Second Hand

[damo]

I have in the past indicated to my wife that I would like to renovate a home in Thailand, bangers or CM. She flatly refuses to live in a "pre- loved" home. She claims that someone could have died in there and all sorts of other sh it. I have heard this before that Thai's will overlook a nice big house for sale and spend the same sort of money and go throught the headfux to build thier brand new home. Usually nowhere near as nice as the same pre-owned home.

Shame, I have seen some really nice houses that would become excellent value for money living given a decent restoration.

Can anyone tell me why the real estate market for established-older homes in Thailand is frowned upon by Thai's?

Damo.

[Livinginexile]

Never heard that before

Thais love to buy and sell property, especially prime locations.

Maybe your Mrs just wants you to buy her a NEW house?

[damo]

Well we've built two in The last 4 years. One in Australia and one in LOS. I'm one of those blokes who likes to thinks he's handy with this 'n' that so If the missus and I ever relocate like we'd like then this time I would like to buy something 10ish years old and refurbish the home myself. More of a personal interest. I thought the missus just wanted new too but she knows how much joy building a home can't be.

[KamnanT]

Yes, when it comes to housing Thais have a massive preference for new over existing and will pay a significant premium to get it. This is one of the principal reasons new condo blocks keep going up in Bangkok - it's not that there isn't an adequate supply of condominiums, it's that there isn't an adequate supply of new condominiums.

The downside to paying the "new premium" is, of course, that it doesn't last. So you pay 150K/sqm for the brand new grade A condo instead of 90K/sqm for the identical but 5 year old condominium next door. All other things being equal, where will your condo be in 5 years? The depreciation curve is steep. A rising market can mask some or all of this, but if the market is flat, the effect is obvious.

The Thai reluctance to live in a place that others have lived in before is based primarily on animist beliefs - that spirits or ghosts could have been left behind by the previous occupants. The good news for non-Thais is that you can get a condo at something much closer to its true value if you look at well-managed, well-maintained buildings that are 3+ years old. Let someone else pay the new premium.

[GuestHouse]

Yes, when it comes to housing Thais have a massive preference for new over existing and will pay a significant premium to get it

I think that is very true ... but you know, what they do with their own money is up to them, expecting someone else to spend their own money to gratify Thai preferences is to my way of thinking unacceptable.

Tell her to buy the house she can afford!

[Merlin]

tell her a few K to the local wat will bring a lot of merit making from the local monks, they'll come around and do ceremonies etc etc

[damo]

Here's a god example, http://propertyforsale.kasikornbank.com/Pr...447-TH-,00.html

A bit of paint, a driveway, a nice garden, perhaps a garage or something. Re-tiling a few gimmiky/ flashy additions and this sort of home would be quite suitable for a family of four or five. The price when buying like this I believe is flexible so the purchace price may be better than advertised.

Yes I can see a lot of hard work but like I said earlier I have built two homes in the last 4 years and actually enjoy renovating and building.

Don't know what the potential for any capital gains could possibly be, but with the so called paranoia believed by Thai's I would'nt count on any.

No sweat

[yabaaaa]

I have in the past indicated to my wife that I would like to renovate a home in Thailand, bangers or CM. She flatly refuses to live in a "pre- loved" home. She claims that someone could have died in there and all sorts of other sh it. I have heard this before that Thai's will overlook a nice big house for sale and spend the same sort of money and go throught the headfux to build thier brand new home. Usually nowhere near as nice as the same pre-owned home.

Shame, I have seen some really nice houses that would become excellent value for money living given a decent restoration.

Can anyone tell me why the real estate market for established-older homes in Thailand is frowned upon by Thai's?

Damo.

Banks not wlling to lend so much on secondhand homes and stupidity of buyers. In my opinion

[steveromagnino]

The downside to paying the "new premium" is, of course, that it doesn't last. So you pay 150K/sqm for the brand new grade A condo instead of 90K/sqm for the identical but 5 year old condominium next door. All other things being equal, where will your condo be in 5 years? The depreciation curve is steep. A rising market can mask some or all of this, but if the market is flat, the effect is obvious.

Can you name two developments where this is occuring?

I know this is true for houses somewhat, but in condos I have not seen anywhere in the city a premium for new vs. 2nd hand like this; there is a gap as the people back calculate the profit taking from the 2nd hand unit and certainly a preferance for new (as it doesn't need to be redone) however I would be thinking something like 5-10% not 50%+ as your example would appear to demonstrate.

I cannot think of too many developments off hand that are true grade A from 5 years ago, incidentally!

[imaneggspurt]

If its her money let her do as she wishes,

[imaneggspurt]

Yes, when it comes to housing Thais have a massive preference for new over existing and will pay a significant premium to get it

I think that is very true ... but you know, what they do with their own money is up to them, expecting someone else to spend their own money to gratify Thai preferences is to my way of thinking unacceptable.

Tell her to buy the house she can afford!

Then they would probably be living in a tin shack in burithani or similar wouldnt they .makes me laugh these farang letting the thai wife take control, sorry, thats my feelings,.

[imaneggspurt]

Is it because they see it like a secondhand car that is going to break down or wear out sooner, actually a lot of older properties do get to look rough quickly, they are not built like houses in the west and perhaps it is smart to but new,.we rented a 20 year old property that was literally falling down when we left !

[damo]

Yeah Thai people are funny, they'll build a nice new house and then thats it. never give the paint a touch up, improve things or really even do just basic maintenance unless its absolutly called for. and even then.

Damo.

[lazeeboy]

thais are lazy ,they think having old and having to paint and decorate is a waste of money ,they forget in 3 years the new house will need a paint,most dont paint ,thats why there are so many eyeshores around the country

[meom]

Yes, when it comes to housing Thais have a massive preference for new over existing and will pay a significant premium to get it. This is one of the principal reasons new condo blocks keep going up in Bangkok - it's not that there isn't an adequate supply of condominiums, it's that there isn't an adequate supply of new condominiums.

The downside to paying the "new premium" is, of course, that it doesn't last. So you pay 150K/sqm for the brand new grade A condo instead of 90K/sqm for the identical but 5 year old condominium next door. All other things being equal, where will your condo be in 5 years? The depreciation curve is steep. A rising market can mask some or all of this, but if the market is flat, the effect is obvious.

The Thai reluctance to live in a place that others have lived in before is based primarily on animist beliefs - that spirits or ghosts could have been left behind by the previous occupants. The good news for non-Thais is that you can get a condo at something much closer to its true value if you look at well-managed, well-maintained buildings that are 3+ years old. Let someone else pay the new premium.

It doesn't seem applicable when renting a place though. Plenty of Thais living in rented accommodation where they are not the first tenant.