Should I buy a condo or rent?

[cowboys2008]

I'm retiring soon. Should I buy a condo for about $125,000 or rent?

[G_Money]

How long is a piece of string?

 

No perfect answer for your question.  Each person’s situation is different.

 

For me renting is the answer in Thailand.  Owning only in the USA.

 

For whatever reason being able to grab my passport and walk away on short notice if needed.  PRICELESS!

 

Even forfeiting my Vespa 150 and my wardrobe.

Edited 19 hours ago by G_Money

[KhunLA]

How long have you lived in TH, and how many different places ?

 

Where are you located now ?  Just noticed HH/Cha Am area.

 

How long do you plan on owning it ?  More than 12 years to be even close to a financial break even, relative to other expenses.

 

$125k USD = ฿4.3M ... or ฿30k monthly rent for 12 years.  Of course your age will be a factor.  What it will be worth in 12 yrs, along with condo fees.   If getting full ROI, then very nice, you've lived here 12 ish year, rent free.  Even if market drops 50%, still should beat rent.

 

3 basic question.  Don't expect to make a profit, if and when selling, especially if owning 5-10 yrs.  RE is an excellent investment, IF, it has land, as that seem to be the only part of it that appreciates.   I've had 3 house builds, sold 2, and only the land appreciation gave us any return/profit when selling.   Profit & living basically rent free, so all good.

 

Location location location of course, but if your budget is $125k USD, then you won't be in any primo, appreciating location, usually.  Or it will be rather small.  Can you do small, and have you done small yet.  I would think it gets old very fast.

 

Excellent advice below, and yes, definitely rent for a year, at any place you plan on buying in.

Edited 18 hours ago by KhunLA

[BKKKevin]

Most buildings have rentals available… I would rent in a building before buying… You can see if you really like the building and neighborhood… While renting you also get to scope out all the units available for sale and most likely get a better deal… 
 

Remember it’s easy to buy but not so easy to sell…

Edited 18 hours ago by BKKKevin

[BKKKevin]

Right now a 10 year US Treasuries give you a 4.5% return…

That translates to about 15,000 baht/month for your $125k…

My bet is any ~$4 million baht condo you find to buy will rent for less than 15,000 baht/month…

Edited 18 hours ago by BKKKevin

[quake]

Op, if you buy, make yourself aware of the tax rules for bringing money in.

        and how to avoid a large tax bill. plenty of info on threads on this forum.

 

Ps  if your old, rent if still young buy. bought my first condo in 2000

      still have it, and it  owes me nothing, just my take on it.

 

 

 

Edited 6 hours ago by quake

[novacova]

12 hours ago, cowboys2008 said:

I'm retiring soon. Should I buy a condo for about $125,000 or rent?

Rent. Give it some time before you buy.

[jas007]

For a retiree, renting is probably the way to go, financially.  Can. it work out? Sure.  But you could also lose some money or end up in a place you don't actually want to be.  

 

I'm 73 and I can't imagine purchasing a place and actually having it work out, financially. The best case realistic scenario: I eventually get my money back minus the upkeep costs and the lost opportunity cost of sinking all that cash into a property. Still, I'm still thinking about buying something, just for the hell of it.  It would be fun to have a place that I could furnish just the way I wanted. Of course, size is a consideration. My current rental is a 39 square meter studio.  Renting is one thing, but I would never buy anything this small.  

[Wuvu2]

16 hours ago, BKKKevin said:

Right now a 10 year US Treasuries give you a 4.5% return…

That translates to about 15,000 baht/month for your $125k…

My bet is any ~$4 million baht condo you find to buy will rent for less than 15,000 baht/month…

 

I couldn't agree more. I've paid rent for the last 14 years and left my cash invested in the S&P. The S&P is up over 450% and my cash has tripled even after paying rent. Thai real estate values have gone sideways at best. 

 

The Thai real estate market is bizarre. Sales data is not public info so there's no way to estimate comparable values, and most farangs must pay all-cash which makes little sense to me. I've been very happy with my decision to rent.

[Shutterbug Guy]

Rent first and get to know the area and the condo I've rented in different places over a half dozen years or so before buying.  Once you purchase, you're stuck; be sure it's the one that works for you.  

 

I bought a nice sea-view unit that I will never resell; I will only give it back to my family upon my eventual demise.  

[Patong2021]

rent.

[edwardflory]

My opinion: LOCATION

 

Have a older Thai condo in BKK area, mortgage & fees ( 16 years and still paying ) total 2050bt a month. around 3000 people as neighbors in 8 buildings of 5 stories

 

Have house in wife's home village, old, on stilts, and village in the middle of nowhere - 1 hour to a major shopping area the OTHER side of the mountain.

 

LIVING in KORAT,

2 BR house with indoor kitchen, fenced yard, veggie garden, gated community. 4 MAJOR stores within 10 minutes, with Immigration 15 minutes away, can't count mom & pop stores and 7-11 under 10 minutes. Fishing lake 2 minutes -20 minutes from center city Korat.

4500bt a month.