Million Dollar Homes On Samui

[taxexile]

It is no longer the tacky backpacker island of days gone by.

as a backpacker island it was anything but tacky.

the tackiness moved in when the backpackers moved out.

movers and shakers , as you so delightfully call them , dont move to samui.

there may be a lot of money moving in there , i dont doubt it , but it wont be my money. the place is a mess . it might be a good place to double or even treble your money , but its no place to live , at least not for the time being.

The hundreds of “million dollar + net worth” people that HAVE bought there THIS year aren’t “C” grade people. They’re movers and shakers, that’s why they’ve accumulated this kind of wealth. Hmmmm....I wonder who's eyes are not open

all the money in the world cant make an A-grader out of a C- grader.

But don’t get me started 

i already have.

[Nepal4me]

But don’t get me started 

i already have.

<{POST_SNAPBACK}>

You are fast Taxexile. Yeah, I wouldn't move there either, don't like beaches or islands enough, love to visit tho. My monies going there only to make more money, not to live.

[taxexile]

[beamer]

Nepal 4 Me ...

Just read your thread from back in 2005

Any update ? did you complete your project ?

[RAZZELL]

Nepal 4 Me ...

Just read your thread from back in 2005

Any update ? did you complete your project ?

Probably gone skint, fake chanotte etc etc

RAZZ

[LaoPo]

Nepal4me:

Last Seen: 2008-07-14 09:16:32 ...almost 3 months ago; anything could have happened...

LaoPo

[Nepal4me]

Nepal4me:

Last Seen: 2008-07-14 09:16:32 ...almost 3 months ago; anything could have happened...

LaoPo

Wow 3 months since I last visited. Thanks for pushing me back here.

Status of this project is really "no status". I still own the land. The development of the infrastructure in Narayan Heights completed probably 2 years ago. There are 18 plots in this gated moo baan. In Narayan each of the 18 owners were to build their own villas in the Thai/Indonesian style format and had until Jan 09 to begin the build, with the build to be complete by 3 years after that. With the coup 3 years ago, everything went to a standstill. Very few owners have actually developed their villa in Narayan. There is one massive villa close to complete in the land beside mine. It is a 7 bedroom villa, spread out across the almost 2 rai plot. There are a couple more just starting. There has been an extension from the Jan 09 date to start construction since the foreign buyers have fallen off the cliff. At this stage, I'm reluctant to throw 20 million into building a beautiful villa on my plot (1.25 rai). Who knows when the political climate will improve here so I'm still in a wait and see mode.

I would classify myself as concerned but not desperate. I paid 8mil baht for this land back when I got 40 and 41 baht per dollar. I did have one offer on my land for 14 million, which I accepted but then the buyer balked. Otherwise there is a little turnover in Narayan 2 or 3 plots have been resold in the past 6 months. They still did sell in the 11 to 13 mil/rai range but they were all smaller plots, in the range of .6 rai.

I don't need the money right now and have little choice anyway but to wait till the political climate clears. If I could sell it for a nice profit I would do it and forgo the risk of further investment to build to get the upside of the higher return of an expensive developed villa. In the meantime I'm just going to hold it and see what happens.

If I knew then what I know now, I wouldn't have bought that land but who knew this political thing would have occurred and lingered for so long with no end in sight. However this was money that I could afford to lose, I'd hate to lose it but it won't affect me long term. It was a risk and as of now a risk that doesn't look like it was worth it but time will tell.

[beamer]

Thanks for your update .. sorry its not all positive.

U know anything of the resale market . Im seen alot of villas online for sale from 7 Million up but it seems they have been for sale for long time.

Do you think if they had an offer but was say 1 or 2 M below asking they might be tempted to sell ?

Is anyone buying in Samui these days ?

[LivinLOS]

Rent like that gets a very special place...

My home is valued at 25+ realistically.. I rent for 70.. so his return on >600k USD is a hair over 20k USD before maintenance of which there seems to be a lot.. so he is getting a 3 - 4% return on capital in a risky market.

Personally I am staying invested overseas and pay my rent...

<{POST_SNAPBACK}>

Sorry, not really sure what you're talking about.

Your home at 25+ ???

Rent for 70 ???

Where is this home? Is the comparison meaingful, i.e. apples to apples?

>600K USD ???, if you're referinging to the villa I'm proposing, 20M baht = US$500

averaging my conservative 100K to 150K per month, i.e. 125K baht or about US$3k = about a 7% ROI before mntc. Actually you can make enough on the extras, maid service, driver, wine cellar, food cooked by in-house cook to cover the mntc fees. People renting places like this want services and if they're paying significant rent, then paying for an in-house cook/maid is negligible. Any repairs would obviously be on top. Hopefully few for the first few years.

Even the 7% return is only a bonus because I'm in it for the big score, i.e. the potential capital appreciation. That's where my gamble is.

<{POST_SNAPBACK}>

It is a meaningful comparison due to the fact I am in Patong Phuket.. This is probably the highest rental return per invested capital on the island due to highest tourist numbers etc...

So MY home at approx 25 mil value (600k USD) compares a lot to Your inward 500k investment... My location is one of high rental returns (I could get this place for less outside of Patong but still on Phuket) at 70k per month and its still a lot worse (on the invested sum) then my investments perform outside of Thai juristiction..

Of course if you are vacation letting you can get high returns but long term rents, I think is a purely loss making category (in a asian currency) compared to my investments..

Also to be considered is the global state of the worlds ecomomies... Deficits spiralling out of control.. Nearly all the western economies hiunged and leveraged on massive credit both persoanl and government.. Recession looming.. Property bubble fueled by credit influx like the world has never seen before... Highly possible for a real estate crash and resulting severe depression in the global economy over the next 2 - 5 year timeframe.. If this happens expect the second home / holiday home / rich retirers market to be effected..

If it seems so easy to double your money it probably is not what its claimed to be.. Over the last few years it has been possible here on Phuket and increasinly so on Samui.. But that is highly possible to be the end of the cycle (the time when everyone thinks real estate is easy money is time to leave the market)..

If you want it as a long term home to live in for years then I would never avise against building your dream home.. For speculative gains I would say the risk level is higher than you percieve and the returns may not be as large..

I have been in construction and real estate development until retiring to Thailand (at 28) and now I simply actively manage my investments.. I thought I would get into the market here and I dont deny that good money can be made but have also seen a lot of good money lost.. Mine stays offshore..

Interesting to see the 5 year ago prediction..

And advise to plonk the money into gold and silver

[LivinLOS]

Ohh and I could also add.. The 25m + villa I rented above Patong..

Fell down the hill in a landslide losing the owner the entire investment as insurance wouldnt cover it.. Attempting to sue the tessabaan for design flaws is a nice new money pit for him to keep throwing cash at in case hes not bored with that already.

Landlord - 100%.. LivinLOS >300% (gold silver and mining equity).

[Jirapa]

As nice as Samui might be, I would still prefer to live on the mainland.

thats a very good point , and one of the reasons we decided to leave.

what appears to be a paradise at first can soon turn into a prison , we were going stir crazy there !!!

Samui's good for a weekend. I've lived in Bangkok for a year, loved it! Samui for 8 months, got bored. And now I'm living on the mainland since 6 years near Phunpin train station in Suratthani, love it very much! No millionaire flash Harry expats with their seaview palaces just very nice local people which is what living in Thailand should be about. Travelling around the world to live on a crappy island paradise like Samui defeats the object as far as I'm concerned. Real Thailand is a much better place to be, more friendly, much cheaper and more Zen.

There was a post up there somewhere where some idiot was mouthing off about all his millionaire mates on Samui. So what money doesn't make the man a dick will always be a dick. I have plenty of Thai millionaire mates, not talking Baht, and they don't even talk about money and don't snub the working classes. Living on the mainland dickheads are fewer and farther between, the local beaches are beautiful and tosser free! Not dissing Samui but as I stated, "good for a weekend!"

[LivinLOS]

Samui's good for a weekend. I've lived in Bangkok for a year, loved it! Samui for 8 months, got bored. And now I'm living on the mainland since 6 years near Phunpin train station in Suratthani, love it very much! No millionaire flash Harry expats with their seaview palaces just very nice local people which is what living in Thailand should be about. Travelling around the world to live on a crappy island paradise like Samui defeats the object as far as I'm concerned. Real Thailand is a much better place to be, more friendly, much cheaper and more Zen.

But whats there to do in the boonies.. How can you get any real kind of net speeds.. italian coffee beans, goats cheese, peaches and avocados, all the quality ingredients of stuffs that are lifes luxuries.. International DJ's.. Proper clubbing.. etc etc etc

I tire of the stress of touristy areas but I cant give up on those as basic essentials.

I have plenty of Thai millionaire mates, not talking Baht, and they don't even talk about money and don't snub the working classes.

Strange as the minted Thais I see treat those of lower status in a way that often floors me.. The whole 'buy a merc so I dont need to give way' attitudes.

[LaoPo]

Samui's good for a weekend. I've lived in Bangkok for a year, loved it! Samui for 8 months, got bored. And now I'm living on the mainland since 6 years near Phunpin train station in Suratthani, love it very much! No millionaire flash Harry expats with their seaview palaces just very nice local people which is what living in Thailand should be about. Travelling around the world to live on a crappy island paradise like Samui defeats the object as far as I'm concerned. Real Thailand is a much better place to be, more friendly, much cheaper and more Zen.

But whats there to do in the boonies.. How can you get any real kind of net speeds.. italian coffee beans, goats cheese, peaches and avocados, all the quality ingredients of stuffs that are lifes luxuries.. International DJ's.. Proper clubbing.. etc etc etc

I tire of the stress of touristy areas but I cant give up on those as basic essentials.

I have plenty of Thai millionaire mates, not talking Baht, and they don't even talk about money and don't snub the working classes.

Strange as the minted Thais I see treat those of lower status in a way that often floors me.. The whole 'buy a merc so I dont need to give way' attitudes.

Yes, true....but the Nouveau Riches are the same all over the world. Snobs.

LaoPo

[trogers]

The last time I took a vacation in Samui was in the early 90s. Stayed at the Imperial and was able to cross the road in front of the hotel with my eyes closed.