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Pattaya Propery Way Overpriced


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Hey

You can get a four bed house in Las Vegas - the rich mans Pattaya for a similar price for a decent one bed condo in pattaya. Im talking central city location for around $80,000

http://www.mslasvegasrealestate.com/foreclosure.html

Puts things into perspective a bit.

Thailand is an emerging market and its sensitive to the situation in the US at the moment if they have a double dip i reckon the real estate prices are going to drop in Thailand especially in tourist places like Pattaya

I am amazed at some of the prices people are paying for real estate there. Pattaya is, quite possibly, one of the lowest-class places in the world. 2 bed apartments really arent worth $200,000 regardless of the view or what floor they are on. People are buying penthouses for 20 million baht... why? And they build quality in the newer places is terrible. See the agents there trying to get you to sign up to the new developments because the other ones about 5 years old are starting to show signs of neglect and wear. Id hate to think what would happen if there is a serious earthquake!

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"I am amazed at some of the prices people are paying for real estate there."

Me too, though dont forget that the asking prices here bear little or no relation to the final sales price, if indeed there is a sale, especially once you get out of the sub-2MB bracket. And even at that lower end, there is no shortage of places selling at a discount of 20-50% on average asking prices.

Whilst the price of foreclosures in Las Vegas isnt directly relevant to the price of condos here, the general downwards movement in European and American economies and property prices will obviously have some sort of impact on the economy and prices here. It's just a question of how much.

But the main problem in Pattaya is the huge number of "investor" buyers (aka people who have nothing better to do with their money than buy property and sit on it). Until the government brings in some serious taxation of owners of multiple properties (which is decades overdue) the price bubble will probably not pop (though it may deflate a little). At the same time they need to do something about the flagrant abuse of company structures to get around ownership laws, and I'm sure that at some point they will address this also.

As with most things in Thailand, it's all just a question of when.

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1st point is Vegas is completely overrated ! on a par with pattaya but without the half decent women

2nd point is crazy foreigners in Thailand struggle to get a bank loan so where is the housing crisis coming from if its cash paid?:unsure:

agree though personally id never pay 5 million baht and up for a house in Thailand when you can never own it .

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1st point is Vegas is completely overrated ! on a par with pattaya but without the half decent women

2nd point is crazy foreigners in Thailand struggle to get a bank loan so where is the housing crisis coming from if its cash paid?:unsure:

agree though personally id never pay 5 million baht and up for a house in Thailand when you can never own it .

False! You can own a house in Thailand. It is land ownership that gets complicated.

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so what are you going to do pick your house up and move it somewhere else? why don't someone start importing manufactured house or trailers and be done with it? be funny seeing the exodus up the sukhimvit rd after another relationships gone bad could start our very own gypsy camp?

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The cost of a house in USA is irrelevant to me, a Brit, as I can't live there full time. I would certainly retire to the US if I could but I can't, so I'm living here.

This point is frequently overlooked in UK newspaper articles on the desirability of retiring to the US.

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The US has experienced a radically massive real estate crash often called the foreclosure crisis. This is in the past environment of a long standing BUBBLE fueled by many people buying real estate with no or little money down and showing no qualifications that they can pay the note. It was all great as long as the prices kept going up. This crisis has gone on for years and will likely take at least a decade to shake out. The market is still glutted with foreclosures and there are many more foreclosures in the pipeline. Foreclosure prices are driving "comp" prices so everybody loses except cash buyers. In the US employment and wages are also fundamentals propping up real estate prices and most know what's happened to employment in the US, the stats say about 10 percent unemployment but the reality is more like 25 percent. Bottom line -- this has almost nothing to do with the Thai market. I do think in the long run it is an excellent time to buy distressed foreclosed US real estate but with a long view, like 20 years as from now it can even go lower.

Edited by Jingthing
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Dear Buffalo Rescue,

sorry, we have heard it all before....

You can get a four bed house in Las Vegas - who really wants a 4 bedroom house these days, let alone one in the middle of a desert !

Las Vegas the rich mans Pattaya - mmmm, here's a new one. I have never heard of that before. Don't quite see it that way, but thats from my perspective.

for a similar price for a decent one bed condo in pattaya. Im talking central city location for around $80,000 - and your point is that this is supposed to represent good value or that Thai prices are over the top ?

You feel that if there is a double dip in the US (more than likely underway NOW) that this will affect Pattaya property tourism? From my info, tourism from the US is down considerably over the last 3 years, so it should have already occurred.

Pattaya is, quite possibly, one of the lowest-class places in the world - another interesting statement. I am sure that many of the members here would appreciate knowing that they live in one of the lowest class paces in the world, let alone those people who thought they lived in the lowest class places say in rural Pakistan, Bangladesh, Congo, Zimbabwe amongst many others !!!

2 bed apartments really arent worth $200,000 regardless of the view or what floor they are on - mmm, and a 4 bedroom property in a desert in a town with spiralling unemployment, in a nation where both the national and state economies are sinking, is worth $80,000 ?

People are buying penthouses for 20 million baht. - not many I would suggest

why? - probably because they have the funds to do so, they like living in "one of the lowest class places in the world" and probably because they can !

And they build quality in the newer places is terrible - really, all of them ?

See the agents there trying to get you to sign up to the new developments because the other ones about 5 years old are starting to show signs of neglect and wear. Id hate to think what would happen if there is a serious earthquake! - and this doesn't happen in Las Vegas ?

Really BR., as other posters have replied, you are comparing eggs to lemons.

For the record, I don't live in Pattaya nor do i have any plans to. I don't think that Pattaya is the star city of Asia, but nor do I think its one of the lowest class places in the world. I know people who live there with beautiful houses and apartments who have an enviable lifestyle and home. The views can be spectacular.

The people make a place. Its not all $'s. People choose to live in Pattaya or wherever because of the lifestyle and the people. If you think that Vegas can give you that, then thats perfect for you. But for those who live in Pattaya, I doubt they would be interested in selling their $200k apartments (or much more) or $500K homes and pocket the difference and move to Vegas. They have made a lifestyle decision.

Edited by london
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London's post is spot on.

I bought a house here for nearly 300k us$. This house is not bought as an investment as such, but for my family to have a nice place to live in.

The above prize is incl the things we have/are changing/ed to get the perfect house for us.

Owner ship? well as mentioned I have a family, so I am not really thinking too much about that, but has taken my precautions so the house/land should be mine for the next 30 years. I know a few people in EU that have lost their houses + more after a divorce.

Las Vegas? I think thats a gambling City out in the dessert in USA, yes? Not interested, don't like the desert but like green scenery, like my garden. I don't gamble either so you can keep it.

Edited by guzzi850m2
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Las Vegas? I think thats a gambling City out in the dessert in USA, yes? Not interested, don't like the desert but like green scenery, like my garden. I don't gamble either so you can keep it.

There are millions of foreclosed properties in every city in America and in many cases you can get a modern townhouse in a middle class suburb for under one million baht.
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Miguel, a fictional character because in real life I have no friends, is in the process of moving to a new country, he is 55 and has a small but workable amount of capital primarily funded from his house sale in the UK, and a small pension due when he is 65. He has moved to a place with little if any employment available, hundreds of miles fro a normal civilisation and to a country where medical insurance costs in a month what I pay in a year. he got a "good deal" on a house he has bought in an area where no one wants to live and with a resale value of 0, the local and national economy is down the toilet and looks to be there for the next 15 years, unemployment in the nation is 10 Mill and in his area the only people working are card flippers and taxi drivers. he is a property surveyor by trade. If he doesnt water the garden daily, three times, he will live on an inland beach, and water is not only expensive but a commodity that is shipped in from thousands of miles away thru a precarious pipe system that has yet to be paid for. Hookers are a mere 20K baht a night and white. In my book Miguel's dream is a nightmare, he call it vegas

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I was going to ask exactly the same thing!

It strikes me that if everyone who wants to buy in Pattaya but can't afford it talks teh market down then prices will drop.

Maybe vice versa, so as I own a house there I reckon prices are too cheap! Come on property owners, join in and the prices wil rise.

So Las Vegas has cheap housing, doesn't most of the USA these days, what relevance does this have to Thailand ?

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So in humble "low-class" Pattaya, we have people willing to pay larger amounts that they would for Las Vegas' properties. Perhaps not everyone wants to visit, much less live in, Las Vegas regardless of how "classy" it may be.:jap:

Las vegas way way better than pattaya and i lived in pattaya for one year and no im not american im a brit

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many on thai visa keep claiming that thailand real estate is only purchased with cash despite the numerous news articles which say "unprecedented access to cheap credit continues to fuel Thai construction"... "Thai GDP higher than expected on strong construction"... sure many are buying with cash. reality though is of course that the price of homes will always be determined by what it costs a developer to build a home and what people can pay for that home. if developers costs are not increasing in unison with the increase in property prices that is a bubble.

for example, construction costs have gotten higher in the usa since the bubble burst and you can have homes built for > 1/2 of what they were selling for. it was all profit.

so just because you guys claim people are paying 10m in CASH it does not make the property worth 10m if the developer can build it for 3m and sell it for 4.5m in a bad economy.

i am not expecting a housing crash the equivalent of the USA to happen in Thailand but there is very clearly an asset bubble in Thai real estate. hopefully for recent home buyers the west will keep printing money and it will all work out. but if for example the West elections keep moving more libertarian, you will instead have massive deflation and default.

again, you want to focus on the costs to build and buy land not just what people with cheap credit are paying. the notion that home prices wont go down in thailand is hilarious. check out a chart of home prices adjusted for inflation since the Asian Financial Crisis.

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London's post is spot on.

I bought a house here for nearly 300k us$. This house is not bought as an investment as such, but for my family to have a nice place to live in.

i think this is the right attitude to take. i own 2 homes. i don't consider either an investment. i consider them to be a depreciating asset, something to enjoy, because that is certainly what they are when you account for all the costs and risk. for yourself and the other farang in Thailand you don't even legally own the home. lol.

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i have seen it written on thaivisa many times that rental returns despite being super low are still higher than a money market account or CD. this is very dangerous thinking as it is based on the notion that home prices can't decline and interest rates can't go up.

Edited by farang000999
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many on thai visa keep claiming that thailand real estate is only purchased with cash despite the numerous news articles which say "unprecedented access to cheap credit continues to fuel Thai construction"... "Thai GDP higher than expected on strong construction"... sure many are buying with cash. reality though is of course that the price of homes will always be determined by what it costs a developer to build a home and what people can pay for that home. if developers costs are not increasing in unison with the increase in property prices that is a bubble.

for example, construction costs have gotten higher in the usa since the bubble burst and you can have homes built for > 1/2 of what they were selling for. it was all profit.

so just because you guys claim people are paying 10m in CASH it does not make the property worth 10m if the developer can build it for 3m and sell it for 4.5m in a bad economy.

i am not expecting a housing crash the equivalent of the USA to happen in Thailand but there is very clearly an asset bubble in Thai real estate. hopefully for recent home buyers the west will keep printing money and it will all work out. but if for example the West elections keep moving more libertarian, you will instead have massive deflation and default.

again, you want to focus on the costs to build and buy land not just what people with cheap credit are paying. the notion that home prices wont go down in thailand is hilarious. check out a chart of home prices adjusted for inflation since the Asian Financial Crisis.

are we not talking about pattaya here? where most of the farang castles are built and paid for with cash not unless your pattayas police chief of course!

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this thread is without any basis!

Thailand offers foreigners of all nations retiree "residence", the U.S. does not. in 2003 my wife was told by U.S. immigration in Atlanta

"possessing a home in Florida and paying local and federal taxes is not a valid reason to enter the Greatest Nation on Earth™!"

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this thread is without any basis!

Thailand offers foreigners of all nations retiree "residence", the U.S. does not. in 2003 my wife was told by U.S. immigration in Atlanta

"possessing a home in Florida and paying local and federal taxes is not a valid reason to enter the Greatest Nation on Earth™!"

why would you buy a condo cough sorry penthouse then? if your going to carry the risk of it at least have a little land not a box ? just my opinion of course and like <deleted> we all have one

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