Property Is Much Cheaper In West Palm Beach Than Suburban Bkk Right Now

[YoungFarangNa]

http://www.zillow.com/HomeDetails.htm?zprop=61892753

Here is a beautiful home in West Palm Beach. 85% white, 6% black, 9% other population ratio.

$500,000

Built in 2003

House is 3292 square feet = 306 m2

Land is 972 m2

6 Beds and 4 Baths

So excluding the large piece of land, the house itself is selling at 56,000 baht/m2.

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You can go and compare these numbers to the classified section of this website or the other bangkok reality websites. These cheap American real estate prices might be caused by a real estate bubble and the decline of the USD, but it does make you question whether or not real estate in Thailand is over priced. And, I realize that the market determines the price, but that doesn't mean that the market does not act irrationally at times and it is not possible for the market to over value assests - just look at Florida.

If you were to buy in West Palm beach you would be living in one of the nicest and cleanest neighborhoods in Florida. It would be very hard to compare West Palm beach to Rangsit or Suvarnabhumi.

I don't know that much about real estate, and I guess Thais are very limited in where they can invest their money, so maybe the prices will remain this high.

[PeaceBlondie]

My sister who lives outside of Orlando is having a devil of a time trying to sell a house for $365,000. She'll take $330K next month, probably. Let's see, that's about ten million baht, net (let's ignore any mortgage she has to pay off). What can she buy in Thailand for 9 million baht.

But let's not compare suburban Florida real estate with downtown Bangkok or Manhattan or the City of London, okay? What can you get in real Thailand for millions of baht? Hua Hin, Chiang Mai, Khon Kaen, Pichit, Mae Hong Son?

[YoungFarangNa]

My sister who lives outside of Orlando is having a devil of a time trying to sell a house for $365,000. She'll take $330K next month, probably. Let's see, that's about ten million baht, net (let's ignore any mortgage she has to pay off). What can she buy in Thailand for 9 million baht.

But let's not compare suburban Florida real estate with downtown Bangkok or Manhattan or the City of London, okay? What can you get in real Thailand for millions of baht? Hua Hin, Chiang Mai, Khon Kaen, Pichit, Mae Hong Son?

Are you seriously trying to compare WPB to Khon Kaen, Hua Hin and Mae Hong Son? You obviously have not been to West Palm Beach. Calling West Palm Beach a suburb is also debatable. It is a suburb by American standards I guess, but it is still very metropolitan.

And comparing "outside orlando," which is farmland, to West Palm Beach is also silly.

[cclub75]

So excluding the large piece of land, the house itself is selling at 56,000 baht/m2.

Even though I agree that real estate in Thailand is over priced (relative to purchase power in Thailand)... I think you're going the wrong way by making comparison with price per sqm.

For such large houses, we don't calculate anymore with price per sqm.

So the palm beach house at 500 000 USD, is 17,5 millions THB.

The question is : what can you have for 17,5 millions in Thailand ? And then make comparisons.

[YoungFarangNa]

So excluding the large piece of land, the house itself is selling at 56,000 baht/m2.

Even though I agree that real estate in Thailand is over priced (relative to purchase power in Thailand)... I think you're going the wrong way by making comparison with price per sqm.

For such large houses, we don't calculate anymore with price per sqm.

So the palm beach house at 500 000 USD, is 17,5 millions THB.

The question is : what can you have for 17,5 millions in Thailand ? And then make comparisons.

Well, I saw the development Magnolias in Bagna which was going for 20-40m baht/unit.

http://www.prakard.com/default.aspx?g=posts&t=15686

Edited October 29, 2007 by YoungFarangNa

[lannarebirth]

I think Florida Property taxes all totaled are about 1.7% . On a $500,000 home that would be about $8,500/year. So every month, for forever you need to pay over $700/mo just to stay in your already paid for home. No thanks.

[gregb]

Land always has been, and always will be much cheaper in the U.S. than in Thailand.

As for property taxes, most localities in the U.S. have property taxes at less than 3%. Thus, as a maximum, you can raise the price of the U.S. property by about 60% to get an equivalent price without property taxes. (5% yields are easily obtainable with little risk)

Know what? Land prices in Thailand are still much higher than the U.S. even after this adjustment. It isn't news. Land is expensive here. The structure, on the other hand, is usually about half the cost here vs. the U.S.

All things considered, middle class suburban homes are cheaper in the U.S. than Thailand. Townhouses on small plots of land can be cheaper in Thailand. It all depends on what you are comparing.

[YoungFarangNa]

fair points about property taxes. i didn't realize they were so high.

[Naam]

I think Florida Property taxes all totaled are about 1.7% . On a $500,000 home that would be about $8,500/year. So every month, for forever you need to pay over $700/mo just to stay in your already paid for home. No thanks.

actually they are higher in most counties. in Volusia County, Florida my last "milleage" in 2004 was over 2% but the taxman always gave a "rebate" on the estimated market price and one landed up paying between 1.6 and 1.8%.

[londonthai]

So excluding the large piece of land, the house itself is selling at 56,000 baht/m2.

even in bangkok you can get suburban houses from around 12k/m2, further from bangkok cheaper it will be.

don't buy - rent. It would be difficult to find a several bedroom house anywhere in the usa for some $300/month. In bangkok you can have one.