With gold falling is buying Thai real estate a safer bet.

[ASEAN NOW News]

It remains one of the world's fastest-growing economies and owning property in Thailand has been a fashionable way to profit from the nation's rise.

 

The country still remains one of Asia's more promising markets as it opens to foreign investment, especially with the expansion of the Eastern Corridor.

 

So, what is predicted to happen to house prices in 2022?

 

Thailand Property Market Index, the Price Index of Bangkok residential property has been decreasing since Q4 2020.

 

It decreased from 197 points to 190 points in Q1 2021, to 183 points in the following quarter, and to 178 points in Q3 2021. Overall, the Price Index decreased by 11% compared to the same period in 2020.

 

The index however did report that the locations with the highest price growth are mostly located around city fringes, and the outskirts of Bangkok.

 

low rise

 

Meanwhile CBRE the international real estate agents stated in their 2022 Thailand Real Estate Market Outlook that low-rise properties will be popular.

 

They state that with no new projects launched in the Bangkok downtown condominium market in almost three quarters, for the first time in history, strong demand for low-rise housing continues.

 

This is as buyers’ preferences shift to low density, larger and more adaptable spaces.

 

This year, developers will cautiously consider new projects which have to cater for domestic real demand.

Is buying a condominium in Bangkok a good investment?

 

Under the right circumstances, buying a condo in Thailand can be a rewarding purchase and normally has been a good investment.

 

If you are a foreigner interested in buying a condo in Thailand, there are a few  issues you need to be aware of.

 

Remember foreigners may only own 49% of a single condo development, although it is hoped to assist sales that this rule maybe amended.

 

Who to believe?

 

Some experts say that with fewer mortgages being agreed and the ongoing cost-of-living crisis that has been worsened by the Russia-Ukraine war, prices may stay stagnant.

 

However, the bottom line is the fact that in times of crisis people have turned to gold to hedge their bets.

But gold prices fell to a near three-month low on Monday, the gold bar has lost some of its sparkle.

 

So maybe if the developers wish to move units quickly, they may start to reduce or offer some crazy deals for cash buyers.

 

If you are keen golfer, owning a villa on a course designed by Jack Nicklaus might tick all the boxes, especially if you do not need a mortgage.

 

At the end of the day if you are buying for yourself as a home to live in and not for investment, then now could be an excellent time to pick up a real bargain in a fantastic location.

 

As they say, location, location, location…...and of course cash is always king! 

 

 

With gold falling is buying Thai real estate a better bet.docx

[OneMoreFarang]

9 minutes ago, ASEAN NOW News said:

Under the right circumstances, buying a condo in Thailand can be a rewarding purchase and normally has been a good investment.

 

9 minutes ago, ASEAN NOW News said:

now could be an excellent time to pick up a real bargain in a fantastic location

Which one?

 

What's the point of articles which basically tell us: Maybe it is a bad idea or maybe it is a good idea.

Yeah, sure, thanks.

[ezzra]

3 minutes ago, OneMoreFarang said:

 

Which one?

 

What's the point of articles which basically tell us: Maybe it is a bad idea or maybe it is a good idea.

Yeah, sure, thanks.

I have just sold 2 properties in the center of BKK and looking to buy a good quality condo in a prime location in Pattaya and from what i see there are some very interesting properties (condos) priced just right, good locations and good amenities.. just thought i share in case someone is looking to invest...

[KhunLA]

To the news-blip, these are contradictary statments;

 

"It remains one of the world's 'fastest-growing economies' and owning property in Thailand has been a fashionable way to profit from the nation's rise."

 

"Thailand Property Market Index, the Price Index of Bangkok 'residential property has been decreasing' since Q4 2020."

 

"This year, developers will 'cautiously consider new projects' which have to cater for domestic real demand."

????

 

[Whale]

I sold my condo a month ago in central Bangkok. I was told by many that selling them was nigh on impossible. I had about 4 viewings a week and first offer was within two weeks of listing. There are lots of young Thai couples buying in central Bangkok based on my experience. 

 

When the Chinese come back I think it will seriously hot up but for the new units that are coming online.

 

If I were to return I would rent but if you are looking at a home for multiple years (say 10) buying makes sense.

Edited May 13, 2022 by Whale

[KhunLA]

25 minutes ago, Whale said:

If I were to return I would rent but if you are looking at a home for multiple years (say 10) buying makes sense.

My thinking also, if knowing you'll be there.   At worse, sell for cost, and you've lived rent free, which is one of most folks', largest monthly expense.  ????????  If making a profit, well then, all the better.

[Airalee]

9 hours ago, KhunLA said:

My thinking also, if knowing you'll be there.   At worse, sell for cost, and you've lived rent free, which is one of most folks', largest monthly expense.  ????????  If making a profit, well then, all the better.

Selling “for cost” is no guarantee.  The person I bought from lost close to ฿2,000,000.

 

I am under no illusion that I will make a profit and wouldn’t be surprised to sell at a loss.

 

Being that expats pay cash, there is no such thing as “living rent free” as one must also consider the opportunity cost of the funds invested.

 

It’s always a gamble.  You pay your money and you take your chances.

[KhunLA]

21 minutes ago, Airalee said:

Selling “for cost” is no guarantee.  The person I bought from lost close to ฿2,000,000.

 

I am under no illusion that I will make a profit and wouldn’t be surprised to sell at a loss.

 

Being that expats pay cash, there is no such thing as “living rent free” as one must also consider the opportunity cost of the funds invested.

 

It’s always a gamble.  You pay your money and you take your chances.

Maybe the seller bought in high.  Was it a foreigner ?

 

2 home builds here have made decent profit, but, TBH, it was all about the land.  The structure themselves, simply recouped the cost, which was fine.  Also at time of sale, 5 yrs & 7 yrs after built, you could not build them again for what I paid.  I was a motivated seller, so we were both happy, as they go a bargain, and I was happy to move on.   

 

1 sold before listed, that other sold after 3 years on market.

 

Same with present build, 5 yr old land purchase, and up 500 %, and doubt if builder would offer anyone the same contract I have.  Guessing 25 % more, at least, if building today, this 16 month from our start date ????  Though very close to done, another month, hopefully.

[Sparktrader]

10 hours ago, ezzra said:

I have just sold 2 properties in the center of BKK and looking to buy a good quality condo in a prime location in Pattaya and from what i see there are some very interesting properties (condos) priced just right, good locations and good amenities.. just thought i share in case someone is looking to invest...

Bad time to buy

Inflation going up

[KhunLA]

9 minutes ago, Sparktrader said:

Bad time to buy

Inflation going up

Considering the last 2 years, I'd think it's still a buyers market.  I have seen some silly, high a$$ prices though.

[Airalee]

27 minutes ago, KhunLA said:

5 yr old land purchase, and up 500 %

Sounds like a bubble.  Let’s see what happens when interest rates rise.

[hanuman2543]

1 hour ago, Sparktrader said:

Bad time to buy

Inflation going up

I think it is the other way round:

 

Real value beats monetary value - the threat of inflation is causing many to take refuge in property assets .

Anyone with debt, on the other hand, such as a mortgage, or who has invested in real assets, has benefited.

[Sparktrader]

1 minute ago, hanuman2543 said:

I think it is the other way round:

 

Real value beats monetary value - the threat of inflation is causing many to take refuge in property assets .

Anyone with debt, on the other hand, such as a mortgage, or who has invested in real assets, has benefited.

Not according to economics. Inflation goes up followed by interest rates.

[edgarfriendly]

12 hours ago, ezzra said:

I have just sold 2 properties in the center of BKK and looking to buy a good quality condo in a prime location in Pattaya and from what i see there are some very interesting properties (condos) priced just right, good locations and good amenities.. just thought i share in case someone is looking to invest...

ok, pm me or just post details here.

 

thx

[KhunLA]

1 hour ago, Airalee said:

Sounds like a bubble.  Let’s see what happens when interest rates rise.

Not at all.  RE is actually my thing.  20 yrs in USA, and 20 yrs here.  They'll get their price, though may take them another year or 2.  If reasonably priced, then it will sell, and not a bubble.  20+ yrs and RE prices haven't receded.

 

Most sell for 3 - 5X the assessed value.  Some more, but others of course, pay way too much.  They'll be the people who sell at a loss, and blame it on the market.

 

 

[Airalee]

1 hour ago, KhunLA said:

Not at all.  RE is actually my thing.  20 yrs in USA, and 20 yrs here.  They'll get their price, though may take them another year or 2.  If reasonably priced, then it will sell, and not a bubble.  20+ yrs and RE prices haven't receded.

 

Most sell for 3 - 5X the assessed value.  Some more, but others of course, pay way too much.  They'll be the people who sell at a loss, and blame it on the market.

 

 

https://financial-dictionary.thefreedictionary.com/Talk+One's+Book

[KhunLA]

32 minutes ago, Airalee said:

https://financial-dictionary.thefreedictionary.com/Talk+One's+Book

I don't want anyone buying anything around me, as I have nothing in the area to sell, so wouldn't benefit.  I'm dying in our present build, as have no desire to move, or contract another build.  So no neighbors works for me.  Don't have none, don't want none.

 

Do have 1 parcel to sell, but doubt if anyone would be interested, and it's not listed with anyone to sell.  Aside from being far from town (Udon Thani), it's across the road from a Wat with a crematorium.  So a very hard sell.  On wife's FB, so not expecting and immediate sale in the near future.

[Hummin]

I would rather invest in Bitcoin, than property in Thailand.

 

If I invest in anything, it will be property in Europe in one to two years. 

[ChaiyaTH]

The post can't get more ignorant and sucker commercial like than this really. Not even going to start about it in detail but have fun buying property right now.

 

You could have claimed ''gold is falling'' up to a few times a year with this logic, for the past decade or 2 decades, even it has performed really well and the real causes of significant increase are not even done with the warm up, let alone the actual rally. 

Winter is coming.

Edited May 13, 2022 by ChaiyaTH

[KhunLA]

8 hours ago, KhunLA said:

If reasonably priced, then it will sell, and not a bubble.  20+ yrs and RE prices haven't receded.

 

Most sell for 3 - 5X the assessed value.  Some more, but others of course, pay way too much.  They'll be the people who sell at a loss, and blame it on the market.

 

 

A bit more context to the above.  Reasonably priced, if not buying at Land Office appraised price is less than 5X that appraisal, IMHO.  I wouldn't pay that, but seems most do.  That's for lots, ready to build on, and all you need to do is clear some brush and or small trees you don't want, or in the way of building.   Thais prefer level and graded, I don't.

 

1 lot, 6+ rai, we bought (late 2010) and chopped into 6 lots, 1+ rai each.  Paid ฿720k, from a motivated seller.  He had to pay a note on his expensive tractor, or lose it.  

 

Used two rai for the house, built early 2011.  Daughter done school 2016. So no need to be in Udon Thani any more, as not my preference, especially after 16 yrs there.

 

Listed house before land, as didn't want anyone to buy land, and do something silly to jeopardize house sale.  Selling house took 3 yrs, late 2019.  House cost < ฿2 mill to build,  Sold for ฿3m, house, 2 rai that it sat on + 1 adjourning rai. 

 

We were very motivated, and as stated, hard sell, out of town, and across from Wat.  They were happy to get it, a bargain, and we were happy to sell it, as not a whole lot of bites, due to location.  Had to be someone retired, as too far to commute to town, for work or school.

 

What did surprise us, 2 lots of land sold within 6 months of being offered.   We assessed the area, and priced it lower than everyone else, again, a hard sell, due to location & Wat. 

 

Paid ฿120k per rai, late 2010, Sold ฿650k per rai (2 @ ฿1.3m, 1 buyer) mid 2020, during Covid.  Got Land Office assessment for 1 remaining rai this year.  Assessed at ฿120k, with ฿590 land tax due, since we didn't declare as farmland.  Previous year, it was farmland, and < ฿5 tax.

 

Decent profit for 9 year investment.  Bought 100tw (1/4 rai) for ฿76k baht were we are now, with house almost done.  Land office appraised price, and purchased from bank holding.  Neighbor across from our house, on unpaved road, has his lot listed for ฿500k, and I doubt if he'll take much less. Might take a year or 2, but should get what he's asking.

 

Especially since we bought, they've built a couple strings of rentals, about 1 km away, and about 500m away, down our unpaved road, and across the main (small village) road, they are building about 8, large, 2 story houses in a development.  That land was prepped, and sold within 1 year of being advertised.  Don't know the prices bought / sold.

 

This has been a consistent pricing for buying & selling the whole 20+ years I've been here.  In the beginning, after my first land & house, I also thought it was a bubble, but proved wrong, year after year.

 

If having a Thai partner, some money and patience, it's definitely the way to go.  Need to do your research of course, and not for the inexperienced RE investor.  Along with that trusting partner, or a bit of paperwork to protect yourself.  Usufruct & POA, if short term relationship.

 

Makes living here fairly rent free, with a bit of pocket change or decent oops fund.  And no worry about fluctuating market.  People only need 2 things, food & housing.  Food is too much work for me, so went with house, about 40 yrs ago.

 

Went with that, RE, before liquidating and rolling over into the market.  That's my investing story.

A few ups & downs, and luckily, more ups than downs.  No kids prior to retirement, so no distraction or drain on my limited salaried jobs.   

 

I seriously don't know how, a family of 4 ish does it, with simply salaried jobs and raising, putting kids through Uni.  Bless them, as way too much for me.  And that's without the divorces & child support payments  or playing single parent.  

Edited May 14, 2022 by KhunLA