Would You Buy A Proprety In Los?

[The Gentleman Scamp]

If you had enough cash to buy a modest house/flat in the U.K. but knew you never wanted to settle there because you were too much of a rambling man/lady, and you didn't trust students not to trash the place - would you chance buying a property in Thailand?

Would it be risky in terms of future law change and the fact that you were buying on foreign soil or would you put the property in the name of a trusted Thai friend/partner, therefore risking nothing but the obvious?

[Nam Kao]

only spend what you can afford to lose GS

[The Gentleman Scamp]

only spend what you can afford to lose GS

<{POST_SNAPBACK}>

That sounds like a gamble.

...I'm not a gambling man, never have been, never will.

[Nam Kao]

i hear ya, rents are cheap enough

[malcolminthemiddle]

Many will disagree, but I believe building up a portfolio of assets is an important part of life, especially if you intend to have a comfortable retirement since it's not what you have earned but what you have saved that counts.

The younger you start "asset building" the better and property is a wise foundation on which to start your portfolio.

Property prices in the UK have peaked and will probably be stagnant for some time but they provide a safe haven for your hard earned pennies and in the long term will provide a solid if not lucrative investment and yes finding a reliable, long term tenant is the hard bit.

Property in Thailand has also peaked (although there are deals to be had) but in reality IMO cannot provide the same long term, stable, security that a UK property will.

If you are young, say mid 30s and plan to work overseas for the foreseeable future, I would say a first property in your home country is the wise move, the 2nd property overseas can come later.

Just remember to lay down a strong foundation for the future.

[chownah]

I owned a house in the US and had good tenants....it was a great investment.....but.....I too often had little nagging worries about it....so I sold it. It was a great investment but it interfered with my peace of mind. I suggest that you try to determine if you might suffer the same effect.

[sua yai]

Many will disagree, but I believe building up a portfolio of assets is an important part of life, especially if you intend to have a comfortable retirement since it's not what you have earned but what you have saved that counts.

The younger you start "asset building" the better and property is a wise foundation on which to start your portfolio. 

Property prices in the UK have peaked and will probably be stagnant for some time but they provide a safe haven for your hard earned pennies and in the long term will provide a solid if not lucrative investment and yes finding a reliable, long term tenant is the hard bit.

Property in Thailand has also peaked (although there are deals to be had) but in reality IMO cannot provide the same long term, stable, security that a UK property will.

If you are young, say mid 30s and plan to work overseas for the foreseeable future, I would say a first property in your home country is the wise move, the 2nd property overseas can come later.

Just remember to lay down a strong foundation for the future.

<{POST_SNAPBACK}>

Couldn't agree more with the above. I've been over here for 7.5 years now and essentially living off the rent from my property in London. It's a 3 bedroom place with a garden, just a 10 min walk over Lambeth bridge to Parliament.

As a result, I get a good monthly rent. Tax is almost nil if you know what you're doing with your tax return, but letting agent fees are high as is the cost of maintenence and allowing for void rental periods.

Whilst the income gives me a decent lifestyle here, I never seem able to save money long term. As soon as there's a few quid in the"reserve account", it disappears on new washing machines/microwaves/ redecorating etc etc.

Still, although property prices have stagnated in the UK and are doing well here, I wouldn't sell up in London to buy in Thailand. If I do eventually put it on the market, I would be able to safely invest the money back home, have more monthly income from interest and hopefully never have to touch the capital.

I'd always rent here. Just my opinion given my set of circumstances.

[sua yai]

Just seen Chownah's post and that is equally true.

I've always got "worries", not least of which at the moment is that my current tenants are entitled,for the first time in 6 months, to give a month's notice as of tomorrow.

Trying to find tenants from the 27th Nov is no joke.

There's nothing I can do about it, but it might mean no income for a couple of months.

To the OP, only you can really determine whether the worry's worth it. It's my view that you'll get headaches from property anywhere. The investment potential is extremely good, but for most positives in business, there's always an element of risk.

[Firefan]

GS I would think that you would want to live in the Thai home yourself?

Rental income will normally not be high should you want to rent it out, but there are some ok deals out there - especially when smaller size.

No matter what, if buying I would chose the condo option rather than a house/land as you have the right to own fully with name on title deed.

Should your dream be a real house/land you should first talk to a good lawyer.

Cheers!

[OldAsiaHand]

Many will disagree, but I believe building up a portfolio of assets is an important part of life, especially if you intend to have a comfortable retirement since it's not what you have earned but what you have saved that counts.

<{POST_SNAPBACK}>

Yes, of course, but the problem is that property in Thailand isn't much of an asset. You can find people who claim to have made money buying it, of course, but this isn't the US or the UK. There is very little liquidity in the property markets. The 'annual increase in value' statistics you may hear are just utter rubbish put out by property developers and uncritically published by the Post of the Nation.

The cold truth, for the great average of foreigners who buy property here, is that you may never be able sell it again to anyone; and if you do, you will be lucky to get back what you paid for it. You may not believe that, westerners seldom do, but that really is the most common result here.

If you want a place to live, you will find that rents in Thailand are very cheap as an annnual percentage of purchase price, and renting carries no risk at all to your capital. If you want a good investment, find a nice diversified stock fund that incorporates a range of Asian markets. Neiter motivation is a good reason to buy property in Thailand.

[Gary A]

Pick a few good stable mutual funds and sit back and relax. Use the Morningstar ratings. Look for four or five star with a low risk and high return rating. If they have a good five year performance track record go for them. A ten percent annual return should be just normal.

As far as Thailand properties I would not spend more than I could comfortably walk away from. No one likes to lose money but if the loss would not affect my future nor my lifestyle so what?

[The Gentleman Scamp]

Many will disagree, but I believe building up a portfolio of assets is an important part of life, especially if you intend to have a comfortable retirement since it's not what you have earned but what you have saved that counts.

The younger you start "asset building" the better and property is a wise foundation on which to start your portfolio. 

Property prices in the UK have peaked and will probably be stagnant for some time but they provide a safe haven for your hard earned pennies and in the long term will provide a solid if not lucrative investment and yes finding a reliable, long term tenant is the hard bit.

Property in Thailand has also peaked (although there are deals to be had) but in reality IMO cannot provide the same long term, stable, security that a UK property will.

If you are young, say mid 30s and plan to work overseas for the foreseeable future, I would say a first property in your home country is the wise move, the 2nd property overseas can come later.

Just remember to lay down a strong foundation for the future.

These are the words that will stick in my head, in fact most of you have confirmed my suspicion that 'security' and 'Thailand' do not fit well in the same sentance.

As for Chowna's comments about nigling worries; to be honest my main worries would be before buying in the U.K. and where to buy.

That out the way, I just need to find decent tennants, preferably not students, and then sacrifice 10% and let an agency take on any future worries, either that or let friends nearby do the same job for a reasonable cut of the rent.

GS I would think that you would want to live in the Thai home yourself?

Rental income will normally not be high should you want to rent it out, but there are some ok deals out there - especially when smaller size.

No matter what, if buying I would chose the condo option rather than a house/land as you have the right to own fully with name on title deed.

I don't think I would ever have enough confidence in the erratic Thai law and its, often questionable, attitude to foreigners to do what Firefan suggests - much as I love the people and the place, I doubt that love is reciprocated equally.

[orchidexpert]

You can't buy land in Thailand. If someone said you can that means they are BigFatLiar.

You can buy land with or without house by your Gf's name. But if you are in company's name you can rent in under condition for longterm business using the land.

You can see lots of Farangs in Thailand they buy house or land but not sign in their name just in the named of wife or girlfriend.

How can you trust your girlfriend, partner or etc...I confirm..You can't trust any, if you want to have land in Thailand should to rent it for longterm using.

[The Gentleman Scamp]

I don't have a Thai girlfriend and was 90% sure I wouldn't consider buying in Thailand before I started the post, now I'm certain I won't sever the unbilical cord which is potential income from the homeland.

Edited October 26, 2005 by The Gentleman Scamp

[fatter than harry]

Location, location, errr, one other.

Scamp, if you want to buy a place in Bangkok, unless it's a swanky penthouse, you'll likely never sell it. Too many new properties get built every year to allow an average property to stand much of a chance of selling, unless you find yourself another Scampy.

If you are going to buy a place make sure it has enough unique selling points for the future, obviously transport is king in BKK.

The islands are different, as seaviews get further away a modest property with a view will always stand you in good stead, watch out for the management fees though.

Each to their own, if it was me and I wanted property I'd buy in Phuket, there are a surprising amount of 'will never sell' houses simply because people spent too much building their dream home and expect other peole to buy into their dream home. But there are also lots of good bargains to be had. I'd probably go for a condo as I could own it outright, I'd go for location over views, for me a two minute walk to a beach with no view is better than a 10 minute walk to a beach with a view (on a good day, when the wind blows the trees out of the 3 inch piece of sea you can see by standing on a chair in the bathroom)

Maintenance fees are high in Asia, termites are a bastar, management needs to be constant.

&lt;deleted&gt; it, I'd invest in stocks like the other guys said.

[taxexile]

10% and let an agency take on any future worries,

the letting agents were usually the cause of the worries.

[sbk]

My father-in-law bought the piece of property we have our resort on 30 years ago for 60,000 baht. It is now worth more than 20 million baht. That is the only way to have made loads of money on the property market.

I like the mutual fund idea, rental properties seem to me to be a hassle.

[The_Moog]

Buying a condo in Bangkok would be ok for you.

The value for money is good. You can secure a solid legal title and maintenance and running costs are extremely cheap.

I am very happy with the purchase I made. I have a freehold title, a city-centre apartment for THB 40,000 per square metre.

All it takes is a little sensible due diligence in advance.

Making your asset allocation decision yay or nay, based on Thai visa anecdotes though is unwise. You need to research it properly. See some apartments during your next visit.

[phibunmike]

If you had enough cash to buy a modest house/flat in the U.K. but knew you never wanted to settle there because you were too much of a rambling man/lady, and you didn't trust students not to trash the place - would you chance buying a property in Thailand?

Would it be risky in terms of future law change and the fact that you were buying on foreign soil or would you put the property in the name of a trusted Thai friend/partner, therefore risking nothing but the obvious?

<{POST_SNAPBACK}>

I built a house upcountry - not expensive for either land or building costs. I want the pleasure of owning my own place and living in it, doing things to it and the garden, etc. - plus it gives peace of mind for the future that it is paid for outright.

I agree with chownah, I had property overseas (uk) and rented it out, it was a headache I can do without.

But if you are unsure, do what another poster suggested - buy a smaller place in uk, then build in rural Thailand (if that suits you).

[mrbojangles]

As for Chowna's comments about nigling worries; to be honest my main worries would be before buying in the U.K. and where to buy.

A lot of good advice has been given Scampy, from my own personal experience, i would like to add a little more.

I have been renting out properties (and selling) for years. Yes, i have had worries and hassles but money doesn't get handed on a plate. Anybody who can earn money without having to work for it and have hassles, is a lucky person indeed. Personally, i have felt that the worries and the hassles have paid dividends, over and over. I have found the properties which have given me the best returns (both in rental and selling) have been those located near to Hospital's, almost 100% occupied year round and excellent tenants. Also, i don't know why but Single parent Mothers have been excellent tenants. Student area's have given me too much trouble for the returns. Just my experience. Good luck anyway.

[Youbloodybeauty]

Hi Scamp,

Buy in your home town where you know the laws and stuff. Get a decent managing agent, get tenancy insurance, pay the taxes etc etc.

The risk will be minimal and exchanging the returns to Baht you can rent a nice place in Thailand.

If you rent in Thailand and your neighbors piss you off or the place floods - whatever, then move! ...easy.

You can always return to your home town if you ever need to. To sell a property in Thailand and buy back into your home town would be difficult.

Cheers YBB

Edited October 26, 2005 by Youbloodybeauty

[Nignoy]

If you had enough cash to buy a modest house/flat in the U.K. but knew you never wanted to settle there because you were too much of a rambling man/lady, and you didn't trust students not to trash the place - would you chance buying a property in Thailand?

Would it be risky in terms of future law change and the fact that you were buying on foreign soil or would you put the property in the name of a trusted Thai friend/partner, therefore risking nothing but the obvious?

<{POST_SNAPBACK}>

This reply is not a joke or a piss take as is my want but for property investment you can do no wrong in here in sunny Queensland, if you have the brass to invest, this is the place to buy!! does not matter if you are a septic or pom even thai you can own property here,plenty of bargains to be had just check major estate agents on the net, lots of properties in our village (40 clicks north of Brisbane) are owned by foreign investors, believe me its worth a look!! but it has not stopped us buying a second home in thailand nignoy

[GuestHouse]

I think its down to personal circumstances. My view is that while an income from property back home would be very nice, more important is a secure bolthole to run to if things go t1ts up for you in Thailand.

Don't burn your bridges.

[Noel]

If you had enough cash to buy a modest house/flat in the U.K. but knew you never wanted to settle there because you were too much of a rambling man/lady, and you didn't trust students not to trash the place - would you chance buying a property in Thailand?

<{POST_SNAPBACK}>

A question that comes to mind is how much would enough cash to buy a modest house/flat in the U.K. actually be?

Whilst I do keep track of property prices in certain areas of UK, I am not up on nationwide price levels.

That said, I should imagine (open to correction of course) that you would need well over £100,000 to buy even the most modest of dwellings in UK.

If that is the case, we are comparing the decision of buying in UK to buying something for at least seven million baht in Thailand.

No way would I advise anyone to buy a property in Thailand for that money rather than UK.

The prudent thing to do would be to consider buying in UK or review alternative investment options as suggested by other posters above in my view. Having properties in both countries could perhaps be seen as ideal by some.

A key factor is of course the reasoning behind making such a decision in terms of generating an income stream or having somewhere to live.

Another consideration is that I am led to believe that the ‘Buy-to-let’ housing market is nowhere near as buoyant in the UK as it was a couple of years ago.

However, I personally like the idea of retaining property in UK as I regard it as a ‘bridge/bolt hole’ should things ever go awry for farang guests in the kingdom.

Moreover, whilst UK house prices have certainly slowed down if not fallen back in recent times, I firmly believe property to be a sound investment over the longer term.

At the end of the day this is quite a complicated subject; much must depend on the individual’s current circumstances, future perceived needs and associated attitude to alternative investment strategies.

[mrbojangles]

A question that comes to mind is how much would enough cash to buy a modest house/flat in the U.K. actually be?

Difficult one to answer really Noel. Too many fluctuations by area to area and from region to region. However, it was quoted this week that the average price for a house in the UK now stands at £192,000. Obviously, this might buy you a "Broom Cupboard" in Central London and a 4 Bed Detached in Newcastle.

[warriors]

Well I have just retired here in Thailand, in Bangkok.

For the moment I got a 6 months deal on a 2 bed room appartment on soi 26. 40,000 baht I know many will say you could do better but I do not care I am happy here for the moment.

Any how back to Investment questions, at 50+ years. I decided to rent not own any were.

I am from New Zealand so house pricers are just the same there as in the UK or AUSY.

I invest my own monies over cash on 3 month roll overs at 7% per year - tax

ON call is 5.4 % money.

I have shares that I bought and sold myself in NZ and Ausy over the last 10 years. I still hold a portfolio of different shares. I look and pay for good advice not from a broker.

Have a company Super that I still pay into to over the last 25 years which is a define benifit, so no matter what the markets do it increasers the lump sum by a fixed amount per year.

I still have life insurance which are now endowments at 65.

I have some Thai gold that I bought 3 years ago when the price was really low.

I have had many mutual funds but find that I can do better than them because of there fees.

I still have a small life insurance business in NZ that another agent keeps an eye on it for me which returns in renewal income per year of over 6 figures. It took me 25years to build up this renwal stream.

So all in all the renewal stream plus shares and cash takes care of me well and truely,

with little risk.

The key was time and spread your risks.

Yes I owned a house before for 18 years the return was 3% per year after taken all life stye things that we spent on the house over that time such as a new roof and kitchen and bathroom, many things that give you and your family a better life, but that should be added into the selling price to get a true return on your own property. What I mean is the cost say was $290,000 when first bought. Then you spent say 200000 over 18 years sold for 800000 I know theses figures are not correct but it is just an example. Of what you spend when you have a family home.

Oh and my ex wife got the house which she has now sold for a smaller one.

I have got my own investments back lucky me, after 5 years devorced I am now back to were I was before we devorced. From when I devorce to now I have been only renting.

Hope this helps you. It worked for me. the house was just a Home not an investment.

I hear the guns pulled out.

[The Gentleman Scamp]

The amount would be enough to buy a modest house in Scotland or a pissy little flat in Buckinghamshire - I have also considered doubling my money with a mortgage and any rent I made would pay my own if I was staying in a Thai apartment for however long.

My chances of a mortgage may be affected by my job which means that I live/work in three different Asian countries each year.

Anyway, cheers, I've had some great advice and I can dredge this up nearer the time when the money has been transferred to my account.

[Belfastboy]

i would have to agree with holding onto a UK property...if it all goes belly up, as nothing is certain in life...at least u wud always have the UK property to fall back on....plus it will grow every year in value.

i myself have two UK properties although im only 27 but intend to build on this porfolio for sure....the first rental property i have bought has went up 75,000 pounds sterling in a year..!!! so u can imagine what itr will be worth in ten years...and im about to buy a property for my business worth 500k..

dont worry about renting your place out scamp...just get an estate agent or property managment company to sort it..they will charge 10% of ur rent but well worth it....

so if i was u...stick with UK property scamp....a safe investment.

[The Gentleman Scamp]

the first rental property i have bought has went up 75,000 pounds sterling in a year..!!!

Blimey, can I ask where it was situated?

[Belfastboy]

sure scamp..

its in Belfast...i purchased it for 75k spent about 9k doing it up...and a year later it worth 145k...! i can hardly believe it myself...

Belfast with the peace process and booming investment is a good place to invest. It certainly has proves that for myself and other friends as well.