What Does 4m Thb Buy You In Phuket?

[snakehips]

Looking to a Condo in Phuket, Maybe the Trees Residence in Kamala. What do people think about this development at this price (52kb m2) 4m 78m2 and are there any other deals going out there? Maybe its better to wait a few months?

Your comments and feedback are appreciated.

[thaiwanderer]

Looking to a Condo in Phuket, Maybe the Trees Residence in Kamala. What do people think about this development at this price (52kb m2) 4m 78m2 and are there any other deals going out there? Maybe its better to wait a few months?

Your comments and feedback are appreciated.

Personal opinion - overpriced.

Is it for 'investment' or own use?

(Either way wait and see may be best at the moment - airport, politics, BOT100point cut etc).

[Old Croc]

Looking at their website The Trees is virtually sold out.

If you're keen I wouldn't be waiting for the price to drop for the last couple of units.

[geriatrickid]

Are you able to handle the risk associated with the political instability of the country?

Can you stand to lose 25-50% of your purchase if things go bad?

If not, rent.

Best advice I ever got from TV was to rent. In the past week, I have said a little prayer of thanks every day.

[snakehips]

I think the going price was around 4.5m. they wer e3.5m off plan but i have seen resales up to 4.5m. So this price is reflecting a saving of 10%. I plan to live in the condo and borrow 2.8m from the bank....surely this is better than paying 30k a month dead rent?.....it a quality development....but why they are getting rid of their last couple of units? which i believe they were holding back to rent.

[emubob]

Snakehips,

How have you negotiated a 2.8million baht mortgage with the bank? Do you have a Thai wife or a Thai company???

Cheers!

[snakehips]

Yeah i have a very good five year old Thai company, i was expecting the banks to give 60% but they have offered me 70%. The Interest over the 7 year period is a heavy 9.5%. However i would expect it paid off in full within a 1 year.

I realize that we are in a little bit of a bubble but 4m??? surely prices could not drop much more? If i was buying a 20 or a 30 million baht house i would not dream of it...but 4m....and its perfect for what i need right now..

[kenk3z]

The interest rate strikes me as being very high, but maybe that's the norm for Thailand. Someone might comment on that if they are familiar with Thai interest rates.

The first thing of concern, given the high interest rate and your plan to pay the loan off early, is to check the mortgage agreement to make sure you CAN pay off early. Yes, some agreements have heavy penalties for early pay-off. And with such a high interest rate, there may be something in the language to discourage you from paying off early, so they can collect that nice rate for a long time, or be compensated.

I'm sure you will be presented with many papers to sign in Thai language. There could be things in there to your disadvantage that you wouldn't even think possible in your home country, but are perfectly legal in Thailand if you agree. There seems to be less legal protection from predatory practices, and that's stating it nicely.

kenk3z

[LivinginKata]

I'm quite sure their WILL be a penalty payment if pay off outstanding loan earlier than the period agreed. I've experienced this problem when paying back Thai loans early. Often it's the full amount of interest over the agreed period. Best check the small print in your contract.

[steelepulse]

I just briefly looked at a couple of bank websites.  It looks like kbank loans start at 7.25%, but I'm sure no foreigner qualifies for that for whatever reason.  

I then looked at Bangkok Bank and their loans have a 3% fee if you pay off the balance before 3 years.  I just sold something down in Koh Lanta and we had a loan from SCB and they too had a 3 year 3% fee, so we waited for the 3 years before selling.

[N47HAN]

Just a little "inside info"

There is alot of talk amoungst the developers in Phuket , as to when ( not if ) and by how much their current retails prices should be lowered.

( for those of you who know me , if this comment is questioned just let the op know , im giving good advice , and will not expand any further than the comment made above )

WAIT !!!!!!!!!!

[noonlover]

Looking to a Condo in Phuket, Maybe the Trees Residence in Kamala. What do people think about this development at this price (52kb m2) 4m 78m2 and are there any other deals going out there? Maybe its better to wait a few months?

Your comments and feedback are appreciated.

I have a condo at The Trees which i bought off-plan in June '07 . I have very recently been offered a very good opportunity for a business on the other side of the country and might be in a position to resell at a good price for a quick sale - i have upgraded several features(floors,kitchen units etc.)

If you look on their website you will find unit DC3 on their floor plans. You can call Chris Ball of the development company - Phuket Plus , or respond to me on here.

[LivinLOS]

Didnt take long for a seller to appear

[LivinLOS]

someone posts some vague interest in a development and people on the internet to try sell thier stake in it !! Does that seem like a buyers or sellers market ??

[sorensen]

Real-estate prices don’t drop like stocks, so it will be a slow and painful decline over then next 2-3 years. No need to rush in, just watch, keep cash on the side and wait until some desperate owner is giving up hope.

[snakehips]

looks like i will wait and save the pennies, i am sure there will be plenty of bargains going soon.....thanks for the advice guys... i personally think the 12-30m THB price range will take the biggest hit. Not so sure if a quality condo priced at 4 will lose that much.

[noonlover]

looks like i will wait and save the pennies, i am sure there will be plenty of bargains going soon.....thanks for the advice guys... i personally think the 12-30m THB price range will take the biggest hit. Not so sure if a quality condo priced at 4 will lose that much.

You could well be right - No worries - good luck

[noonlover]

looks like i will wait and save the pennies, i am sure there will be plenty of bargains going soon.....thanks for the advice guys... i personally think the 12-30m THB price range will take the biggest hit. Not so sure if a quality condo priced at 4 will lose that much.

You could well be right - No worries - good luck

Purely for your information - the appartment mentioned has been sold at the full asking price.

[sadman]

The thing that nearly caused me a problem was the exchange rate. When I first started coming to Phuket the baht/sterling rate was around 75. When I finally decided to buy and signed contracts, it was 68. When it came time to part with my hard-earned cash, it was 63 and I only just managed to raise the cash (no mortgage, through choice and the fact that I have neither a Thai company not Thai wife.) Now it's 52 and I wouldn't have a snowball's chance if I were buying now.

I know next to nothing about the overall Phuket property market, price cuts etc, but perhaps the thing to look at is the exchange rate. I believe the baht tends to follow the dollar.

[Abrak]

First of all I would only advise you to buy if you are going to live here full time and you really want to make the place your home. I doubt it will be much of an investment. Secondly the secondary market is so thin that it is almost impossible to sell so assume you have lost 30% the moment you step through the door. On that basis if you are living here you should have been here a year or two already so that you are confident you want to live in Kamala. Or else you are much better off renting and deciding later - the market is going nowhere (apart from down - virtually every owner I know is a seller but at the wrong price. It appears that owning a place in Phuket is a bit like owning a boat, it seems like a good idea at the time, your quite proud of it when you first have it and then after a couple of years you get bored and want to sell.)

Bt78k sounds about right so long as you have a decent seaview and premium bathroom and kitchen fittings (not super premium).

[simmondsw]

Yeah i have a very good five year old Thai company, i was expecting the banks to give 60% but they have offered me 70%. The Interest over the 7 year period is a heavy 9.5%. However i would expect it paid off in full within a 1 year.

I realize that we are in a little bit of a bubble but 4m??? surely prices could not drop much more? If i was buying a 20 or a 30 million baht house i would not dream of it...but 4m....and its perfect for what i need right now..

Hi

Just saw your post, my wife and I bought a one bed in The Trees, we moved in back in Jan. I have to say we love it, I think the developer has been very good. We have experience of buying in foreign countries and whilst Thailand as a country has its issues the builder has been first class. We are currently in the UK but will be back at the start of August, so if like me you have a liking for beer and you fancy meeting up, then drop me a note.

Cheers

Wayne

[maichai40]

looks like i will wait and save the pennies, i am sure there will be plenty of bargains going soon.....thanks for the advice guys... i personally think the 12-30m THB price range will take the biggest hit. Not so sure if a quality condo priced at 4 will lose that much.

I have another opinion. Yes i agree with others saying that at the moment the market is almost dead flat (my wife work in a big RE company here in PKT), some project have been even stopped because no customer in sight...but as soon as the crisis will ease, probably one more year, the prices are going to be up again, and fast. I doubt a lot you will find again a condo unit in Kamala of that size and quality next year(but i didn't see this project, and others i visited in Kamala didn't impress me that much, the usual "contemporary" condo which means normally cheap building).

So if you like this project and you are going to live in the apartment 12 months a year NOW is the moment to buy because you can even ask for a little discount (probably very little). Next year i am pretty sure either you don't find it or will be over 5 million.

I bought my condo 2 years ago off plan for 3.2m, now that i am living inside my apt and the project is finished they still have 1 unit same like mine available at 4.37m! And some people told me 2 years ago that was too expensive. And even now no or little discounts. You will see what happens when prices start to ride again...

[thaiwanderer]

yes you must buy now (but don't expect big discount as supply has dried up) before prices again skyrocket!!!!!!

usual phuket real estate for farang - alchemy and gambling for the sun stroked - sure there is value to be had but most learn the rules by losing their money - nevermind always the next plane load

[steelepulse]

There already are some deals out there if you look.  Yesterday I was at my local shop and I heard some numbers flying by, 10 million, 7.5 million and finally 5.5 million.  I enquired as to what they were talking about and it was a brand new house 100 metres from the ocean with 2 stories and a nice ocean view.  So it looks like these people bought a bit of land on spec, built the house and thought they could flog it off and triple their investment.  Now that the bank is knocking on their door, they need to unload said property.  

I'm sure there are a lot more of these types of properties out there.  I'm just waiting until next low season .

[maichai40]

There already are some deals out there if you look. Yesterday I was at my local shop and I heard some numbers flying by, 10 million, 7.5 million and finally 5.5 million. I enquired as to what they were talking about and it was a brand new house 100 metres from the ocean with 2 stories and a nice ocean view. So it looks like these people bought a bit of land on spec, built the house and thought they could flog it off and triple their investment. Now that the bank is knocking on their door, they need to unload said property.

I'm sure there are a lot more of these types of properties out there. I'm just waiting until next low season .

Don't confuse the house market and the condo market, because they are now two different things.

The first yes, is going down because of the crisis but also because of the thieves that are sistematically robbing houses everywhere on the island, with preference for Rawai/Chalong area, but is unsafe even in Phuket town right now.

The second market (condo) is flat but not going down.

Personally, i am very happy to live in a condo with good security and i wouldn't want to live in a house here if not with armed guards around.

Anyway i plan to relocate in a safer place (north) in a couple of years...

[LivinLOS]

The second market (condo) is flat but not going down.

You keep telling yourself that.. I knwo a development where they sold off plan for 3.8 and on completion for 4 - 4.5.. Back in about 04.. Overthe years sale prices went 4 - 5 - 6 - 7 with asking prices even higher.. I now know of units on the same development selling for sub 5m asking and with the 500k 'furniture pack' in it..

So all the gains in the entire history of the complex have vanished and the actual sale prices have gone down from over 7 (8 plus asking from the dreamers) to closer to 4m (when you take the furniture into it) in the last year or so.

Of course people that have already bought refuse to accept that despite the facts being pretty easy to see. it was easy to see this was coming, I was posting that it was globally going to happen even back in 06. Next will be the money printing inflation while asset prices stagnante in real terms.

[maichai40]

The second market (condo) is flat but not going down.

You keep telling yourself that.. I knwo a development where they sold off plan for 3.8 and on completion for 4 - 4.5.. Back in about 04.. Overthe years sale prices went 4 - 5 - 6 - 7 with asking prices even higher.. I now know of units on the same development selling for sub 5m asking and with the 500k 'furniture pack' in it..

So all the gains in the entire history of the complex have vanished and the actual sale prices have gone down from over 7 (8 plus asking from the dreamers) to closer to 4m (when you take the furniture into it) in the last year or so.

Of course people that have already bought refuse to accept that despite the facts being pretty easy to see. it was easy to see this was coming, I was posting that it was globally going to happen even back in 06. Next will be the money printing inflation while asset prices stagnante in real terms.

Sorry but i think you didn't understand what i was saying.

New projects, selling price NOT going down, but not growing anymore (for now).

If an old project, already sold out years ago, and try to resale OF COURSE people who paid 4m years ago cannot sell at 7m now.

[steelepulse]

From  what I've seen and heard, New projects not selling for the most part unless they have something to offer that the other 438 condo projects don't have.

[katabeachbum]

From what I've seen and heard, New projects not selling for the most part unless they have something to offer that the other 438 condo projects don't have.

Kata Ocean View. Phase 3 also sold out, foundations just completed. Aprox 70k/sqm. Some left in phase 4, construction not started.

Location,L,L

[LivinginKata]

Kata Ocean View. Phase 3 also sold out, foundations just completed. Aprox 70k/sqm. Some left in phase 4, construction not started.

Location,L,L

And they are quite sensibly priced, although rather small for a family home. Looks to me like phase 3 building frame complete (6 units), and it's phase 4 with foundation complete. And ground ready for phases 5 & 6. Hard to believe that they are all sold, but that's what they claim. Phases 1 & 2 (the biggest block) have been complete for a while, but I see very few new residents in the neighbourhood. I've heard many are for holiday rent (Italian consortium of 10 units) at sky high day rate prices. I'll be glad when all the building is complete as the construction noise drives me crazy, they work until 22.00 every night.