Farm Land Prices

[Joe Walshe]

Curious to know if agricultural land prices are increasing in Isarn. In particular around Loei, Chaiyaphum and Chumphae.

Moderator; wasn't sure if this should be in Real estate section.

[Pseacraft]

A lot of land prices right now are high in my opine. But I have found that if they are known to the family things seem be a beit easier. I've bought some from TMB and BKK Banks at a good price and the best price has been from people we know. Most will jack it up if you show too much interest. I'm in Nong Khai so things could be a little different. I know the property transfer/title fees went up just a few weeks ago, right have the election, they doubled on us. Plan on paying the government value not the purchase price on those fees.

Good luck!

Eric

[Issangeorge]

As I have written in previous posts in the farming forum, I expect property prices to rise considerably and if you have any extra funds and can buy property at a reasonable price i suggest you do it. The reason I think farm prices will rise is because commodity prices are rising and thus farm land becomes more attractive, but also because a lot of the land in Isan is relatively poor non irrigated land and is really only good for one thing, growing cassava. Surprise surprise, the price of cassava has gone from .6 baht a kilo a couple of years ago to over 2 baht a kilo today, also yields that use to be 3,000 kilos a few years back, can now be over 10,000 and I have read maybe up to 30,000 kilos a rai. Think about it if you can get 10,000 kilos a rai and 2 baht a kilo, thats 20,000 baht a rai, even if you pay half in expenses that works out to 10,000 baht a rai and if you paid 50,000 baht a ria for the land, which the last time I bought some cassava land it was selling for around 25,000 baht a rai, you would make 20% on your investment. Going by this I don't think it will be to long when even cheap degraded land not close to anything will be selling for 50,000 baht and up if it has title, where as now its or was 30,000 baht and up, maybe even a little less. Issangeorge.

[Joe Walshe]

Issangeorge,

I did read your post on another thread and found it interesting. I agree that Worldwide Agricultural Commodity prices are on the rise (see Financial Times about 2 weeks ago). Also, from what you say there is wisdom in buying good priced land now as a long term investment. In our case we probably have purchased more than enough agricultural land in different areas of Isaan. We bought as owners were in ahurry to sell and prices were lower than adjoining lands.

Our investment now needs to be in developing the land. Not much point in continuing to buy land and then just leaving it to revert to scrub.

What I am actually curiouse to know is has agricultural land gone up in price in Isaan over the past 5 to 10 years significantly.

[benfica]

very interesting comments considering farangs are not allowed to buy land in thailand.could you explain to me how you are going to achieve that?

[Issangeorge]

Benfica, most farangs on this board are married to Thai ladies and they are buying the land with the farang's money. In my case I own nothing in Thailand except my Honda Phantom, which through a great deal of trouble is in my name, everything else, a Honda Air Blade, D-max pick-up, and property is in my wife's name. Our house is built on untitled land and thus I guess in theory it is owned by the government, but my wife's name is on the house registration papers. There are various ways farangs can protect themselves, but in my case other than for some land I bought on Koh Samui before my wife and I got married, I have not bothered. I trust my wife fully and she is no spring chicken so I think the odds of her running off with another man are negligible. If anything it would be me running off with some young Thai girl, and that is not going to happen and if it did, then I would deserve to loose everything. Issangeorge PS if their was title on our house land I would do something to protect myself in that case, but there is no title, so I guess my protection is no one but the government can take it.

[billd766]

very interesting comments considering farangs are not allowed to buy land in thailand.could you explain to me how you are going to achieve that?

Benfica, most farangs on this board are married to Thai ladies and they are buying the land with the farang's money. In my case I own nothing in Thailand except my Honda Phantom, which through a great deal of trouble is in my name, everything else, a Honda Air Blade, D-max pick-up, and property is in my wife's name. Our house is built on untitled land and thus I guess in theory it is owned by the government, but my wife's name is on the house registration papers. There are various ways farangs can protect themselves, but in my case other than for some land I bought on Koh Samui before my wife and I got married, I have not bothered. I trust my wife fully and she is no spring chicken so I think the odds of her running off with another man are negligible. If anything it would be me running off with some young Thai girl, and that is not going to happen and if it did, then I would deserve to loose everything. Issangeorge PS if their was title on our house land I would do something to protect myself in that case, but there is no title, so I guess my protection is no one but the government can take it.

I am the same as issangeorge except that I am in Khampaeng Phet.

If I had the cash at this time I would certainly buy land. Frontage land here was going for around 30,000 baht a rai 2 years ago. That was on a tarmac road with mains electricity and mains water most of the year.

What it will be this year I can only guess but 35 to 40k would not surprise me.

[ClaytonSeymour]

Benfica, most farangs on this board are married to Thai ladies and they are buying the land with the farang's money. In my case I own nothing in Thailand except my Honda Phantom, which through a great deal of trouble is in my name, everything else, a Honda Air Blade, D-max pick-up, and property is in my wife's name. Our house is built on untitled land and thus I guess in theory it is owned by the government, but my wife's name is on the house registration papers. There are various ways farangs can protect themselves, but in my case other than for some land I bought on Koh Samui before my wife and I got married, I have not bothered. I trust my wife fully and she is no spring chicken so I think the odds of her running off with another man are negligible. If anything it would be me running off with some young Thai girl, and that is not going to happen and if it did, then I would deserve to loose everything. Issangeorge PS if their was title on our house land I would do something to protect myself in that case, but there is no title, so I guess my protection is no one but the government can take it. You trust the Thai Government?

[Rinrada]

and when Khun T comes back we all expect CM to boom again...land of milk and honey........buy now.....Tor-rai krup.......wottttttt.

[Joe Walshe]

I guess if Agricultural food prices continue to rise, partly because of demand for bio diesel crops, then farming should become a more viable activity. This in turm should increase cost of good farm land.

Still like to know if prices have gone up in past few years or are starting to go up now.

[WeekendWarrior]

I just brought sevral rai for my wife as an investmant and it cost 500,000 for each rai and it is rice paddy land about 3 hours from Bangkok.

[blue eyes]

Are you sure 500k?Or did you mean 5K a rai?

[WeekendWarrior]

500k and its in a good location.

[LoveDaBlues]

500k and its in a good location.

Really, it's in a good location? Why is that? Did your wife tell you it's a good location?

IT'S RICE LAND.

[thoongfoned]

hi joe,

my 2 bahts worth.

in the past five years in the village where i spend time (east of udon thani) the "village paddy" has gone up by around 500%, but if you are family its still VERY cheap. (loads of non thai people buying land, so this land expensive) some people will hold out for many years and will get a good price but not crazy money like a 500% increase. this is land to build house on. farm rice paddy land has gone up but you will always get people who want loads of money any where in the world. example: around five years ago a thai lady i know wanted around 500,000 baht for around 55 rai of paddy on a "concrete road", 1 km from the village, electric ect all on tap. the land was used for rice and had about 100 trees here and there. over the years the land went up by 100.000 each and every year. this year the said lady sold the land for 900,000. result!! another thai person bought the land. (they have a very well paid job)

every other month i hear about farm land coming up for sale and if people are not to crazy about the selling price i would say most plots go for between 10,000 and 20,000 per rai with full land title, sorry forgot to say the previous land is full canalote. like i said you will always get people who want the "earth" for what they have for sale but this applies any in the world to any product.

around 10 yaers ago (makes my wife sound old!) my wife bought a peice of land around 35 rai with full canalote for 7,000 per rai. yes a result as i did not even know her then!!!!

both of the last two sentences arebased on rice paddy within 2km of the village and have no main line electric running tothem.

i would say that farm land is going up in price but it is only worth what youthink its worth to you. myself i would not think of paying more that 15,000 per rai for rice paddy even if it backed onto the back of my house with main line electric ect... having said that if it had a workable crop sown into the land i could maybe pay more but not that much more. i know of two familys that are tryinf to sell some good rice paddy land for 10,000 baht a rai for opening talks.

at the end of the day you can not make a fortune farming in thailand at the moment, so what ever you pay for your land you must br happy with it.

[Joe Walshe]

Thanks Thoongfoned, some interesting points.

I suppose putting it simply land will ultimately always go up in price with inflation anyway anywhere in the World. As I am not mcurrently in Thailand I was curiouse to know if agricultural land had rapidly increased in value due to crop and rice prices going up.

[sbk]

Off topic, inflammatory and abusive posts have been deleted. Lets try to keep this on topic without abusing other posters. It is possible to have a difference of opinion without flaming.

Further such posts will result in warnings being handed out.

[WeekendWarrior]

500k and its in a good location.

Really, it's in a good location? Why is that? Did your wife tell you it's a good location?

IT'S RICE LAND.

Like I said, the beach front land decaids ago was the worsed land in the thai family, it was cheap and given away to family and children.

Now look at it, who is laughing now ?

My soon to be wife did tell me it was good location and from what i see it is, there is a road nearby and electric and all and close to a small corner shop.

[maprao]

Farm Land sells for about 10,000 to 20.000 Baht per Rai depending on location. Back in 2003 I paid 4000 Baht per Rai for 16 Rai of "Rice Land" or farmland in my Thai wifes name. Now it is worth maybe 4 or 5 times what we paid. However in my opinion you should not be paying anymore than 20,000 Baht per Rai anywhere in Thailand..

When buying this land take note of the type of title it has most of this land comes with just a possessory right and not a Chanote. This effectively means you pay Tax on it and have "squatters rights".

I love my wife dearly but I have one rule of thumb - never invest money in Thailand that you cannot afford to lose.

I would like to add further comment but fear my sensible comments would be removed.

Someone once told me "Thailand is Paradise to a few and a fools paradise to most." I think it is for this reason that I remain sane :-)

Edited March 5, 2008 by maprao

[dee123]

....listen guys try and tell it as it is.......if you paid for the land in your wife's name then let us all know that,,...its especially helpful to new members,....who read through and think yeh these older guys own land..then its ok......not realising that many more bought land and split with their gf.....p.s.and that includes me ...as i tend to say "we" bought or "our" house....

Edited March 5, 2008 by dee123

[Joe Walshe]

Farm Land sells for about 10,000 to 20.000 Baht per Rai depending on location. Back in 2003 I paid 4000 Baht per Rai for 16 Rai of "Rice Land" or farmland in my Thai wifes name. Now it is worth maybe 4 or 5 times what we paid. However in my opinion you should not be paying anymore than 20,000 Baht per Rai anywhere in Thailand..

When buying this land take note of the type of title it has most of this land comes with just a possessory right and not a Chanote. This effectively means you pay Tax on it and have "squatters rights".

I love my wife dearly but I have one rule of thumb - never invest money in Thailand that you cannot afford to lose.

I would like to add further comment but fear my sensible comments would be removed.

Someone once told me "Thailand is Paradise to a few and a fools paradise to most." I think it is for this reason that I remain sane :-)

Thanks for that Maprao.

would you mind telling us what part of Thailand you purchased the land. It's just that Land near say Phuket or Chonburi would be influenced by different economic factors than say Buriram or Udon Thani.

[ozzydom]

Around our area , paddy land with available water has been going for 100k and upwards for the last 4 years,sugar (dry) country is now almost at that figure.

An indicator is that the money lenders are lending up to 50k per rai using the same land as collateral.

[Gary A]

....listen guys try and tell it as it is.......if you paid for the land in your wife's name then let us all know that,,...its especially helpful to new members,....who read through and think yeh these older guys own land..then its ok......not realising that many more bought land and split with their gf.....p.s.and that includes me ...as i tend to say "we" bought or "our" house....

Over the past four years I have bought my Wife four separate pieces of land. Two are ten rai each. That said, I have NOT spent more than I can afford to walk away from. I decided that when I am dead and gone that she can make a meager living from the land whereas a fancy house would be a burden to her. She also has a two bedroom western style house that I have westernized to suit my wants and needs. If our marriage were to break up tomorrow, I would feel that she deserves the things I have bought for her.

[maprao]

Farm Land sells for about 10,000 to 20.000 Baht per Rai depending on location. Back in 2003 I paid 4000 Baht per Rai for 16 Rai of "Rice Land" or farmland in my Thai wifes name. Now it is worth maybe 4 or 5 times what we paid. However in my opinion you should not be paying anymore than 20,000 Baht per Rai anywhere in Thailand..

When buying this land take note of the type of title it has most of this land comes with just a possessory right and not a Chanote. This effectively means you pay Tax on it and have "squatters rights".

I love my wife dearly but I have one rule of thumb - never invest money in Thailand that you cannot afford to lose.

I would like to add further comment but fear my sensible comments would be removed.

Someone once told me "Thailand is Paradise to a few and a fools paradise to most." I think it is for this reason that I remain sane :-)

Thanks for that Maprao.

would you mind telling us what part of Thailand you purchased the land. It's just that Land near say Phuket or Chonburi would be influenced by different economic factors than say Buriram or Udon Thani.

Yes sorry I should have specified. It is in a rural area in the province of Sakeo. My estimation refers to land in the provinces. However land is selling for what I would term "too much" driven by Farang who have the money to pay inflated prices. All my wifes land was bought from people who wanted to sell quickly.

If you are in areas like Pattaya and Phucket the land is much more expensive. In these areas the land has a Chanote. Looking at reposessed land on bank websites will give you a good idea of the going rate in these areas. Unfortunately this information is in Thai but it is fairly easy to determine area versus price. All Major banks in Thailand have them. I look at the SCB website for my "rule of thumb". I hope that helps Joe.

To satisfy other comments the fact that it is all in my wife's name was stated before.

Only land with a Chanote or the next level down can be used as collateral with a bank. I would never recommend that anyone get into debt to buy land in Thailand in someone elses name.

[ray23]

I think you would be hard pressed these day to find any land any where near Udon for 10K a ria. 100K and up would probably be more accurate. As matter of fact if I found land at 100K a rai here, on a paved raod with electricty I would probably be out buing it not wrining on this topic.

But somethimgs don't change here, you want a good buy you have to find a motivated seller.

[Gary A]

I think you would be hard pressed these day to find any land any where near Udon for 10K a ria. 100K and up would probably be more accurate. As matter of fact if I found land at 100K a rai here, on a paved raod with electricty I would probably be out buing it not wrining on this topic.

But somethimgs don't change here, you want a good buy you have to find a motivated seller.

I agree. I bought ten rai a couple of years ago from a distressed seller and paid 18,000 baht per rai. It is on a narrow dirt road and has no electricity available. Even here in the boonies of Loei, that was considered a good price. My sister in law recently paid 100,000 baht for a VERY low plot off a paved road with electricity available. I might add that her husband is also Thai. No way would I have paid that much.

[Joe Walshe]

....listen guys try and tell it as it is.......if you paid for the land in your wife's name then let us all know that,,...its especially helpful to new members,....who read through and think yeh these older guys own land..then its ok......not realising that many more bought land and split with their gf.....p.s.and that includes me ...as i tend to say "we" bought or "our" house....

I don't own any land in Thailand. My wife owns land. Sometimes, when posting, I say 'my farm' instead of 'our/her farm'.

Thank you for all your posts.

I think investing in farmland in Thailand to grow crops in retirement is wise. Whether one does it small scale or large scale might depend on how you want to spend your so called retirement time.

Seems wise to me to let my wife and kids inherit developed farmland than cash or other equities.

[billd766]

....listen guys try and tell it as it is.......if you paid for the land in your wife's name then let us all know that,,...its especially helpful to new members,....who read through and think yeh these older guys own land..then its ok......not realising that many more bought land and split with their gf.....p.s.and that includes me ...as i tend to say "we" bought or "our" house....

I don't own any land in Thailand. My wife owns land. Sometimes, when posting, I say 'my farm' instead of 'our/her farm'.

Thank you for all your posts.

I think investing in farmland in Thailand to grow crops in retirement is wise. Whether one does it small scale or large scale might depend on how you want to spend your so called retirement time.

Seems wise to me to let my wife and kids inherit developed farmland than cash or other equities.

Joe

I am the same as you in that respect.

Basically it is a given that when we talk of my or our we mean the family land which is in our wives name that in all probability we paid for. It will always be "our" land etc up until the time we divorce or die.

In my case we are making a will so that each leaves everything to the survivor and in my wifes case it is to go to our son with me named as his guardian until he reaches his legal majority. At that stage I will probably be dead anyway and my wifes middle brother will become the legal guardian until such time ......

[tazman]

Curious to know if agricultural land prices are increasing in Isarn. In particular around Loei, Chaiyaphum and Chumphae.

Moderator; wasn't sure if this should be in Real estate section.

found out today my brotherinlaw/ friend has bought 7 rai for 50,000b each about 30k from khon kaen. is this a good price????????

[Gary A]

Curious to know if agricultural land prices are increasing in Isarn. In particular around Loei, Chaiyaphum and Chumphae.

Moderator; wasn't sure if this should be in Real estate section.

found out today my brotherinlaw/ friend has bought 7 rai for 50,000b each about 30k from khon kaen. is this a good price????????

It has been said many times that land is worth whatever you are willing to pay for it. It all depends on why you want the land. If you want to build a house in a choice location, the land is very valuable to you, BUT, if you want to farm this piece of land then it is most likely a poor investment.