Would you agree now could be the time to buy bricks and mortar again?

[IamNoone88]

4 hours ago, Eric Loh said:

The increased construction costs that you highlighted are correct. It will cause a major shake out of construction companies especially the smaller construction companies. 

 

The large companies especially those listed in SET will be able to manage costs more effectively than their smaller peers, they are also in a position to buy larger land bank which would reduce project development cost. They can also undertake several projects simultaneously which improves economies of scale. Beyond this, they benefit from stronger branding and marketing networks. They will benefit from the improved economic conditions, proliferation of infrastructures especially the trains and very likely government stimulus measures targeted at the real estate sector which contribute 8% to the GDP. 

 
 

Well articulated. Add to that possible interest rate increases as inflation bites and possibly stricter lending controls.

[jerrymahoney]

57 minutes ago, PJ71 said:

8 hours ago, LarrySR said:

A 12 story condo in Florida collapsed last year

How many million of condo blocks in the world?

 

One collapse it a tiny % of failure.

https://www.tampabay.com/news/florida-politics/2022/02/10/florida-bill-would-require-condo-owners-to-conduct-inspections-save-for-repairs/

[DoneTravelling]

It all depends why you want to buy.

 

1. If as an investment then do not expect to make much if any profit when you sell. There is a huge property surplus in Thailand so how can your property really increase, unless it is something spectacular.

2. If purchasing to live in it does not matter if the value increases. However I lived in my place for 10 years and sold it for exactly the same as I paid for it, so potentially I lived rent free. Of course I still had to pay for maintenance and upkeep. But I had the pleasure of my own place.

3. If renting you have no guarantee of the rental cost in years to come. The property is never yours so you have limited options to change anything. Plus you are always staying at the whim of the owner.

 

[newnative]

38 minutes ago, DoneTravelling said:

It all depends why you want to buy.

 

1. If as an investment then do not expect to make much if any profit when you sell. There is a huge property surplus in Thailand so how can your property really increase, unless it is something spectacular.

2. If purchasing to live in it does not matter if the value increases. However I lived in my place for 10 years and sold it for exactly the same as I paid for it, so potentially I lived rent free. Of course I still had to pay for maintenance and upkeep. But I had the pleasure of my own place.

3. If renting you have no guarantee of the rental cost in years to come. The property is never yours so you have limited options to change anything. Plus you are always staying at the whim of the owner.

 

    I liked all three but especially #1.  Definitely buy something spectacular, or buy something and make it spectacular, and you'll do fine.

[rickudon]

I live just outside Udon Thani. In the last 5 years, have seen a boom in construction by Thais; practically all the dry land in the village has now been built on, and the view from our fish ponds is no longer rice fields and swamps, but Moo baans and individual houses gradually creeping towards us. Land prices have trebled over the last 10 years. We are buying land, as long as it is next to a road and near the village.

 

Only house bought (by sister-in-law) was an old Thai house. Proved difficult to rent, and tenants were usually short term and often a problem. House will be demolished and land sold. Thais always want something new.

[KhunLA]

25 minutes ago, rickudon said:

I live just outside Udon Thani. In the last 5 years, have seen a boom in construction by Thais; practically all the dry land in the village has now been built on, and the view from our fish ponds is no longer rice fields and swamps, but Moo baans and individual houses gradually creeping towards us. Land prices have trebled over the last 10 years. We are buying land, as long as it is next to a road and near the village.

 

Only house bought (by sister-in-law) was an old Thai house. Proved difficult to rent, and tenants were usually short term and often a problem. House will be demolished and land sold. Thais always want something new.

I still got 1 rai left, 2 sides still farmland.  Offering at 850k, trying to talk her into letting it go for 650k, as I want to spend on silly c r a p.  Only paid 120 for it.  The farmland around will probably never be sold, and why we bought.  

Edited February 16, 2022 by KhunLA

[JBChiangRai]

Life is about the journey, not about the destination. 

Rental properties are never to your own taste.  Pink and blue mixed floor tiles? Not for me thank you. 

[Cherrytreeview]

2 hours ago, DoneTravelling said:

It all depends why you want to buy.

 

1. If as an investment then do not expect to make much if any profit when you sell. There is a huge property surplus in Thailand so how can your property really increase, unless it is something spectacular.

2. If purchasing to live in it does not matter if the value increases. However I lived in my place for 10 years and sold it for exactly the same as I paid for it, so potentially I lived rent free. Of course I still had to pay for maintenance and upkeep. But I had the pleasure of my own place.

3. If renting you have no guarantee of the rental cost in years to come. The property is never yours so you have limited options to change anything. Plus you are always staying at the whim of the owner.

 

If buying you have no idea who your neighbours are.

Just ask the people who bought condos in the Base in Pattaya.

Chinese airbnb and your very own nightclub on the other side of the wall at the weekend.

If you rent, you can forgo your deposit and walk out the next morning.

Love the importance of some people on this thread who really think they own something in Thailand and talk as if their Thai citizens.

Their visitors on a rolling extension visa that own jack <deleted>.

[Sparktrader]

2 hours ago, ramrod711 said:

Sold 2 homes, and the only thing making a 'profit' was the appreciation of the land they sat on.  Brick & mortar part, simply breaking even on that part of the ROI, and the land was the money maker.

 

Not very interested in buying someone else's dream home. Find land in a good location, with a good view and a reasonable price. My Thai wife was interested in buying some land, we looked at many locations in our area and purchased a reasonably priced property, with a stunning view outside Chiang Mai for 400,000 baht about ten year ago. she has had offers of 2,000,000 baht for it. Unfortunately, you have to be willing to sell at the right price. She wants to keep it. For what, we will never build on it, sell and buy a revenue property I say.

Land goes up 10% a year. Houses go down 2.5% a year.

 

You never make $ on buildings unless reno.

 

 

[Sparktrader]

11 minutes ago, JBChiangRai said:

Life is about the journey, not about the destination.  

Rental properties are never to your own taste.  Pink and blue mixed floor tiles? Not for me thank you. 

Life is about buses and planes?

[DoneTravelling]

43 minutes ago, Cherrytreeview said:

If buying you have no idea who your neighbours are.

Just ask the people who bought condos in the Base in Pattaya.

Chinese airbnb and your very own nightclub on the other side of the wall at the weekend.

If you rent, you can forgo your deposit and walk out the next morning.

Love the importance of some people on this thread who really think they own something in Thailand and talk as if their Thai citizens.

Their visitors on a rolling extension visa that own jack <deleted>.

You really hit the nail on the head with your last point. I decided  after selling my property that I would not buy again if I cannot be a permanent resident. You could be kicked out of this country at any time and have no call on your property. 
 

[Tonypandy]

The amount of real estate companies advertising on platforms such as dot property is miniscule compared to pre covid times. 

[tjo o tjim]

12 hours ago, Peterw42 said:

You may be right, but dont forget there are concrete buildings in Rome that are literally thousands of years old, google Pantheon

The key is *reinforced* concrete buildings.  Corrosion of reinforcement leads to spalling or delamination of the concrete.  Spalling repair is expensive; you need to remove and replace the corroding steel and then replace the concrete.  

 

The other variable is quality of building foundations; Bangkok might actually be better than Miami, but there is a lot of ground subsistence that poses a risk.

 

Time will tell…

[Neeranam]

21 hours ago, webfact said:

Local realtor Coastal Real Estate in Pattaya, reported having had their best-ever quarter in the past ten years in both sales and rentals

I don't know why these agents lie.

People are definitely not buying in tourist towns now .

 

[ozimoron]

I'd be careful about buying any assets at the top of a bubble.

 

https://www.abc.net.au/news/2022-02-16/jeremy-grantham-warns-super-bubble-crash-likely-underway/100835976

[KhunLA]

13 minutes ago, ozimoron said:

I'd be careful about buying any assets at the top of a bubble.

 

https://www.abc.net.au/news/2022-02-16/jeremy-grantham-warns-super-bubble-crash-likely-underway/100835976

Thailand ... definitely a buyers market, and has been for couple years, and probably will be for a couple more.  Can't remember a better time to buy ... IF ... you have a bit of RE experience.  Trusting Thai partner helps of course, and knowing you live in your purchase for at least 5 yrs, or it will be a good rental if not reselling.

 

First time buyer, of any RE, and  if limited to just condos, then tread lightly.  Deep research needed, and pick an experienced, long history, good rep'd developer, and there's a few out there.

[ozimoron]

1 minute ago, KhunLA said:

Thailand ... definitely a buyers market, and has been for couple years, and probably will be for a couple more.  Can't remember a better time to buy ... IF ... you have a bit of RE experience.  Trusting Thai partner helps of course, and knowing you live in your purchase for at least 5 yrs, or it will be a good rental if not reselling.

 

First time buyer, of any RE, and  if limited to just condos, then tread lightly.  Deep research needed, and pick an experienced, long history, good rep'd developer, and there's a few out there.

Agreed, the article does point out a strategy of seeking out assets which are under priced.

[Albert Zweistein]

Is AN trying to give a boost to the market with this article ?

[blazes]

6 hours ago, tjo o tjim said:

The key is *reinforced* concrete buildings.  Corrosion of reinforcement leads to spalling or delamination of the concrete.  Spalling repair is expensive; you need to remove and replace the corroding steel and then replace the concrete.  

 

The other variable is quality of building foundations; Bangkok might actually be better than Miami, but there is a lot of ground subsistence that poses a risk.

 

Time will tell…

Absolutely right about foundations.  I've often casually stopped (while walking in Chiang Mai) to observe various condos being built and always wonder how they could possibly hope to have a building stay upright when the foundations are so shallow.  Especially in an earthquake-prone area like C M.

[itsari]

10 minutes ago, blazes said:

Absolutely right about foundations.  I've often casually stopped (while walking in Chiang Mai) to observe various condos being built and always wonder how they could possibly hope to have a building stay upright when the foundations are so shallow.  Especially in an earthquake-prone area like C M.

The important point with foundations is to have local knowledge . Thais of course indeed have that knowledge . That applies where ever you are in the world .

Chiang Mai is a high water table area . Most houses in Chiang Mai sit on concrete pads under the columns . If the building will be higher such as a condo they send down piles that keep the building upright . As you walk by as you put it you can not see the work done . Walk by when construction begins and you will see how they do it .

The fault line running through Thailand is very deep . This creates more of a wave action on the surface rather than shaking . Not such a serious problem for keeping a building upright .

[Hummin]

23 hours ago, Orinoco said:

Does that truly exist anymore.

 

Still alot of Por bor tor 5 land you can gamble will be chanote to 50 000,- a rai +-

 

When we started up here the prices was ranging from 30k to 55k and now 5 years later 80 000,- a rai now even without road connection. Still not a big difference but if you get chanote on it in 5 - 10 years it will be of more value. Always someone who need to sell a plot quick, so just sit and wait. For some this feels a bit risky that involve a gf or a wife, and also the poor title deed. But still it can be worth it in the long run. 
 

So far never heard anyone had problem with Por tor bor 5 title. 

Edited February 17, 2022 by Hummin

[tubby johnson]

No. Invest in REITS instead.

Hassle free.

[Sparktrader]

15 hours ago, ozimoron said:

I'd be careful about buying any assets at the top of a bubble.

 

https://www.abc.net.au/news/2022-02-16/jeremy-grantham-warns-super-bubble-crash-likely-underway/100835976

Oz equites are cheap. Dont see a crash as levels are not high at all. If anything 10% undervalued.

 

US is stuffed Biden has no idea.