Is it better to buy or rent property in Thailand as an expat?

[Irish star]

If your old forgetaboutit, if younger maybe it will work , but the government doesn’t know what’s it’s doing , and China is Watching in anticipation 

[Irish star]

On 8/26/2024 at 11:58 AM, OneMoreFarang said:

IMHO, if you can rent what you want for a reasonable price, then rent and don't worry.

Don't buy as an investment. Obviously, you might be able to make money, but you can't count on that.

 

After renting here for many years I finally bought a condominium in a > 20 year old building. I renovated it from scratch just the way I like it. And my idea is to live there until I die. 

Will I be able to sell it for a good price? Maybe. But I don't count on that.

I bought it because it cost less than half of what a brand new one in the same area would have cost. And I renovated it exactly the way I like it. Many new places have many small rooms. I like the opposite. 2/3 of my place is more or less one room. I wouldn't be able to rent such a place.

It's unlikely that I ever have to sell it because I need the money (urgently). So, for me that is a good solution.

 

As far as I know the property market in Thailand is different to what many farangs expect from home. So, if you don't know exactly what you are buying in Thailand, don't do it. 

Better build quality also , these new places are are shoebox and thin walled 

[Irish star]

20 hours ago, Hummin said:

That's a nice idea, cheap hotels with micro wave and free 🏋️‍♀️ 

I air b by the year using monthly , I never have to pay a real  deposit most times 2,000 b a year , I don’t trust landlords and they have tried a myriad of ways to keep that money 

[brianthainess]

1 hour ago, arick said:

Yes and you could if save 1 million and moved a half an hour away and bought 3 rai

Not where I live and 1/2 an hour away would take us far away from the village we both love, and a long way from any shops, including my wife's shop All of which are now only 1 km away. Could you write in English next time please.

[scubascuba3]

On 8/26/2024 at 11:58 AM, OneMoreFarang said:

if you can rent what you want for a reasonable price, then rent and don't worry.

What will the rent be in 20 years?

[OneMoreFarang]

3 minutes ago, scubascuba3 said:

What will the rent be in 20 years?

Obviously, nobody knows. But it seems there is so much supply that it is unlikely the situation will change dramatically.

[OneMoreFarang]

46 minutes ago, Dogmatix said:

Best thing is to buy a pricy infinity pool villa and put it in the name of your girlfriend you met in a bar or in the name of someone trustworthy recommended by the real estate agent or your Thai lawyer.

 

 

[Yagoda]

10 hours ago, brianthainess said:

So you are saying only buy in the USA, I think you'll find not everybody comes from that ............ up place. 

Sad for them.  Hopefully they have confidence in their Courts.

[newnative]

4 hours ago, scubascuba3 said:

During covid was a great time to buy, prices have risen now, funny at the time people thought prices would be going down.

 

Worth buying in 40s, 50s and probably 60s if you plan to stay in Thailand.

 

Some say can make more money elsewhere and just rent, but we know "investments can go down as well as up" funny enough down more often for many

     Yes, every time there's a thread on renting vs. buying, someone usually comes along and points out that if you had just rented in Thailand and if you had invested the X baht that you would have spent on buying property in Thailand, you could have made more money.   Several points are usually not mentioned, or glossed over.

     The first is the big IF in the above statement.  IF you had invested . . .  You have to first have the discipline to actually do the investing, and not blow the money on wine, women, and song.  I wonder how many do neither--don't buy property or invest in anything else.   If you've bought a place, you at least haven't squandered your money and you always have a roof over your head.  You'll save on rent, which also could be invested, or spent on wine, women, and song.  And, you still have an investment, your home.

    Second, the above investment vs. owning argument seems to ignore that, yes, you are allowed to do both.  It's not an either or proposition.  You can both own a home and make other investments at the same time.   Some might even say it's wise to not have all your eggs in one basket.  

[khunPer]

7 hours ago, OneMoreFarang said:

 

So, to make the calculation simple for a property that cost 10 million you would expect rent between 800k to 1.2m per year? Like 67k to 100k rent per month? Really? Where? 

Bangkok, for example...

Source link HERE.

 

Or Koh Samui, where it's easy to find a condo for 70k+ baht a month. And when looking at houses the prices are even higher, I snapped a photo – among others – of this 3-bed bargain the other day when passing a local real estate agent...

 

 

My next door neighbour rents their small 2-bed pool-villa out for 60k baht per month on long term Covid-bargain agreement, for short term monthly basis the price was 125k baht. The house – excluding the land under it, which is only 180 square meters – only costed them little less than 3 million baht to build 15 years ago.

 

If you think about interest as 6% – no matter if it's mortgage or interest gain from you own investment, like some condo-agents offer a 6% return when when the condo you invest in is rented out – 8%-10% in rent makes excellent sense...👍

[Hanuman2547]

Renting would be better for most people.  Much easier to leave if things happen to the area you are living at that you have no control over.  I own both a condo and a couple of houses with the houses in one of my son's name.  I've been lucky with the houses in that I have good neighbors.  The condo I just rent out but a lot of times it sits empty too as there is an oversupply of condos and they keep building more and more of them.  

[Hummin]

1 hour ago, khunPer said:

Bangkok, for example...

Source link HERE.

 

Or Koh Samui, where it's easy to find a condo for 70k+ baht a month. And when looking at houses the prices are even higher, I snapped a photo – among others – of this 3-bed bargain the other day when passing a local real estate agent...

 

 

My next door neighbour rents their small 2-bed pool-villa out for 60k baht per month on long term Covid-bargain agreement, for short term monthly basis the price was 125k baht. The house – excluding the land under it, which is only 180 square meters – only costed them little less than 3 million baht to build 15 years ago.

 

If you think about interest as 6% – no matter if it's mortgage or interest gain from you own investment, like some condo-agents offer a 6% return when when the condo you invest in is rented out – 8%-10% in rent makes excellent sense...👍

They are not fully booked year around. Your prospects is short term rental, 

[geisha]

On 8/26/2024 at 5:51 AM, KhunLA said:

ROI ???

 

Do you plan on living at condo till your end of days ?   If not rent.  Dependent on age, finances, and how long you've been or know TH.

 

Rent at any condo you consider buying at for a year also, before buying.

I’ll never forget renting a fantastic condo in a small building in Phuket.,I was very happy there, until one day they filled in the rice fields  behind me and made a road , and on the road there were bars and small restaurants spouting smoke and odeurs and  loud  music all night. I cried.Had to move. It wasn’t for sale, but if it had been I’d have bought it. So in 40 yrs of Thailand I have never bought , suits me, can go where I want, skip the country for South America now and again and rent a storage unit while I’m gone. Rent is cheap enough.

[khunPer]

3 hours ago, Hummin said:

They are not fully booked year around. Your prospects is short term rental, 

The condo examples shown for Bangkok are indeed for long term if you check:
Term of reservation :
-1 year personal contract
-3 months deposit
-1 month rental in advance

 

 

 Also my mentioned next door neighbours house, which has been rented out for years, and I furthermore have an acquaintance that rents a condo here for 70k baht a month on long term...😉

[KhunLA]

2 hours ago, geisha said:

I’ll never forget renting a fantastic condo in a small building in Phuket.,I was very happy there, until one day they filled in the rice fields  behind me and made a road , and on the road there were bars and small restaurants spouting smoke and odeurs and  loud  music all night. I cried.Had to move. It wasn’t for sale, but if it had been I’d have bought it. So in 40 yrs of Thailand I have never bought , suits me, can go where I want, skip the country for South America now and again and rent a storage unit while I’m gone. Rent is cheap enough.

Have family here, and I know I'm not going anywhere outside of TH.  Buying makes sense.   One size doesn't fit all.   Could always sell up for a profit, and leave anytime if wanting, just no desire to.

 

Research when buying helps avoid unwanted neighbors in the future, that's worldwide.  I like rural, so takes a bit more research.   If a developed area, then you already know who or what your neighbors are.

 

I single and 45 again, and just arriving, I'd be renting also.  Though I did buy in as soon as I got here, but with pocket change.  Equivalent to renting after few years.

 

OP has been here for 10 ish years already, and seem to be staying, so buying makes sense.

[OneMoreFarang]

6 hours ago, khunPer said:

excluding the land under it

Obviously, we don't have to include all the little details. Yeah, sure.

Land, it's like sand, it's all the same, it's dirt cheap, literally, everywhere, ... 

[jcmj]

Location, Location, location and house not condo. House was paid off in 6 years and have had it rented long term for 50,000 a month for the last 5 years. Do your research. If you buy a shoebox in a 700 plus unit condo you will not see the returns usually. You get what you pay for. Just be smart about it. 

[scorecard]

On 8/26/2024 at 11:59 AM, KhunLA said:

Yes, know ROI, what it means to me, but what does OP expect, how meaning.

 

More info needed.   For me, always better to buy, BUT, lots a variables involved with that decisions.  One size doesn't fit all.  

 

Condos don't appreciate like other RE in TH, that have land to go with it.   Always new condos built, competitively priced, so as an investment, again, a few variables to think about.

 

OP member of AN since May, and if that reflects his experience with TH, then rent, as has a lot to learn & experience before buying in.

 

 

Buying a condo to rent or for personal occupance needs some dur diligence:

- Is there an owners committee

- Do they have regular meetings?

- Are all owners welcome to attend all meetings.

- Has the committee made rules and regulations? Are they followed?

- Is the condo 'manager' cooperative if asked questions?

etc...

[KhunLA]

3 minutes ago, scorecard said:

Buying a condo to rent or for personal occupance needs some dur diligence:

- Is there an owners committee

- Do they have regular meetings?

- Are all owners welcome to attend all meetings.

- Has the committee made rules and regulations? Are they followed?

- Is the condo 'manager' cooperative if asked questions?

etc...

Why I suggested renting for year in any complex one is thinking about buying in.

 

Even though I was very familiar with PKK, we rented here for 1.5 years before deciding to build on the land we had for years.   Knowing this will probably be our final move.   

 

Long term decisions take long term thought & research.

[OneMoreFarang]

4 minutes ago, scorecard said:

Buying a condo to rent or for personal occupance needs some dur diligence:

- Is there an owners committee

- Do they have regular meetings?

- Are all owners welcome to attend all meetings.

- Has the committee made rules and regulations? Are they followed?

- Is the condo 'manager' cooperative if asked questions?

etc...

Yes. But all that can change. 

[Skeptic7]

Rent. 

[Hummin]

3 hours ago, KhunLA said:

Have family here, and I know I'm not going anywhere outside of TH.  Buying makes sense.   One size doesn't fit all.   Could always sell up for a profit, and leave anytime if wanting, just no desire to.

 

Research when buying helps avoid unwanted neighbors in the future, that's worldwide.  I like rural, so takes a bit more research.   If a developed area, then you already know who or what your neighbors are.

 

I single and 45 again, and just arriving, I'd be renting also.  Though I did buy in as soon as I got here, but with pocket change.  Equivalent to renting after few years.

 

OP has been here for 10 ish years already, and seem to be staying, so buying makes sense.

After 3 months in Hua Hin arriving Thailand, he have stayed 10 years already in BKK 😁

 

A troll

[zig]

11 hours ago, khunPer said:

Bangkok, for example...

Source link HERE.

Out of curiosity I checked the listed selling prices of your mentioned units. Similar sized units in those buildings are for sale for 57-85M. Thus the annual rent thus is only 3-4.5% of the value. I have rented here for many years and my experience is similar that usually the annual rent has been in the range 4-5% of the value of the condo. 

[scorecard]

5 hours ago, OneMoreFarang said:

Yes. But all that can change. 

Yes, of course it can change but why buy into a condo where it doesn't exist (it should exist by law) or where it exists but is not effective?

[khunPer]

4 hours ago, zig said:

Out of curiosity I checked the listed selling prices of your mentioned units. Similar sized units in those buildings are for sale for 57-85M. Thus the annual rent thus is only 3-4.5% of the value. I have rented here for many years and my experience is similar that usually the annual rent has been in the range 4-5% of the value of the condo. 

Yep, the rent is normally based on the construction price, which is the invested capital to pay interest from or gain interest from. Resale price is normally announced with a profit and often ends a bit lower.

 

An actual example is my neighbour's construction of a villa for initial 25 million baht on a land-plot he bought for 9 million baht. It was offered for 69 million baht as asking price after 8 years ownership – double up of 34 million baht – and ended up being sold for 50 million baht.

 

Trying to sell property at double up, or more, as announced price is quite normal. There will normally be an agent commission of 3% to be paid plus income tax of the sales price, depending on ownership time, and if the property has been used as primary home. Some resale prices are however so high that the property is not sold. The villa mentioned here has been up for sale again for a while, the new asking price $2.5 million

 

As mentioned before, the example of my next door neighbour's 2-bed rental house,  the long term rent is 60,000 baht per month. The house construction was little less than 3 million baht, not including the tiny 180 square meters land-plot under it, which at construction time, based on similar land would be in the value of 4 million baht – a 270 square meters plot almost besides it was sold for 5.5 million baht – all together an initial value of 9 million baht. So, 8% fits well to 60,000 baht per month for long term rent.

 

However, that house is also for sale now for 25 million baht – 20 million baht, if the renter wish to buy it – the owner is dreaming of a nice profit for a 15 years old house.

[proton]

People who cannot afford to buy rent, money down the drain

[Hummin]

12 hours ago, khunPer said:

The condo examples shown for Bangkok are indeed for long term if you check:
Term of reservation :
-1 year personal contract
-3 months deposit
-1 month rental in advance

 

 

 Also my mentioned next door neighbours house, which has been rented out for years, and I furthermore have an acquaintance that rents a condo here for 70k baht a month on long term...😉

Still a small marked and very few here who is in this segment of accamodation situation. 

 

I will guess most here is below 20K, and a few between 20 and 30K. Very few above. 

 

I would had been around between 15 - 20K for renting. I was willing to invest in a proper appartment between 7 - 10 mill, but those I liked was around 12mill. Rent for those appartments would be around 5% yearly of its buing/marked value. 

[Hanuman2547]

6 hours ago, proton said:

People who cannot afford to buy rent, money down the drain

Going by your avatar I will assume that you are an American.  Therefore I would agree with your statement, especially in the USA or probably any other developed nation.  Thailand is a whole different kettle of fish.

[bruceluigi]

I know a few expats who bought thinking they’d make money, but it didn’t always work out.

[Airalee]

18 minutes ago, bruceluigi said:

I know a few expats who bought thinking they’d make money, but it didn’t always work out.

It’s probably very very rare that a foreigner makes money on real estate here as an end user.
 

Never listen to the douchebags who can’t even do basic math.   They’re probably Agents.

And I say this as a condo owner.