Buy Or Wait For 2 Years

[killerk]

with the floods lately and the unstable economy i was wondering is it a good choice at the moment to loan from the bank and invest in real estate in and around BKK?

[trogers]

What do you mean by borrowing and invest?

[killerk]

next to some savings getting a loan from bank,so the ammount is enough to invest in a reasonable house

[trogers]

next to some savings getting a loan from bank,so the ammount is enough to invest in a reasonable house

This raises a few questions:

1. Are you a foreigner and type of real estate?

1. A foreigner will need to pay 100% cash up front for the title transfer of a condo

2. Time frame of the investment - expect to cash out after what period of time? Any risk in fluctuation of currency exchange during time of cashing out?

3. Is the property to be rented out? Expected rental yield compared with mortgage size and interest?

4. Location, size and class of property - will determine point 2.

Periods of uncertainty as in the present, depress property prices, as well as rental rates.

Wait out for stability in 2 years time may also see increases in acquisition prices and interest rates.

An investor will weigh the factors and take his risk.

[rgs2001uk]

next to some savings getting a loan from bank,so the ammount is enough to invest in a reasonable house

What do you mean by invest?

Will you be living in the house and hope to achieve capital growth over the long term by the house increasing in value?

Or will you be looking for a regular income by having the property rented out?

Are you retired in Thailand and looking for a regular source of local income not affected by exchange rates?

You may well do better in the stock market, what time period do you have in mind for your investment?

[killerk]

for ourself,holidayhouse 4 now and future living ,will it grow in value in future, villastyle house, i was just wondering ,should i buy or keep my money at the

moment........?????????????????????????

i m in a dillema buy / not buy

Edited November 4, 2010 by killerk

[trogers]

for ourself,holidayhouse 4 now and future living ,will it grow in value in future, villastyle house, i was just wondering ,should i buy or keep my money at the

moment........?????????????????????????

i m in a dillema buy / not buy

So it is to be self-occupied for quite a long while, with the hope of capital appreciation. Villa style or just a normal house will depreciate in value over time, unless you are willing to spend quite a sum to maintain it. Only the land it sits on have capital appreciation.

So your investment cost will also have to include interests to be paid for the mortgage.

You will need to weigh the added risk that in the future it may be harder for foreigners to 'own' landed properties, thus, future buyers may be restricted to locals, affecting the sale price.

[killerk]

well i have the opportunity to buy if i add a personal loan for 2 year to my savings , but with the recent floods and the economy let me think too much , but is it better to still buy and own real estate rather then leave with intrest at the bank ?

[rgs2001uk]

Where is the house, whats the price and how many talang wah (square wah) does the house sit on?

Is this a new build house (rabbit hutch in some out of the way location) or an older property in a desirable location, that if needs the house can be knocked down and a new one put in place?

Location wins every time, I would rather buy a smaller property in a desirable area than a mansion in the middle of nowhere.

Why not just buy the land and build at a later date?

[killerk]

samut sakhon(a lot developing) or nakhom pathom are the places im intrested in,also rayong or koh chang(touristic) is nice but expensive, budget about 2 to 2half mil , first wanted a condo at srinakarin but i wrather have a house, and building they build 4 that price but including land it will be out of my budget. im not planning to sell it for the rest of my life ,but u never know the future offcourse, and the land purchase how will u know that in the future it will be a good or nt good value place

[trogers]

samut sakhon(a lot developing) or nakhom pathom are the places im intrested in,also rayong or koh chang(touristic) is nice but expensive, budget about 2 to 2half mil , first wanted a condo at srinakarin but i wrather have a house, and building they build 4 that price but including land it will be out of my budget. im not planning to sell it for the rest of my life ,but u never know the future offcourse, and the land purchase how will u know that in the future it will be a good or nt good value place

Samut Sakhon and the stretch towards Ratchaburi (where the salt farms are) is low lying and in risk of being inundated by rising sea levels and storm surges. Nakhon Pathom has low development potential as it is west/northwest of Bangkok, being missed, as growth is towards south to HuaHin.

[killerk]

samut sakhon(a lot developing) or nakhom pathom are the places im intrested in,also rayong or koh chang(touristic) is nice but expensive, budget about 2 to 2half mil , first wanted a condo at srinakarin but i wrather have a house, and building they build 4 that price but including land it will be out of my budget. im not planning to sell it for the rest of my life ,but u never know the future offcourse, and the land purchase how will u know that in the future it will be a good or nt good value place

Samut Sakhon and the stretch towards Ratchaburi (where the salt farms are) is low lying and in risk of being inundated by rising sea levels and storm surges. Nakhon Pathom has low development potential as it is west/northwest of Bangkok, being missed, as growth is towards south to HuaHin.

but there was no flood last week in samut sakhon and almost everywhere else there was, thats why i dont want nonthaburi as a choice anymore.and srinakarin in bang na i had in mind but that budget will only buy condo and i want a house more. Does anybody know suggestions then?

[johninbkk]

It's a buyers market, wait (2) years, then it will possibly be a sellers market, Hmm, decisions, decisions.<BR>

[trogers]

samut sakhon(a lot developing) or nakhom pathom are the places im intrested in,also rayong or koh chang(touristic) is nice but expensive, budget about 2 to 2half mil , first wanted a condo at srinakarin but i wrather have a house, and building they build 4 that price but including land it will be out of my budget. im not planning to sell it for the rest of my life ,but u never know the future offcourse, and the land purchase how will u know that in the future it will be a good or nt good value place

Samut Sakhon and the stretch towards Ratchaburi (where the salt farms are) is low lying and in risk of being inundated by rising sea levels and storm surges. Nakhon Pathom has low development potential as it is west/northwest of Bangkok, being missed, as growth is towards south to HuaHin.

but there was no flood last week in samut sakhon and almost everywhere else there was, thats why i dont want nonthaburi as a choice anymore.and srinakarin in bang na i had in mind but that budget will only buy condo and i want a house more. Does anybody know suggestions then?

Does the life of your family revolves around the area west of the Chaopraya river? Meaning in-laws, friends, relatives, work, etc.

[london]

Frankly, you have had some great replies, but I think that you are really asking the question "will I be better off to buy now than in 2 years time?"

Who knows?

Just go with your gut feeling.....thats the best thing to do.

Once you have made your decision, just stick to it and don't revisit it again for 2 years.

We all make mistakes and we all win sometimes.

For 2 mill to 2.5 mil, really, whats the potential upside and whats your potential loss? 20% either way? Perhaps.

If its too hard to decide, then just don't do it.

[killerk]

thanx 4 the replys guys

[craigt3365]

It seems you are interested in this for the long term. If for the short term and as an investment, it might not be a good idea. For the long term, property will go up. And you will have protection against inflation.

And like mentioned above, it's not really that much money. Your downside is pretty small.

[a99az]

Answer is: YES and NO. No you should not buy in BKK. Yes you should buy my house in Chiang Mai.

[johnnyk]

In Thailand, buy to live in.

You have to pay to live somewhere so you may as well be paying for your own house. Real estate investment in Thailand is too risky for me and the ROI is too low.

IMO its a buyers market but customers should still look around at as many properties as possible.

[MrRichard2009]

Your decision should be based on weather or not you can afford it , not based on price speculation. The Thai economy is NOT unstable as you posted and the floods have little effect on houses that are not flooded ...... If anything the ones left untouched would be more expensive not some great deal on average. So my answer would be their is no reason to borrow extra money to rush out and buy because the prices are so low ...... So just keep saving until you can really afford it , don't find some creative way to finance and make your self believe you were smart financially because you paid the bank more than you have to and got a house sooner than you could afford.

[rotary]

for ourself,holidayhouse 4 now and future living ,will it grow in value in future, villastyle house, i was just wondering ,should i buy or keep my money at the

moment........?????????????????????????

i m in a dillema buy / not buy

Buying real estate in Thailand, or almost any place can be risky. In Thailand lots of issues like what name the property will be in,etc. Also while used houses do sell in Thailand its not like in the west. Thai''s like "NEW"houses. It might work out ok in the end but its better if u do not depend om making money on property in Thailand, buy what u need and like and hope for the best. As far as the right time........thats a good question. I bought my condo in 1997 in the crash, My end purchase price taking into account the exchange rate at the time of purchase vs the exchange rate when the condos first started selling & the discount given was way less than 1/2 price. Now that was a good time to buy property. In the end now 13 years later I would guess my condo is worth about %30 more than I paid for it. People who paid full purchase price 13 years ago are still in the hole.

[Livinginexile]

well i have the opportunity to buy if i add a personal loan for 2 year to my savings , but with the recent floods and the economy let me think too much , but is it better to still buy and own real estate rather then leave with intrest at the bank ?

You put "recent floods" and "the economy" in the same context!

May I remind you, the Thai economy is very healthy indeed!

In fact the latest figures show that it has grown more than 10% this year alone!

Land prices throughout Thailand are increasing rapidly.

Cheap houses on the fringes of Bangkok is a waste of time and money.

If you want to invest, buy a grade A condo somewhere within 500 meters of any BTS station. You can't go wrong

[Livinginexile]

for ourself,holidayhouse 4 now and future living ,will it grow in value in future, villastyle house, i was just wondering ,should i buy or keep my money at the

moment........?????????????????????????

i m in a dillema buy / not buy

Buying real estate in Thailand, or almost any place can be risky. In Thailand lots of issues like what name the property will be in,etc. Also while used houses do sell in Thailand its not like in the west. Thai''s like "NEW"houses. It might work out ok in the end but its better if u do not depend om making money on property in Thailand, buy what u need and like and hope for the best. As far as the right time........thats a good question. I bought my condo in 1997 in the crash, My end purchase price taking into account the exchange rate at the time of purchase vs the exchange rate when the condos first started selling & the discount given was way less than 1/2 price. Now that was a good time to buy property. In the end now 13 years later I would guess my condo is worth about %30 more than I paid for it. People who paid full purchase price 13 years ago are still in the hole.

And yet other people like myself bought 4 years ago, sold 2 years later and made 60%+ profit.

All about timing.

Actually at this time I would invest in prime farming land.

Watch the next few years, arable land is going to skyrocket.

[craigt3365]

for ourself,holidayhouse 4 now and future living ,will it grow in value in future, villastyle house, i was just wondering ,should i buy or keep my money at the

moment........?????????????????????????

i m in a dillema buy / not buy

Buying real estate in Thailand, or almost any place can be risky. In Thailand lots of issues like what name the property will be in,etc. Also while used houses do sell in Thailand its not like in the west. Thai''s like "NEW"houses. It might work out ok in the end but its better if u do not depend om making money on property in Thailand, buy what u need and like and hope for the best. As far as the right time........thats a good question. I bought my condo in 1997 in the crash, My end purchase price taking into account the exchange rate at the time of purchase vs the exchange rate when the condos first started selling & the discount given was way less than 1/2 price. Now that was a good time to buy property. In the end now 13 years later I would guess my condo is worth about %30 more than I paid for it. People who paid full purchase price 13 years ago are still in the hole.

And yet other people like myself bought 4 years ago, sold 2 years later and made 60%+ profit.

All about timing.

Actually at this time I would invest in prime farming land.

Watch the next few years, arable land is going to skyrocket.

Excellent point. So you are saying I should be happy wifey got 20 rai from her mother? Can't blame her for being excited, but for me, it's in the middle of nowhere and in the middle of miles and miles of rice fields. I have no idea what's it worth...but her mother had a bad dream and transferred it to my wife...so there ya go.

[Thailaw]

It's a buyers market, wait (2) years, then it will possibly be a sellers market, Hmm, decisions, decisions.<BR>

If it is truely a "buyers' market" here in Thailand (and I am not sugesting that it is not), the "test" and criteria for buying a house should be "can you find and buy a house at a price that truely reflects a "buyer's market'"? That price would be, I think, a price at least 30% less than the same house would have sold for 4 to 5 years ago. If you can find a house that you really like in a neighborhood that you like and it is priced right, then it is reasonable to buy now. If you cannot find such a house, then you are probably better waiting and continuing to look until you do. The housing market inThailand will not be any better 2 years from now (for sellers) than it is now, and it will likely be worse. I have no crystal ball, but I certainly don't see a "sellers' market" developing in the next 2 to 3 years. All of this assumes, of course, that you understand the risks of buying a house (with land) here in Thailand for a farang and you have accepted the risks, and the question is not "if" to buy, but "when".