YoungFarangNa Posted October 29, 2007 Share Posted October 29, 2007 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. --- 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. Link to comment Share on other sites More sharing options...
PeaceBlondie Posted October 29, 2007 Share Posted October 29, 2007 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? Link to comment Share on other sites More sharing options...
YoungFarangNa Posted October 29, 2007 Author Share Posted October 29, 2007 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. Link to comment Share on other sites More sharing options...
cclub75 Posted October 29, 2007 Share Posted October 29, 2007 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. Link to comment Share on other sites More sharing options...
YoungFarangNa Posted October 29, 2007 Author Share Posted October 29, 2007 (edited) 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 Link to comment Share on other sites More sharing options...
lannarebirth Posted October 29, 2007 Share Posted October 29, 2007 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. Link to comment Share on other sites More sharing options...
gregb Posted October 29, 2007 Share Posted October 29, 2007 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. Link to comment Share on other sites More sharing options...
YoungFarangNa Posted October 29, 2007 Author Share Posted October 29, 2007 fair points about property taxes. i didn't realize they were so high. Link to comment Share on other sites More sharing options...
Naam Posted October 29, 2007 Share Posted October 29, 2007 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%. Link to comment Share on other sites More sharing options...
londonthai Posted October 29, 2007 Share Posted October 29, 2007 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. Link to comment Share on other sites More sharing options...
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