bingobongo Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy.......... credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Link to comment Share on other sites More sharing options...
yabaaaa Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. Link to comment Share on other sites More sharing options...
think_too_mut Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. You just confirmed what bongo's post (and Nation's article) are saying. People aqueezed out of property market as buyers are turning into renters. Link to comment Share on other sites More sharing options...
bingobongo Posted October 31, 2008 Author Share Posted October 31, 2008 (edited) well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile Edited October 31, 2008 by bingobongo Link to comment Share on other sites More sharing options...
LennyW Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile I would say collecting a rent whilst retaining the assets was pretty smart?? Link to comment Share on other sites More sharing options...
yabaaaa Posted October 31, 2008 Share Posted October 31, 2008 (edited) well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile I'm not renting my condos to impress you Bongo sorry to bore you with what you think are my meagre earnings. Hope my miserable life hasn't dulled your day Thank you I already have over the $100000 mentioned elsewhere, this is a nice little earner for my wife. Edited October 31, 2008 by yabaaaa Link to comment Share on other sites More sharing options...
yabaaaa Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. You just confirmed what bongo's post (and Nation's article) are saying. People aqueezed out of property market as buyers are turning into renters. "But there will still be demand for other locations, such as Lat Phrao and Sukhumvit Road," he said" My Units are in Sukhumvit area. If there is such an over supply surely I would have trouble finding a "renter" as there will be more units to rent. I'm not having trouble, none of my customers were considering buying a condo, they are here for 6 months to 1 year. You also questioned sometime ago "no sh_t" I recall, the amount I rented the studios out for at 14000 per month. I dont consider 2km to the BTS "close" either which the report also says. Link to comment Share on other sites More sharing options...
barcelonatio Posted October 31, 2008 Share Posted October 31, 2008 People are traumatized by investing in Real Estate so sales will be slow all over the world for the next few years at least.... except for desperate sellers and bank-owned properties. I work in Real Estate in Spain and the offers are so lame to the point of being insulting. People are now renting out their properties which is the wise thing to do instead of having them sit on the market forever. I think this is not the time to buy anyplace (with a few small exceptions) regardless of how cheap properties seem. Wait until 2009 to 2010... that's when the bottom will fall out, at least in Spain. Just don´t tell my customers I said this !!! Link to comment Share on other sites More sharing options...
dotcom Posted October 31, 2008 Share Posted October 31, 2008 Behind every bts station tower cranes are working. They learned nothing from 1997. There will be fewer developers this time next year. Fact. Link to comment Share on other sites More sharing options...
Pdaz Posted October 31, 2008 Share Posted October 31, 2008 (edited) Ha haa.. Nice to finally see an article about real estate in the press that wasn't written by that knob from Raimon land.. Guess it wasn't all sweetness and light then ? Latest news from Pattaya; Some guy is opening an 'American style airpark' where you can own a house next to a private runway.. Packages available include house, light aircraft, flying lessons and personal hanger.... Whatever next ?.. Also says ''flying a plane is easier than driving a car' ( prolly good cos most Thais don't seem to have mastered 4 wheels yet let alone two) and the bloke doing the developing ''learned to fly in only two hours'' and own's a Ferrari..... Amazing Thailand Edited October 31, 2008 by Pdaz Link to comment Share on other sites More sharing options...
cclub75 Posted October 31, 2008 Share Posted October 31, 2008 Latest news from Pattaya; Some guy is opening an 'American style airpark' where you can own a house next to a private runway.. Packages available include house, light aircraft, flying lessons and personal hanger.... Whatever next ?.. Also says ''flying a plane is easier than driving a car' ( prolly good cos most Thais don't seem to have mastered 4 wheels yet let alone two) and the bloke doing the developing ''learned to fly in only two hours'' and own's a Ferrari..... Amazing Thailand Interesting indeed. Like Ocean Tower, the highest tower in Thailand. Anyway, bottom line is : extreme slowdown (-45 % ! ) of... land transactions nationwide. http://thaicrisis.wordpress.com/2008/10/31...nfirmed-august/ That's a turning point. Link to comment Share on other sites More sharing options...
think_too_mut Posted October 31, 2008 Share Posted October 31, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. You just confirmed what bongo's post (and Nation's article) are saying. People aqueezed out of property market as buyers are turning into renters. "But there will still be demand for other locations, such as Lat Phrao and Sukhumvit Road," he said" My Units are in Sukhumvit area. If there is such an over supply surely I would have trouble finding a "renter" as there will be more units to rent. I'm not having trouble, none of my customers were considering buying a condo, they are here for 6 months to 1 year. You also questioned sometime ago "no sh_t" I recall, the amount I rented the studios out for at 14000 per month. I dont consider 2km to the BTS "close" either which the report also says. Is that you? I thought you had different user name before. Anyway, you are renting own 4 condos as serviced apartments over the internet, something not many individuals do. Some web sites don't even carry rentals under 20K baht. Your customers don't have a slightest desire to own anything bigger than a pair of socks in BKK. You are not in everyday rental market, neither are your customers. Which landlord drives his renters in a van around the city, books their travel, is on 24x7 on call or whatever you do for your customers? You don't even call them "renters". Link to comment Share on other sites More sharing options...
Gary A Posted November 1, 2008 Share Posted November 1, 2008 I think that there is a shortage of affordable units and a glut of over priced units. As I see it, the worst threat is unsold units in finished projects. Maybe half the units in a complex remain unsold. That means there is not enough money going into the maintenance fund to pay the monthly expenses. During the last econonomic crash a large complex was finished all except for the utilities. It's hard to live in a condo without water or electricity. Link to comment Share on other sites More sharing options...
glyph Posted November 1, 2008 Share Posted November 1, 2008 bingokoko's very first post was "there is an oversupply of condos...the sky is falling". Through the months, his posts have been consistent...and his predictions consistently wrong. Link to comment Share on other sites More sharing options...
bingobongo Posted November 1, 2008 Author Share Posted November 1, 2008 (edited) i get the impression that some of the bagholders on this thread also thought the Thai SET wouldn't crumble from 800 points to 400 points because they think LOS is a land of lollipops and rainbows, stupid then and still stupid now................somehow i think yes anyway enjoy the graph courtesy of Thaicrisis http://thaicrisis.files.wordpress.com/2008/10/landaug1.jpg Edited November 1, 2008 by bingobongo Link to comment Share on other sites More sharing options...
Naam Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy....true, wife still does not approve of a mia noi credit crunch - check true, moved most of my cash into AAA Bunds. bank is crunched oversupply - check oversupply of condos? who the eff cares? what for would i need i condo if i'm not allowed a mia noi? gvt on verge of collapse - check what government? Papua New Guinea? why would i care? local economy disintegrating - check Bavarian Weisswurst, Laugenbrezel, Italian Salami, Brie and Camembert still available BANGKOK PROPERTY MARKET Capital faces oversupply of condo units who lives in a Bangkok condo or wants to sell one? Falling demand leaves developers with a large inventory of unsold units bad luck! developers should think of opening soup kitchens Link to comment Share on other sites More sharing options...
yabaaaa Posted November 1, 2008 Share Posted November 1, 2008 (edited) well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. You just confirmed what bongo's post (and Nation's article) are saying. People aqueezed out of property market as buyers are turning into renters. "But there will still be demand for other locations, such as Lat Phrao and Sukhumvit Road," he said" My Units are in Sukhumvit area. If there is such an over supply surely I would have trouble finding a "renter" as there will be more units to rent. I'm not having trouble, none of my customers were considering buying a condo, they are here for 6 months to 1 year. You also questioned sometime ago "no sh_t" I recall, the amount I rented the studios out for at 14000 per month. I dont consider 2km to the BTS "close" either which the report also says. Is that you? I thought you had different user name before. Anyway, you are renting own 4 condos as serviced apartments over the internet, something not many individuals do. Some web sites don't even carry rentals under 20K baht. Your customers don't have a slightest desire to own anything bigger than a pair of socks in BKK. You are not in everyday rental market, neither are your customers. Which landlord drives his renters in a van around the city, books their travel, is on 24x7 on call or whatever you do for your customers? You don't even call them "renters". EXPLETIVES REMOVED!! Edited November 1, 2008 by yabaaaa Link to comment Share on other sites More sharing options...
yabaaaa Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile I would say collecting a rent whilst retaining the assets was pretty smart?? Well I used to think that but now realise all my "renters" are just worhtless scum living in glorified bar girl type dwellings in what will be tomorrows slums all they do is sit there all day drinking beer and shagging. Everyone knows that real "renters" only rent above 20000 baht per month anything under that is just gutter life no hope losers. If only I hadnt spent all my time in the "van" 24/7 shuttling the filth about. Thanks goodness I have been shown the light by the almighty!!!! Link to comment Share on other sites More sharing options...
yabaaaa Posted November 1, 2008 Share Posted November 1, 2008 (edited) Edited November 1, 2008 by yabaaaa Link to comment Share on other sites More sharing options...
midas Posted November 1, 2008 Share Posted November 1, 2008 [/b]I would say collecting a rent whilst retaining the assets was pretty smart?? Hey Lenny - maybe it is not so smart if the world experiences a long period of DEFLATION ? USA talking now of 0% interest rates - Japan now at 0.25% - where do we go from there ? Link to comment Share on other sites More sharing options...
LennyW Posted November 1, 2008 Share Posted November 1, 2008 [/b]I would say collecting a rent whilst retaining the assets was pretty smart?? Hey Lenny - maybe it is not so smart if the world experiences a long period of DEFLATION ? USA talking now of 0% interest rates - Japan now at 0.25% - where do we go from there ? The longer you can collect a rent on your asset the better!! Lets say - you have a 5 M Bt asset rented out at 35,000 Bt / month, over a 5 year (long period) term you will have written down your asset to 2.9 M Bt, so even if you sell at the same price it cost 5 M Bt, (highly unlikely on a property), you will still have made a profit of 2.1M Bt. Thats 8.4% ROI per annum, better than you will get with any bank meantime! Link to comment Share on other sites More sharing options...
bendix Posted November 1, 2008 Share Posted November 1, 2008 I'm bemused by bingobongo's obsession with this single point. He reminds me of Clayton Seymour - a one issue poster with a similar obsessiveness. OK, bingobongo . you have made your point. You think it's a bad idea to buy property here. Thanks for the advice. Anything else? Link to comment Share on other sites More sharing options...
midas Posted November 1, 2008 Share Posted November 1, 2008 [/b]I would say collecting a rent whilst retaining the assets was pretty smart?? Hey Lenny - maybe it is not so smart if the world experiences a long period of DEFLATION ? USA talking now of 0% interest rates - Japan now at 0.25% - where do we go from there ? The longer you can collect a rent on your asset the better!! Lets say - you have a 5 M Bt asset rented out at 35,000 Bt / month, over a 5 year (long period) term you will have written down your asset to 2.9 M Bt, so even if you sell at the same price it cost 5 M Bt, (highly unlikely on a property), you will still have made a profit of 2.1M Bt. Thats 8.4% ROI per annum, better than you will get with any bank meantime! Not banks I agree - but you could use that money more profitably by picking the right times and short selling in the stock market from time to time ! And you also have the hassle of an illiquid " asset " in particular in the times we have ahead............. Link to comment Share on other sites More sharing options...
LennyW Posted November 1, 2008 Share Posted November 1, 2008 [/b]I would say collecting a rent whilst retaining the assets was pretty smart?? Hey Lenny - maybe it is not so smart if the world experiences a long period of DEFLATION ? USA talking now of 0% interest rates - Japan now at 0.25% - where do we go from there ? The longer you can collect a rent on your asset the better!! Lets say - you have a 5 M Bt asset rented out at 35,000 Bt / month, over a 5 year (long period) term you will have written down your asset to 2.9 M Bt, so even if you sell at the same price it cost 5 M Bt, (highly unlikely on a property), you will still have made a profit of 2.1M Bt. Thats 8.4% ROI per annum, better than you will get with any bank meantime! Not banks I agree - but you could use that money more profitably by picking the right times and short selling in the stock market from time to time ! And you also have the hassle of an illiquid " asset " in particular in the times we have ahead............. Dangerous game if you dont pick exactly the right time, fine if you do though! If however your asset continues to make money for you, you would not want to liquidate that asset - would you. Link to comment Share on other sites More sharing options...
Livinginexile Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Sounds like a great time to buy! Link to comment Share on other sites More sharing options...
think_too_mut Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile I would say collecting a rent whilst retaining the assets was pretty smart?? Well I used to think that but now realise all my "renters" are just worhtless scum living in glorified bar girl type dwellings in what will be tomorrows slums all they do is sit there all day drinking beer and shagging. Everyone knows that real "renters" only rent above 20000 baht per month anything under that is just gutter life no hope losers. If only I hadnt spent all my time in the "van" 24/7 shuttling the filth about. Thanks goodness I have been shown the light by the almighty!!!! yaabaa, you see, yaabaa is a dangerous thing when you get hooked on it. What did enrage you so much? I said you, with your way of renting out your properties, are doing something not many people do. And your "customers" buy it over the net, stay and leave happy. Link to comment Share on other sites More sharing options...
yabaaaa Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Bongo Im still managing to let with ease my condos (4) just taken on a new client for 1 year priced at 14000baht per month. Advertised for 2 days now full again although did have a guy pay a deposit and never turn up?? Oh well w e kept the deposit and then re advertised 2 days later full. I'll let you know when it changes. I think the price range is the decider. wow 14000baht/35 = $400 *4 properties = $1600 per month? you really are a high roller.........NOT, when you get to 6 figures in $ (not baht) i'll be impressed your renters are smarter than you, why tie up the money in a capital trap when they can deploy the dough more effeciently some where else (such as the yen, shorting the global bourses etc) and be LIQUID and remain mobile I would say collecting a rent whilst retaining the assets was pretty smart?? Well I used to think that but now realise all my "renters" are just worhtless scum living in glorified bar girl type dwellings in what will be tomorrows slums all they do is sit there all day drinking beer and shagging. Everyone knows that real "renters" only rent above 20000 baht per month anything under that is just gutter life no hope losers. If only I hadnt spent all my time in the "van" 24/7 shuttling the filth about. Thanks goodness I have been shown the light by the almighty!!!! yaabaa, you see, yaabaa is a dangerous thing when you get hooked on it. What did enrage you so much? I said you, with your way of renting out your properties, are doing something not many people do. And your "customers" buy it over the net, stay and leave happy. Sorry, sometimes I find you rather abrasive and de meaning, maybe I read too much into what you said. Link to comment Share on other sites More sharing options...
midas Posted November 1, 2008 Share Posted November 1, 2008 Dangerous game if you dont pick exactly the right time, fine if you do though!If however your asset continues to make money for you, you would not want to liquidate that asset - would you. Lenny I understand what you are saying and your continued confidence in the real estate sector as an investment class is admirable ! So let me throw at you another concern i have regarding the prospects for real estate investments in the future and I would be interested in your knowledgeable response. Surely a big part of the attraction of real estate in the past has been concept of capital growth and not only income generation. I doubt if quite as many people would be so enthusiastic about investing in real estate if the potential for capital growth wasn't there? We are just witnessing a phenomenal amount of money being sucked back out of the global financial markets -money that you could argue shouldn't have been available in the first place because a lot of it was the product off the multiplier effect originating from what we now know were completely bogus and totally worthless synthetic derivatives. How do we know when or even if this amount of money will ever come back into the system? So not only have the banks stopped lending but the money supply is likely to be considerably less in the future. The continued raising of real estate values in the past has in turn relied on economic growth in general and similarly growth in peoples incomes. After the last downturn in 2000, the recovery was helped by a long period of cheap money - but it's doubtful if that kind of financing will become available again for a very long time. At the same time, I don't see anything now in the pipeline to allow any further increases in people's wages either now or in the medium term? In fact we are hearing more about retrenchments and salary reductions as American Express announced only yesterday. Some real estate prices have reached the stratosphere and yet where is the silver lining on the horizon to provide people with the incomes to pay mortgages against some of these prices even based on their current salaries let alone if over the next few quarters they remain frozen or are even reduced. And this is all happening when once again there is a huge amount of condominiums stock available? Link to comment Share on other sites More sharing options...
OlRedEyes Posted November 1, 2008 Share Posted November 1, 2008 well, reality finally meets fantasy..........credit crunch - check oversupply - check gvt on verge of collapse - check local economy disintegrating - check BANGKOK PROPERTY MARKET Capital faces oversupply of condo units Falling demand leaves developers with a large inventory of unsold units http://www.nationmultimedia.com/2008/10/31...ss_30087290.php Sounds like a great time to buy! Yea, buy! Buy! Buy! Link to comment Share on other sites More sharing options...
LennyW Posted November 2, 2008 Share Posted November 2, 2008 (edited) Dangerous game if you dont pick exactly the right time, fine if you do though!If however your asset continues to make money for you, you would not want to liquidate that asset - would you. Lenny I understand what you are saying and your continued confidence in the real estate sector as an investment class is admirable ! So let me throw at you another concern i have regarding the prospects for real estate investments in the future and I would be interested in your knowledgeable response. Surely a big part of the attraction of real estate in the past has been concept of capital growth and not only income generation. I doubt if quite as many people would be so enthusiastic about investing in real estate if the potential for capital growth wasn't there? I agree with that, but i am talking about renting out property, renters are not investing to gain capital growth but they are providing an income to people that have property assets and are in no hurry to liquidate them, i guess as long as you are in no hurry to liquidate your assets then this is an ideal scenario. We are just witnessing a phenomenal amount of money being sucked back out of the global financial markets -money that you could argue shouldn't have been available in the first place because a lot of it was the product off the multiplier effect originating from what we now know were completely bogus and totally worthless synthetic derivatives. How do we know when or even if this amount of money will ever come back into the system? So not only have the banks stopped lending but the money supply is likely to be considerably less in the future. The continued raising of real estate values in the past has in turn relied on economic growth in general and similarly growth in peoples incomes. After the last downturn in 2000, the recovery was helped by a long period of cheap money - but it's doubtful if that kind of financing will become available again for a very long time. Cheap money and foolishly given - in the UK people were getting 125% mortgages, people straight out of school were being offered 60 year mortgages that could be handed down to their children, hopefully this is a scenario that we shall not be returning to any time soon! At the same time, I don't see anything now in the pipeline to allow any further increases in people's wages either now or in the medium term? In fact we are hearing more about retrenchments and salary reductions as American Express announced only yesterday. Some real estate prices have reached the stratosphere and yet where is the silver lining on the horizon to provide people with the incomes to pay mortgages against some of these prices even based on their current salaries let alone if over the next few quarters they remain frozen or are even reduced. And this is all happening when once again there is a huge amount of condominiums stock available? I guess my bottom line is that as long as people are not getting loans / mortgages for property purchases then there will be a continued demand for rental properties. I have seen a recent trend here that more and more Thai people are buying "falang" style properties in order to rent them out to those foreigners that are reluctant to purchase in the current climate. But hey, who knows what will happen next! Edited November 2, 2008 by LennyW Link to comment Share on other sites More sharing options...
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