Why Buy A House In Pattaya

[smedly]

the problem is simple, not much wrong with buying a house but the prices are inflated and unless you want to sell the house for it's true value you will be stuck with it, tbh I blame the buyer for not realising that they are paying very inflated prices dictated by realestate agents who generally fool buyers by pulling prices out of a hat, if I see a house for sale for say 5 million I might offer 2.5 and a setang more, people buying house forget that they are in a 3rd world country and making comparisons with the UK or other western countries is quite frankly foolish, market demand dictates price and if you look at the amount of properties for sale and not selling then that should give you a good idea of the over inflated prices they are asking, I would also say that it is falangs that are being taken to the cleaners, Thais will be paying much much less for their house purchase than falangs, now I'm going to get slated for this post mostly from house owners because they all don't want to believe or see what I have just posted, it's a hard lesson to learn and a costly one.

[ESB7]

Some of us bought our house to live in and not as an investment. In 10 years I will have recouped the money I would have spent in rent. I also do not wish to live in a pidegon hole on the 17th floor of some block and rely on hoping that the management run the block well and dont harm my property value.

Thats the key....buy a house as your HOME and dont see it as an investment as so many people do. Quality of life plays an important factor, having a house that you are happy living in, rather than chasing a landlord to fix something whilst paying his mortgage........renting suits some, especially those that are transient but buying wins hands down most times...I have found a lot of people are adament that renting is best but thats only because they cant afford to buy.

[craigt3365]

I was in Sri Racha a few days ago. Took the road behind Tukcom and went over to the expressway for the trip back home. It is UNREAL how many new housing developments are going up. Chock a block. All seem to be oriented to the Thai market. For those who say Thailand is dead, take a visit there. Amazing. Lots of new construction.

[PattayaParent]

^A few in Ban Chang area as well, in the 1~2 million Baht price range.

[craigt3365]

^A few in Ban Chang area as well, in the 1~2 million Baht price range.

I didn't really see any of those. I think the cheapest I saw was around 2.5. Quite a few were 2 story monsters. Small lots, but large houses.

This might put a damper in it!

http://www.thaivisa.com/forum/topic/419277-thai-economy-back-in-recession/

Edited November 22, 2010 by craigt3365

[121Advice]

You won't hear any criticism from me - I totally agree!

I have advised clients for several years and quite simply the Thai property market is VERY inflated and when coupled with a strong Baht investment returns just don't add up. Thai's have access to cheap money and the more wealthy are the only ones buying property as second homes. Sure, if you want a place to do with exactly as you please then buying is your only real option, but too many let emotions creep in and then have several years of regret afterwards.

Build quality of all but the most exacting modern Thai developments is relatively poor by international standards and therefore after the initial euphoria has wained and (possibly) a small 'paper profit' gained, values do not maintain the plateau and secondhand value(s) fall. It is very rare for anyone to sell their property at the price 'they' think its worth.

Any half decent investment portfolio should (in the main) generate a NET income yield of around 8%pa-10%pa after charges (over the mid to long term) meaning that for every 100K GBP of capital you can rent at 8K-10K GDP in Thailand forever and a day - and THAT can rent you quite a nice property. If you were then to subsequently fall seriously ill you have retained your capital and can 'get out of jail' free!

Property developers and Real Estate Agents make money out of property in Thailand - Any purchaser should ONLY buy if it fits their lifestyle purpose and NOT for profit. It is all to easy not to see eye-to-eye with your neighbours especially when you are not in your country of natural domicile - If you rent you can always MOVE!

[smedly]

superb post, agree 100%