Property

[trt]

I have some cash.. 6million + baht and would like to buy some property in BKK..

I am still quite young 27 and am looking for a long term investment.. any suggestions?

[chownah]

I'm not a real estate expert and only own land in northern Thailand so you should not believe a word of this...but there is alot of talk going around that the Bangkok property market may be in a bubble phase and prices will come down soon or at least stagnate for a long time. One reason that this might be true is the recent trend in the exchange rate which shows a continuing weakening of the baht and recently even predictions from Thai financial analysts saying that this is likely to continue up to the end of the year. You might check out the topics in the real estate forum and the jobs,financial,etc forum....check through some of the old topics there and I think you'll find lots of discusson and opinions on property values and the state of the Thai economy.

[malcolminthemiddle]

Chownah is right, but comparatively speaking you get alot more for your money in BKK than say in LDN. At your age, in my humble opinion, it is wise for you to build up the property side of your portfolio before delving into more adventurous investment vehicles once you have secured your own "bricks and mortar". Your age is also on your side as property is a long term deal, unless you are speculating. Normally I would suggest that if this is your first property purchase, you start nearer home, who knows where the future will take a 27 year old or Thailand for that matter?

Nonetheless, if you are convinced BKK is the place I would suggest a 2 bed apartment of around 100m2 (more if you can get it within your budget). Preferably new, must be close to the MRT or BST, preferably both, proximity to the MRT/BST has priority over size. Think also of the future, about getting married if not already, about having a family, you'll need the space.

Look for a new, well managed condo with a realistic service charge per m2, by realistic I mean sufficient to provide a quality service. Walking distance to a 7/11 is also very handy. Be prepared to pay between 60,000 and 70,000 per m2.

While the capital gain might not be there in the short term (quality condos in the CBAs have doubled over the past 5 years), you will own the property freehold, you will save any rent if you decide to live there while in BKK, you will have a base and you will always have the option to rent in the future.

Right now there are plenty of developments which meet the criteria I have described, so you won't be short of choice.

Another point if you are short for time, is pay an agent to make up a short list of potential projects and units which meet your needs. They will of course also get a commission on any sale, but the Baht 4,000 (US$100) I paid was well worth the money, viewed all the short listed properties in one day, went back and bought the first one.

Hope this has been some help, good luck and let us know what you decide.

[eljeque]

Look at what rentals are going for in the building that you are interested in. There is a formula that has held up for a hundred years on the cost of property. Sales Prices have been between 80 and 125 times the monthly rental rate. Where it is in between those two points has a lto to do with the current state of the economy, but most importantly, interest rates. As rates are low worldwide now, the ratio is closer to the 125 number. If any condo is near that amount, it is probably worth looking elsewhere.

Also, interest rates are rising now. Housing has boomed throughout much of the world over the past 4 years with interest rates falling. That is going to turn around now. There is no need to rush into and buy a place now.

If you are only 27, how do you know that you will continue to work in Thailand and specifically in Bangkok for a considerable length of time? How long have you been here already?

Do not jump into this. You can always buy next month, or next year or even later for that matter.

[CarlBkk]

I think it would be handy to collate a list of projects being designed/constructed at this moment in time for the Bangkok CBD, near the MRT or BTS, together with any opinions on their value for money.

It's incredibly confusing out there and with that 6 million baht you may be able to get a much better (and more spacious) deal by moving out a bit further to where the MRT is destined to pass.

One thing's for sure, The Trendy Condo. project's marketing team need to be put in the stocks. What a bloody name! No matter how great it was, I would just be too embarrassed to give that address out :-)

[trt]

thanks guys.. some good comments there..

to answer a few of your questions..

6 million is really the minimum that I would be looking to spend... I dont want to pay peanuts to get crap.. i could spend up to 10 million or more..

this is cash i have already..

i have been coming to thailand for more than 10 yrs now and have lived there for a total of 3yrs+

the future of thailand? - who knows..

[Jeff Jarvis]

It's a buyers market now. Lots of places for sale.

With the cash ready, make some offers. Some people bought at less than 50,000 per meter and may be happy to break even or take a loss.

I'd be looking for a river view, close to mass transit. Other areas I'd consider are Lumpini neighborhood and Sukhumvit Sois 23 to 55.

If you plan on living there or renting out for 5 or more years then go for it.

[eljeque]

Real estate:

Slow-down in new housing projects

BANGKOK: -- Property developers have postponed new projects in Thailand because of higher costs, declining consumer purchasing power and the lack of confidence in the longer-term prospects of the housing market.

Thailand’s property business slumped in March because of the sluggish economy, as a result of rising oil prices which pushed up production costs, according to the latest Bank of Thailand (BoT) report.

Some developers have opted to either postpone or slow down their projects. Prospective house buyers are taking much longer to make their decisions.

In April, land sales rose by around 3% compared to the corresponding period last year, but fell by more than 13% from the previous month.

Land transactions throughout the country were worth more forty billion baht, down more that twelve percent from March.

There were nearly 4,000 new houses registered in Bangkok and surrounding areas.

The sales of cement in April grew by nearly 6 % from the previous month. In March cement sales soared by more than 20%, according to the Bank report.

Commercial banks' housing loans were worth more than 520 billion baht at the end of first quarter of 2005, an increase of more than 15 billion baht from the last quarter of 2004, the BoT report said.

I pulled this from the News Clippings section of Thaivisa.

--TNA 2005-07-03

[charles]

I have some cash.. 6million + baht and would like to buy some property in BKK..

I am still quite young 27 and am looking for a long term investment.. any suggestions?

<{POST_SNAPBACK}>

If your objective is a "long term investment", personally I'd tread carefully in the 6-10 million range. It may not be easy to sell in the future or indeed easy to consistently rent out.

I'm still waiting to see signs of life in some of the newer apparently sold-out condo developments in this kind of price range, e.g. Lakes and Citismart (near Asoke) and Hamptons (Thonglor). I suspect the reason the lights are out is that a lot of people have bought them for "investment" or at least somewhere to park their money. Thing is I wonder where all this "investment" is going to end up if there aren't really many people who are actually going to LIVE in these places.

Edited July 6, 2005 by charles

[appleman_thai]

Where did you come up with that formula?

So I am renting at 40,000 baht per month so the max the condo should sell for is 5,000,000 (40k x 125). BUt the places go for 12m!!

Or am I getting your formula wrong?

Look at what rentals are going for in the building that you are interested in.  There is a formula that has held up for a hundred years on the cost of property.  Sales Prices have been between 80 and 125 times the monthly rental rate.  Where it is in between those two points has a lto to do with the current state of the economy, but most importantly, interest rates.  As rates are low worldwide now, the ratio is closer to the 125 number.  If any condo is near that amount, it is probably worth looking elsewhere.

[Firefan]

Some good advise already here.

I bought a couple of years back in BKK in the same price range. If you want some comments on my experience you can PM me. Some of the best advise here is the Subway/BTS closeness.

Cheers!

[chechoie]

Chownah is right, but comparatively speaking you get alot more for your money in BKK than say in LDN. At your age, in my humble opinion, it is wise for you to build up the property side of your portfolio before delving into more adventurous investment vehicles once you have secured your own "bricks and mortar". Your age is also on your side as property is a long term deal, unless you are speculating. Normally I would suggest that if this is your first property purchase, you start nearer home, who knows where the future will take a 27 year old or Thailand for that matter?

Nonetheless, if you are convinced BKK is the place I would suggest a 2 bed apartment of around 100m2 (more if you can get it within your budget). Preferably new, must be close to the MRT or BST, preferably both, proximity to the MRT/BST has priority over size. Think also of the future, about getting married if not already, about having a family, you'll need the space.

Look for a new, well managed condo with a realistic service charge per m2, by realistic I mean sufficient to provide a quality service. Walking distance to a 7/11 is also very handy. Be prepared to pay between 60,000 and 70,000 per m2.

While the capital gain might not be there in the short term (quality condos in the CBAs have doubled over the past 5 years), you will own the property freehold, you will save any rent if you decide to live there while in BKK, you will have a base and you will always have the option to rent in the future.

Right now there are plenty of developments which meet the criteria I have described, so you won't be short of choice.

Another point if you are short for time, is pay an agent to make up a short list of potential projects and units which meet your needs. They will of course also get a commission on any sale, but the Baht 4,000 (US$100) I paid was well worth the money, viewed all the short listed properties in one day, went back and bought the first one.

Hope this has been some help, good luck and let us know what you decide.

<{POST_SNAPBACK}>

Err..... ok, . Thanks mate! will do, right away! what was that bit about..........?

&lt;deleted&gt; it's like listening to all those bullshitters on Blumberg.shit.com

&lt;deleted&gt; off, get a life, go build or make something!

[ya5702]

Where did you come up with that formula?

So I am renting at 40,000 baht per month so the max the condo should sell for is 5,000,000 (40k x 125).  BUt the places go for 12m!!

Or am I getting your formula wrong?

Look at what rentals are going for in the building that you are interested in.  There is a formula that has held up for a hundred years on the cost of property.  Sales Prices have been between 80 and 125 times the monthly rental rate.   Where it is in between those two points has a lto to do with the current state of the economy, but most importantly, interest rates.  As rates are low worldwide now, the ratio is closer to the 125 number.  If any condo is near that amount, it is probably worth looking elsewhere.

<{POST_SNAPBACK}>

Formula generally used for calculating "Yield" for rental properties:

Rent per month x 12 months divided by property price is Yield.

In other words, to get an 8% Yield for a 12M Baht property, the rent should be B80,000 per month. (Yield should be at least equal to, if not more than, mortgage rate).

[Rags]

Chownah is right, but comparatively speaking you get alot more for your money in BKK than say in LDN. At your age, in my humble opinion, it is wise for you to build up the property side of your portfolio before delving into more adventurous investment vehicles once you have secured your own "bricks and mortar". Your age is also on your side as property is a long term deal, unless you are speculating. Normally I would suggest that if this is your first property purchase, you start nearer home, who knows where the future will take a 27 year old or Thailand for that matter?

Nonetheless, if you are convinced BKK is the place I would suggest a 2 bed apartment of around 100m2 (more if you can get it within your budget). Preferably new, must be close to the MRT or BST, preferably both, proximity to the MRT/BST has priority over size. Think also of the future, about getting married if not already, about having a family, you'll need the space.

Look for a new, well managed condo with a realistic service charge per m2, by realistic I mean sufficient to provide a quality service. Walking distance to a 7/11 is also very handy. Be prepared to pay between 60,000 and 70,000 per m2.

While the capital gain might not be there in the short term (quality condos in the CBAs have doubled over the past 5 years), you will own the property freehold, you will save any rent if you decide to live there while in BKK, you will have a base and you will always have the option to rent in the future.

Right now there are plenty of developments which meet the criteria I have described, so you won't be short of choice.

Another point if you are short for time, is pay an agent to make up a short list of potential projects and units which meet your needs. They will of course also get a commission on any sale, but the Baht 4,000 (US$100) I paid was well worth the money, viewed all the short listed properties in one day, went back and bought the first one.

Hope this has been some help, good luck and let us know what you decide.

<{POST_SNAPBACK}>

Err..... ok, . Thanks mate! will do, right away! what was that bit about..........?

&lt;deleted&gt; it's like listening to all those bullshitters on Blumberg.shit.com

&lt;deleted&gt; off, get a life, go build or make something!

<{POST_SNAPBACK}>

Think you'll find it's called good advice mate, which if you read the previous posts was what was requested

How is the hangover?

[chechoie]

Chownah is right, but comparatively speaking you get alot more for your money in BKK than say in LDN. At your age, in my humble opinion, it is wise for you to build up the property side of your portfolio before delving into more adventurous investment vehicles once you have secured your own "bricks and mortar". Your age is also on your side as property is a long term deal, unless you are speculating. Normally I would suggest that if this is your first property purchase, you start nearer home, who knows where the future will take a 27 year old or Thailand for that matter?

Nonetheless, if you are convinced BKK is the place I would suggest a 2 bed apartment of around 100m2 (more if you can get it within your budget). Preferably new, must be close to the MRT or BST, preferably both, proximity to the MRT/BST has priority over size. Think also of the future, about getting married if not already, about having a family, you'll need the space.

Look for a new, well managed condo with a realistic service charge per m2, by realistic I mean sufficient to provide a quality service. Walking distance to a 7/11 is also very handy. Be prepared to pay between 60,000 and 70,000 per m2.

While the capital gain might not be there in the short term (quality condos in the CBAs have doubled over the past 5 years), you will own the property freehold, you will save any rent if you decide to live there while in BKK, you will have a base and you will always have the option to rent in the future.

Right now there are plenty of developments which meet the criteria I have described, so you won't be short of choice.

Another point if you are short for time, is pay an agent to make up a short list of potential projects and units which meet your needs. They will of course also get a commission on any sale, but the Baht 4,000 (US$100) I paid was well worth the money, viewed all the short listed properties in one day, went back and bought the first one.

Hope this has been some help, good luck and let us know what you decide.

<{POST_SNAPBACK}>

Err..... ok, . Thanks mate! will do, right away! what was that bit about..........?

&lt;deleted&gt; it's like listening to all those bullshitters on Blumberg.shit.com

&lt;deleted&gt; off, get a life, go build or make something!

<{POST_SNAPBACK}>

Think you'll find it's called good advice mate, which if you read the previous posts was what was requested

How is the hangover?

<{POST_SNAPBACK}>

Rags,

I really must apologise, my comments where uncalled for, I don't know what got into me.

Hope you accept

[Rags]

Chechoie,

No worries

Rags

[bkkexplorer]

Err..... ok, . Thanks mate! will do, right away! what was that bit about..........?

&lt;deleted&gt; it's like listening to all those bullshitters on Blumberg.shit.com

&lt;deleted&gt; off, get a life, go build or make something!

<{POST_SNAPBACK}>

Think you'll find it's called good advice mate, which if you read the previous posts was what was requested

How is the hangover?

<{POST_SNAPBACK}>

Rags,

I really must apologise, my comments where uncalled for, I don't know what got into me.

Hope you accept

<{POST_SNAPBACK}>

Listening to Eminem maybe

[eljeque]

80 - 125 is a standard formula.

In your case, if the owner can get only 40,000 / month, who would be willing to pay 12,000,000 for it, receiving a paltry .33% per month, even at these low bank interest rates?

Many argue... GROWTH!!!!!, But what could cause the price to rise without an increase in rental rates? Rental rates increase with the general increase in the economy and the renter's ability to pay more rent. That is generally 2-5 or 6% / year.

Sometimes prices will outrun the economy a great deal for a couple of years when interest rates fall, but incomes do not run up at nearly the rate that interest rate rate decreases increase property prices, so rents cannot go up along with prices.

Price increases cannot outrun the economy very long. If your place is for sale for 12M, do you wonder why you are renting it and it is not sold?

[Khun Jean]

I dont want to pay peanuts to get crap.. i could spend up to 10 million or more..

<{POST_SNAPBACK}>

I loved it when people say that. Leaves more 'crap' for me.

BTW i get a return of 15-20% a year.

I am hoping to buy some more 'crap' very soon.

[capco1]

If I were the one buying, my first place to start shopping would right around the new airport! once she gets open property will be in high demand i.e. new hotels, shopping, industry and housing.

[ilyushin]

The Park Chitlom in town, Land & House Projects, Good deals and large areas in Don Muang and Rangsit. Always get more ideas by visiting a commercial bank ( 2 hours and cup of coffee) and look at the current prices and conditions of existing properties in Bangkok , Korat, Chiang Mai, etc...

You can ask questions , get advice and make a wise investor's choice.

me,I would do 2 units with the money. Just my input.

Good luck and read the certified / official English contract carefully.