Buyers market Samui?

[hellohello]

Hi TV

 

Seems there is a lot of well priced houses/ villas in Samui now.   Is it a buyers market?

 

Thank you in advanced

 

 

[Bangyai]

15 hours ago, hellohello said:

Hi TV

 

Seems there is a lot of well priced houses/ villas in Samui now.   Is it a buyers market?

 

Thank you in advanced

 

 

 

You would think it probably is given the total collapse of the tourist industry and the ongoing Covid situation. Depends what you are buying. House or business.

[khunPer]

27 minutes ago, hellohello said:

Seems there is a lot of well priced houses/ villas in Samui now.   Is it a buyers market?

To my knowledge, not more than usually.

 

The lower priced houses – i.e. what more normal folks can afford – have always been bit of buyers market for various reasons; whilst the higher level more often is "business as usual", but that range of properties may be offered at a price that often can be negotiated some millions baht down.

 

If considering a house in a project, do a due diligence on the fees and project-owner, select "freehold" instead of "lease".

[hellohello]

thank you.  

[brain150]

Wait another 6 month !!!

 

... the economic crisis is not yet visible in the property market but will soon be !!!

[murraynz]

On 12/30/2020 at 3:57 PM, khunPer said:

To my knowledge, not more than usually.

 

The lower priced houses – i.e. what more normal folks can afford – have always been bit of buyers market for various reasons; whilst the higher level more often is "business as usual", but that range of properties may be offered at a price that often can be negotiated some millions baht down.

 

If considering a house in a project, do a due diligence on the fees and project-owner, select "freehold" instead of "lease".

I would say most places in thailand..are always ,a buyers market..

But many sellers..not at all realistic..

[elgenon]

5 minutes ago, murraynz said:

I would say most places in thailand..are always ,a buyers market..

But many sellers..not at all realistic..

They think differently about the reason for buying and owning than Westerners. I think a potential buyer needs to understand the Thai thinking. Do not disparage them for thinking differently than you. Unless you need to be "right".

[Ventenio]

if they want 25 million.......send an offer of 15 million.  see if they respond.  if they come back with 20...then you know they are desperate.  

 

i remember 10-years ago people on TVF said housing prices would crash by 90%.  everyone said wait, wait, wait...  

 

maybe they meant 2021, since they never did say when to buy.

 

I'd wait until 2076, personally.   now I'd recommend buying an island.  big money in islands

[murraynz]

1 hour ago, elgenon said:

They think differently about the reason for buying and owning than Westerners. I think a potential buyer needs to understand the Thai thinking. Do not disparage them for thinking differently than you. Unless you need to be "right".

Please ,can you explain how thai sellers think..

Its got nothing whatsoever,to do with me being 'right'..

[hotchilli]

On 12/30/2020 at 3:19 PM, hellohello said:

Hi TV

 

Seems there is a lot of well priced houses/ villas in Samui now.   Is it a buyers market?

 

Thank you in advanced

 

 

Wait for 2021 the'll be offering properties with every visit.

[spidermike007]

Samui has been a very soft market for many years. Nearly all of those villas up on those hills were built on spec. Very few could be sold. So, they became rentals, and deflated the villa rental market drastically, due to over supply. The market has been upside down for a long time. If you are a buyer, look to be paying no more than 25-50% of the real value. Samui will take years upon years to get back on its feet. 

 

Word is there are hundreds of hotels being offered for half price. Why should that not apply to stores, villas, and apartment buildings?

Edited January 1, 2021 by spidermike007

[ronaldo0]

The place is flooded with property and yet there are companies still building like crazy as they need to use the permits they were given or will need to reapply. Most of the new places are an absolute eyesore . There will be a few desperate people who will be selling very reduced property but not so much for land . Then there are those who think samui is Monte Carlo and ask insane prices . Just the other day I seen a half rai about a km of main road with zero view in middle of nowhere and they were asking 4.5m bht . Then there was another asking 30m for a rai in the north with sea view about 4km from the sea , this type usually is 6-10m bht at most .

[timendres]

3 hours ago, murraynz said:

Please ,can you explain how thai sellers think..

Its got nothing whatsoever,to do with me being 'right'..

 

I think the one of the biggest factors involved is the low cost to carry. In the US, my house is taxed at 3% of its assessed value. If it was sitting dead, the taxes would be encouraging me to sell. Maintenance costs at home are much higher also. When the cost to carry is very low, there is little incentive to sell for what is perceived to be a low price. I would also think that most Thai property owners are middle class and up, reducing the number who are under economic pressure to sell.

[khunPer]

4 hours ago, Ventenio said:

if they want 25 million.......send an offer of 15 million.  see if they respond.  if they come back with 20...then you know they are desperate.  

 

i remember 10-years ago people on TVF said housing prices would crash by 90%.  everyone said wait, wait, wait...  

 

maybe they meant 2021, since they never did say when to buy.

 

I'd wait until 2076, personally.   now I'd recommend buying an island.  big money in islands

I have the opposite experience from Samui's real estate market, if you squeeze the price then the seller might not be interested at all; and if you consider too long time, the price either goes up, or someone else already bought the property you were interested in, sometimes for a higher price than than you intented to pay for it.

 

2 hours ago, spidermike007 said:

Nearly all of those villas up on those hills were built on spec. Very few could be sold.

As SpideMike007 says, there are numerous uphill villas, of which several have not even have been completed. Be very careful here, if they ofte are inside a project; you need to make due diligence both about an eventually project and it's fees, and the title deeds. Some uphill land might be legal ownership, even there seems to be a title deed. Avoid buying houses on leased land in a project without a serious check of land owners and registered servitudes, and be aware of that there is no such thing as 30+30 years, or more, lease-period; it's up to 30 years and not more. But there are many great uphill properties, just do your homework before "investing".

 

 

Don't forget that you mainly pay for location, when buying property, not what a similar house in general can be build for. In general in Thailand, it's the land that has value, not the building.

 

As I said in an earlier posting here, there are, and have always been, numerous properties for sale at reduced price for numerous reasons. Often availability is a question of a quick deal with cash payment; it might be folks in need of instant funds, or foreigners moving out for whatever reason. In such cases you might be able to buy property under it's real value; however the latter is difficult to set in Thailand, mainly relected by what other similar properties in same area has recently been traded for...????

 

 

 

[khunPer]

3 hours ago, murraynz said:

Please ,can you explain how thai sellers think..

Its got nothing whatsoever,to do with me being 'right'..

Thais in general don't wish to sell their land, it has to do with old times "sakdina"-system...????

[elgenon]

20 hours ago, murraynz said:

Please ,can you explain how thai sellers think..

Its got nothing whatsoever,to do with me being 'right'..

Thais, in general, don't buy property for short term gain or do they normally buy based on rent to be received relative to price paid. In general it's more about "banking" the property for the future. Similar to buying gold. So the price they pay is based on different thinking than many Westerners. So, typically, also more willing to hold on to the property than sell for what a Westerner thinks is the right price.

 

[elgenon]

On 12/31/2020 at 8:15 PM, Ventenio said:

if they want 25 million.......send an offer of 15 million.  see if they respond.  if they come back with 20...then you know they are desperate.  

 

i remember 10-years ago people on TVF said housing prices would crash by 90%.  everyone said wait, wait, wait...  

 

maybe they meant 2021, since they never did say when to buy.

 

I'd wait until 2076, personally.   now I'd recommend buying an island.  big money in islands

OK! How much is Samui? I will have a tax refund coming.

[ThomasThBKK]

On 1/2/2021 at 9:12 AM, elgenon said:

Thais, in general, don't buy property for short term gain or do they normally buy based on rent to be received relative to price paid. In general it's more about "banking" the property for the future. Similar to buying gold. So the price they pay is based on different thinking than many Westerners. So, typically, also more willing to hold on to the property than sell for what a Westerner thinks is the right price.

 

 

The reason they don't buy for short term gains is that thailand has horrible taxes on real estate sales, basically it count's as income and gets taxed as income. 

[elgenon]

19 hours ago, ThomasThBKK said:

 

The reason they don't buy for short term gains is that thailand has horrible taxes on real estate sales, basically it count's as income and gets taxed as income. 

Talking to my Thai friends it seems a bit more than that to me. But that's my impression. ROI (rent) doesn't seems as important to Thais as it does to Westerners since they are banking it. Years ago I checked out selling prices for commercial property in CM. No way do the rents justify them as I see it from a Western perspective.

[ThomasThBKK]

5 hours ago, elgenon said:

Talking to my Thai friends it seems a bit more than that to me. But that's my impression. ROI (rent) doesn't seems as important to Thais as it does to Westerners since they are banking it. Years ago I checked out selling prices for commercial property in CM. No way do the rents justify them as I see it from a Western perspective.

 

yes, rent is also way too cheap here.

 

It takes like 30-40 years for a new bkk condo to return your investment based on rent alone, if someone buys here than to speculate on appreciation, but then you have the income taxes when you sell which makes that not worth either. 

 

Land is so expensive which makes the condos/houses in those areas also very expensive per sqm, but the rent is still too cheap so make it worth it. 

 

The only thing that makes sense is to buy old stuff, renovate it and adjust the rent to a new renter, only works in good locations tho. 

 

 

 

[elgenon]

16 hours ago, ThomasThBKK said:

 

yes, rent is also way too cheap here.

 

It takes like 30-40 years for a new bkk condo to return your investment based on rent alone, if someone buys here than to speculate on appreciation, but then you have the income taxes when you sell which makes that not worth either. 

 

Land is so expensive which makes the condos/houses in those areas also very expensive per sqm, but the rent is still too cheap so make it worth it. 

 

The only thing that makes sense is to buy old stuff, renovate it and adjust the rent to a new renter, only works in good locations tho. 

 

 

 

Thanks for the backup!

 

I'm not really that dollars and cents. I own property at the beach in California. Even though I built the houses, so the cost was relatively cheap and I already had owned the land for 12 years, it took me ten years to break even on the rent. Hello negative income.

 

I had been hoping to do a loft type thing in a commercial property in CM. But the price didn't makes sense to me. 

[khunPer]

Buyer's market Samui?

Yes, it seems to be so. According to Koh Samui News Update it's buyers market at the moment, and prices are probably negotiable if you are interested in a resort, and has something like the equivalent of a EuroLotto Jackpot spare in the bank...

My photo from Deva Resort, Samui.

There are 660 hotels on Koh Samui, currently 480 hold a valid licenses. Many businesses are either sold, or ready to sell, because of Covid-19 lockdown and lack of customers. For example, Conrad Hotel, Koh Samui, 89 Rai says that it's selling for 1,157 million baht; Buonthaburi Hotel, Spa Resort & Villa Samui, 23 rai, selling price 1,000 million baht; Noraburi Resort Hotel & Spa, 1,000 million baht; Deva Beach Resort Samui, 6-2-80.1 rai, selling price 650 million baht; Baiyoke Hotel, Sea Coast Samui, 10-2-83 rai, sales price 350 million baht; etc. For those who are interested, you can negotiate the price.

Source: Koh Samui New Update and Phrachachat โรงแรม 3.7 พันแห่ง ปิดตาย ทุนต่างชาติไล่ทุบราคา “ภูเก็ต-สมุย”.

 

PS: Some days it seems easier to win in a lottery than avoiding time out on Thaivisa's server...

 

UPDATE: Conrad Samui is unfortunately not for sale...????

The business is still open as usual for customer service, and the hotel is not in debt with financial institutions.
Source: Phrachachat โรงแรมคอนราด เกาะสมุย โต้ข่าวปิดกิจการ ยันเปิดบริการปกติ

Edited January 31, 2021 by khunPer

[gearbox]

On 1/11/2021 at 9:38 AM, elgenon said:

OK! How much is Samui? I will have a tax refund coming.

Check the FB groups for Samui Buy & Sell. There are tons of desperate farangs there trying to find the greater fool for properties.

 

https://en.wikipedia.org/wiki/Greater_fool_theory

[Surelynot]

Unless you have money to burn....buying in Thailand is madness......buy in your home market that you know and understand....rent that property out and use the rental income to rent in Thailand....

[khunPer]

3 hours ago, Surelynot said:

Unless you have money to burn....buying in Thailand is madness......buy in your home market that you know and understand....rent that property out and use the rental income to rent in Thailand....

In some home countries that could unfortunately become a loss due to tax-rules...

 

If you know that you are going to stay long time in Thailand, i.e. 10+ years, "investing" in a home can make more sense than renting, as you after 10-15 years might a paid the full price in rent for a home; however depending of location.

 

But "investing" in property in Thailand for a profit might be a quite risky affair, you need to know well what you are doing, and be padded enough to carry a loss...????

[Tropicalevo]

37 minutes ago, khunPer said:

In some home countries that could unfortunately become a loss due to tax-rules...

 

If you know that you are going to stay long time in Thailand, i.e. 10+ years, "investing" in a home can make more sense than renting, as you after 10-15 years might a paid the full price in rent for a home; however depending of location.

 

But "investing" in property in Thailand for a profit might be a quite risky affair, you need to know well what you are doing, and be padded enough to carry a loss...????

khunPer talks a lot of sense.

There are lots of 'do buy/don't buy' suggestions.

Each person's circumstances are different.

I gave up the corporate life and moved to Samui for 'quality of life'. It has been over 20 years now and life has been brilliant. Unfortunately wifey died a few years ago. But, at this point in time, I still do not want to be anywhere else on this planet.

Thailand was my wife's choice for living in and I did not disagree. (She was given the choice of any country in the world.)

We bought the land and built three houses under a two company structure. One house to live in (no rent) and the other two as an income stream.

Five years ago I sold one of the houses and recovered all of my initial investment plus a bit more.

I still have two houses and land, owned by my company.

 

"Unless you have money to burn....buying in Thailand is madness"

 

Not true if you do your homework.

My investment here has now been paid back in full plus some.

 

Dream on and work for those dreams. ????  ????

Edited February 1, 2021 by Tropicalevo

[KarenBravo]

Over the last 30 years, I've bought and then sold some bits of land, a very small condo and a town-house (in Thailand).

Every time I bought something, my friends and peers told me I had overpaid, or that I had been cheated.

Each time I sold and made a nice profit, these same people said that I was very lucky.

 

Make of that what you will. 

[Surelynot]

7 hours ago, khunPer said:

If you know that you are going to stay long time in Thailand

...and there in lies another problem.....I nearly bought last summer......circumstances have already changed and I am fortunate that I rented as I may to return to the UK.

[Ron jeremy]

41 minutes ago, Surelynot said:

...and there in lies another problem.....I nearly bought last summer......circumstances have already changed and I am fortunate that I rented as I may to return to the UK.

Always have a backup plan, the pollution and filth: garbage wore on me after a while, so happy I never made the mistake of buying there! 
paradise? Yes back home in Canada ????????!

certainly not in Thailand!

[Tropicalevo]

9 minutes ago, Ron jeremy said:

paradise? Yes back home in Canada ????????!

certainly not in Thailand!

I disagree. That is what makes us all unique.

Canada - you can keep it. Enjoy. I love being warm without having to cuddle a polar bear.