Buy To Let

[RAZZELL]

Remember, the fundamentals of the Thai market are not the same as the UK.

Yes, there is is capital growth if you're lucky...but nothing on the scale of the UK over the last 10-15 years. Anyone who bought property in the UK during this period was extremely lucky with their timing.

You've made your money in a once/twice/three times in a lifetime economic cycle. Be careful with it.

What do you think will happen with the Political situation in LOS? What happen's when "you know who" go's to the happy hunting ground? What will you be doing in 15-20 years time?

Think about it. Time is your ally.

All the best for the future

RAZZ

Edited April 6, 2010 by RAZZELL

[RAZZELL]

Read this article and the comments:

http://www.telegraph.co.uk/finance/economi...ear-market.html

RAZZ

Edited April 6, 2010 by RAZZELL

[jay1980]

Good point, that is why I am trying to look at more secure investments like property rather than thinking of spending money on a business.

With condo's at least its is in your own name. I agree the factors for the UK mentioned in the article are not the same in Thailand. Lack or planning restrictions, more available land, cheap labour mean long term price rises will not be the same.

I have pretty much decided I will keep all my UK investments for the medium to long term but consider saving and making some smaller investments in Thailand.

The possible cause for unrest you mentioned should be considered, one thing encouraging for Thailand however is over the last 5 years there has been much political upset but it does not have appeared to affect the economy greatly.

Not sure what I will be doing in 10-15 years but the way I feel now I don't want to be in the UK, and I don't want to be doing the job I do now! All I can do now is plan so at least I will have options when this time comes.

Where in London are you biased?

cheers

[makescents]

What do you think will happen with the Political situation in LOS? What happen's when "you know who" go's to the happy hunting ground? What will you be doing in 15-20 years time?

It's that quite foreseeable instability that would keep me from investing here.

[ExpatJ]

What do you think will happen with the Political situation in LOS? What happen's when "you know who" go's to the happy hunting ground? What will you be doing in 15-20 years time?

It's that quite foreseeable instability that would keep me from investing here.

I think the business sector has factored the instability into their equations to some extent e.g. the stock market in Thailand has been booming over the last 2 weeks of the red shirt demonstrations in Bangkok- i have been making up to 10% returns on my stock investments even in the last week alone!. e.g. Bought LANNA last week, sold today at 10% profit.

[ChiangMaiFun]

Remember, the fundamentals of the Thai market are not the same as the UK.

Yes, there is is capital growth if you're lucky...but nothing on the scale of the UK over the last 10-15 years. Anyone who bought property in the UK during this period was extremely lucky with their timing.

You've made your money in a once/twice/three times in a lifetime economic cycle. Be careful with it.

What do you think will happen with the Political situation in LOS? What happen's when "you know who" go's to the happy hunting ground? What will you be doing in 15-20 years time?

Think about it. Time is your ally.

All the best for the future

RAZZ

Another 'pearl of wisdom' (not really but it's what I do) - I count on NO capital growth in my property here - just revenue - if something went up it's lucky. Because I am after income - any increase in capital is largely irrelevant for me - I guess you could argue that the 'real' value of the units is depreciating - but sometime you can 'Tink Two Muk' - spread your risk and jump in - if you want to live here long term you are better having 'local' income without thinking about ATM charges/Interest rate or Exchange Rates. get about 50,000 in local income and have some income from the UK building up for travel and a 'rainy day'. Good Luck.

Edited April 7, 2010 by ChiangMaiFun

[RAZZELL]

Where in London are you biased?

cheers

PM'd you.

RAZZ

[jay1980]

Another 'pearl of wisdom' (not really but it's what I do) - I count on NO capital growth in my property here - just revenue - if something went up it's lucky. Because I am after income - any increase in capital is largely irrelevant for me - I guess you could argue that the 'real' value of the units is depreciating - but sometime you can 'Tink Two Muk' - spread your risk and jump in - if you want to live here long term you are better having 'local' income without thinking about ATM charges/Interest rate or Exchange Rates. get about 50,000 in local income and have some income from the UK building up for travel and a 'rainy day'. Good Luck.

I think this is the model I will aim for, I will just invest enough to keep ticking over locally, Even 20,000 - 30,000 maybe be enough just for food and utility bills visa costs etc, when the exchange rates are bad I can keep UK money in the UK building up at £1K + a month, when they look OK can transfer some for recreation, travel and big ticket items eg buying a car when needed. Like you I would not be too worried about capital growth in Thailand just monthly income. All I need to do is save abit more cash for a couple of decent rentals in LOS. I guess a couple more years work here in UK for me

Cheers

[makescents]

What do you think will happen with the Political situation in LOS? What happen's when "you know who" go's to the happy hunting ground? What will you be doing in 15-20 years time?

It's that quite foreseeable instability that would keep me from investing here.

I think the business sector has factored the instability into their equations to some extent e.g. the stock market in Thailand has been booming over the last 2 weeks of the red shirt demonstrations in Bangkok- i have been making up to 10% returns on my stock investments even in the last week alone!. e.g. Bought LANNA last week, sold today at 10% profit.

Civillians protesting is quite different than say the army making Thailand a military state and taking control of the economy. We don't know what will happen and neither do Thai businesses, we just know it's probably going to be bad.

Not helped by the fact that it's both illegal and taboo to discuss.

[ChiangMaiFun]

Another 'pearl of wisdom' (not really but it's what I do) - I count on NO capital growth in my property here - just revenue - if something went up it's lucky. Because I am after income - any increase in capital is largely irrelevant for me - I guess you could argue that the 'real' value of the units is depreciating - but sometime you can 'Tink Two Muk' - spread your risk and jump in - if you want to live here long term you are better having 'local' income without thinking about ATM charges/Interest rate or Exchange Rates. get about 50,000 in local income and have some income from the UK building up for travel and a 'rainy day'. Good Luck.

I think this is the model I will aim for, I will just invest enough to keep ticking over locally, Even 20,000 - 30,000 maybe be enough just for food and utility bills visa costs etc, when the exchange rates are bad I can keep UK money in the UK building up at £1K + a month, when they look OK can transfer some for recreation, travel and big ticket items eg buying a car when needed. Like you I would not be too worried about capital growth in Thailand just monthly income. All I need to do is save abit more cash for a couple of decent rentals in LOS. I guess a couple more years work here in UK for me

Cheers

Hi - I went through same process over 2 years before I retired at 50 - pouring over my spreadsheets daily - stay in touch and meet up for a beer as I have gone through all the same processes and made some mistakes which you can avoid - cheers

[sleepyjohn]

.

Edited April 8, 2010 by sleepyjohn

[sleepyjohn]

Thinking I will go and get to know Chang Mai for a few weeks.......

cheers

you should know that according to a property survey by a big UK agent, maybe Richard Ellis, Chiangmai is the most oversupplied city in SE Asia.

There are still new condo blocks.....ie new competition for you.....going up everywhere and fighting for sales. With such poor zoning (zoning is the real driver for capital gains) they will continue to be built until, just like a moo bahn or a haw puck or a shop gets copied and copied, there's simply no worthwhile return in it.

[ChiangMaiFun]

Thinking I will go and get to know Chang Mai for a few weeks.......

cheers

you should know that according to a property survey by a big UK agent, maybe Richard Ellis, Chiangmai is the most oversupplied city in SE Asia.

There are still new condo blocks.....ie new competition for you.....going up everywhere and fighting for sales. With such poor zoning (zoning is the real driver for capital gains) they will continue to be built until, just like a moo bahn or a haw puck or a shop gets copied and copied, there's simply no worthwhile return in it.

oh right.. better sell up then as a UK agent says that

[Zstarx]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

[ChiangMaiFun]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

hang on, hang on - many reasons which I have outlined - but capital increase is not one of them - you have to consider the whole picture (income,exchange rates, tax,atm charges etc.)

[Zstarx]

I'm hanging on ChangMaiFun!! But, a 4% yield in London is the same as a 4% yield in Thailand..........I think!

[ChiangMaiFun]

I'm hanging on ChangMaiFun!! But, a 4% yield in London is the same as a 4% yield in Thailand..........I think!

I get 10% gross yeild here and 7/8% net - on my house in UK I get 4% - and you have my other reasonings (about local income) fruther up the thread

[Zstarx]

I'm not sure what your renting out, however I would respectfully suggest if your getting a 10% yield, 7/8% net, your tennant is an idiot .

Good luck to you

[ChiangMaiFun]

I'm not sure what your renting out, however I would respectfully suggest if your getting a 10% yield, 7/8% net, your tennant is an idiot .

Good luck to you

you are obviously a fool with NO experience in the market in Thailand - I have experience and have outlined what that is - now go away please as your inane and uneducated comments are not welcomed here

[Zstarx]

I'm not sure what your renting out, however I would respectfully suggest if your getting a 10% yield, 7/8% net, your tennant is an idiot .

Good luck to you

you are obviously a fool with NO experience in the market in Thailand - I have experience and have outlined what that is - now go away please as your inane and uneducated comments are not welcomed here

Sorry, I must be a fool because I have a different opinion from you, however on your recomendation I'm going to sell my houses and business in Australia and invest in Thailand and get a 10% yield, I can't believe I was so foolish and didn't do it 10 years ago when I first started to come to Thailand.

With your comprehensive knowledge of property in Thailand can you point me in the right direction, if I sell everything I'll have about Baht 39million, 10% will give me Baht 390,000 a year to live on plus capital growth of the property .

The only criteria I have is that I don't want to live near any grumpy old cnuts please. Thanks

[jay1980]

Zstarx I wouldn't invest any money in Thailand if I were you. Better just stay in Auz and take care of your assets there because Thailand is full of grumpy old people and fools.

Best wishes for the future mate

[sokal]

Famous last words I learnt from this forum...."never put more into Thailand than you are prepared to walk away from...".

I foolishly went against my own decision never to buy in Thailand while rents are so cheap, and helped a friend out by taking 50% ownership in a VT7 condo, so he would not lose his payments, as he did not have enough to close the deal when the building completed.

Now I see I have very little likelihood of ever getting my money back or realising the idea of permanent domicile.

I have become disenchanted with the whole "Thailand thing", and after my next visit later this year, I will move on to greener pastures.

There is no sense of security of tenure, property-wise or visa-wise, and the whole country could erupt in the near future, and a Thai soldier with a rifle and carte blanch to use it, is more than I want to contemplate.

So, OP, keep your money and properties in Blighty IMO.

So you blame Thailand because your friend shafted you ?

[sokal]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

[ChiangMaiFun]

Sorry, I must be a fool because I have a different opinion from you, however on your recomendation I'm going to sell my houses and business in Australia and invest in Thailand and get a 10% yield, I can't believe I was so foolish and didn't do it 10 years ago when I first started to come to Thailand.

With your comprehensive knowledge of property in Thailand can you point me in the right direction, if I sell everything I'll have about Baht 39million, 10% will give me Baht 390,000 a year to live on plus capital growth of the property .

The only criteria I have is that I don't want to live near any grumpy old cnuts please. Thanks

Sure happy to help an Aussie who doesn't live here (but seems to think he knows a lot about property here):

Typical strategy:

buy for 700,000 - spend 300,000 renovation = 1m (still with me?)

rent for 9000 (x 12 = 108,000) (typical rent - last year I got 12,000 but let's say a conservative 9,000 ok?)

that is gross 10.8% take off common area fees/agent finding fees/transfer and tax gives you roughly 8% net plus

Here endeth the lesson - goodbye

PS by the way 10% of 39 million is 1,390,000 NOT 390,000 - back of the class and say 'I must improve my Math 100 times'!

Edited April 13, 2010 by ChiangMaiFun

[Zstarx]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

Yes sorry I am clueless, Thailand is really looking like a bed of roses at the moment, compared to the UK.

[ChiangMaiFun]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

Yes sorry I am clueless, Thailand is really looking like a bed of roses at the moment, compared to the UK.

No comment on my Math right?

[Zstarx]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

Yes sorry I am clueless, Thailand is really looking like a bed of roses at the moment, compared to the UK.

No comment on my Math right?

Sorry, you are as wrong as me 10% of 39 million is actually 3,900,000 so we are both wrong!!

Still you make it sound so easy , I bet anyone on this forum renting out condos not getting a 10% return must feel like an idiot

[sokal]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

Yes sorry I am clueless, Thailand is really looking like a bed of roses at the moment, compared to the UK.

balance sheet wise ? Nope.

[ChiangMaiFun]

Still you make it sound so easy , I bet anyone on this forum renting out condos not getting a 10% return must feel like an idiot

Yes they should do... all my friends doing the same are getting same return - stick to Aussie if I were you - this is my last comment on this subject - you obviously don't want to learn because? you know it all already! - goodbye and goodluck

[Chaimai]

Unbelievable, why would you sell a property in London to buy in a third world country. Currencies fluctuate, however over the long term they even out.

You are clueless. The UKs balance sheet looks more like a banana republic every passing day.

Supply and demand makes the market - not the balance sheet.