Brother-in-law Wants To Buy Land

[longstebe]

The Brother-in-law came around yesterday which is a fair way for him to drive and basically asked if we

would like to go half on some land for sale. It's 350,000 for about 6-7 Rai. He said he could rent the

land out for people to grow whatever and in return we would get back money every year. I then asked

how much we could make, in which he replied about 7000-10,000 a year. So minimum of 35 years to make

your money back? Where is the logic in this? Has anyone made any sort of money from there land?

Do these numbers seem right?

Wouldn't he be best buying it then sitting on it for 5-10 years then selling it?

[Ciaphas]

Where I live the going rate is 1k a year, and land costs between 20-35k per rai to buy.

[longstebe]

Where I live the going rate is 1k a year, and land costs between 20-35k per rai to buy.

Is that 1k per Rai?

As for the price It probably depends on the location of the land.

This land is close to a main road, I would say about 100m back.

The guy says he is prepared to take a one time payment of 150,000 then 50,000 a year.

[Groongthep]

Don't do it.

[PoorSucker]

In who's name?

[longstebe]

I've already said no.

If it were to be a money maker then it would more than likely be put in my wifes name.

[kiwiinasia]

So 50K a rai.

I hope it gives 3 crops a year with ample water about.

Even with 3 crops its a high price, unless its on a main rd or something.

In which case why pay more to grow rice near main road? Buy on the back plots.

[selftaopath]

Logic? In Lack of Sanctions (LOS)? If ya find it please point it out. I'm having difficulty see it.

[MJP]

Where I live the going rate is 1k a year, and land costs between 20-35k per rai to buy.

Yes, I second that, same here.

Bought 8 rai for 200k, cane sugar in 2008.

[MJP]

I've already said no.

If it were to be a money maker then it would more than likely be put in my wifes name.

Good choice.

You can get time unlimited usufruct and of course a lease on land, this I recommend. Also if you have children, put in their names, its all about the kids anyway.

[longstebe]

So, are there any money makers out there?

I've not spoken to every Farang out there but the ones I have spoken to have never made anything worth

shouting about. At least thats what they say.

[MJP]

So, are there any money makers out there?

I've not spoken to every Farang out there but the ones I have spoken to have never made anything worth

shouting about. At least thats what they say.

I think you have your answer. I might live out here. But I never forget that my money to do so comes from,

a. The West.

b. My profession/trade.

I know Westerners that have sort of 'made it' out here, but they've been established a very long time and their incomes are still not that great. I also know that in truth, they feel trapped and a little paranoid. Not that happy.

This is a great place to be based (on external income) or to visit for long periods of time.

[longstebe]

When I ask are there any money makers, I'm solely talking about making money from the land.

I'm also in the same position as you MJP and that will more than likely never change.

I just think spending 350,000 baht and waiting 35 years till I get my money back is nonsense.

[ballpoint]

When I ask are there any money makers, I'm solely talking about making money from the land.

I'm also in the same position as you MJP and that will more than likely never change.

I just think spending 350,000 baht and waiting 35 years till I get my money back is nonsense.

It's an investment decision, like any other. You have to look at what else you could put your 350,000 baht into, and what sort of return you'd expect. The main issue is what the price of the land will do - any rental from it is a bonus, however small it may be. I found it interesting that in your OP you thought it might be better to buy the land and sit on it for 10 years or so. I agree that the vast majority of any profit will come from the value of the land, but what's wrong with making a bit of extra money by renting it out too? It will at least pay the annual taxes on it. As more and more agricultural land is turned into residential and industrial, both in Thailand and globally, and as the worlds population continues to grow, farm land will become more valuable. You can pretty much guarantee that you won't lose money on the land itself, you just have to weigh up how long you're prepared to wait before selling it, and what the expected return will be when you do so. If you go halves with your brother in law you will also need to make sure there is a provision for you to sell your half any time you want.

I partly agree with MJP, if you want a decent, western style, living, you probably won't get it from the land. If you want to supplement an income, or are prepared to put up with a Thai lifestyle, you can do so. I can understand someone feeling trapped if the farm income was all they had, but as an addition to an external income, whether it be from work or investments, it can make a difference. Our strategy is diversity; we have well over 100 rai of rice and rubber, plus a small earth moving business. I last put external money into building up the business over 10 years ago, it is now entirely self supporting and making a reasonable income. When coupled with investments outside Thailand, and a few months consultant work every year, I consider us to be fairly well off. The Thailand business is by no means the largest side of the triangle, but the true value of it is in the land and assets, rather like a block of shares earning a dividend. Of course, I can not own any of this, but it doesn't worry me. We've made back pretty much all of what was originally put into it. My wife puts a lot more of her time into it than I do. And, if we ever did split up (we've been together for 18 years now), I could walk away knowing she will be provided for, and that most of my money is outside the country.

Each individual case is different. If serious about looking into a living off the land you should be asking yourself things like:

What opportunities are there in my area? - Crops grown, price of land present and historical, any irrigation schemes in the area, how many farmers have their own tractors / harvestors?

Current age? - It probably isn't a good idea to start if you're getting on in years.

Current income? - You'll need a good external source of money for the first few years.

How much can I afford to spend on it, both initially as a start up cost and then, if you want to build it up, annually until it becomes self supporting? - I'd suggest that after a year or two, only put more money in to start a new venture, existing ones should be self supporting by then.

How long am I prepared to wait, or keep feeding money in, before I expect to see a return? - This follows on from the previous point. Some of our earlier ventures, such as raising pigs, didn't really pay off. We made the decision to stop supporting it and sell what we could. Rather than look at the money already put into it as lost you must look at the money you no longer put into a loss making venture as gained (don't throw good money after bad).

Edited February 16, 2010 by ballpoint

[MJP]

When I ask are there any money makers, I'm solely talking about making money from the land.

I'm also in the same position as you MJP and that will more than likely never change.

I just think spending 350,000 baht and waiting 35 years till I get my money back is nonsense.

As the saying goes, you don't invest in Thailand . . . you make a donation.

Keep the wallet firmly in the pocket on this one old boy. In truth, with what is just round the corner in this country, I don't even trust lease agreements or usufructs.

You're likely thinking the same as me right now. Work in the West ain't great and looks, in reality, to be getting worse over the next X years. Best thing to do in my opinion is run a very tight, sufficiency budget.

[harry1]

i agree with MJP,,,don't invest just make a donation,,

ask youself,,will you still be alive in 35yrs,how old are you??,,also seems very high price,,where abouts in thailand are you??

don't want to cast dought on your situation but if your seriously thinking of this,,ask to see your b-in laws money,,smell a scam

here,,sneeky feeling your copping the whole bill and sharing the profits(maybe a debt for him or something),,if you used 350k for

general living and a few luxuries how long would this last,,quite some time,,know alot of forlangs who get involved in these make

money scams,,always ends up in tears

[bellagrego]

It is a "NO Brainer" to even consider land as a producer on income nor investment in Thailand. Inflation alone outstrips return which is iffy to the max. Land is grossly over valued here as it is still in demand for substinance farming. The only way to produce income from land is speclutive buy and sell. That is if you want to have a Thai company, pay taxes, file returns and find Thai nominies to trust . Bottom line, keep your money in a buried tin can is a safer and more productive investment,

[MJP]

Just looking at it this way.

If it's 350k for 7 rai.

Well. If it's agricultural land and not domestic building land, 7 rai should be 175k. Funnily enough 175k x 2 = 350k.

You're buying it and giving the same again in cash.

Watch these b@stards!

[ManilaLover]

In who's name?

brother in law has nothing to loose

(the usual story)

[torrenova]

Just looking at it this way.

If it's 350k for 7 rai.

Well. If it's agricultural land and not domestic building land, 7 rai should be 175k. Funnily enough 175k x 2 = 350k.

You're buying it and giving the same again in cash.

Watch these b@stards!

Yeah, I'd be going for that one !

Scam.

[longstebe]

Like I've already said, I said NO to him.

Scam?

You can't kid a kidder.

Maybe I wasn't clear enough in the OP.

[MJP]

Good job!

Took many years but they leave me well alone now, it's normality at last.

Like I've already said, I said NO to him.

Scam?

You can't kid a kidder.

Maybe I wasn't clear enough in the OP.

[ESB7]

350,000=£7,000

5 Year Fixed bond paying 5%=£350 =17,500 baht....2.5 x beter return than buying that land