Buying In Estate In Bangkok

[sehdaeng]

I feel buying property for investment in Bangkok is ultimately a bad investment. Reports say Bangkok is sinking at an alarmly rate and eventually will be under sea level.....i dun see them able to do what other countries with similar problem can do (example Holland) so when the time comes, all real estate in Bangkok will be worth much less.

That said, am eyeing an apartment in the just completed Ideo along Ratchada-Huaykwang. many are offloading at cost (selling downpaypayment paid 2 year ago without profit)....is this a good buy or can i get at below cost even? (this is not investment but for to save paying rental)

[lovelomsak]

I maybe interested in purchasing also if you could possibly give more info. I dono know exactly where the location is. What kind of prices and incentives do they offer? Incentives as in financing or furnishing and appliances.

[steppenwolf108]

Definitely a good idea purchasing now in early Ratchada area.

The Belle Avenue complex will have also a Central Mall, 5 star hotel, 4 star hotel, offices, a theatre/exhibition center, bringing up the value of the entire area.

There are several good quality projects completed or soon to be completed [ivy, Rhythm and so on] and the Airport Link will soon open.

Belle Avenue is potentially a good investment, selling now around 65/70k per sqm, but once completed, value will surely increase to 80/90k min.

The condo there tend to be mainly a one bedroom unit, average size of 45 sqm, modern design.

Go and check it out!

[fredob43]

I know it's BKK, but over 3 mil for 45sq mt. Buddha. How can anyone live in a place that small. Yes I know a rabbit. My lounge is bigger than that, Ive just looked at it and tried to convert it into bedroom, bath, and kitchen. Time you get the wall's in there's nothing left for the lounge. Hope you all have a small TV.

[Lasic1]

I would discourage anyone from buying real estate in Bangkok and maybe not even anywhere else in Thailand. First of all it's never been a very good investment when rent prices are far below your average mortgage payments (inverse proportion). Secondly, condos in Thailand are notorious for volatile swings in value; ie., the IMF monetary collapse of 1997. Thirdly, there is a glut of condos so what makes you think your condo will appreciate faster than any others. Fourthly, after a relative period of stability the political situation is in turmoil and the unexpected could happen at any time. Real estate like the stock market does not like uncertainty. You could wake up one morning and find your condo laws of ownership, taxes and other fees changed for the worse making it impossible to sell. And of course there is the maintenance issue, it will only get worse over time depreciating your investment further. I've had friends living in buildings where they didn't even repair the elevators meaning your 15th floor condo might as well be in heaven for all practical purposes. This looks like a bonanza for renters right now and makes it much more liquid for you to leave without any hassles or lose of hard earned investment cash.

Make Sense?

Laser

[steppenwolf108]

I know it's BKK, but over 3 mil for 45sq mt. Buddha. How can anyone live in a place that small. Yes I know a rabbit. My lounge is bigger than that, Ive just looked at it and tried to convert it into bedroom, bath, and kitchen. Time you get the wall's in there's nothing left for the lounge. Hope you all have a small TV.

Well myself I never moved under 65 sqm [being single] and with plenty of windows and possibly a balcony to do BBQ.

But I saw many units of 45 sqm quite well done, small but all built in furniture and the finishing was good.

Rent goes from 15,000 baht up per month for such units located nearby the BTS/MRT routes.

For Western standards are small indeed, but here in Bangkok it's what's hot right now [other than the luxury market], with prices going from 1.8 mil baht up.

The prices I was referring before are concerning the Belle Avenue, with sizes of 65 sqm up.

[fredob43]

I know it's BKK, but over 3 mil for 45sq mt. Buddha. How can anyone live in a place that small. Yes I know a rabbit. My lounge is bigger than that, Ive just looked at it and tried to convert it into bedroom, bath, and kitchen. Time you get the wall's in there's nothing left for the lounge. Hope you all have a small TV.

Well myself I never moved under 65 sqm [being single] and with plenty of windows and possibly a balcony to do BBQ.

But I saw many units of 45 sqm quite well done, small but all built in furniture and the finishing was good.

Rent goes from 15,000 baht up per month for such units located nearby the BTS/MRT routes.

For Western standards are small indeed, but here in Bangkok it's what's hot right now [other than the luxury market], with prices going from 1.8 mil baht up.

The prices I was referring before are concerning the Belle Avenue, with sizes of 65 sqm up.

Sorry I got the price wrong. But by Buddha it's still a rabbit hutch. And the size alway's include's the balcony. If it's got one. I remember I took my Thai wife to my chum's and his was 130s/mt when asked if she liked it, her reply, It very nice but very "sumall".

[yabaaaa]

Buying anything is a bad investment because one day you will die!!!!!

[stgrhe]

Buying anything is a bad investment because one day you will die!!!!!

I disagree, who would like to be the richest in the cemetery? Much better to spend the money while living and enjoy life!

[london]

I have owned, rented and sold property in Bangkok.

IF you are expecting stellar growth prospects: forget it.

IF you are happy with rental returns of around 6-7% (and who wouldn't you be??) then it will meet this criteria.

From my experience, rent and growth included, DEPENDING ON THE AREA and CONDO, you should be looking at a TOTAL gross return of 10-14% per year.

My last sale including the rental over the years, grossed up at approx 14% pa over 10 years. I was happy with that.

However, the BIG caveat is the political situation in Thailand. Sadly, I don't feel the current problems will ease anytime soon. This may make it cheaper to buy, but more difficult to rent.

Good luck !

[Hawkseye]

With a name like that I am surprised the OP is looking for any accommodation other than a wooden box.

[Pib]

I would discourage anyone from buying real estate in Bangkok and maybe not even anywhere else in Thailand. First of all it's never been a very good investment when rent prices are far below your average mortgage payments (inverse proportion). Secondly, condos in Thailand are notorious for volatile swings in value; ie., the IMF monetary collapse of 1997. Thirdly, there is a glut of condos so what makes you think your condo will appreciate faster than any others. Fourthly, after a relative period of stability the political situation is in turmoil and the unexpected could happen at any time. Real estate like the stock market does not like uncertainty. You could wake up one morning and find your condo laws of ownership, taxes and other fees changed for the worse making it impossible to sell. And of course there is the maintenance issue, it will only get worse over time depreciating your investment further. I've had friends living in buildings where they didn't even repair the elevators meaning your 15th floor condo might as well be in heaven for all practical purposes. This looks like a bonanza for renters right now and makes it much more liquid for you to leave without any hassles or lose of hard earned investment cash.

Make Sense?

Laser

You sure you are not talking about the real estate market in California, Arizona, and Florida right now? Pretty much all the reasons mentioned above fits these states also.

Edited May 27, 2010 by Pib

[Pib]

However, the BIG caveat is the political situation in Thailand. Sadly, I don't feel the current problems will ease anytime soon. This may make it cheaper to buy, but more difficult to rent.

Good luck !

Amen, brother!!!

[spinshock]

From the tread starter:"That said, am eyeing an apartment in the just completed Ideo along Ratchada-Huaykwang. many are offloading at cost (selling downpaypayment paid 2 year ago without profit)....is this a good buy or can i get at below cost even? (this is not investment but for to save paying rental) "

I was wondering if anyone could shed some light as to how/where I can find/get in contact such unit sellers?

Thanks appreciated

[trogers]

(this is not investment but for to save paying rental)

Then location and social class of the condo development will be main considerations. You can only save on rents when you can sell it later at cost plus 5% pa capital appreciation.

If the layout of the development is mainly studio and 1-bedroom units, you can imagine the social class using the spaces five years from now.

[HampiK]

From the tread starter:"That said, am eyeing an apartment in the just completed Ideo along Ratchada-Huaykwang. many are offloading at cost (selling downpaypayment paid 2 year ago without profit)....is this a good buy or can i get at below cost even? (this is not investment but for to save paying rental) "

I was wondering if anyone could shed some light as to how/where I can find/get in contact such unit sellers?

Thanks appreciated

Have a look at the website Prakard.

[vpi78]

Sehdaeng,

Don't be disheartened by most of the negative posts to your OP. Envy is a powerful thing, particularly from those with 20/20 hindsight and many of those have never owned anything anywhere but are experts in Google. Then there is the subset of "Expats ... is there anything they do not know?"

Property in Thailand is a solid investment But for me it was partly by accident where I was fortunate and happened to be in the market and bought at a Baht to US$ exchange rate of 41:1. Being closer to 30:1 today there has been (on paper) over 25% ROI. Yes, I said "on paper". If I sold it would probably take some effort but since I bought in the Farang Ghetto of Sathorn, my prospective clientele would be Farangs, not as much Thais, and the proximity of Consulates in the area bodes well for a fairly good customer base.

So my advice is stay the course, look at your options, real estate in Thailand is just like it is everywhere, i.e., tied to location-location-location. But other Thai-centric factors include: Asia is on the rise vs. the West, most beleive that will continue for a long time and there are no real estate taxes per se in Thailand. Sweet.

Finally, I advise to do what I did if you can, i.e., buy with a thought of I can live there if it comes down to it rather than buying to become a slum lord.

[london]

Sehdaeng,

Don't be disheartened by most of the negative posts to your OP. Envy is a powerful thing, particularly from those with 20/20 hindsight and many of those have never owned anything anywhere but are experts in Google. Then there is the subset of "Expats ... is there anything they do not know?"

Property in Thailand is a solid investment But for me it was partly by accident where I was fortunate and happened to be in the market and bought at a Baht to US$ exchange rate of 41:1. Being closer to 30:1 today there has been (on paper) over 25% ROI. Yes, I said "on paper". If I sold it would probably take some effort but since I bought in the Farang Ghetto of Sathorn, my prospective clientele would be Farangs, not as much Thais, and the proximity of Consulates in the area bodes well for a fairly good customer base.

So my advice is stay the course, look at your options, real estate in Thailand is just like it is everywhere, i.e., tied to location-location-location. But other Thai-centric factors include: Asia is on the rise vs. the West, most beleive that will continue for a long time and there are no real estate taxes per se in Thailand. Sweet.

Finally, I advise to do what I did if you can, i.e., buy with a thought of I can live there if it comes down to it rather than buying to become a slum lord.

GOOD ADVICE !!!

[Darrel]

But for me it was partly by accident where I was fortunate and happened to be in the market and bought at a Baht to US$ exchange rate of 41:1. Being closer to 30:1 today there has been (on paper) over 25% ROI.

That was totally by accident, unless you knew in advance that the Baht would appreciate. And if you had simply converted your USD to Baht and put them on time deposit you would have made the same increase (plus interest) with total solvency and no risk.

So any calculation of the value of Thai property over the years has to be in constant Baht and not in other currencies. If you bought a condo for x million 5 years ago and can sell it (easily) today for x + 30% or more then you have done nicely. Anything less is not so good, unless you have also had rental returns.