Why So Many Abandon Houses In My Mooban

[tangcoral]

My 15 year old mooban of 60 houses of which 7 of them abandoned and left to rot over the years. Why?

No major complaints from existing residents on management.

Some of my theory's..

Foreclosed and bank owned and left to rot

Owner purchased house elsewhere while keeping the sale price high. As I noticed on one house with a for sale sign for 7.5 million or rent 18,000 which means the house is over priced or no one wants to rent 2nd hand?

Do you see this in other older moobans as well?

[Buckeye911]

Where in Thailand is this?

[waza]

Hi yes saw it in Ubon, many houses left to rot while awaiting years, for someone to rent or buy them, at over the top prices.

[surayu]

don't worry, they will recoup all of the losses accumulated during the years by adjusting the price accordingly and i would also add, as usual

[cardholder]

don't worry, they will recoup all of the losses accumulated during the years by adjusting the price accordingly and i would also add, as usual

Yep, it will be advertised at 8 million next year. DOH !

[MAJIC]

Hi yes saw it in Ubon, many houses left to rot while awaiting years, for someone to rent or buy them, at over the top prices.

Yes seen it myself,a empty Town house of 11 years, used by all and sundry,to breed dogs,chickens,parking,workshop,stripped of any worthwhile fittings,including aluminium window frames,and doors,the whole place needed gutting,including tiled flooring,rotten ceilings,roofing etc.

It needed a lot of money spent on it,the Bank wanted 330,000 baht for it,I put in an offer of 310,000,they took a month to refuse the offer,for what is basically a run down shell.

Thai logic, it was worth 200,000 11 years ago,when it was perfectly habitable,so now it must be worth more,because its a S***hole.

3 years later its still empty.

One day they will get it,or the place will fall down,which will probably come sooner.

Get the economics of it now?

Edited August 21, 2010 by MAJIC

[moe666]

Why sale at a loss when you can keep for profit.

[cardholder]

One day they will get it,or the place will fall down,which will probably come sooner.

Get the economics of it now?

I think, to be fair, we should specifically state "Thai economics" - it is relatively unique.

[tangcoral]

I am near the new governmental buildings on chaengwattana.

But even if they had purchased a new home elsewhere, usually people sell their first homes as a nice down payment to get into their new home.

They sure must have lots of extra cash to be able to hold the older home until it sells, in many cases several years later.

Is this true or I don't know something?

But it really seems like most of these homes that are left to rot are foreclosed and banked owned? Anyone know the answer?

Seems like the same scenario in vehicles as well and how the used car market keep their value ridiculously high but thats another story.

These homes have overgrowth that literally covers the front house from neglect of tree and grass trimming.

In the US you would be either fined or forced to manicure your property as it is a eyesore or fire hazard from potential dry brush.

I'm genuinely curious, can anyone shed some light on whats going on?

Edited August 22, 2010 by tangcoral

[blackadder]

I am near the new governmental buildings on chaengwattana.

But even if they had purchased a new home elsewhere, usually people sell their first homes as a nice down payment to get into their new home.

They sure must have lots of extra cash to be able to hold the older home until it sells, in many cases several years later.

Is this true or I don't know something?

But it really seems like most of these homes that are left to rot are foreclosed and banked owned? Anyone know the answer?

Seems like the same scenario in vehicles as well and how the used car market keep their value ridiculously high but thats another story.

These homes have overgrowth that literally covers the front house from neglect of tree and grass trimming.

In the US you would be either fined or forced to manicure your property as it is a eyesore or fire hazard from potential dry brush.

I'm genuinely curious, can anyone shed some light on whats going on?

I have read banks record their houses up in the accounts (so they are not forced to take the loss) NOW ...

Whether this is true or not, I dont know.

But it may be an explanation together with the lack of housing taxation.

[trogers]

This is Thailand.

There is no holding pain - whether on the owner, or the bank who foreclosed.

What kind of pain? Property tax, force up keeping of the land, and common fees of the estate. And for the banks, there is no requirement to record losses in their books for depreciation of such properties, thus, no compelling reason to sell it off fast.

[sarahsbloke]

Same at my mooban near ChiangMai, at least 1/4 of the homes are deserted. More are for sale or rent at totally unrealistic prices. Some have the grass cut, others are just left to rot and falling apart.

Nice mooban too!

Edited August 22, 2010 by sarahsbloke

[tangcoral]

Ah forgot about the lack of property tax which they have no incentive to manicure their property nor have it sold quick as possible.

Also I am guessing more of the property are bank owned than not, thus the reason like some of you mentioned no requirement to record losses.

If individual owned there would be more incentive to sell the property faster.

thanks for clearing up my curiosity.

[bangkokjohn]

The Thai expat real estate market crashed after the coup in Sept 2006. Lots of people will tell you that things are fine but the truth is sales are zero for anything over 2 million baht and have been for years. Friends of mine in real estate here are bust and have been totally crushed by the Thai market and headied to Singapore and Hong Kong. Occasionally a schmuck shows up with drug money and buys a condo, but anyone who can keep their money in a bank and has a brain stays far away.

Besides all the political trouble recently, quality is a issue and people know it. In ten years, I have never heard of a happy buyer in a off plan project. Many projects have hidden problems(toxic tin mine waste in Phuket for example) that owners will not know about until years after they move in. Most problems show up much earlier like your house or condo never being finished( the Regent on Soi 13 Suk) or having embarrisingly crappy finished(like the Millienium).

Most finished condos just sit on the market forever, bank owned after "buyers" could not come up with their final payments. Check out the Infinity in Chong Nonse on a Sunday night. It's been finished for almost 2 years and there are probably 10 apartments out of 200 occupied. Must be fun living there! Also notice the ads on this forum. Same crap listed over and over. Some sellers cut the price but it does not matter much. The true prices are 50 to 80 % lower than the "standard" asking price of the last few years. With property taxes starting in six months in Thailand, there will be a lot more motivated sellers and a rush to dump this junk. God help all those "investers" in Phuket and Pattaya.

You can now buy houses cheaper by far in the US(proces down 50% in baht terms) than Thailand. Better quality and legal for foreigners to buy there. Put your money in Thai stocks and rent.

[trogers]

The Thai expat real estate market crashed after the coup in Sept 2006. Lots of people will tell you that things are fine but the truth is sales are zero for anything over 2 million baht and have been for years. Friends of mine in real estate here are bust and have been totally crushed by the Thai market and headied to Singapore and Hong Kong. Occasionally a schmuck shows up with drug money and buys a condo, but anyone who can keep their money in a bank and has a brain stays far away.

Besides all the political trouble recently, quality is a issue and people know it. In ten years, I have never heard of a happy buyer in a off plan project. Many projects have hidden problems(toxic tin mine waste in Phuket for example) that owners will not know about until years after they move in. Most problems show up much earlier like your house or condo never being finished( the Regent on Soi 13 Suk) or having embarrisingly crappy finished(like the Millienium).

Most finished condos just sit on the market forever, bank owned after "buyers" could not come up with their final payments. Check out the Infinity in Chong Nonse on a Sunday night. It's been finished for almost 2 years and there are probably 10 apartments out of 200 occupied. Must be fun living there! Also notice the ads on this forum. Same crap listed over and over. Some sellers cut the price but it does not matter much. The true prices are 50 to 80 % lower than the "standard" asking price of the last few years. With property taxes starting in six months in Thailand, there will be a lot more motivated sellers and a rush to dump this junk. God help all those "investers" in Phuket and Pattaya.

You can now buy houses cheaper by far in the US(proces down 50% in baht terms) than Thailand. Better quality and legal for foreigners to buy there. Put your money in Thai stocks and rent.

I think you are referring to condos and holiday villas which were hot among foreigners since 2005.

OP's thread talks about moobaan, which are residential homes owned mainly by locals.

Did not know the Millennium has crappy finishes. Am surprise as developer is CDL of Singapore, and main contractor was Japanese.

[MikeyIdea]

This happens everywhere in Thailand and actually in most countries in Asia (more in Thailand than most other countries from what I see though)

I can't explain the logic behind it, it's more than just - No pain to keep, it's land, it's special, it's ok to own for years even though you lose money on it

[maccaroni man]

the op states that his mooban is 15 yrs old hence the asian melt down period. country wide the landscape is littered with failed projects, and npl properties.

[MikeyIdea]

the op states that his mooban is 15 yrs old hence the asian melt down period. country wide the landscape is littered with failed projects, and npl properties.

I was here long before that and it was the same attitude before too, it just became even more visible after end - 97