Buying Before Returning To The West

[paperplates]

My husband (Thai) and I are planning on moving from Thailand back to Europe in a couple of years time. We deliberate about whether or not to buy a property here before we go. A lot of people from the UK buy a house, move abroad and move back years later with a very large chunk of their mortgage having been paid off by someone else - but would it work quite so easily from this end? I worry that we wouldn't find tenants, our house would have crumbled to the ground by the time we might expect to come back to Thailand and live in it, it will drop in value, it will be unsellable if we do want to get out given that 'used' houses are not that easy to get rid of.

However, the main problem is that we're both pretty clueless when it comes to these kind of things so don't really know how real our concerns are.

I also wondered if anyone has bought from these 'NPA Sales' that the banks have where they flog off repossessed houses at apparently knock down prices.

Any advice gratefully received.

[paperplates]

I was also interested to read in another topic about people making up to 10% on their rental income. The reason we haven't bought so far is that our rent is so much cheaper than the mortgage would be on the house we live in. We live in a new 5 bed house worth 9 million and the rent is only 33,000 a month. We do live in a suburban area - about 30 mins from Ekamai - is that why? Would you need to buy in town to get more than your mortgage in rent?

[samran]

if you have the cash I'd buy back in europe and let someone start paying for your mortgage there now...

My wife and I were looking to buy here, but instead boought in OZ. Very good decision as far as we were concerned.

[Chaimai]

Depends where in Europe you are going back to.

If it is the UK arrange to see an independent mortgage adviser who will take you through all the pro's and con's and recommend the most appropriate mortgage for your circumstances..

If you are going anywhere near East Anglia send me a PM and I can get some contact points for you.

[eljeque]

It is not an enjoyable position to be in, an overseas owner.

You will always be able to find your lovely property here in the future when you are ready to stay here full time.

Selling in Thailand is rarely an easy task.

Take paperplates advice, the rent to value ratio here is very low, and so it is really beneficial to rent.

Good luck

[Pattaya46]

... We live in a new 5 bed house worth 9 million and the rent is only 33,000 a month...

If the rent is only 33,000 baht/month,

the house not worth more than 5 or 6 million, certainly not 9

(house value about 150 to 200 rent value, maxi)

[zorro1]

5 mill bht can get you a nice place in Thailand depending of course on location. What will that buy you back home? a 30 year old condo out in the boonies more than likely right? what do you prefer? what can you afford?

Also a well placed condo around 5 mill near a BTS in bkk for example will get you 35000bht. You wont get that return on an ancient studio back home even if you could buy it for the same money

Edited July 30, 2008 by zorro1

[paperplates]

Well I guess it's all a bit scary no matter which country you're in. My house here actually is worth 9 million baht and I pay 33,000. I think the owner bought it with pocket change so has priced it to rent, rather than to cover a mortgage. If this house only cost 5 million I'd buy it! But the same goes in the area I'm from in the UK. A house that would cost upwards of 300,000 pounds goes for about 800 pounds in rent - and a mortgage of 800 pounds would get you a grotty flat worth about 100,000. I wish I was French and then I wouldn't worry so much about not owning a house!

[tornado40]

It is not an enjoyable position to be in, an overseas owner.

I was wondering why you consider this to be the case - I own a place in Thailand - Samui (as do many I suspect), and live in the UK most of the time and am a very happy 'overseas owner'