Buy Or Rent And Invest Capital.

[Goodwitch]

Doing research at the moment about buying and renting properties in Thailand. I would love to hear your views. I plan to retire in Thailand within the next two years and live on property rental income from the UK. As a fall back I also have a Degree along with a CELTA Certificate and teach English to both International and European visitors in an educational establishment. Any advice appreciated.

[meom]

Rent is cheap and gives you more flexibility to move if you don't like the place anymore. I would say rent first and if you've lived here for a while buy something if you still want to.

[jumnien]

I've been here 10 years and after 4 living here I decided to start investing. Bought 4 condos and a bit of land and I wish I had bought more when the dollar was high!

As advice, I'd say live here for at least a year and travel around Thailand to make sure where you want to live. Get to know the neighborhood and the buildings and then see if it seems right. Don't rush into things. Nothing wrong with renting for awhile...

[popshirt]

Buy in haste, repent in leisure. I bought a condo and am sorry now. The market is flat and I can't sell it. I don't want to live in the community where it is located, something I didn't know when I purchased.

[Khun Jean]

See to it that your property in the UK is free from mortgage.

Don't underestimate the difficulties of renting out your place in the UK. Think about bad tenants and brokers/agents that don't care to much if you loose money on a property. (i speak from 5+ years experience)

When i can keep an eye on things it is ok, when far away things can and will go out of hand sometimes.

With a mortgage it can really go sour quickly. I am from the Netherlands and the rental market is a lot worse than a few years ago. No moral anymore and we even have 'nomads'. People who just pay the deposit and first month and then stop paying. Headaches, headaches.

I advice you to first rent a house or condominium.

It keeps you mobile. Surroundings change quickly and a nice places can turn ugly fast. With renting it is just move out and go somewhere else.

Of course there are nice condominiums where the risk of it getting ugly is small, but you will pay the price for it.

In my opinion, invest the money otherwise spent on buying or put it in the bank (5% or more interest is easy).

After a year or so, you will know a lot more and will get a feel for the place. It also helps to be able to estimate the values better. Prices are all over the place and it is very difficult to get a grasp of its real value without being there long enough. Real value should be what YOU can get for it 6 months later, if you can sell it at all.

If you buy it to live a long time that problem is not too big. And who knows maybe Bangkok is another Hong Kong in a few decades and than you will be laughing all the way to the bank.

[JimmyCA]

RENT - 100% Certainty

Invest in a stable place.

Ignore the tales of great riches, the loosers are always silent.

[JimmyCA]

I've been here 10 years and after 4 living here I decided to start investing. Bought 4 condos and a bit of land and I wish I had bought more when the dollar was high!

Can Farangs own land or not? Buying land in someone elses name is not investing by the way.

This issue never seems to die.

[jumnien]

The land is owned by my wife and amounts to approximately .3% of my net worth. Investing a bit of dosh in one's domestic relationship isn't such a bad idea always.

It is good to caution a newbie against "grey area" land ownership schemes marketed by farang real estate salesmen. That market seems due for adjustment. Stick with condos and leaseholds for safety. We're experiencing quite a bit of appreciation in the farang held units lately around Hua Hin. As they reach the farang limit, the Thais cannot sell their condo to a farang. A farang held unit can be sold to anyone. Another silly law that profits the farang.

Edited June 29, 2007 by mdeland

[Demodokos]

In my opinion, invest the money otherwise spent on buying or put it in the bank (5% or more interest is easy).

Any advice about that?

[Khun Jean]

Look at interest rates in UK, Australia. Many offer 5% and higher.

[JimsKnight]

Yup, in the UK Sainsburys (a supermarket of all things!) are offering internet banking at 6%!

Gazzoooks!

The way the interest rates in the UK are going it'll likely be 6.5% - 7% before January.

The banks, love em or hate em work a lot better now for investers with the new opportunities available.

The key is though to have great big chunks in there working for your money and being disciplined enough not to spend it

Property, (condowise) can work by having an immovable asset that you can't spend, but its one thing having a supposed 1 million+ condo and quite another getting it sold and into cold hard cash when the time comes!

Properties good too and for families and kids they are worthwhile but for singletons I'm not so sure.

Money will make sure-fire coin in a bank, maybe not as much as folk who hit the appreciating condo market but its a definative win-win.

Rent or buy? Its an enduring choice. I think for family-types and long term settling down types then buying a condo is ok, be prepared to ride out an economic storm and sit on it for years though.

If you're a single dude who wants to live free then having one hand on the horses reins for riding away then renting can be wiser.

[bendix]

Money will make sure-fire coin in a bank, maybe not as much as folk who hit the appreciating condo market but its a definative win-win.

How do you figure that? People are talking about 6% in a high interest UK account but conveniently ignoring tax, which will reduce it to 3.5 or 4% net return. Then let's factor in inflation at 2.5% (an inflation figure which excludes fuel costs, incidentally) and you are left with 1% return.

Wow. That's gonna get me rich quickly.

Nobody EVER created wealth by investing their capital in a bank and sitting back.

I've been renting for nearly three years here in Thailand. In that time, I've increased the wealth of my landlord by nearly 2m baht. I have decided enough is enough and bought my own place. Frankly, I don't care if it appreciates or depreciates in value. I'm very confident that it will appreciate over time (all my past property purchases have done very well, thank you). It will be my home and I will be investing the 60,000 a month I'm saving in rent in a balanced portfolio to keep me in the manner to which I have become accustomed.

People talk about rent giving flexibility etc. Sure, that's all very well. But what about the future? Will you keep renting forever? Renting is a young man's game and I would prefer to be in control of my own destiny, NOT subject to the whims of a landlord.

[jumnien]

Yes, I'm in the "own if you can" camp. I wouldn't even rent a car by the month even though they depreciate in value fairly rapidly. To rent a place to live for any period of time doesn't really make sense unless you have no alternative. That said, I do advise newbies to Thailand to see a bit of the country and find out where they truly love to live before committing to a purchase.

[JimmyCA]

The land is owned by my wife and amounts to approximately .3% of my net worth. Investing a bit of dosh in one's domestic relationship isn't such a bad idea always.

It is good to caution a newbie against "grey area" land ownership schemes marketed by farang real estate salesmen. That market seems due for adjustment. Stick with condos and leaseholds for safety. We're experiencing quite a bit of appreciation in the farang held units lately around Hua Hin. As they reach the farang limit, the Thais cannot sell their condo to a farang. A farang held unit can be sold to anyone. Another silly law that profits the farang.

Very reasonable, many do not keep such a close watch on the allocation figures and next thing you know loose all.

[siddv]

Better be sure about many things before you buy here. First of all you can't purchase property in Thailand which should give you some pause to consider how you are viewed in Thailand to begin with and/or the legal system and the lack of any civil/property rights you think you have. If you buy this property with a TGF or wife consider the possibility and/or liklihood that you wil one day have to walk away from your drean house. Those 30 year lease backs are worth the toilet paper the're are written on. Taking her property could cost you your life. Better be darn sure you want to live in the house for many years becasue the possibilty of selling may be formidible. If you are relatively young and still have some wild oats to sow , or perhaps have no intentions or ability for settleing on one flavor of ice cream (TG) the rest of your life since you now live in the factory, then RENT RENT RENT and invest your hard earned money outside of this country. By the way I'm an attorney.

[bendix]

By the way I'm an attorney.

And that's relevant because . . . ?

[bangkapiboy]

I think buying a condo in Thailand is such a fantastic deal. That said, you really need to know the condo market before you jump in.

[Goodwitch]

Thank you all for you comments. Some very wise indeed. I think I will rent for the first year and then buy. I do feel that owning your own property gives you stability even if you rent it out for a while. The advice about traveling more and seeing all of Thailand before settling is spot on.

[puuchai299]

Spend lots of time in your year of renting looking and learning,there are many bargains to be had here in Thailand,just having money there ready to jump in on something where someones desperate to jump out can land you a nice investment,good luck..

[whitethai]

I read it costs for a farang about 50 uk pounds for admin if buy property.

Rent in UK is ridiculous looks really cheap in Thailand.

However trying to get replies for enquiries to rent from landlords in Bangkok is not good. I emailed four and no replies at all.

And I need to get somewhere Thursday as renting UK house to pay mortgage.

I also need wifi internet and a bathtub don't like shower.

Edited July 9, 2007 by whitethai