Small Rubber Farm In Trang - Yes Or No?

[Pakeha]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

[LivNon2396]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

I just posted up about the same thing. Hoping to get some good advise. 5 rai for 500k thb is still falling in the lines of 1 rai = 100k thb.

You say the trees are 9 years old now. Have they ever been tapped? If so what are the condition of the tapping panel area? I hear alot of people "work no good" and after the tree is injured they sell the land and move on.

I commented to my GF about the price of land and the trees being 9 years old. She replied "nobody want to stay there and take care of tree, have bomb and people killing, many farmers from that area are buying farms here to work". Maybe she has a point.

Good luck.

LivNon2396

[Pakeha]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

I just posted up about the same thing. Hoping to get some good advise. 5 rai for 500k thb is still falling in the lines of 1 rai = 100k thb.

You say the trees are 9 years old now. Have they ever been tapped? If so what are the condition of the tapping panel area? I hear alot of people "work no good" and after the tree is injured they sell the land and move on.

I commented to my GF about the price of land and the trees being 9 years old. She replied "nobody want to stay there and take care of tree, have bomb and people killing, many farmers from that area are buying farms here to work". Maybe she has a point.

Good luck.

LivNon2396

Cheers LivNon.

Yeah the old 1 rai for baht 100k seems to have been around for a few years now. Makes me wonder why the price hasn't changed and it's such a nice round figure? I looked at a lot of fruit and rubber farms last year and they were a lot cheaper - but it turned out there were no official land titles!

The trees have been tapped for 2 years. I'm not sure on the condition - excellent point though. The family over there say 'very good - good price - cheap for us' because naturally it's through 'family friends' who apparently have just seperated and can't afford to buy each other out so have to sell it. I know the land and it is good, just not sure on the condition of the trees!

The bombs are a bit further south. This area is actually Yarn Ta Khao and I haven't heard of any problems. Maybe your GF does have a point though. Perhaps if I hold out the price will drop...

[Tigs]

Hi byoung2

I live in Trang. Firstly let me just clarify that there has never been any trouble at all in Trang. No bombings, no 'people killing'. All that occurs down on the Malaysian border a long way south. The closest there was ever any trouble was at Hat Yai, some three hours away, and that was a one off several years back..

Back to your rubber trees. As rubber is currently 100 Baht per kilo it is inconceivable that the trees are not producing (i.e being harvested). I have some land, but the trees are only two years old (long time to go yet!). Your trees at nine years are a good age, they should not need much maintenance at all now. A thai friend of mine has a thirty rai plot producing about 150K baht per month, so your plot should yield 25K per month at a rough guess, 40% of which is normally paid to the farmer. You could get your GF's family to work the trees if they have time, but be business like and tell them it's a 60/40 split. Thais are very very business like, even between families. Business is business, and you want your share deposited in a different account! Forget the quotes of 100K per rai on here, that is way outdated. Particularly in the South, which is the rubber tree capital! Who is selling the land? The reason i ask is that your future inlaws sound best placed to advise you on a good price compared with the going rates at the moment. Is the land on a chanote title deed? This is very important. Whatever you decide, you need to decide quick, because the land is selling like hot cakes around here. Is the land 500k total price? or 500K per rai? 100K per rai for land like that around here seems a give away especially if it is near a main road and i would snatch their hands off if i were you, The price seems seriously low at 500K total. The price of the timber alone when it is ready for cutting down is worth 100-120K per Rai!! I do not believe land values will go down, they can only go up. The price of rubber, is generally linked to oil. When oil was $60 a barrel, rubber was 60 baht per kilo and so on $100 a barrel, 95 baht per kilo etc. I am waiting for the next big leap, and cannot see oil going back down below $100 per barrel for a long time, can you? Send me a personal message if you want, i am happy to drive around and check out the land for you, condition of trees etc, and that what you are being told is correct. The reason the land will be up for sale, is that farmers want to sell small packets of land now, as the going has never been so good (they should wait), and selling 5 rai will put a kid through university. Land in Trang town center is selling at about 6 -7 million per rai for chanote land (ie people are building houses on them)

Good luck

Edited July 14, 2008 by Tigs

[Pakeha]

Hi byoung2

I live in Trang. Firstly let me just clarify that there has never been any trouble at all in Trang. No bombings, no 'people killing'. All that occurs down on the Malaysian border a long way south. The closest there was ever any trouble was at Hat Yai, some three hours away, and that was a one off several years back..

Back to your rubber trees. As rubber is currently 100 Baht per kilo it is inconceivable that the trees are not producing (i.e being harvested). I have some land, but the trees are only two years old (long time to go yet!). Your trees at nine years are a good age, they should not need much maintenance at all now. A thai friend of mine has a thirty rai plot producing about 150K baht per month, so your plot should yield 25K per month at a rough guess, 40% of which is normally paid to the farmer. You could get your GF's family to work the trees if they have time, but be business like and tell them it's a 60/40 split. Thais are very very business like, even between families. Business is business, and you want your share deposited in a different account! Forget the quotes of 100K per rai on here, that is way outdated. Particularly in the South, which is the rubber tree capital! Who is selling the land? The reason i ask is that your future inlaws sound best placed to advise you on a good price compared with the going rates at the moment. Is the land on a chanote title deed? This is very important. Whatever you decide, you need to decide quick, because the land is selling like hot cakes around here. Is the land 500k total price? or 500K per rai? 100K per rai for land like that around here seems a give away especially if it is near a main road and i would snatch their hands off if i were you, The price seems seriously low at 500K total. The price of the timber alone when it is ready for cutting down is worth 100-120K per Rai!! I do not believe land values will go down, they can only go up. The price of rubber, is generally linked to oil. When oil was $60 a barrel, rubber was 60 baht per kilo and so on $100 a barrel, 95 baht per kilo etc. I am waiting for the next big leap, and cannot see oil going back down below $100 per barrel for a long time, can you? Send me a personal message if you want, i am happy to drive around and check out the land for you, condition of trees etc, and that what you are being told is correct. The reason the land will be up for sale, is that farmers want to sell small packets of land now, as the going has never been so good (they should wait), and selling 5 rai will put a kid through university. Land in Trang town center is selling at about 6 -7 million per rai for chanote land (ie people are building houses on them)

Good luck

Hi Tigs.

I sent you a personal message re above.

Incidentally it's good to hear of a farang living in Trang. I thought I was going to be the only one when I got over there. Mind you when I'm there I'm out in the countryside and barely ever get into the city. I've never been able to understand why it's not too popular with foreigners. Oh well - fingers crossed it will stay that way!

Cheers.

[Maizefarmer]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

What is it you are wanting to do/achieve?

Keep your partner and that side of the family happy, or make an investment and put some roots down?

"Farming" and the "accumulation of land" (as you describe it) are seperate issues.

If you wish to think of "farming as an investment", well that is very much a long term project - think in terms of 10 - 20 years. So no, however you look at it, I would not think 5 rai of rubber is going to contribute much in the way of income, but depending on the location of the land, its titleship (keep in mind you will not have legal titleship to the land), and whether or not planning permission is an option (now or later) - then their may well be an argument supporting the purchase of the land for investment.

Its all very easy for ex-pats to come out to Thailand and purchase land cash, but farm land (in my humble opinion) is only ever worth it if it can be purchased with a mortgage from the bank, and the income that can be generated on it is sufficent to cover the mortgage i.e. it shouldn't cost you any more than the initial deposit. If you cant get the figures to add up like this, then from a farming point of view it simply doesn't make business sense.

MF

[Pakeha]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

What is it you are wanting to do/achieve?

Keep your partner and that side of the family happy, or make an investment and put some roots down?

"Farming" and the "accumulation of land" (as you describe it) are seperate issues.

If you wish to think of "farming as an investment", well that is very much a long term project - think in terms of 10 - 20 years. So no, however you look at it, I would not think 5 rai of rubber is going to contribute much in the way of income, but depending on the location of the land, its titleship (keep in mind you will not have legal titleship to the land), and whether or not planning permission is an option (now or later) - then their may well be an argument supporting the purchase of the land for investment.

Its all very easy for ex-pats to come out to Thailand and purchase land cash, but farm land (in my humble opinion) is only ever worth it if it can be purchased with a mortgage from the bank, and the income that can be generated on it is sufficent to cover the mortgage i.e. it shouldn't cost you any more than the initial deposit. If you cant get the figures to add up like this, then from a farming point of view it simply doesn't make business sense.

MF

Thanks MF.

I appreciate your highly commercial approach.

In all honesty I see this as a 'keep the family happy' investment. My approach to any property investment is buy. Never sell. So over time they're all good investments if you buy right. I know it will not actually be mine - but my partners by legal title. Nonetheless this will go to my daughter if things don't work out so I have no concern on that front.

Re farming - I'm not actually looking to be a farmer with 5 rai. This would be the start of future land acquisition - I'm only 29 so have a few years up my sleeve. I intend to settle in Thailand when I have a solid passive income from investments in NZ. Investments in Thailand are more for family / personal enjoyment - hopefully with some form of an income!

The figures I've done are:

land @ thb 600k (there's actually 6 rai available now). This would be purchased outright in Thailand with a loan in NZ - I have some good equity here to use.

Revenue

monthly - 30,000

Expenses

Rubber collectors - 12,000

loan repayments - 10,500 (based on a loan in NZ at current interest rates which can only go down)

Gross Profit - 7,500. - I expect a fair chunk of this will go towards additional expenses - fertiliser / maintenance / rates etc.

Anyway, this is based on paying of the loan in 5 years with some modest profit for us. Family is happy / inlaws are employed and the GF has her land in her family area which she so desperately wants.

I like your approach. Please tell me if you think I'm crazy.

Cheers, byoung2

[Issangeorge]

byoung2, With rubber prices at ฿100, and I don't see them going down, then if you just average 300 kilos per rai, which I think in Trang is a conservative number, and you have a 50/50 split with the workers, then you will make ฿15,000 per rai per year. The trees are 9 years old and producing, my understanding is that at this age there is little up keep so say ฿3,000 per rai per year, that will still give you a return of 12%, better than any bank I know. Go for it. Issangeorge.

[Mosha]

Hi byoung2

I live in Trang. Firstly let me just clarify that there has never been any trouble at all in Trang. No bombings, no 'people killing'. All that occurs down on the Malaysian border a long way south. The closest there was ever any trouble was at Hat Yai, some three hours away, and that was a one off several years back..

Back to your rubber trees. As rubber is currently 100 Baht per kilo it is inconceivable that the trees are not producing (i.e being harvested). I have some land, but the trees are only two years old (long time to go yet!). Your trees at nine years are a good age, they should not need much maintenance at all now. A thai friend of mine has a thirty rai plot producing about 150K baht per month, so your plot should yield 25K per month at a rough guess, 40% of which is normally paid to the farmer. You could get your GF's family to work the trees if they have time, but be business like and tell them it's a 60/40 split. Thais are very very business like, even between families. Business is business, and you want your share deposited in a different account! Forget the quotes of 100K per rai on here, that is way outdated. Particularly in the South, which is the rubber tree capital! Who is selling the land? The reason i ask is that your future inlaws sound best placed to advise you on a good price compared with the going rates at the moment. Is the land on a chanote title deed

The income you quote, is that an average for the year? I am in Ranong and the tapping season is about 5 - 6 months, depending on how long the rainy season is. Also that 100 Baht seems a bit high, depending on who to /where you sell it. Cup rubber here is about 65 Baht if you sell it to someone who turns up to buy it. I haven't checked on the mats of late, but no one we know bothers to smoke the mats.

[siamkiwi]

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

Hi mate, Im a kiwi living between trang and NZ. I am also looking at buying some land for rubber or palms. Have done a bit of researce but definitly no expert. 9 years seems to be pretty much the optimum age as far as having reached their potential yield and still having plenty of life left in them. There's plenty of opinion on what kind of yield you can expect but i think trang would be at the high end as it seems to be one of the main rubber growing areas. I've been looking around and that sounds like a pretty good deal, depending on the type of title.

Good to hear another kiwi in trang. There's an ozzy guy got a bar over the road from the train station, should catch up for a beer one day. Cheers.

[Maizefarmer]

If youre happy with that (i.e. from a farming point of view it doesn;t make much sense by its self) - then, yes - go for it. The outlay is almost certainly going to be secured in the value of the land over time.

[Pakeha]

Sounds great.

Another kiwi living between NZ and Trang - amazing! I think I know the pub!

Everyone on here seems to know a lot more than me but if you need any leads on land for sale near Trang let me know. We looked at a bunch of farms last year - all too expensive for me as they were at least 40 rai. Every other week the family in Thailand tells us about more land for sale in their area. 5 rai is my starting point though and there's not many that small eh.

Definately catch up for that beer. I'll be over in April next year otherwise I'm slugging away in Auckland until then.

Cheers.

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

Hi mate, Im a kiwi living between trang and NZ. I am also looking at buying some land for rubber or palms. Have done a bit of researce but definitly no expert. 9 years seems to be pretty much the optimum age as far as having reached their potential yield and still having plenty of life left in them. There's plenty of opinion on what kind of yield you can expect but i think trang would be at the high end as it seems to be one of the main rubber growing areas. I've been looking around and that sounds like a pretty good deal, depending on the type of title.

Good to hear another kiwi in trang. There's an ozzy guy got a bar over the road from the train station, should catch up for a beer one day. Cheers.

[wdrk7]

Sounds great.

Another kiwi living between NZ and Trang - amazing! I think I know the pub!

Everyone on here seems to know a lot more than me but if you need any leads on land for sale near Trang let me know. We looked at a bunch of farms last year - all too expensive for me as they were at least 40 rai. Every other week the family in Thailand tells us about more land for sale in their area. 5 rai is my starting point though and there's not many that small eh.

Definately catch up for that beer. I'll be over in April next year otherwise I'm slugging away in Auckland until then.

Cheers.

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

Hi mate, Im a kiwi living between trang and NZ. I am also looking at buying some land for rubber or palms. Have done a bit of researce but definitly no expert. 9 years seems to be pretty much the optimum age as far as having reached their potential yield and still having plenty of life left in them. There's plenty of opinion on what kind of yield you can expect but i think trang would be at the high end as it seems to be one of the main rubber growing areas. I've been looking around and that sounds like a pretty good deal, depending on the type of title.

Good to hear another kiwi in trang. There's an ozzy guy got a bar over the road from the train station, should catch up for a beer one day. Cheers.

If the smell of the dried latex is not a problem , then 100k bht per rai is a good buy for 9 years old trees .

[MrEarl]

If the smell of the dried latex is not a problem , then 100k bht per rai is a good buy for 9 years old trees .

Just the wood of older rubber trees is worth 50k per rai.

[Pakeha]

"I love the smell of dried latex in the morning"...

Beats the sweet smells of BKK or any big city for that matter!

Sounds great.

Another kiwi living between NZ and Trang - amazing! I think I know the pub!

Everyone on here seems to know a lot more than me but if you need any leads on land for sale near Trang let me know. We looked at a bunch of farms last year - all too expensive for me as they were at least 40 rai. Every other week the family in Thailand tells us about more land for sale in their area. 5 rai is my starting point though and there's not many that small eh.

Definately catch up for that beer. I'll be over in April next year otherwise I'm slugging away in Auckland until then.

Cheers.

I'm another Newbie.. But I've read a lot of your posts and will aim not to annoy any of you experienced posters.

I'm looking at buying 5 rai near Trang for $500,000 baht. Trees are about 9 years old and it's right next to a main road. Is this a good price?

I've read all the warnings about economies of scale etc. but GF (soon to be wife) wants some land near her family (who are rubber farmers!). We live in NZ and will do for a while yet but would be nice to start accumulating a bit of property in Thailand sooner rather than later.

Biggest problem I see is that I won't be there to oversee the farm. But, then again should just be able to get the family to work it right?

Lastly, how much work is involved in maintaining / fertilising a farm this size given the trees are already 9 years old? I.e. How much work is involved beyond harvesting the rubber? I have been led to believe not much but all the posts I've read seem to indicate there's a hel_l of a lot.

Any advice is greatly appreciated. I'm very serious about purchasing some sort of land in Thailand.

Regards, byoung2

Hi mate, Im a kiwi living between trang and NZ. I am also looking at buying some land for rubber or palms. Have done a bit of researce but definitly no expert. 9 years seems to be pretty much the optimum age as far as having reached their potential yield and still having plenty of life left in them. There's plenty of opinion on what kind of yield you can expect but i think trang would be at the high end as it seems to be one of the main rubber growing areas. I've been looking around and that sounds like a pretty good deal, depending on the type of title.

Good to hear another kiwi in trang. There's an ozzy guy got a bar over the road from the train station, should catch up for a beer one day. Cheers.

If the smell of the dried latex is not a problem , then 100k bht per rai is a good buy for 9 years old trees .

[jongkolkhoo]

Sounds great.

Another kiwi living between NZ and Trang - amazing! I think I know the pub!

Everyone on here seems to know a lot more than me but if you need any leads on land for sale near Trang let me know. We looked at a bunch of farms last year - all too expensive for me as they were at least 40 rai. Every other week the family in Thailand tells us about more land for sale in their area. 5 rai is my starting point though and there's not many that small eh.

Definately catch up for that beer. I'll be over in April next year otherwise I'm slugging away in Auckland until then.

Cheers.

Hi,

I am interested to get some 30-100 rais land in trang- krabi area. near wang wiset or bang kung or kao kob or wang maprang nua or na wong. hope you can help me . I am malaysian living between malaysia- nakorn si thammarat. PM me and I can give you more info about rubber or palm oil trees. I also happen to have statistics on rubber & palm oil trees yields.