How Long Before You Decided To Buy Instead Of Rent

[corkman]

Hi All,

I've been living and working here for 6 months now, and I am very happy here. My wife is Thai and I like te country generally. Thee are good prospects at my company, which is large and growing, and so I would see myself here for 5 years+, maybe / probably longer.

So, my question(s) is to all the medum-to-long term expats is:

1. How long did you wait until you bought your own place rather than renting?

2. Are you glad you bought, or do you wish you kept renting...... and why for either scenario?

3. It is my understanding that purely from an investment potential, residential property is a poor investment and will probably never yield any return worth speaking of. Comments.

I am at the moment debating whether I would be hasty to jump onto the property lader, given politcal uncertainties and my relatively short period here so far. Or would I be wise in doing so, getting in now before economic recovery and market confidence returns, and minimising the ammount of money I "waste" paying rent.

Many thanks in advance,

CM.

[trogers]

I bought my first condo after I got engaged. This was a pre-condition set by my mother-in-law that I have to provide a roof over her daughter's head before allowing us to get married. We got married 3+ years after our engagement.

Add: And we are still together after 15 years of marriage.

Edited October 17, 2010 by trogers

[corkman]

I bought my first condo after I got engaged. This was a pre-condition set by my mother-in-law that I have to provide a roof over her daughter's head before allowing us to get married. We got married 3+ years after our engagement.

Add: And we are still together after 15 years of marriage.

When you say "first condo" that implies you've had more than one...... so you think its a good idea to "own your own" rather than rent?

[trogers]

I bought my first condo after I got engaged. This was a pre-condition set by my mother-in-law that I have to provide a roof over her daughter's head before allowing us to get married. We got married 3+ years after our engagement.

Add: And we are still together after 15 years of marriage.

When you say "first condo" that implies you've had more than one...... so you think its a good idea to "own your own" rather than rent?

Bought a few more in Sukhumvit in the past 2 years for leasing out. An investment for my retirement.

[onnut]

My wife and I bought a house in my 4th year of living here, we rented the first 4 years. I would never want to rent again. If you are in the possition to buy then why not! I dont think there is anything to worry about.

[simon43]

I moved here in 2002 - always rented. I've seen the political situation in Thailand deteriorate over the years. I still call Thailand home, but I now base my business overseas.

I do not know what the future holds for Thailand. I'm very happy in my 8,000 baht/month rented house near the beach, thanks very much.

Simon

[g00dgirl]

4.5 years, still renting the same villa

no maintenance hassle and no legal worries of ownership loopholes

flexibility to change location

[Forkinhades]

Bought here 7 years ago, and the rent I would have paid has paid for the house, and of course I still have the asset.

The big question is really, how long are you going to stay.

[Traxster]

I'd buy tomorrow if I could afford it.

There's nothing like living in your own home........

[Lite Beer]

If something should happen to You your Wife would be left without a home.

If You/She own your home she would at least have somewhere to live.

[flying]

If something should happen to You your Wife would be left without a home.

If You/She own your home she would at least have somewhere to live.

Very nice thought & wish more would think like you.

A home is a solid life insurance for the wife.

Instead of relying on paying into a Thai insurance company that may or may not be there later.

[Khun Jean]

I would use a calculation. If the rent i pay per month x 100 is enough to buy the same quality and size house i would buy it.

[ExpatJ]

Last year i would have said buy if you can afford it. This year because the thai stock exchange is doing so well , put your cash there instead and aim to sell in the coming 2-6 months- take a nice profit , then buy once the emerging market boom has corrected/gone down.

I was going to buy but a 3 bedroom , family orientated place to live in but these are not really available in the condo markets (the private apartment complexes are much better for families generally with lots of expat families already there i.e. ready built community plus better /large gardens & play areas). Also a 3 br in a new condo are way over priced i feel at the high end.

Instead we are going to buy a 1 bedroom as an investment to rent out. The returns are ok- @6% from what i can see. But to me, the big advantage of a rental property is that you get cash every month- no other investment gives a cash return like this. Even if you cant get your target rental price e.g. 1000 US $ per month , in the worst case you could drop the price alot for a year or so to attract a tenant 750$ say and still thats a CASH return every month into your bank (you dont get that parking your money in gold, stocks, banks etc). We are looking at the new sansiri at sukhumvit 39 at the moment but its v. pricey though the location cannot be bettered really (5 minute walk to BTS phrong pong, Emporium, 4 british pubs , villa market)...

Yes there may be some uncertainties politically in the short/medium term. But in the long term my assessment is that Bangkok becomes more like a Kl/Singapore type city e.g. wealthier, better managed, higher end expats= increased property values.

[trogers]

If something should happen to You your Wife would be left without a home.

If You/She own your home she would at least have somewhere to live.

This is the reason for the pre-condition of my mother-in-law.

Even birds first build a nest before laying eggs. Thus, your main considerations for your first home is location, neighbors, size of unit to accommodate your first kid, over a time frame of 5-6 years.

Location and class of neighbors affect resale value should you more to a bigger home later.

[ignis]

How Long Before You Decided To Buy Instead Of Rent

No time..

There was a number of items/conditions to moving here, detached or semi detached house, garden, Countryside.

Found more or less what I wanted, deposit paid and building work started.. In UK put house up For Sale on Tuesday, Sold for full asking price on Saturday, so 6 weeks later was here, as all finalizes so fast in the UK had to rent here for 7 months until the house was ready.. I bought a car within the 1st few weeks so could drive out to check on the building of the house, good really as changed a few things along the way.

I love it here, love the Village, in December will be 7 years here.

[johninbkk]

<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">I am in the business of renting property to corporate clients, (mid - top end) <BR>and it always surprises me why you people don't invest. Nothing like bricks and mortar, <BR>especially when you are married to Thai. Exactly what one respondent said, it will go to my <BR>wife if something happens to me. This is my insurance for my Thai - Oz family. <BR>We have 5 properties. Currently they return a healthy monthly income that we live on.<BR><BR>Now is the time to buy. So many great bargains about. (Buyers market) <BR>Also to take into consideration, your company pays your monthly rental cost<BR>+ expenses, you can use this to pay the mortgage.<BR><BR>You call. Good luck</SPAN></P>

[ExpatJ]

<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">I am in the business of renting property to corporate clients, (mid - top end) <BR>and it always surprises me why you people don't invest. Nothing like bricks and mortar, <BR>especially when you are married to Thai. Exactly what one respondent said, it will go to my <BR>wife if something happens to me. This is my insurance for my Thai - Oz family. <BR>We have 5 properties. Currently they return a healthy monthly income that we live on.<BR><BR>Now is the time to buy. So many great bargains about. (Buyers market) <BR>Also to take into consideration, your company pays your monthly rental cost<BR>+ expenses, you can use this to pay the mortgage.<BR><BR>You call. Good luck</SPAN></P>

Have you had any difficulties finding tenants for your properties in bangkok? Are they high end/ med/low ?

[johninbkk]

<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">I am in the business of renting property to corporate clients, (mid - top end) <BR>and it always surprises me why you people don't invest. Nothing like bricks and mortar, <BR>especially when you are married to Thai. Exactly what one respondent said, it will go to my <BR>wife if something happens to me. This is my insurance for my Thai - Oz family. <BR>We have 5 properties. Currently they return a healthy monthly income that we live on.<BR><BR>Now is the time to buy. So many great bargains about. (Buyers market) <BR>Also to take into consideration, your company pays your monthly rental cost<BR>+ expenses, you can use this to pay the mortgage.<BR><BR>You call. Good luck</SPAN></P>

Have you had any difficulties finding tenants for your properties in bangkok? Are they high end/ med/low ?

All of our properties are in Jomtien / Pattaya area. Most of the time the properties are leased, but there is always down time. We rent 2 bed Villas @ 55,000 - 60,000, and 3 bed single level villa, 65, 000 - 70,000, 2 storey 3/4 beds 85,000 - 105,000. In the past year or so the actual rental cost has come down by 10 - 15%, simply because of the exchange rate. I.E. USD & Euro, as most corporate work on these currencies

.

[bkk_mike]

1. How long did you wait until you bought your own place rather than renting?

Actually bought the place before we moved here. (We'd gone house-hunting when we were here on holiday, paid the deposit, and paid the rest when we moved here.)

Did run into the issue of not being able to get a mortgage here based on my offshore income back then - which was a pain in the neck.

2. Are you glad you bought, or do you wish you kept renting...... and why for either scenario?

I wish I'd bought somewhere not quite so far from the exchange (or line concentrators, or whatever they are). The speed of my internet would have been better. But that's the only thing I would change. (I didn't know when I bought because there was no ADSL here back then).

3. It is my understanding that purely from an investment potential, residential property is a poor investment and will probably never yield any return worth speaking of. Comments.

For a place to live in - so long as you are intending to be there for several years, you're generally better off buying.

(There are a few caveats in Thailand - like the fact that a "used" house drops in value... - but on the other hand, that's an opportunity to get a bargain...)

Recently, my wife bought a flat near the skytrain and we were getting offers of almost a million baht more than we paid for it within a couple of months. (Location and the fact it was still new is the prime consideration in that regard in Thailand).

We're now renting it out, and the rent is covering the mortgage payments, so we're happy. (when the mortgage is finished, we'll effectively have a second property where we've paid the deposit only, and our tenant will have paid the rest. (touch wood).

The only reason to rent is - to give you the ability to move easily (i.e. For work - or for a condo, if you get noisy neighbours, etc.), or if you're only planning on being in a place for a relatively short period of time. (i.e. a year or two) - where the hassle of buying, then selling, is a factor.

Edited October 18, 2010 by bkk_mike

[travelmann]

Got 5 cheapish units in BKK close to BTS paid 1.1million each rented out from 4-5 years ago, in about 2 years they ill have paid for themselves, was getting 12% return until recently and with the oversupply now down to about 10.5% Market saturated at the moment but with plenty of free web advertising I can still fill rooms within 1-3 weeks.

Many foreigners downsized when the credit crunch started. Fortunately I didnt buy 2-3 bed units.

[makescents]

Got 5 cheapish units in BKK close to BTS paid 1.1million each rented out from 4-5 years ago, in about 2 years they ill have paid for themselves, was getting 12% return until recently and with the oversupply now down to about 10.5% Market saturated at the moment but with plenty of free web advertising I can still fill rooms within 1-3 weeks.

Many foreigners downsized when the credit crunch started. Fortunately I didnt buy 2-3 bed units.

10.5% is still a very good return on investment.

Jeez 1.1 million near a BTS station, I think those days are gone...

[quiksilva]

Like others here, we bought a place shortly after we got married.

I am an agent, so I know better than most that secondhand residential property is not easy to sell here, so the length of time that you have been here is not important, rather its how attached you are to the country.

Edited October 19, 2010 by quiksilva

[craigt3365]

I've never enjoyed being a renter. I prefer to own my "castle". Pros and cons for sure, but to me, it's not just an investment, it's my home. I can do what I want with it and don't have to worry about paying somebody every month...or begging them to fix something...or asking if I can change something. Some landlords are great, others are a nightmare. I also prefer a house as I love to do small projects.

We visited Thailand off and on for extended periods before we decided to live here full time. We then went all over Thailand looking at places to buy. We found a deal near one of my wife's relatives and it's working out great. Though we do leave in late April and return in mid June to avoid the heat!

I can pretty much guarantee that in the long run you will make money on your investment. Will it be more than other places you could have invested in? Maybe, maybe not. But you won't lose money...unless you have to sell in a hurry during a down market such as this. Thailand's economy is booming and doesn't look to be slowing down for some time. They just raised the growth expectations for the future. Good stuff!

[Forkinhades]

@craig

interesting, so Thailand is booming, but yet there is a downturn in the housing market???

[DMC1]

Rented for 7 years before buying. No need to hurry if the rent is cheap enough.

[craigt3365]

@craig

interesting, so Thailand is booming, but yet there is a downturn in the housing market???

I drove down Soi Siam Country Club last week. Plenty of new development. I was kinda amazed. But it does not look like it is oriented towards the farang market. My friend wanted to buy a condo from Sansiri in Bangkok and the particular development was sold out before he could get there. I think it is the difference between the Thai market and the farang market...and the difference between the 2nd hand market and the new market. As you know, Thai's don't like to buy used properties.

Just take a look at all the red tagged cars. On my trip today I saw 2 BMWs, 1 Benz and a Rover. All driven by Thai's with red tags. Nice cars....

I was at a party at my Thai neighbor's house last week. 2 Thai couples were discussing their biz. One had a biz oriented towards farangs and import/export. The other focused on the local market. The first is almost out of biz. The second is looking to book 30MM Baht and maybe retire next year. Crazy....

[bangkokjohn]

4.5 years, still renting the same villa

no maintenance hassle and no legal worries of ownership loopholes

flexibility to change location

I agree. I have been renting a great place for 4 years. The monthly rent is 1/300 of the value of the place. My landlord fixes everything. Now a huge new tower is strating construction next door. I'm moving next month to my next place. No problemo.

Check out what happens to those who buy here from Bank of Thailand :

http://www.globalpropertyguide.com/Asia/Thailand/Price-History

[bubba1]

don't be a fool. Foreigners can't own land in Thailand, period.

[craigt3365]

don't be a fool. Foreigners can't own land in Thailand, period.

Really...but yet thousands do...including some really, really, big corporations...

[craigt3365]

4.5 years, still renting the same villa

no maintenance hassle and no legal worries of ownership loopholes

flexibility to change location

I agree. I have been renting a great place for 4 years. The monthly rent is 1/300 of the value of the place. My landlord fixes everything. Now a huge new tower is strating construction next door. I'm moving next month to my next place. No problemo.

Check out what happens to those who buy here from Bank of Thailand :

http://www.globalpropertyguide.com/Asia/Thailand/Price-History

For sure renting here is really cheap. Tough to make the decision to buy...if you only consider your home an investment.

Just be glad you didn't buy a house in Vegas! Or parts of the UK, or Spain, or Bulgaria, or....