Confused

[bonnieboy]

HI I am confused as to the merits of purchasing a property,or renting.For some time now i have been examining the merits of buying a property,as i am planning to live inThailand in August,by way of a retirement visa.I would like to purchase a property,by way of a 39%ownership in a company as advised by many forum members,but I am realistic enough to know that whilst there is a perceived loop hole in company purchase,it may not always be so.I only favour ownership because of my desire to have the freedom of use which is available to me to do what I wish by way of refurbishment or change,as suits my mood.I believe I am aware of most of the nasties,but there seems to be a constant thread of warnings from forum members as to the merit of purchasing,and I would appreciate imfomed opinions as to the perceived risk of purchase and the reality.

[paulfr]

My take after reviewing this issue is this.

In Bangkok, rents are very low compared to property value.

Figure 0.5% per month. A good deal.

Upcountry, values are lower, but fewer rental are available as there are fewer farangs for one reason.

Now if property values rose significantly, you would be better off buying, but most feel Bkk is overbuilt and overpriced and that another crash, minor or major, is coming sometime soon.

If you walk around the sub sois, you will see copious signs for rentals and sales in central Bkk which would indicate it is a renters market. Thais often will hold property even if vacant until they get their asking price and will not drop the price for fear of losing face. Banks have REO's (real estate owned) on the books that just sit there for the same reason.

My advice; rent for the first year. Then if you find a deal or have money to burn (pay 4MBaht for something worth 2MB) you can buy. For some, 2MB=50K$ is not a big deal and you can get a very nice centrally located condo for 4MBaht.

Edited May 24, 2005 by paulfr

[Tiger7Moth]

HI I am confused as to the merits of purchasing a property,or renting.For some time now i have been examining the merits of buying a property,as i am planning to live inThailand in August,by way of a retirement visa.I would like to purchase a property,by way of a 39%ownership in a company as advised  by many forum members,but I am realistic enough to know that whilst there is a perceived loop hole in company purchase,it may not always be so.I only favour ownership because of my desire to have the freedom of use which is available to me to do what I wish by way of refurbishment or change,as suits my mood.I believe I am aware of most of the nasties,but there seems to be a constant thread of warnings from forum members as to the merit of purchasing,and I would appreciate imfomed opinions as to the perceived risk of purchase and the reality.

<{POST_SNAPBACK}>

Apparently there several different markets that could provide different answers to your question - Bangkok, Pattaya, the Islands (Phuket, Koh Samui), the North (Chiang Mai and surrounding areas), Issan, other. So, I think you will need to specify a market in order to get a response that is meaningful.

I am also confused and my primary market is Bangkok (downtown) and my secondary markets are Bangkok surrounding area (including near new airport) and Koh Chaang. With regards to Bangkok, I have read that approx 64,000 units are due to come online this year and half that amount were purchased last year (and many projects are starting now that won't be completed until next year. So, builders have committed to a huge number of new units coming online in the next 12 - 18 months. These units are priced very high! Who will purchase them when the building is in a boom and the forecast for growth in the economy is dropping frequently (and Thailand has a trade deficiet for the first time since 1997 and consumer confidence is low)?

I have little confidence in my ability to predict markets. Still, as I sit in my Bangkok apartment and seeing buildings being constructed all around me, I can't imagine that there will not be a fire sale on excess inventory in 12 months (I already see hand made signs, by speculative buyers, of units for sale in my neighborhood and the construction that is going on will bring a huge amount of competition). By the way, prices in Bangkok went up about 30% last year, so, if the new inventory (2 times as much as last year) is not absorbed, why wouldn't prices drop by at least this amount?

Hope others will express their thoughts as I am not an expert and would like to make an intelligent purchase in the next 12 months or so.

[bonnieboy]

Re confused,my earlier post,to rent or buy.A little bit about myself,I have been to Thailand on a number of occasions,and I am currently in real estate in Australia.After examining via the web,Chiangmai,Phuket,Hua hin, Pattaya,,and Bangkok,my instinct,has led me to a place called Bang Sare,approximately 23kms south of Pattaya where serviced land ready for building is available at around 800000bht per rai,this land has full coastel views across the water to Pattaya,but at a fraction of the cost.My observation,right or wrong is for continued growth in and around Pattaya as I believe that the tragedy in and around Phuket could result in increased tourism,and continued demand for housing.Of course I may be wrong,but thats where you guys(and gals) come in

[COBBER]

As paulfr has suggested rent for a year and then you can guage for yourself what the best option is.

It is very easy to buy in the Pattaya area but a lot harder to sell.

Some would suggest that the property maket is overheated and due for a crash.

Others would suggest that it has not reached a peak yet.

If your planning to build , first impressions might indicate that you can build a very nice house for low cost compared to oz but there can be many pittfalls with building. By sitting back for a year you can observe how things are done here and this will help you get a well constructed house at the right price if you decide to go down that road.

Also Bang Suray might not suit your lifestyle. You may get sick of driving into Pattaya for shopping , etc.

[Dragonman]

bonnieboy. 800000 baht seems a good price per rai. I live 7 k's further south than the land in question, and like the long reasonably undeveloped beach at Bang Sare. Most developers would put 7 or 8 homes on a plot this size!

As COBBER stated it would be a matter of you not minding the 20 minute drive to Pattaya, if you like that sort of thing Bang Sare not that frequented by farangs, mainly thais on beach. I prefer it, but "up to you".

I too was in Real Estate in the UK before the hate mail got too much for me If you want any more details PM me.

[bonnieboy]

bonnieboy. 800000 baht seems a good price per rai. I live 7 k's further south than the land in question, and like the long reasonably undeveloped beach at Bang Sare. Most developers would put 7 or 8 homes on a plot this size!

As COBBER stated it would be a matter of you not minding the 20 minute drive to Pattaya, if you like that sort of thing Bang Sare not that frequented by farangs, mainly thais on beach. I prefer it, but "up to you".

  I too was in Real Estate in the UK before the hate mail got too much for me  If you want any more details PM me.

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[bonnieboy]

bonnieboy. 800000 baht seems a good price per rai. I live 7 k's further south than the land in question, and like the long reasonably undeveloped beach at Bang Sare. Most developers would put 7 or 8 homes on a plot this size!

As COBBER stated it would be a matter of you not minding the 20 minute drive to Pattaya, if you like that sort of thing Bang Sare not that frequented by farangs, mainly thais on beach. I prefer it, but "up to you".

  I too was in Real Estate in the UK before the hate mail got too much for me  If you want any more details PM me.

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

Hi Dragonman,thanks for imput,I have been to Bang Sare on a couple of occasions,and part of the attraction is that it is quiet,and only 20 mins from a night out on the town when required,I just feel it has so much potential for future growth.I do have a further question,I am wondering if there is any merit when buying a property,of getting a thai national to shop local non agent properties on my behalf I am aware of agent prices,but I dont believe I have yet found where the true value sits,of course I would would work out some incentive for my shopper.What do you think?

[Dragonman]

My wife will ask around for you. The developer of my property is now building in Bang Sare and she may know of any land going. I presume you are looking for land, not a ready built property.As long as you don't look too green most developers in this area won't give you a "farang price", unlike in Pattaya. In fact they think I'm more Kee Neow than the locals

The 800,000 seems good however. I paid 800,000 baht for half a rai, including all off site and on site services.