Is now a good time to buy a condo in Bangkok?

[TPDH]

Hi

 

If you have the money to buy a condo somewhere rather central in Bangkok for about 10M THB, would now be a good time to buy it from a financial perspective?

 

Also considering that you'd live in it full time, would own it for 5-10+ years and you can afford the mortgage/downpayment (Thai wife's name on the loan). 

 

Edited October 17, 2020 by TPDH

[BigStar]

Our ace TVF Real Estate Analysts have determined that not this year but next year will be the time to buy. That's when the Big Crash is happening. Definitely, this time.

 

Also, it's difficult and in most cases impossible for a foreigner to get a mortgage from a Thai institution. Our experts will explain.

 

Buying it to live in long-term is a good idea, though.

Edited October 17, 2020 by BigStar

[BritManToo]

22 minutes ago, BigStar said:

Buying it to live in long-term is a good idea, though.

Tell that to all the foreign guys that bought, and can't get back into the country.

10MBht as a gift for a Thai chick  ..... you'd have to be bonkers.

Edited October 17, 2020 by BritManToo

[86Tiger]

I am betting 6 - 8 month out will be time to buy.  

 

What seems like a deal today will be slashed by half this time next year.  

 

 

Just this man's opinion.

[BigStar]

39 minutes ago, BritManToo said:

Tell that to all the foreign guys that bought, and can't get back into the country.

10MBht as a gift for a Thai chick  ..... you'd have to be bonkers.

That's them, and similar situations are by no means unique to Thailand.

 

Property ownership in foreign countries, particularly in Third World countries, has risks along with the rewards that one should be prepared to assume. Otherwise, one really should follow our TVF Little Miss Muffet Rule with regard to residency in Thailand. And then of course promote it whenever the question condo ownership comes up, as it does quite often.

 

If they bought long term, they'll someday return to live the dream again, underlining my point. Could be sooner than later, as things seem to be loosening up month by month. Lesson: don't ever leave, or if so then at least hasten back upon hearing the slightest rumor of a new pandemic. Take out Thai citizenship as well.????

Edited October 17, 2020 by BigStar

[scubascuba3]

Start looking at auctions, that's where the best deals will be. The moratorium to repossessions has been lifted 

[Peterw42]

OP, it really comes down to personal circumstances. Is your 10m baht currently getting a return, what is the current exchange rate for your home currency, how much rent would you save over the 5-10 year period. Is the purchase price down from historic highs. Are you looking for a return/yield on your funds (via rent not paid), are you looking to hold for a capital gain, etc etc. 10m would get you an investment visa.

 

There are to many vvariables to determine if a property is a better buy today than yesterday, if your goal is just to save rent then you dont really care about over supply, future value. If your goal is to realise a profit over time then its a different scenario.

 

Its very easy to see what appears to be a heavily discounted property, and think its a bargain, in reality it was never worth the original price. Its all smoke and mirrors when it comes to asking prices of condos. You really need to just look at a condo in terms of its value to you and your circumstances

 

 

 

 

Edited October 17, 2020 by Peterw42

[baansgr]

Are your funds already in Thailand, are you paid in Thai Baht? XE can play a big part in overseas property purchases. Although the whole world is struggling, take into account the strength of THB and how much longer that will last...political turmoil, exports and tourism down and millions unemployed may have an impact sooner rather than later. Mortgage in wife's name, means the condo is hers so not your investment regardless of any pre nups or divorce agreements if something does go wrong...as for prices...if Pattaya is anything to go by, rents have dropped 50% already and sales prices 30%...how long befor those 200k per SQM BKK condos do the same...borders closed indefinitely, Chinese restrictions on taking money out...everything points to lower prices in the future.

[bkk6060]

3 hours ago, TPDH said:

would now be a good time to buy it from a financial perspective?

Absolutely not.  It would be a huge mistake.

[Matzzon]

YES! Now is the time to buy. The economy stands in front of total devastation, probable upcoming revolution in the near future and many people leaving Thailand.

 

So, if you want to pay as much as you can, with the highest possible risk of a bursting bubble. You wish to live with the risk that your property will be broken in to, burned or bombed. That as well as you can not see the signs of all the masses leaving the country. Hell Yeah! Then it´s just to buy! Good Luck!

[scubascuba3]

27 minutes ago, bkk6060 said:

Absolutely not.  It would be a huge mistake.

Depends, buying at top price would be a mistake but if he finds a good deal it's not a mistake. Just like shares, buying when markets are crashing all around can work out very profitable

[statman78]

Based on your original post it sounds like you would either buy a condo to live in or rent for the next 5-10+ years.  Since you are talking about financing I assume you don’t have the money to invest elsewhere.  I think buying is a better option than paying rent. In the end you will have an asset instead of a stack of rent receipts.   I have seen prices drop quite a bit recently but I expect prices to go down even more within the next 12 months.  How much more I don’t know.  With the current policy unrest it is anyone’s guess as to how far the economy will fall.  I also feel that this may also be the time when the baht finally weakens so if your down payment is in foreign currency it may be good to wait.

[bkk6060]

33 minutes ago, scubascuba3 said:

Depends, buying at top price would be a mistake but if he finds a good deal it's not a mistake. Just like shares, buying when markets are crashing all around can work out very profitable

At the end of 2019, Ms Risinee Sarikaputra, the Director of Research at Knight Frank Thailand revealed that close to 100,000 unsold units were on the market at that point. 

 

 

 

There are over 100,000 empty condos in Bangkok.  It will take many years to resolve that inventory in the mean time, they will keep building.

Good deal? How do you know it is a good deal?

There is no transparency here.  What are the comps in the building, the condition of the properties sold, true prices, terms, upgrades?

It will be dead money/depreciating for several years I bet.  

But good luck to anyone buying.  All the sellers will try to convince you what a good deal it is lots of gullible people out there.   Terrible investment in my opinion.

[Yellowtail]

17 hours ago, Matzzon said:

YES! Now is the time to buy. The economy stands in front of total devastation, probable upcoming revolution in the near future and many people leaving Thailand.

 

So, if you want to pay as much as you can, with the highest possible risk of a bursting bubble. You wish to live with the risk that your property will be broken in to, burned or bombed. That as well as you can not see the signs of all the masses leaving the country. Hell Yeah! Then it´s just to buy! Good Luck!

 

How many people are leaving Thailand, a few people that can't keep their visa in order? Virtually none of the Thais are leaving. 

[BritManToo]

21 hours ago, BigStar said:

If they bought long term, they'll someday return to live the dream again, underlining my point. Could be sooner than later, as things seem to be loosening up month by month. Lesson: don't ever leave, or if so then at least hasten back upon hearing the slightest rumor of a new pandemic. Take out Thai citizenship as well.????

I've not noticed anything 'loosening up' in the world since the day the borders closed.

If anything, in the west it's tightening up.

[BritManToo]

56 minutes ago, Yellowtail said:

How many people are leaving Thailand, a few people that can't keep their visa in order? Virtually none of the Thais are leaving. 

None of the Thais I know of in Oman want to return.

(Don't know any in other countries)

Edited October 18, 2020 by BritManToo

[Surelynot]

Personally I would never consider buying in Thailand.....buy in your own country where you know the laws and the market....rent that property and use the rental income to then rent in Thailand.

 

Are you 100% happy with the outcome of buying here....if (and when) you marriage breaks down? Do you know who gets what?

[1FinickyOne]

21 hours ago, BritManToo said:

you'd have to be bonkers.

bonkers - that must be a good thing? 

 

If you can easily afford it, it sounds more like a nice thing to do, especially if you can live in and enjoy it too... 

[natway09]

If you can afford to, start looking out for any bargains that become available.

If it is what you want, where you want at a price you can afford without a mortgege so can get it in your name 

grab it. 

If you can also before buying is to check on the monthly outgoings charged by the people in control of the building,

ie; Juristic committee in place etc, as this in many places in Pattaya is a way of gouging slowly by accidently on purpose 

manipulating the m2 price & other means as a way of making money.

Good Luck, just tread slowly & be prepared to walk away from a few "bargains" as I have done with the above being 

way out of line

 

[1FinickyOne]

I would shop it and if you feel you are getting a really good buy, then the time is right... I would expect a good drop in price off the last years highs... if not, I would wait. 

[1FinickyOne]

14 minutes ago, Surelynot said:

buy in your own country where you know the laws and the market....rent that property

Everyone is individual but I doubt I will ever go back to my home country - - this is my home country now...

 

Have you ever been a landlord? 

 

Your formula works fine as a formula, the reality is that many tenants can be a disaster, costing not only money but time and loads of aggravation... 

[1FinickyOne]

19 hours ago, Matzzon said:

Hell Yeah! Then it´s just to buy! Good Luck!

Wake up on the sarcastic side of the web today? 

 

You left out that Bkk is sinking... 

[Surelynot]

6 minutes ago, kenk24 said:

Everyone is individual but I doubt I will ever go back to my home country - - this is my home country now...

 

Have you ever been a landlord? 

 

Your formula works fine as a formula, the reality is that many tenants can be a disaster, costing not only money but time and loads of aggravation... 

Yes...I have done exactly as I suggest, bought in the UK, rental income is £1000pm.....rent in Bangkok £425..... for a condo with pool, gym, all the usual extras......but then again I have been lucky I guess regarding tenants.

[AlfHuy]

22 hours ago, BritManToo said:

Tell that to all the foreign guys that bought, and can't get back into the country.

10MBht as a gift for a Thai chick  ..... you'd have to be bonkers.

In Isaan, you can build yourself a castle.

[ThailandRyan]

19 hours ago, Matzzon said:

YES! Now is the time to buy. The economy stands in front of total devastation, probable upcoming revolution in the near future and many people leaving Thailand.

 

So, if you want to pay as much as you can, with the highest possible risk of a bursting bubble. You wish to live with the risk that your property will be broken in to, burned or bombed. That as well as you can not see the signs of all the masses leaving the country. Hell Yeah! Then it´s just to buy! Good Luck!

I just love your optimistic view.  Your post is so full of sunshine, real truths, and your not pulling any punches either.  Such truth in your words.  

[Matzzon]

1 hour ago, Yellowtail said:

 

How many people are leaving Thailand, a few people that can't keep their visa in order? Virtually none of the Thais are leaving. 

For Thais it´s almost always a good time to buy, due to that they are citizens and have their whole life to make a profit out of their investment. This thread is regarding a foreign investment for as I assume both living and profit. Due to that you do not set the rules for how this country decides to do with foreigners and their investments, that will always include a greater risk.

[thaibeachlovers]

22 hours ago, BigStar said:

Our ace TVF Real Estate Analysts have determined that not this year but next year will be the time to buy. That's when the Big Crash is happening. Definitely, this time.

 

Also, it's difficult and in most cases impossible for a foreigner to get a mortgage from a Thai institution. Our experts will explain.

 

Buying it to live in long-term is a good idea, though.

Some of us think never is a good time to buy property in LOS.

[BritManToo]

10 minutes ago, ThailandRyan said:

I just love your optimistic view.  Your post is so full of sunshine, real truths, and your not pulling any punches either.  Such truth in your words.  

He's not wrong though.

[BritManToo]

4 minutes ago, thaibeachlovers said:

Some of us think never is a good time to buy property in LOS.

I bought a new 3 bedroom house for 2Mbht, 300k deposit + 11k/month for 27 years.

Not much risk to me, I can stand a 300k loss (already lived in it 7 years) .......... but 10Mbht for one or two rooms? ......

I could live for 10 years on 10Mbht.

Edited October 18, 2020 by BritManToo

[4MyEgo]

23 hours ago, TPDH said:

Hi

 

If you have the money to buy a condo somewhere rather central in Bangkok for about 10M THB, would now be a good time to buy it from a financial perspective?

In short, NO !!!

 

The long of the short:

 

The Bangkok condo market is well oversupplied, you don't have to hold a degree to know that, whether you live in it or not, it is not going to appreciate in value for a long time.

 

Why on earth would you want to buy a condo with your money and have your partner take out a mortgage, I am aware farangs can't borrow from Thai banks unless they meet strict bank criteria, i.e. if they can actually get a mortgage, farangs who have obtained (Thai citizenship).

 

If you actually have that kind of money, just leave it in the bank back in your home country or seek professional advice on to how to invest it where you are generating a return which could go to paying rent. An example would be, I have been here for 5 years, I have invested my money and it has cost me nothing to live here in those 5 years, my investments haven't increased, they have actually decreased since Covid-19 was announced, that said, as I also have money in the bank, I don't need to sell any of my investments, so I will just sit and they will come back up when things calm down.

 

Personally I wouldn't be looking at buying a condo which would make it easy for my partner to collect in the case of a separation, you should be looking at keeping your finances separate and if that gets her all hissy, then you know she is "thinking" as they all do, make of that what you will and ALWAYS protect what is YOURS, because others will want to get their hands on it........LOVE YOU LONG TIME as others here will tell you, then badda bing, badda bang, badda boooom, solly not love you anymore, but thank you for EVERYTHING ????

 

Rent and invest, but first seek professional advice.

Edited October 18, 2020 by 4MyEgo