but some more than others. While some currencies dropped only a few points, the USD has dropped from around 44.00 to currently around 34.00 in less than two years. For myself and those who have their income in USD this means over 20% less money in less than two years.

I agree that part of it is due to the US economy falling down, but the exchange rates in Thailand are much worse than in other countries, where it has dropped around 3-4% in the same time period.

On top of the bad exchange rates, I have noticed that imported products prices have also increased dramatically. The same bottle of cheap french wine, which I use sometimes for cooking, has increased from 360 baht to 490 baht in less than 2 months. The same with at least a dozen other imported products i regularly buy. And I have observed this in different shops, so it's definitely the overall imports and not a single store.

While my wife and I love Thailand, we both came to the conclusion that it may be time to move to another country, maybe if its only for a few years. Its not like I'm dying because of the few +15,000 baht I lose every month, but why should I lose it if there's another choice? In the end of the year, it does add up and if you throw the political instability into the pot it almost overflows.

Has anyone had similar thoughts?

15 minutes to Wopner ..... (is he still on?)

[chanchao]

(I just KNEW someone would do that calculation and steer this discussion to Yet Another Sin Sod Debate.)

[bkkmadness]

Good Math Gentlemen, and no I don't feel the need to defend it. It is what it is and I am quite comfortable with it at the 2 mill. However it's the $8500 just Vaporizing over the year that has me twisted.

Amazing Thailand

If you hadn't offered 2 million in the first place then you wouldn't have to get twisted would you.

:D

[Heng]

Similar thoughts, yes, the spiralling rates do suck a bit. There is lemonade to be made though no matter how dire things look.

[rainman]

swiss citizen, remunerated in USD, 23 yr old university student wife, oh my oh my

..and your point would be? I'm 24 myself, are you saying a 23 year old wife is inappropriate? Other than that, I don't understand your comment.

I hold permanent residence in both Canada and Spain since over 10 years, in addition to a Swiss passport and an EU passport. So I can live pretty much anywhere I want. Don't get me wrong, I would love to stay in Thailand, but I'm just considering the expenses here that could be used in better ways elsewhere.

Someone mentioned Philippines. While its cheaper than Thailand, I also know the quality of life is a lot lower. I'm currently thinking about Spain. I grew up there and while things changed a lot from back then, the prices on most things are about the same as Thailand right now. You also have the beach and all that, plus better air and no political instability. My whole point is, while I can put up with all the changes here in the past 2-3 years, why should I?

Again, these are just my thoughts. I'd stay here if things wouldn't start to go down the drain so quickly. But right now its just one thing on top of the other.

And right now I don't know if I'll stay here or not ..we'll see in the coming months.