Pattaya Propery Way Overpriced

[farang000999]

It said that home buyers with "insufficient purchasing power or subprime customers" were convinced to purchase, while lenders ramped up the amount of loans to 90 percent or more of the property value.

To "maintain economic stability", the bank has made high loan-to-value (LTV) lending costlier for financial institutions.

The Agency for Real Estate Affairs (AREA) said it has seen a build-up in oversupply and warned that it could become unsustainable.

Figures showed that Bangkok and its suburbs had more than 135,000 unsold properties in July, while another 100,000 properties are expected to arrive on the market by 2012.

Seriously you guys need to get on your little Motorbike and have Ping direct you to the BoT offices so that you can set them straight.

[chrisandsu]

so by that maybe they should consider letting foreigners own one property each im sure all the renters kicking about will circle like vultures then . Problem solved and the phony market will be propped up for another few years. Job done

[Jebhead]

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

20M will get you more than box in Pattaya....

As said it's all relative, if you have a lot of money in the real world, 20M THB is not that much....

JH

Edited September 12, 2011 by Jebhead

[Darrel]

Thailand offers foreigners of all nations retiree "residence", the U.S. does not.

I know someone who had a rather nice Florida condo, and a Mercedes in the garage there. They put up for several years with only being able to use it 6 months in 12, and not being able to let it when it was empty due to some weird local rule, but then he hit 65, his travel insurance premium multiplied by 5 and they sold both the car and the condo as it was all just a huge waste of money.

They bought instead in Portugal where they spend nearly all the year now.

[oakweb]

I agree with the OP, prices are too high right now. And I also make that comparison in my circle of friends, it's an interesting comparison since many consider both cities to be "sin city" in some sort of way.

I own homes in both locations, and I consider the Vegas purchase I made recently a great value for the price. I think if Pattaya came down just a bit on their prices, houses would really start to move again. I don't see many Americans or Europeans making purchases in my project now. I do see Russians though, which is an interesting fact.

And in Vegas, when I made the purchase there 5 months ago, I saw Russians and Europeans buying mostly not Americans.

[Darrel]

Anyone fancy a 3-bed house in the States for somewhat less than the cost of a 15 year-old 35sqm condo not on the beach in Jomtien?

http://www.thisismoney.co.uk/money/investing/article-2035922/Interest-20-cent-Just-buy-repossessed-property-Detroit.html

This pays rental yield of some 19%, and the owner has never seen it. Just bought for investment.

Pattaya prices are much too high.

[trogers]

I agree with the OP, prices are too high right now. And I also make that comparison in my circle of friends, it's an interesting comparison since many consider both cities to be "sin city" in some sort of way.

I own homes in both locations, and I consider the Vegas purchase I made recently a great value for the price. I think if Pattaya came down just a bit on their prices, houses would really start to move again. I don't see many Americans or Europeans making purchases in my project now. I do see Russians though, which is an interesting fact.

And in Vegas, when I made the purchase there 5 months ago, I saw Russians and Europeans buying mostly not Americans.

Who are buying the 51% local portion?

[craigt3365]

Thailand offers foreigners of all nations retiree "residence", the U.S. does not.

I know someone who had a rather nice Florida condo, and a Mercedes in the garage there. They put up for several years with only being able to use it 6 months in 12, and not being able to let it when it was empty due to some weird local rule, but then he hit 65, his travel insurance premium multiplied by 5 and they sold both the car and the condo as it was all just a huge waste of money.

They bought instead in Portugal where they spend nearly all the year now.

We were in Portugal 2 years ago. We LOVED it there. Great wine! But what about health insurance? I don't think Americans are entitled to it there...and I'm sure it's not cheap if something major happened?????

Anyone fancy a 3-bed house in the States for somewhat less than the cost of a 15 year-old 35sqm condo not on the beach in Jomtien?

http://www.thisismoney.co.uk/money/investing/article-2035922/Interest-20-cent-Just-buy-repossessed-property-Detroit.html

This pays rental yield of some 19%, and the owner has never seen it. Just bought for investment.

Pattaya prices are much too high.

Have you ever been to Detroit? It's a pit. I lived in Michigan for quite a few years and my Father's family is from Detroit. Not a good place to live...and the horrible winters are only one reason.

I moved to Vegas in 1975. Lived there off and on since then, my parents lived there full time. Mother is still there. That 80k house is a teaser. Sure, there are good deals, but there are also lots of horrible deals...and horrible quality housing estates as well. Jammed in cheek to jowl with poor construction. The summers are tough. My parents never spend the summer there. Just too hot. Miserable is the word. It's very dry. We go through bottles of lotion when we are there and never go to bed without a huge glass of water by our bed. We spend about 4 months every year there.

Vegas ain't Pattaya. No sea, extremely touristy and expensive casinos and traffic is getting really bad. I'll stay in Pattaya next to the sea. Just my 2 cents worth...

[Darrel]

We were in Portugal 2 years ago. We LOVED it there. Great wine! But what about health insurance? I don't think Americans are entitled to it there...and I'm sure it's not cheap if something major happened?????

The people I was talking about are British. I should have made this clearer.

Healthcare in Europe is largely free for European people receiving a state pension (which is just about everyone over 65). So as Brits they have a permanent right of abode in Portugal and mostly free (or at least heavily subsidised) healthcare. Obviously this makes southern Europe a very attractive retirement destination for northern Europeans.

This does not compare well with the States where Brits have no right of abode (even if they own property there outright) and certainly pay through the nose for all healthcare, unless they also pay through the nose for extra private insurance.

As has been pointed out here, Thailand is much easier to retire to than the States.

As for the Detroit house; no, I've not been and neither has the Brit who bought the two houses in the article. They were solely an investment and if they can get through the next 5 years they will have recouped the purchase cost in rental receipts, which seems quite good going for a 3-bed house costing under 1.5MB (equiv) which as I pointed out is the cost of a pretty old 35sqm studio condo in Jomtien.

Similar deals are available in Ireland, for those prepared to look for them, though the purchase prices are somewhat higher - about 2.5MB (equiv) for a brand new 3-bed house on a fairly nice estate.

[hhgz]

Thanks for the info, Buffalo. You seem to have more understanding of the US real estate market, than of Thailand. For the past decade, people who wouldn't buy condos in Thailand have been bleating, "The sky is falling, the real estate market in Bangkok WILL collapse." They're happy they haven't bought and, those that have bought are happy too.

[phomsanuk]

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?

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.

Right so you should buy a large mobil home, are the available here.?

Like this,

[Seekingasylum]

The OP talks about perspective but in truth he appears to have none, preferring to view a foreign property market through the prism of his seemingly limted and certainly parochial experience.

What is constantly overlooked by the clueless farang in assessing the value of the Thai market is the not inconsiderable importance of exchange rates.

Taking the £ as an example, if one were to divide the current price of a 2 bed condo in, say, Northpoint which costs about 10 million bt, by the prevailing rate 5 years ago when it bought 70bt the market price is quite good for the quality and location. However, now it is 50bt and what was a snip at £145,000 is now £200,000, a price which exceeds the value of the average small house in the UK. That is no reflection on an overpriced Thai market but the sad fact the £ buys 30% less.

Now, despite those blinkered perceptions of the Western farang, the Thai market is no longer dependent upon them and draws interest from many other countries not afflicted by recession and a currency depreciation. Talk to any sales negotiator at the higher end of development and they will tell you the same story; the buyers are there and enthusiastic about Thailand, coming from Singapore,Malaysia, Russia and the former CIS countries,Hong Kong and China. The Thai domestic market is also burgeoning, boosted by the universal stimulus of any property development, access to credit.

Sure, booms are followed by busts but if the central bank is sensitive to overheating then the long term prospects are good.

The lower end development in Bangkok and Pattaya is cashing in on the coat tails of this boom but if they get the pricing right then another sector of the market finds its niche and an equilibrium can be established overall.

I do think there may be a problem of oversupply in the short term but as the domestic market increases, which it surely is going to do as the redistribution of wealth takes place, any excess will be mopped up in time.

Asia is certainly looking good but of course China will determine all.

[rocketmanbkk]

people who moan about prices being too high are those that cannot afford them. Continue to rent and rant. I hope prices go through the roof!

[Naam]

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

i don't know what gave you the idea that we had a condo. we built and owned a detached home in Florida, nearly identical to our present home we built in Thailand.

by the way... the expression "box" is not justified for a house with 600m² airconditioned living area on 4,000m² lakefront land (except if are a royal who lives in a seaside palace of 10,000m²).

[Seekingasylum]

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

i don't know what gave you the idea that we had a condo. we built and owned a detached home in Florida, nearly identical to our present home we built in Thailand.

by the way... the expression "box" is not justified for a house with 600m² airconditioned living area on 4,000m² lakefront land (except if are a royal who lives in a seaside palace of 10,000m²).

Dr.( My swimming pool is bigger than yours ) Naam never changes, it seems.

[chrisandsu]

Was talking about the thread starters post concerning the price of a penthouse in pattaya . Thank you for letting me know about wealth though that was much appreciated . Also what sort of <deleted> compares the prices of new york and London to pattaya? pattaya and clacton might be a little more comparable

[swisstouristpattaya]

condo are too expensive in pattaya, 37 square meters studio for 1.5 million bahts.

then look at how thai maintain their buidings, because it 's their building at 51%.

plus with the instability of this thai government, only a fool would invest in this country.

rent! and get out when things will turn bad very soon.

[trogers]

condo are too expensive in pattaya, 37 square meters studio for 1.5 million bahts.

then look at how thai maintain their buidings, because it 's their building at 51%.

plus with the instability of this thai government, only a fool would invest in this country.

rent! and get out when things will turn bad very soon.

And your point can be summed up in this proverb - "Fools rush in where angels fear to tread"

[Naam]

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

i don't know what gave you the idea that we had a condo. we built and owned a detached home in Florida, nearly identical to our present home we built in Thailand.

by the way... the expression "box" is not justified for a house with 600m² airconditioned living area on 4,000m² lakefront land (except if are a royal who lives in a seaside palace of 10,000m²).

Dr.( My swimming pool is bigger than yours ) Naam never changes, it seems.

i posted a fact to correct a wrong assumption. if you don't like facts ask your grandmother to tell you a fairy tale instead of putting words in my mouth.

p.s. my swimming is -compared to most others- a rather small one and i don't recall having ever mentioned its size. now back to your dark corner and your lukewarm bottle of Chang... or is it Leo?

<snip>

Edited September 19, 2011 by craigt3365
removed irrelevant verbiage.

[Naam]

condo are too expensive in pattaya, 37 square meters studio for 1.5 million bahts.

then look at how thai maintain their buidings, because it 's their building at 51%.

plus with the instability of this thai government, only a fool would invest in this country.

rent! and get out when things will turn bad very soon.

And your point can be summed up in this proverb - "Fools rush in where angels fear to tread"

perhaps this version applies? "fools with money rush in where poor angels fear to tread"

[Naam]

Pattaya Propery Way Overpriced 4 Bed Houses in Las Vegas $80k

Pattaya land is way overpriced too. in a top location people pay 10 to 20 million Baht for one Rai.

465 miles north-west of Vladivostok half an acre can be bought for 2,450 Roubles

[chrisandsu]

Thats true i have a friend who owns land in the Punjab its farm land that yields not a lot in income but the lands worth millions ! The population is only growing so the land will increase even more in value where as a rooftop garden on soi 6 will not net you a lot i am afraid . So land and not a penthouse for me no mater how shinny the decour is

[Naam]

Thats true i have a friend who owns land in the Punjab its farm land that yields not a lot in income but the lands worth millions ! The population is only growing so the land will increase even more in value where as a rooftop garden on soi 6 will not net you a lot i am afraid . So land and not a penthouse for me no mater how shinny the decour is

in some countries it is not easy to own land, especially agricultural land. several states in India (not sure about Punjab though) prohibit the purchase of agricultural land even for Indian citizens if they can't submit evidence that they or their ancestors have been landowners and growing crops.

[craigt3365]

condo are too expensive in pattaya, 37 square meters studio for 1.5 million bahts.

then look at how thai maintain their buidings, because it 's their building at 51%.

plus with the instability of this thai government, only a fool would invest in this country.

rent! and get out when things will turn bad very soon.

Many farang own the Thai quota condos in corporations. Not legal, but widely done.

I've met quite a few "fools" who've made a bundle in the local real estate market.

[chrisandsu]

Thats true naam he is from the farming cast he is very quick at telling me that its one of the top casts in Indian society and he can only marry within his own cast . thanks for the add i read and respect alot of what you have to say and learn a lot from you and others on here when in day to day living we may not even cross paths. As i am sure my own cast is way down the totem pole but i am looking to climb the greasy pole have a great day

[Darrel]

I've met quite a few "fools" who've made a bundle in the local real estate market.

Indeed. And I"ve come across quite a few who've lost a similar bundle. And there are also many who say that they have made a large paper bundle, based on agents' asking prices for similar units, but have yet to translate that into cash in the bank.

What intrigues me is what will happen if for some reason all the people with multiple "investment" condos decide that they would like to sell them, and put them on the market at serious prices.

Or if the Thai government introduces some sort of capital gains tax, or property tax (as opposed to the existing transfer tax, which is a joke).

That's when the fun will start.

[london]

Really, at the end of the day, what does all of this matter?

IF real estate prices are high in Pattaya or Phuket, (and, for the record, I don't think they are in comparison to similar locales around the world) or if they fall, well, it won't be the only place its ever happened.

IF someone decides that they LIKE Thailand and want to live there without the hassle of finding monthly rental payments, in an era when Western currencies are deflating, then really, its their business if they want to and if they CAN buy.

IF people do make money out of their poperties in Thailand or some don't, really, its no-ones business but theirs....so again, does it really matter?

As I said earlier, Thailand, be it Pattaya, Bangkok, Phuket, wherever, is a LIFESTYLE choice.

Its NOT about how much money we are going to make at the end of the day....its about LIVING !!

Personally, as I have said before, I prefer to buy. Always have done and hopefully will always be in the position to do so in the future.

I love living here. Simple. Some love Pattaya, some love Phuket or CM, it really doesn't matter...its their lifestyle choice. They can afford it and they have the guts to live their dream !

[Darrel]

Really, at the end of the day, what does all of this matter?

If you have bought a place to live in for the next 30 years it doesn't matter very much what happens to the value.

However, if you have bought somewhere as a short-term investment (which many people do here) it could matter a great deal.

[london]

Really, at the end of the day, what does all of this matter?

If you have bought a place to live in for the next 30 years it doesn't matter very much what happens to the value.

However, if you have bought somewhere as a short-term investment (which many people do here) it could matter a great deal.

Does anyone buy property as a "short-term" investment ?

Certainly, I don't know anyone, including members here, who have done it, nor I doubt would even consider it.

What returns are these people thinking they'll get ? In what time period: 6 months, 1 year ?

Oh well, each to his own.

[craigt3365]

Really, at the end of the day, what does all of this matter?

If you have bought a place to live in for the next 30 years it doesn't matter very much what happens to the value.

However, if you have bought somewhere as a short-term investment (which many people do here) it could matter a great deal.

Does anyone buy property as a "short-term" investment ?

Certainly, I don't know anyone, including members here, who have done it, nor I doubt would even consider it.

What returns are these people thinking they'll get ? In what time period: 6 months, 1 year ?

Oh well, each to his own.

I made a lot "flipping" property in the US. Can't do it now, but even here in Thailand, there are lots of folks who buy off plan with the intent of selling before the final payment is due. I think with the better developments, a profit can still be made, but it's not like it was back in 2007 and earlier. It was easy money then.