Buying A House Or Condo In Thailand

[Capealava]

I have never really understood why homes and Condos prices are rising in Thailand. Now and in the past they seemed to be priced for only the wealthy. Building these properties must be enormously less expensive than many places in the world due to very cheap labor costs supplies by Burmese laborers. Pay $100,000 to $300,000 US with out financing is beyond the means of most foreigners looking for a 2nd home or retirement in Thailand. Condo Building require 60% Thai ownership 40% can be purchased by foreigners. I am sure this is leaving many units unoccupied.

I just came across a article concerning the real estate market in the USA, and the default of large building in New York and elsewhere. http://www.msnbc.msn.com/id/30850817

"Just imagine in a residential market, if there weren't 80 percent loans available for everyone. If everyone had to buy their houses in cash, the values of houses would plummet everywhere," said Dan Fasulo, a managing director at Real Capital Analytics. "That's happening on a massive scale on the commercial side."

AGAIN!! Why are prices rising and staying so high in Thailand where loans are unavailable to Foreigners??? I see new homes and condos targeting foreigners continually be built in Hua Hin, Pattaya, Bangkok, and Phuket. Who is buying them??

It reminded me of my own efforts to buy a nice home or Condo in Thailand. Even with large down payment financing is declined. It these economic times the occupancy rates of new homes and condos targeting foreigners must be extremely high in Thailand. Developers should be putting together financing packages or provide some means whereas making a 100% payment on a house or condo is unnecessary. I know there are ways around it -such as marrying a thai girl and taking a loans with a Thai bank in her name (but will she qualify) probably not and if she does you have to go through a large amount of legal maneuvers to protect yourself in case of domestic squabbles. So back to square one.

Bank of Thailand financing is a joke. You have to borrow at least 10,000,000 baht and pay it back in 10 years. Again not for the average Bloke.

[hhgz]

There are many people who can't afford to buy a home in Thailand and, just as you have done, question why. Part of the problem is that you've read an article about a situation regarding commercial real estate in the US, and you're trying to use that perspective to explain the price of residential real estate in Thailand. The fruity analogy of "apples and oranges" seems to apply. The majority of people who buy real estate in Thailand are...THAI, and many of them can afford a mortgage. There are many farangs in Thailand who can pay cash for a home, and that doesn't apple to you.

Many farangs in your position take the stance of "the real estate market will collapse 'eventually', and then I'm going to get a heck of a deal." Good luck.

[Capealava]

There are many people who can't afford to buy a home in Thailand and, just as you have done, question why. Part of the problem is that you've read an article about a situation regarding commercial real estate in the US, and you're trying to use that perspective to explain the price of residential real estate in Thailand. The fruity analogy of "apples and oranges" seems to apply. The majority of people who buy real estate in Thailand are...THAI, and many of them can afford a mortgage. There are many farangs in Thailand who can pay cash for a home, and that doesn't apple to you.

Many farangs in your position take the stance of "the real estate market will collapse 'eventually', and then I'm going to get a heck of a deal." Good luck.

Yes, I suppose so. Reading that article did spawn some thoughts. Of course you are correct. Just dreaming. Not looking for "a great deal'. looking for a way in. Thanks for the reply

[trogers]

How many working class people in the US will starve to death when their credit cards are taken away from them?

If they need credit just for food, their need for credit in buying a roof over their head is even greater.

Do you think many locals here will starve due to a lack of a credit card?

Thus a burst of the property bubble in the US will translate into falling property prices, while prices here will just stagnate as buyers and sellers cannot agree on a common price.

[unforgiven]

I have never really understood why homes and Condos prices are rising in Thailand. Now and in the past they seemed to be priced for only the wealthy. Building these properties must be enormously less expensive than many places in the world due to very cheap labor costs supplies by Burmese laborers. Pay $100,000 to $300,000 US with out financing is beyond the means of most foreigners looking for a 2nd home or retirement in Thailand. Condo Building require 60% Thai ownership 40% can be purchased by foreigners. I am sure this is leaving many units unoccupied.

I just came across a article concerning the real estate market in the USA, and the default of large building in New York and elsewhere. http://www.msnbc.msn.com/id/30850817

"Just imagine in a residential market, if there weren't 80 percent loans available for everyone. If everyone had to buy their houses in cash, the values of houses would plummet everywhere," said Dan Fasulo, a managing director at Real Capital Analytics. "That's happening on a massive scale on the commercial side."

AGAIN!! Why are prices rising and staying so high in Thailand where loans are unavailable to Foreigners??? I see new homes and condos targeting foreigners continually be built in Hua Hin, Pattaya, Bangkok, and Phuket. Who is buying them??

It reminded me of my own efforts to buy a nice home or Condo in Thailand. Even with large down payment financing is declined. It these economic times the occupancy rates of new homes and condos targeting foreigners must be extremely high in Thailand. Developers should be putting together financing packages or provide some means whereas making a 100% payment on a house or condo is unnecessary. I know there are ways around it -such as marrying a thai girl and taking a loans with a Thai bank in her name (but will she qualify) probably not and if she does you have to go through a large amount of legal maneuvers to protect yourself in case of domestic squabbles. So back to square one.

Bank of Thailand financing is a joke. You have to borrow at least 10,000,000 baht and pay it back in 10 years. Again not for the average Bloke.

the smart people rent......no worr ies

[MJo]

the smart people rent......no worr ies

Smarter people bought few units cheap ten years ago and now rent them out to smart people using the high profits to live like kings

[katabeachbum]

the smart people rent......no worr ies

Smarter people bought few units cheap ten years ago and now rent them out to smart people using the high profits to live like kings

better buying a one million baht townhouse, than making a 20 % downpayment on a 5 mill baht house financed

[ThaiBasil]

the smart people rent......no worr ies

Smarter people bought few units cheap ten years ago and now rent them out to smart people using the high profits to live like kings

The smartest people build these cheap units, sold them to smarter people who now rent them out to smart people

[Marksamui]

I see plently of people buying in Phuket for one.

The market is tiny compared to the US and as others have said why should a trend in the US housing market apply to Thailand. I just brought cash in Phuket and all around me all the other new builds were sold before they were finished. All sold to Thai's. Not sure how many mortgaged how many cash, but they all went quick sharp.

The resell market does look pretty dead, new builds still appear to be selling (at least in Phuket).

I think really you just have to save some more money mate

[trogers]

the smart people rent......no worr ies

Smarter people bought few units cheap ten years ago and now rent them out to smart people using the high profits to live like kings

better buying a one million baht townhouse, than making a 20 % downpayment on a 5 mill baht house financed

Yup! Advantage is that the door on your left has become a hairdressing salon and the one on the right is preparing plaa la to sell at the local market.

Edited August 22, 2009 by trogers

[zorro1]

wheres Midas? I think I saw him at the condo expo at sirikat not long ago. Its okay mate coming out of the closet is healthy