Cost Of Housing In Phuket

[wordchild]

i thought, from another recent thread,started by the OP , that he had given up on Phuket and was now looking in Royal Hua Hin. Having looked in both markets myself recently (and in the end bought in Phuket) my guess is he will encounter Thai property sellers price intransigence/over-optimism, for quality properties, off the scale in HH when compared to Phuket!

Edited December 29, 2010 by wordchild

[petercallen]

thats right peter you are just... repeating.... what i have just said..i dont need you to tell me again...you are the real estate expert.. i am only a houseowner in...Phuket ...

I am not repeating you Mr Barka,You said land increases in value but you where not sure about buildings.

I said land increases in value, Buildings do not

The increase in value of land depends on location, availability, services, views etc etc

I have real estate investments in a different market, in that market there have been booms

and busts over the years.

If you actually read my posts you will understand i am not looking for a house here as a investment

[barka]

thats right peter you are just... repeating.... what i have just said..i dont need you to tell me again...you are the real estate expert.. i am only a houseowner in...Phuket ...

I am not repeating you Mr Barka,You said land increases in value but you where not sure about buildings.

I said land increases in value, Buildings do not

The increase in value of land depends on location, availability, services, views etc etc

I have real estate investments in a different market, in that market there have been booms

and busts over the years.

If you actually read my posts you will understand i am not looking for a house here as a investment

I think most of the posters have read..me included... and a lot have replied to your posts here on tv.. giving you advice and answering your questions but most of the time you never listen ...... i give up ..good luck to you in your search for a house..i think we all know so many times.... that you want it to live in not for profit...

[petercallen]

thats right peter you are just... repeating.... what i have just said..i dont need you to tell me again...you are the real estate expert.. i am only a houseowner in...Phuket ...

I am not repeating you Mr Barka,You said land increases in value but you where not sure about buildings.

I said land increases in value, Buildings do not

The increase in value of land depends on location, availability, services, views etc etc

I have real estate investments in a different market, in that market there have been booms

and busts over the years.

If you actually read my posts you will understand i am not looking for a house here as a investment

I think most of the posters have read..me included... and a lot have replied to your posts here on tv.. giving you advice and answering your questions but most of the time you never listen ...... i give up ..good luck to you in your search for a house..i think we all know so many times.... that you want it to live in not for profit...

I have had good advice and learnt things but not from you Mr Barka

[LivinLOS]

and land at 1-2 mill baht/rai is only available in lonelyland

last sales record in BKK is 560 mill baht/rai. approx 5 years ago record was 360 million baht/rai

1-2 million baht gets you a small plot in popular areas, like 30-50 talangwah (120-200sqm)

in a well organized moo baan its hard to find land below 30.000 baht/talangwah (1 talangwah is 4 sqm)

I know.. But those values themselves make me cringe.. Eg I just missed an investment deal, by weeks if not days it seems..

This was 130 acres of land (ballpark 300 rai ??) 3.5 miles from one of the UK's prime beach / surf towns, 200m from the edge of the beach with direct beach access (footpath). Because of its classification it involves no capital gains tax, no inheritance tax, and no income tax for its current use. The guide price for offer was 230k GBP.. Less than 11 mil baht.. For 130 acres of coastal SW england !! Both sides of an entire valley !! Must admit to being a bit annoyed I missed that.

Then someone tries to tell me some land, possibly over 80m, that I cant actually own, and is very hazy on if a building permit will need bribery, is cheap at 14m a rai. With no building codes or controls. and a Tin shack shanty town on the entrance road.

I know which one represents the better investment to me.

Surely you're not trying to suggest there was planning permission for that land, that was 230k for 130 acres in a fantastic location?? Might get permission for a row of caravans, but even then that's not easy to come by.

No it didnt come with planning.. But a shareholder in a venture of ours has been handling planning permission apps in the region for a couple of decades and knows the ropes (and the councilors).

In actual fact tho I wasnt considering the development aspect, I like the idea of diversifying and owning coastal UK for a multi generational family asset, for that the amount of land and its location seemed undervalued.

[LivinLOS]

You have your opinion and i have mine,

Lets wait and see who is right and who is wrong.

Not long ago, not 3 months yet, financial advice given on this forum was to get out of the $ AUD :jap:

And into silver

Record high for the current bull run on my screen right now. :jap:

[LivinLOS]

Of course everyone would like to invest in Phuket, But simply don't have the money to play with.

Thats a false statement.

I am part of everybody. And wouldnt like to invest in Phuket.. and have the assets to do so.

[Old Croc]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

[LivinginKata]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

Sounds like that might be the 7 floor building that's in dispute right now about floors 6 & 7. Developer must be trying to off-load the problems/liabilities.

[LivinginKata]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

Sounds like that might be the 7 floor building that's in dispute right now about floors 6 & 7. Developer must be trying to off-load the problems/liabilities.

[LivinLOS]

My reasons for not wanting to live there any more have been covered in many thread, but I cant stand the greed and way people are treated mostly, I just want to live in a normal community, where the kids go to schools and college, and have hopes and dreams beyond 'work bar' or find some old guy to 'take care me'..

But the point I am trying to make I guess is.. For every buyer theres a seller.. For every man who thinks that Phuket is a great place to invest or live, theres someone whose also saying the opposite as they are by definition selling them the land or home.

And on point B.. I love paying rent.. When the rent I pay is +- 2 - 3% of the house value and my money is making 20 - 30% offshore. Every year I didnt buy I made 10x my rent.

[petercallen]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

A agent told us about it when she was showing us houses.

I told her if she thought it was such a bargain why did she not buy it herself.

She changed the subject.

Buyer beware

[LivinginKata]

A number of inflammatory posts/off topic posts and the responses have been removed.

[NamKangMan]

My reasons for not wanting to live there any more have been covered in many thread, but I cant stand the greed and way people are treated mostly, I just want to live in a normal community, where the kids go to schools and college, and have hopes and dreams beyond 'work bar' or find some old guy to 'take care me'..

But the point I am trying to make I guess is.. For every buyer theres a seller.. For every man who thinks that Phuket is a great place to invest or live, theres someone whose also saying the opposite as they are by definition selling them the land or home.

And on point B.. I love paying rent.. When the rent I pay is +- 2 - 3% of the house value and my money is making 20 - 30% offshore. Every year I didnt buy I made 10x my rent.

I agree. Leave your portfolio of property, cash at bank, super and shares in your own, SAFE, country and just enjoy spending what it/they make here in Thailand. This place is just too volatile for the small investor or to put your life savings into. Property ownership by a farang is not "set in stone" because, as a farang, you can not 100% own land in Thailand.

Most on TV are aware of a couple of loop holes that seem to add weight to your claim of ownership, however, these loop holes could disappear next week with the stoke of a pen from Governemnt with new laws being made to close the loop holes. We all know anything is possible, and nothing is as it seems in Thailand. You are simply not backed up by a fair and equitable judicial system in Thailand if there is ever a dispute surrounding the lease, land or building.

There are many other things to consider, such as, the quality of workmanship. Farang are not allowed to build your house, so, workmanship tends to be poor. I have stayed at reasonably new hotels with tiles lifting and cracks in the walls after just a couple of years.

For the farang who have farang kids back home, there may be some issues surrounding your estate, upon your demise. In fact, many farang who are buying condos or a house are now putting them in their kids name, which I think shows a lack of confidence in Thai law to distribute your assets, upon your death, as according to you final will and testament.

Anyway, each to their own. I just see the risk outweighing the gain. Like LivingLOS, I will not buy anything in Thailand as I see no investment in Thailand to be a sound investment in Thailand. :)

Best wishes to everyone for 2011. May your beer be always cold. Your motorbike always start. Your toilet always have toilet paper. Your food be not toooo spicey. Your bargirls always be pretty and you never forget your visa run. :) :)

[outofoz]

And on point B.. I love paying rent.. When the rent I pay is +- 2 - 3% of the house value and my money is making 20 - 30% offshore. Every year I didnt buy I made 10x my rent.

20-30%/! Please share!

[madmitch]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

Sounds like that might be the 7 floor building that's in dispute right now about floors 6 & 7. Developer must be trying to off-load the problems/liabilities.

No. They are selling individual units for not far off that price.

Something definitely fishy about this property or it would have been snapped up long ago at that price.

I saw another "nearly finished" home advertised at a price too good to be true in Kata. The information stated that the buyer would be very lucky as no other properties were allowed to be built at the level of this one (i.e. above the permitted height for building in Phuket). This may fool a newbie, which I am sure is what they want, but it would be pretty obvious to most on this forum why they were trying to get rid.

[madmitch]

And on point B.. I love paying rent.. When the rent I pay is +- 2 - 3% of the house value and my money is making 20 - 30% offshore. Every year I didnt buy I made 10x my rent.

20-30%/! Please share!

I think he has shared this, many times. But it's the 2-3% of property value annual rent I'm interested in. A 10m baht propert at 25,000 baht a month or less? Is this in Phuket or in your new abode, LivinLOS?

[phuketrichard]

Houses are being sold now at a record low. A very close friend of mine sold his house. two years ago he was asking 24 mil ( its big and on the golf course) just took 12.5 as he needed the $$

RENT is best deal here.

condos are being overbult

most condos easily sell their 49% share to Farangs but have a hard time selling the remanider 51% so after 3 years when the whole are needs work ( painting, upkeep) its only the Farangs that are around that will pony up the cash or pay their condo fees for upkeep and 49% is not enough to do what needs doing.

So after 5-6 years the condos look like ther 20 years old and no resale value.

Plus with all the new condos being built why buy a used one??

[katabeachbum]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

A agent told us about it when she was showing us houses.

I told her if she thought it was such a bargain why did she not buy it herself.

She changed the subject.

Buyer beware

the 12 units are leased for another 28 years as registered in Chanote

[LivinLOS]

And on point B.. I love paying rent.. When the rent I pay is +- 2 - 3% of the house value and my money is making 20 - 30% offshore. Every year I didnt buy I made 10x my rent.

20-30%/! Please share!

Precious metals (physical and derivatives) and mining equity.. Only a small amount as daily / short term trading more longer term holds.

Bet the farm on Silver at 12:05 spring 09 and have been using some heavy leverage since about 20.. 2010 has been a better than average year.

[LivinLOS]

Kata - 7-storey building with a total of 17 apartments and 300sqm roof with 2 apartment nearly completed includes a restaurant bar, parking, gym,pool. 12 apartments are leased, 5+3 are available. Price for whole building now 19 million baht.

This seems like a bargain, any thoughts?

Sounds like that might be the 7 floor building that's in dispute right now about floors 6 & 7. Developer must be trying to off-load the problems/liabilities.

No. They are selling individual units for not far off that price.

Something definitely fishy about this property or it would have been snapped up long ago at that price.

I saw another "nearly finished" home advertised at a price too good to be true in Kata. The information stated that the buyer would be very lucky as no other properties were allowed to be built at the level of this one (i.e. above the permitted height for building in Phuket). This may fool a newbie, which I am sure is what they want, but it would be pretty obvious to most on this forum why they were trying to get rid.

Tried to get them to explain how that was legal.. They were claiming the building process was started before the 80m limit was introduced !!

I guess they just keep waiting for the sucker to come along.

[LivinLOS]

I think he has shared this, many times. But it's the 2-3% of property value annual rent I'm interested in. A 10m baht propert at 25,000 baht a month or less? Is this in Phuket or in your new abode, LivinLOS?

Actually my phuket place was 25k a month for a 12 or 15m asking price (silly price tho).

Previous villa was 28m asking price for sale and 70k a month rent.. Plus huge maintenance costs to the landlord. Great place but destroyed overnight and insurance wont pay.. Glad I didnt own that one !!

Current one 28k on a 10m asking price home.. Not on the island up north.

[logbags]

Houses are being sold now at a record low. A very close friend of mine sold his house. two years ago he was asking 24 mil ( its big and on the golf course) just took 12.5 as he needed the $$

RENT is best deal here.

condos are being overbult

most condos easily sell their 49% share to Farangs but have a hard time selling the remanider 51% so after 3 years when the whole are needs work ( painting, upkeep) its only the Farangs that are around that will pony up the cash or pay their condo fees for upkeep and 49% is not enough to do what needs doing.

So after 5-6 years the condos look like ther 20 years old and no resale value.

Plus with all the new condos being built why buy a used one??

The list of cons against buying is long

The list of pros for renting is long

livinLos is correct, if you crunch the numbers buying is not a sound investment.

We bought two places in Patong in 1987, they have been a total headache and if we'd sunk that money into something in Australia we'd have made a fortune. We now can't get rid of them

I agree totally with the ice-man, why the hell would you bring your life long hard earned dosh into a feudal and lawless country like Thailand?

Especially when sooner or later the powder keg of social injustice is going to blow big time........

[LivinLOS]

The reason to buy or build a home in Thailand is because its where you want to live..

In all likelyhood I will build something in the next couple of years, if I dont see a return to the west on the cards.. And if I do that, I will consider any cost in doing so flushed and gone, it will not be an investment, it will be a home and nothing else.. It wont be sold.

[LivinginKata]

The reason to buy or build a home in Thailand is because its where you want to live..

Very sound advice. I agree.

[barka]

BUY if you want to live here and if you buy wisely.. at the end of the day..if you want to move on you can rent or even SELL..[ if your lucky] but dont count on it as an investment i personally have been happy buying

i..and i think if i had to pay rent for my house over the last 4 years it would have cost me approx 2 mill bht

but thats been my choice every one to his own...i think if someone wants to buy and they have cash this is the time to go mine.sweeping..many poeple would be prepared to sell im sure especially for cash..

[DougLee]

there's still a lot of money to be made by buying small houses for 2-4mb and making them look better than 10-20mb houses. Even if you cant sell it, you can get a good amount on the rent for many years. If you keep it as new while you rent it, you will be able to keep asking the same price for it and in the end after 5 or even 10 years you've made a really good profit with a small risk.

My ex lanlord paid 2.6 i think for his house, he put maybe 1mb (he has good contacts so some idiot with no knowledge would of easly paid 2.5-3x more) in extra, his house was not fantastic like a crazy villa but as houses go in thailand it was in the top.. Teak wood everywhere, nice decoration, really good electronics (50" tv lcd, 32inch lcd, nintendo wii, home theater, expensive big fridge, brand new top of the line washing machine and microwave, oven etc etc.) He had a nice garden put in and a nice built in teak wood work desk. He fixes everything that breaks or gets old even while you live there, he sprays it for termites/rodents every couple month etc etc.. he asked 20k baht for it.. 20k baht yes.. most people for 20k baht they get a shitty house with a tesco bed and some pink/baby blue wall.. shitty smelly kitchen full of cockroaches. I have seen a lot of villas for 50-80k that looked worse than his house and most "pool villas" for rent online in rawai chalong for 20-40k are unlivable compared to his house..

he's asking around 4.5 mil for his house.. he's rented it for 3 years fulltime since its a GREAT deal, so he's made back at least 750k + if he sells it at 4.5 tomorow, hes making 1.5mb for not that much work... and in 3 years.. we'll then it'll be really worth his money. Add to that, his wife takes care of most things on it, he's probably going to take a few deposits from a few people.. 2-3mb in profit is not that huge.. but do this on 3-4 small houses.. its a lot of $ and in 10 years if invested weakly, its still a good retirement.

Problem is, thailand brings all the idiots of the world, they buy, they overpay, they leave it ugly as hell and hope to make a fortune, it drives the price higher because their ridiculous demands make regular people think twice about under selling.. its a vicious circle but even in this circle, the clever makes a lot of money.

[Will1]

Anyone with half a brain knows, The property market will bounce back in the near future, Like it always has in the past.

As a long term investment you have to be very unlucky to loose money in property investments.

Like I said a long term property investment will reward more than a bank .

[DougLee]

Anyone with half a brain knows, The property market will bounce back in the near future, Like it always has in the past.

As a long term investment you have to be very unlucky to loose money in property investments.

Like I said a long term property investment will reward more than a bank .

Anyone with half a brain cell and 5mins per day to get educated can find investment that return a lot more than the bank.

Even making 5%+ a month on forex is quite easy if you've got a little time and 50hrs for learning it. So many dumb gamblers on it.

Investing 500k yourself or into a house, yourself will net you more if you've got your kindergarten diploma

[LivinLOS]

Like I said a long term property investment will reward more than a bank .

dam_n well should too.. The risk factor and lack of liquidity.