With gold falling is buying Thai real estate a better bet

[CrunchWrapSupreme]

6 hours ago, blazes said:

Personally I have not met one person who owns even one ounce of gold

A sobering number in the US is the median income, only $31k. This means over half of all Americans bring home less than $2500 a month. These days over half of that is rent. What can do with the other half?

 

There's a lot more Americans claiming to be into gold, crypto, paying cash for properties and cars, yadda yadda, than are actually possible. Most are full of it.

[1FinickyOne]

8 hours ago, Onerak said:

and even buy candy using credit cards.

sweet.

[ThailandRyan]

1 minute ago, CrunchWrapSupreme said:

A sobering number in the US is the median income, only $31k. This means over half of all Americans bring home less than $2500 a month. These days over half of that is rent. What can do with the other half?

 

There's a lot more Americans claiming to be into gold, crypto, paying cash for properties and cars, yadda yadda, than are actually possible. Most are full of it.

Many I know in the US have a safe full of guns, and precious metals with bank safety deposit boxes full of silver ingots and gold Krugerrands.  My Father prior to dying 2 years ago had such a buildup which was then passed on down to the grandchildren and who have chosen to keep them secured away for that rainy day, of course they are in a trust and this I watch over as the executor.  However, many others that I know do not have a pot to <deleted> in and do not have any savings built up, living like many others month to month and paycheck to paycheck.  I guess at the end of the day it all comes down to how one was raised and what their goals in life are.  Some preferring to live the easy life are the ones the government in the US has to help out by handouts which cause the middle class workers more in taxes and so on.  Here in Thailand there is no safety net and is one reason I think that folks are so unwilling to sell off property at a decent price as they think it is worth gazillions, ergo why these properties sit empty.  

 

I spoke to a relator in the Prachuap Khiri Khan Area last week, and many of the houses I have looked at have had an increase in price, while having sat vacant for almost 2 years.  The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years.  What kind of a mental incapacity must one have to think that way?  Others he said have dropped prices to more realistic sums, but everyone of them are unwilling to rent them out for a reduced price until the property sells.  WTH is wrong with this picture. This is the Thai mentality where when business is down you charge more to make up for your losses......just plane idiocy.  

[1FinickyOne]

land probably appreciates more but gold is easily sold... 

[chilli42]

12 hours ago, flyingtlger said:

I've been watching the Thai real-estate market for 30+ years.  I there are much better ROI's than the Thai real estate.

 

 

Indeed but none of those are legal

[chilli42]

Gold is dropping because the $US keeps ramping up and bond yields are declining … gold price will increase when these dynamics reverse.  Real Estate demand will grow or decline based on its own macro factors, mainly interest rates.  There are no safe havens right now other than cash and all can be said for cash is that it sucks less.

[jvs]

8 hours ago, Ralf001 said:

Be nice if I was able to buy real estate in my actual name.

Condo?

[PingRoundTheWorld]

4 hours ago, ThailandRyan said:

The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years.

Just another way the government and media failed them completely - wave after wave of "the tourists are coming" to spark their hopes, while in reality the millions promised are nowhere to be seen. Sadly though this translates to a distorted market where landlords sit on empty condos expecting to be paid premium rent, while the few renters are unwilling to pay those rents. In my condo I rented a unit for 15k a few months back (and even that is severely overpriced) - now I see ads for same size units for 18-20k. The only real change in demand between now and then is that now there is much *less* demand due to Russian tourists gone.

 

In my previous condo the situation is reversed - the unit I used to pay 15k for is now being offered for 7-8k - it took them a couple hard years to realize no one is renting, but now they're finally down to reality. The kicker though is that even though Bangkok condo rent is down 30-50% - condo prices have only gone slightly down (if at all) - yields are terrible if you want to invest (why would you?).

 

Generally I would prefer stocks and real estate to gold because the former two are producing yields, gold doesn't, but in Thailand there's a ton of reasons why you shouldn't buy, especially right now. Unless some miracle happens, Thai real estate is due for at least a 50% correction IMHO. With rising interest rates and empty units, landlords will eventually be forced to come down to reality and sell.

[LarrySR]

4 hours ago, ThailandRyan said:

Many I know in the US have a safe full of guns, and precious metals with bank safety deposit boxes full of silver ingots and gold Krugerrands.  My Father prior to dying 2 years ago had such a buildup which was then passed on down to the grandchildren and who have chosen to keep them secured away for that rainy day, of course they are in a trust and this I watch over as the executor.  However, many others that I know do not have a pot to <deleted> in and do not have any savings built up, living like many others month to month and paycheck to paycheck.  I guess at the end of the day it all comes down to how one was raised and what their goals in life are.  Some preferring to live the easy life are the ones the government in the US has to help out by handouts which cause the middle class workers more in taxes and so on.  Here in Thailand there is no safety net and is one reason I think that folks are so unwilling to sell off property at a decent price as they think it is worth gazillions, ergo why these properties sit empty.  

 

I spoke to a relator in the Prachuap Khiri Khan Area last week, and many of the houses I have looked at have had an increase in price, while having sat vacant for almost 2 years.  The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years.  What kind of a mental incapacity must one have to think that way?  Others he said have dropped prices to more realistic sums, but everyone of them are unwilling to rent them out for a reduced price until the property sells.  WTH is wrong with this picture. This is the Thai mentality where when business is down you charge more to make up for your losses......just plane idiocy.  

I was with a friend that was visiting for the first time a condo unit that he bought off plan. Building recently completed and many owners were there inspecting their new apartments.

In the lift, a Thai guy said to him "Don't lower your price. Never lower the price." 

 

 

Edited May 11, 2022 by LarrySR

[bkk6060]

You are not owning a house here, you are just purchasing it.

100ś of thousands of empty condos if you want to own.  Good luck, everyone I know who owns and wants to sell can´t it will be dead money for a long time I bet.

[Mac Mickmanus]

11 minutes ago, LarrySR said:

I was with a friend that was visiting for the first time a condo unit that he bought off plan. Building recently completed and many owners were there inspecting their new apartments.

In the lift, a Thai guy said to him "Don't lower your price. Never lower the price." 

 

 

And what did your friend say back to him ?

[Ralf001]

2 hours ago, jvs said:

Condo?

I don't consider a high rise box to be real estate.

[StayinThailand2much]

12 hours ago, RichardColeman said:

Pretty sure if I won a competition and the prize was a million quid house along the Thames in the UK I'd tke the house rather than a million quid in gold !

 

That said , if they offered the same in Thailand - house on the river in BKK or the gold - I'd take the gold !

If they offered me 49% of a 50 million quid property in Thailand, vs. 100% of a 500,000 quid property in the UK, I'd take the latter one. 

Edited May 11, 2022 by StayinThailand2much

[Pmbkk]

 

No - too much hassle - as someone that owns several BKK CBD  condos ????

 

Edited May 11, 2022 by Pmbkk

[scorecard]

15 hours ago, flyingtlger said:

I've been watching the Thai real-estate market for 30+ years.  I there are much better ROI's than the Thai real estate.

 

 

Agreed. The majority of condos are bought by Thai people who don't buy expecting that automatically they will see a solid x% return when they sell.  The Thai property market just doesn't work like that.

 

Seems to me that this report has been written by a person not really aware of the whole factors/drivers/attitudes etc., same as many other reports on various subjects on this site.

[bkk6060]

5 hours ago, CrunchWrapSupreme said:

Most are full of it

Who is?  Your post is a complete fabrication and lie.

 

The weekly median earnings for full-time wage or salary workers in the United States in the second quarter of 2021 amounted to $990. It translates to a yearly income of approximately $51,480. Any amount above that should theoretically be considered a good salary; however, it is not as easy as that. What is considered a good salary in one city may not be so in another. Other factors that determine a good salary are the type of job, level of education, and sadly, even gender and race.

 

Source: U.S. Bureau of Labor Statistics

[scorecard]

5 hours ago, ThailandRyan said:

Many I know in the US have a safe full of guns, and precious metals with bank safety deposit boxes full of silver ingots and gold Krugerrands.  My Father prior to dying 2 years ago had such a buildup which was then passed on down to the grandchildren and who have chosen to keep them secured away for that rainy day, of course they are in a trust and this I watch over as the executor.  However, many others that I know do not have a pot to <deleted> in and do not have any savings built up, living like many others month to month and paycheck to paycheck.  I guess at the end of the day it all comes down to how one was raised and what their goals in life are.  Some preferring to live the easy life are the ones the government in the US has to help out by handouts which cause the middle class workers more in taxes and so on.  Here in Thailand there is no safety net and is one reason I think that folks are so unwilling to sell off property at a decent price as they think it is worth gazillions, ergo why these properties sit empty.  

 

I spoke to a relator in the Prachuap Khiri Khan Area last week, and many of the houses I have looked at have had an increase in price, while having sat vacant for almost 2 years.  The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years.  What kind of a mental incapacity must one have to think that way?  Others he said have dropped prices to more realistic sums, but everyone of them are unwilling to rent them out for a reduced price until the property sells.  WTH is wrong with this picture. This is the Thai mentality where when business is down you charge more to make up for your losses......just plane idiocy.  

From above:  "The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years. " 

 

This asumes that many tourists are automatically keen to buy property in Thailand. Really?

[newnative]

10 minutes ago, Ralf001 said:

I don't consider a high rise box to be real estate.

     Maybe widen your horizons a bit.  Not every condo is 'a high rise box'.   One of the favorite condos my partner and I owned a few years ago in Wong Amat was a large 3 bedroom, 3 bath condo on floor 4 of a 6 story oceanfront building.  25 meters from the ocean and perched on a small cliff, you don't need to be high up to have beautiful ocean views.  Only a handful of units on each floor with open walkways.  Regular front door with a mailbox like a house--it even had a screen door.  Window boxes for flowers by the front porch windows.  The 'back porch'--the large balcony--overlooked the pool and ocean.  It was like living in a bungalow by the sea.   

[Ralf001]

Just now, newnative said:

     Maybe widen your horizons a bit.  Not every condo is 'a high rise box'.   One of the favorite condos my partner and I owned a few years ago in Wong Amat was a large 3 bedroom, 3 bath condo on floor 4 of a 6 story oceanfront building.  25 meters from the ocean and perched on a small cliff, you don't need to be high up to have beautiful ocean views.  Only a handful of units on each floor with open walkways.  Regular front door with a mailbox like a house--it even had a screen door.  Window boxes for flowers by the front porch windows.  The 'back porch'--the large balcony--overlooked the pool and ocean.  It was like living in a bungalow by the sea.   

I would not house my dogs in one.

[newnative]

2 minutes ago, Ralf001 said:

I would not house my dogs in one.

Condo owners without dogs, including me, thank you.

[atpeace]

13 hours ago, 10baht said:

Right now the location is in the US stock market if you have the balls to buy the dip.

Possibly but thinking with my balls has only satisfied my primal side.  Doubt you will get far using your nuts over your noggin.

 

The last 20 year market gains have been a product liquidity and what happens if that liquidity produced by governments around the world stops? It has to stop but the question is when.  Tomorrow, 1 year, 10 years...  Roll the dice and be the "man" until you whimper like a baby when it crashes.  Or maybe you are the type that rolls with the times and accepts losses/gains and in that case, good for you.

[ThailandRyan]

3 hours ago, scorecard said:

From above:  "The rational he said is that tourism is back in play and tourists have the cash to buy since they have been sitting on their money for two years. " 

 

This asumes that many tourists are automatically keen to buy property in Thailand. Really?

Unfortunately that's the view and I would assume the hard sales script.

[Neeranam]

  I am buying more Bitcoin, digital gold.  Oh, I am buying a house too.

[Scott]

Troll post and replies reported and removed.

 

[jacko45k]

16 hours ago, CrunchWrapSupreme said:

There's a lot more Americans claiming to be into gold, crypto, paying cash for properties and cars, yadda yadda, than are actually possible. Most are full of it.

Most carry as much debt as they can I thought!

[Stargeezr]

Stock market shares,  a roller coaster. Gold a bit up a bit down. ownership 100 percent

  no government interference. 

 Real estate, ok if ownership is 100 percent, and the future is not COVID.                                                                                                                                             Bit Coin, was up, now heading down. ehhh.   It is still nicer

to have money and have money worries, than to be broke and

have all kinds of worries. Yes?

[mikebell]

22 hours ago, SymS said:

Is it a joke? Or did you seriously completely lose your 49% take without compensation?

I was 'awarded' less than 25% of my house/contents despite funding 100% of everything when my marriage broke down.

[BritManToo]

22 minutes ago, mikebell said:

I was 'awarded' less than 25% of my house/contents despite funding 100% of everything when my marriage broke down.

Sounds like a good deal to me,

I got nothing when my marriage 'broke down' in the UK and my house was worth 20,000,000bht.

 

Back to the OP,

Forget gold, buy shelf stable foods (rice/tins), seal it in plastic bins.

When TSHTF (not long now) it'll be worth more than gold.

Edited May 12, 2022 by BritManToo

[ExpatOilWorker]

On 5/11/2022 at 7:00 AM, ezzra said:

Let come to Sukhumvit 59 and see 3 giant condominiums are going up, giant like 45 floors and higher, and this is only in one Soi...

I have always been interested in Soi 59.

Are the new buildings an improvement for the soi?

The extension of the Skywalk and the newer commercial building around Thonglor BTS station gives the area more life. Still need a decent size shopping center for comfortable living.

[atpeace]

9 hours ago, Neeranam said:

  I am buying more Bitcoin, digital gold.  Oh, I am buying a house too.

Many are doing exactly that with retail investor record inflows in April.  Buying the dip has been extremely profitable for 10 to 20 years when the Fed was there to make sure nothing bad happened.  Lets see what happens this time around. 

 

The Fed has 9 trillion of assets on its books that it would like to sell and every time the USA and Japan try to sell their assets the market drops. They are telling us now they will but haven't started.  The market thinks it sees what is coming. Also the fed for the first time has a beneficial reason to sell which is inflation.  Selling even 2 trillion in the next 2 years evaporates 2 trillion of liquid cash in the economy and this will also simultaneously increase interest rates.  That would not be pretty IMO but might drastically reduce inflation.

 

In the end who the f'n knows what will happen in the next year but further out the odds of awful returns in every asset class that has sucked in the cash that the fed put into the system (housing, stocks...) increases.