Buy House Or Build My Own?

[Beck1976]

So I'm thinking of aquiring real estate here in Thailand.

A few facts first:

My girlfriend is 5 month pregnant, and we are going to get married soon.

She doesn't care so much about size of the house etc. I'm the one who'd like a big house.

I've bought and sold a couple of condos in my homeland (Denmark), but know ABSOLUTELY nothing about building anything, preparing land for building etc.

The house and land will of course be in her name, with an usufruct in my name, giving me lifetime use of the house, should we ever split up.

Now, I've been looking at a newly built house in Phuket, price 7m baht. How much do the project owner usually make in profit? In other words how big a premium am I paying for buying something allready completed?

Not that I'm gonna do the actual building myself, I will of course employ a contractor to do everything.

Basically, what are the up- and downsides to buying compared to building?

[apetley]

Wifey and I had a nice house built by her uncles team.

A few discreet enquiries and I found out that he makes about 10% profit on his house builds.

Seems very little to me and I do not know if this is the usual margin.

I would not buy an already built house purely because it's probably in town(which I dislike), neighbours are too close, standard is not as high as it would be if our own builder was completing, garden too small, service charges etc.

[loverboy44]

You seem to be pretty young. Why do you want to get grey hairs so fast.

Yes, it can work out fine to build your own house if you have enough knowlage and can speak Thai.

I know more people who went crazy about their construction, than people that were happy with it.

There is so much oversupply on new houses in nice projects in Phuket that i am sure that at the moment you will make a real bargain because you are an endangered species called real estate customer.

The other advantage is simply that you see what you are buying. Just make sure to have a look at how they are building. Especially the foundation.

Please use a lawyer from Bangkok who checks the land title for you and gives his/her resume in a written form.

I hope this helps a bit.

Good luck

[stgrhe]

I have surveyed about a hundred developments in the Eastern Seaboard, Isaan and Hua Hin and have now decided to buy a house in a rather unique development in Hua Hin, unique because it seems to be unusually good quality houses for Thai standards. As an engineer I wanted to find out what I could expect and see where the shortcomings are before buying a house for myself.

One think should be clear, no builder, builds houses in Thailand to Western standards!

I have noted that there are especially shortcomings in the skills of the Thai builders in four major areas:

1. Concrete works

2. Electrical works (the word disaster comes to my mine)

3. Plumbing

4. Drainage

whereas the Thais, the good ones that is, can be excellent carpenters.

[PattayaParent]

It depends on the size of the development and therefore the infrastructure that has to be built along with the estate and the initial cost of the land.

I used to work for a major developer in UK and the cost of the building itself was 1/4 of the selling price.

[loverboy44]

PattayaParent, i don't think you ever built a house in Thailand. Otherwise you wouldn't compare apples with peaches.

Prices in the UK were far too high. This is a reason why we have the economic crisis right now.

[garyk]

So I'm thinking of aquiring real estate here in Thailand.

A few facts first:

My girlfriend is 5 month pregnant, and we are going to get married soon.

She doesn't care so much about size of the house etc. I'm the one who'd like a big house.

I've bought and sold a couple of condos in my homeland (Denmark), but know ABSOLUTELY nothing about building anything, preparing land for building etc.

The house and land will of course be in her name, with an usufruct in my name, giving me lifetime use of the house, should we ever split up.

Wow Pattaya,,,, only 7,000,000 go for it dud...

... I know several guys who fell for the same line. The women don't care about the contract stating you will be able to live there for life. Your life will be aliving hel_l and you will be back in Denmark or where ever and she will be in the house or her family will be. I've known one or two cases that the guy actually came out only loosing a few million .. And that was with hiring a lawyer and spending makkkkk to get it squared away.. Then he had to move because the inlaws constantly threatened him.... verbal abuse .... One guy in Pattaya i know did get rid of his ex.. but she stold the truck and trashed the house.... Now living with an Ausy.....

I am getting old ..... You got to love the Thai... The government does not want you ,,, the women don't want you,,, the guys think you are stupid for marrying the ugly thai girls they do not want. And guys keep comming here and giving there hard earned money away......

I ve been here tooooooo long....

[RAZZELL]

So I'm thinking of aquiring real estate here in Thailand.

A few facts first:

RENT!

RAZZ

[PattayaParent]

PattayaParent, i don't think you ever built a house in Thailand. Otherwise you wouldn't compare apples with peaches.

Prices in the UK were far too high. This is a reason why we have the economic crisis right now.

Ah, but it was 30 years ago when I worked there so it has nothing to do with the economic crisis right now.

[maisabaisteve]

So I'm thinking of aquiring real estate here in Thailand.

A few facts first:

My girlfriend is 5 month pregnant, and we are going to get married soon.

She doesn't care so much about size of the house etc. I'm the one who'd like a big house.

I've bought and sold a couple of condos in my homeland (Denmark), but know ABSOLUTELY nothing about building anything, preparing land for building etc.

The house and land will of course be in her name, with an usufruct in my name, giving me lifetime use of the house, should we ever split up.

Now, I've been looking at a newly built house in Phuket, price 7m baht. How much do the project owner usually make in profit? In other words how big a premium am I paying for buying something allready completed?

Not that I'm gonna do the actual building myself, I will of course employ a contractor to do everything.

Basically, what are the up- and downsides to buying compared to building?

why would the house of course be in her name ????????????? just have it in your name >>>>>>>>>>>>>>> easy no ?

[kennkate]

So I'm thinking of aquiring real estate here in Thailand.

A few facts first:

My girlfriend is 5 month pregnant, and we are going to get married soon.

She doesn't care so much about size of the house etc. I'm the one who'd like a big house.

I've bought and sold a couple of condos in my homeland (Denmark), but know ABSOLUTELY nothing about building anything, preparing land for building etc.

The house and land will of course be in her name, with an usufruct in my name, giving me lifetime use of the house, should we ever split up.

Wow Pattaya,,,, only 7,000,000 go for it dud...

... I know several guys who fell for the same line. The women don't care about the contract stating you will be able to live there for life. Your life will be aliving hel_l and you will be back in Denmark or where ever and she will be in the house or her family will be. I've known one or two cases that the guy actually came out only loosing a few million .. And that was with hiring a lawyer and spending makkkkk to get it squared away.. Then he had to move because the inlaws constantly threatened him.... verbal abuse .... One guy in Pattaya i know did get rid of his ex.. but she stold the truck and trashed the house.... Now living with an Ausy.....

I am getting old ..... You got to love the Thai... The government does not want you ,,, the women don't want you,,, the guys think you are stupid for marrying the ugly thai girls they do not want. And guys keep comming here and giving there hard earned money away......

I ve been here tooooooo long....

You dont have to be here tooooooo Long Just use your Head more than your Tackle

I am afraid this post may very well come back to Haunt The OP

Think Man Think. Do NOT Throw your hard earned cash into Thailand

Please Read The Above Post at Least 4 Times Today And 4 Times Again Tomorow

I am afraid it's ALL True Ok Come have fun But Rent or Build/buy small money sub 1 million Baht

[thaitot]

Be sure Phuket is where you want to settle down.

Having no construction skills I would purchase .The stress of a new marriage and baby might prove to be to much.

The legal aspects of owning property you have done some research on.

Us foreigners like to own and we know we can not but the urge to own still seems to dictate are decisions

on the acquisition of property.

Seven Million is alot of money to me.

Be sure this represent a small portion of your net worth. Lets say less than 10 percent

In Las Vegas some play at the 5 dollar tables some at the 100 dollar tables ect.

What I am getting at is this will likley prove not to be an investment for you as would be in your homeland

This is all relative to your standards of living and risks.

Hold back you urge to purchase and rent for at least 6 months this will allow you time to sort things out.

The economy is not on an upswing yet so time in on your side.

My research shows you can save money building a house but getting it finished can be stressfull.

Good luck .

[sorensen]

From a fellow Dane, rent or buy a condo in your own name first. Take some more time, meet, make some friend and learn more about real-estate in Thailand.

If you are ever in BKK, come to the Danish Champer of Commerce social evenings.

Robert

[timi2546]

..real estate ..in Thailand.

RENT!

rent sounds very good.

cool down and save money 1st,

give time, check how

things REALLY are in the

family of your gf ..... and with her too.

many of us have thought

about the same thing, building

own house etc things...

so far rented and lived

in thailand 14 yrs ...

easier to get a new gf than 7 million, what

ever currency ..

timi

[Naam]

Basically, what are the up- and downsides to buying compared to building?

by building you get your own design of each and everything. buying means you have to accept any shitty taste the owner/builder applied but it is most probably cheaper than building. as simple as that.

[Macx]

There are many houses on the market now. A good portion of them have been "on the market" for more than a year. Many listings are, in fact, "Rent/Sale" though they don't always mention both options in the same ad.

You could very well approach the owner of the place you like and offer to rent with possible intention to buy. Give yourself some time to adjust and see how the house and the area work out for you.

Then, of course, you would still have the options of BUILD or BUY, while living in a decent place and considering the ups and downs of both. A good past time

[CDNinKS]

BecK1976,

heed all the warnings above.......I have seen way to many guys get burned bad in the LOS. RENT, RENT, RENT.......that applies to houses, women and boats

There is an old saying: "learn from the mistakes of others, as you will not live long enough to make them all yourself.

[skybluestu]

BecK1976,

heed all the warnings above.......I have seen way to many guys get burned bad in the LOS. RENT, RENT, RENT.......that applies to houses, women and boats

There is an old saying: "learn from the mistakes of others, as you will not live long enough to make them all yourself.

But there are also guys who are in perfectly happy relationships in Thailand and who haven't been burned. Maybe the op is one of these lucky few?! Or maybe there aren't just a few, it's just that you're more likely to get a negative comment from a naive/foolish (usually old) guy who has been burned than a positive one from someone who is in a successful & happy relationship and there are plenty of them out there!

Good luck to you Beck1976.

[CDNinKS]

a negative comment from a naive/foolish (usually old) guy

I am always amused by people who stoop to personal attacks when making posts.........usually done by naive/foolish (probably young) guys

But you are correct, there are always good stories to go with the bad ones.......

[skybluestu]

a negative comment from a naive/foolish (usually old) guy

I am always amused by people who stoop to personal attacks when making posts.........usually done by naive/foolish (probably young) guys

But you are correct, there are always good stories to go with the bad ones.......

It wasn't a personal attack on you CDNinKS, sorry if it came across that way. In my experience the vast majority of guy's who have been 'burned' by Thai women have been older gentleman who have had a much younger wife/girlfriend. IMHO if they thought that young girl/woman was with them for any other reason apart from a financial one then they were being naive/foolish.

As I said, I know of many many guys who are in happy, successful relationships here (including some with a much younger wife) and it annoys me when every time anyone asks for advice on TV about houses or similar there are always loads of negative replies telling the op they are making a mistake, that their wife/gf will take everything they have etc

There are many more good Thai women than there are bad, we shouldn't forget that.

[katabeachbum]

OP asked buy or build.

Build is like 12-30K baht/sqm covered area depending on quality and design. Land not included. And a bloody nightmare with most builders. If you ask any Phuket lawyer, no one has completed a house with only one builder. But if you know much about building or hire an honest guy who controlls the builder(s?), you can get exactly the qulity you want. Like decent piping and electricty, no leak roof, no cracks etc.

Buy you dont really know the quality. Most projects today are sold with none or small profit. Do the sqm calculation.

Ownership. OP didnt ask, but..... Whatever you do (leas, co ltd, loan in land deed) do it before getting married. When married you have to sign in land office this is her property bought for her money and everything else becomes invalid.

Edited May 10, 2009 by katabeachbum

[steelepulse]

I rented for a few years before deciding to build ( Phuket ). I guess I'm one of the lucky ones in that I used just one builder and got the house exactly as I wanted it.

Unless your cash is burning a hole in your pocket, take some time and rent in a few different areas and houses to figure out what you want.

[stevehaigh]

may i suggest you buy, borrow or steel my book, 'How to buy land and build a house in Thailand' by Philip Bryce. its in most Bookazines.

[PeaceBlondie]

My friend built a big lovely expensive home. His partner died, and the family drove him off. He died alone, elsewhere, poorer.

No need to buy. After 5.6 years here, we built a new home, small, basic, cheap, adequate. Luckily, it was built right, and I was not involved. My name is nowhere; I can walk away.

No need to buy. No need to buy.

[stgrhe]

may i suggest you buy, borrow or steel my book, 'How to buy land and build a house in Thailand' by Philip Bryce. its in most Bookazines.

I do agree with you Steve, it is a very good book with a lot of valuable tips. Thank you for taking time to write the book to share you experience with other!

[eljeque]

Rent

Rent

Rent

believe what others have written.

Rent and you can move.

Buy and you can take a year to find a buyer and not get what you paid.

I have bought 6 and built one house, made a profit every time, and I will not own again.

[Svenn]

I am afraid it's ALL True Ok Come have fun But Rent or Build/buy small money sub 1 million Baht

I don't think you (OP) have to be as paranoid as the other posters, but the above advice is good I think. I don't believe in walking away cold from any relationship where the other partner has contributed at least something... regardless of some sour acts that occurred later, and a sub 1 million baht house seems like a fair contribution for the farang to make considering our mean incomes. If you're rich, no need to worry about it - buy the 7 million baht house. My story is actually the opposite of most farangs- I felt like I've taken advantage of my partner and not the other way around- so the 700k i put into the 800k house is all her's and is the least I could do.

On topic, I don't think I'd ever pass up on the opportunity to build my own house... I thought Danes were similarly architecture buffs?

[Beck1976]

First of all, thank you all for your responses.

To clarify, I am definitely not in a hurry to buy anything, but I figured I might as well started trying to figure how to go about it.

Ownership. OP didnt ask, but..... Whatever you do (leas, co ltd, loan in land deed) do it before getting married. When married you have to sign in land office this is her property bought for her money and everything else becomes invalid.

I was under the impression (and please correct me if I'm wrong), that if you get an usufruct in your name from the original owner of the land, and the land is then sold to your wife, then the usufruct would still be valid?

I understand that could still cause me problems, should we ever split up, if she decided to make my life miserable / trying to chase me out of the house. I'm pretty sure she would move back to Khon Kaen, should that happen however, so not causing any problems on that front.

I understand that renting is easier in so many ways. Several of you say "then it's easier to walk away". True, but having a kid in 4 months, making it easy to walk away isn't my first priority.

On a side note:

I am able to build the house in my name (but on her land)?? If I have an usufruct giving me lifetime use of the land/house, what are the additional advantages of owning it myself? I mean, I cant sell to anyone I guess, since she could prevent them from using the land? How does that work in practice?

Oh, and I'm definitely gonna get hold of the book, thanks.

[katabeachbum]

First of all, thank you all for your responses.

If your girlfriend buys land you can register (and pay taxes for) a 30 year lease in your name. This gives you the right to occupy the land for 30 years. 30 years limited by law, and is 100%, registered in land deed. Any private agreement of 30+ years is unsure.

On leased land you can apply for buildingpermit in your name, and building becomes your.

If you are married to a thai, above becomes invalid and you have to sign in land office the property is purchsed for her money and solely belongs to her, or in best case you could get 50% if divorce.

As you can see there is no life time, even if many lawyers would tell you so with 30+30+30 lease.

[RAZZELL]

Don't ignore the advice.

RENT.

RAZZ