Why Do Farang All Decide To Build A Home

[chiang mai]

why is it so much cheaper to build than to buy?

Because the developer margins are so high.

[dave111223]

why is it so much cheaper to build than to buy?

1) If you are buying from a developer you are paying for all their marketing/advertising teams, their sales people, their management structure, and then the builders and not to mention the often ridiculously oversized entrance way etc...

2) The 2nd hand market is Thailand is quite strange because people don't seem to understand "market value". Often people decide their sale price by thinking "I bought it for 2 million, so that means the price must be 3 million" nothing to do with what other houses are selling for , or what the market is doing etc...

And often they'd rather just let the property sit than sell it at a cut price (from their arbitrarily calculated asking price). Which means 2nd hand houses are often priced too high and because of time left sitting empty are often in poor condition.

[Darrel]

Those condos at less than developer price were purchased originally at less than developer price so the seller is still making a profit

In some instances, yes. But I have viewed some units that were on sale for far less than the developer ever had them listed at, even before the project was launched.

I am talking about 50% discounts here and I doubt that many people would have had that sort of discount from a developer.

[JAS21]

Well we bought our house new just over six years ago now, it's on the border of BK and Nonthaburi...actually in quite a good position in the village and the house is a quality build....I'm a bit fed up with BK traffic so am considering moving away...so it could be for sale.

[monty1412]

Why did we build our own house?

Let me see, could it have been that where we live out in a small village in the country there were no houses that my wife or I liked or wanted to buy?

No.

Could it have been because my wife already had some land just waiting to be built on?

That helped.

Could it have been that building our own house we could get what we wanted put in the places we wanted?

That helped too.

Could it have been that I wanted to leave my wife in a better position in the future?

That helped too.

Could it have been that our son (who wasn't thought of when we built the house will have some where to live in or sell when both my wife and I are dead and gone.

That was a bonus. (And so is he)

Could it have been because I didn't listen to all the doomsayers on Thai Visa that once it is built and in her name you will be kicked out, divorced and left nothing.

That happened to me in the UK and I lost much more than I would here plus I ignore doomsayers on principle.

We have known each other 18 years and been married for 11 of them and I figure that if she was wanting too look for a quick pile of money she seems to be taken the long way around to get there.

Ah, I remember now.

It was because we could and because we wanted to.

great answer.. says it all with a nice side serve or sarcasm.. you sound a contented man.. one of the few .. well done

[Geekfreaklover]

why is it so much cheaper to build than to buy?

1) If you are buying from a developer you are paying for all their marketing/advertising teams, their sales people, their management structure, and then the builders and not to mention the often ridiculously oversized entrance way etc...

2) The 2nd hand market is Thailand is quite strange because people don't seem to understand "market value". Often people decide their sale price by thinking "I bought it for 2 million, so that means the price must be 3 million" nothing to do with what other houses are selling for , or what the market is doing etc...

And often they'd rather just let the property sit than sell it at a cut price (from their arbitrarily calculated asking price). Which means 2nd hand houses are often priced too high and because of time left sitting empty are often in poor condition.

We thought the same until the Mrs pointed out looking at the banks list of properties for sale. Properties repossesed due to mortgage defaults. There's some great deals out there in the property market !!! But of course, not every farang knows that...

Edited September 12, 2011 by Geekfreaklover

[Jebhead]

why is it so much cheaper to build than to buy?

1) If you are buying from a developer you are paying for all their marketing/advertising teams, their sales people, their management structure, and then the builders and not to mention the often ridiculously oversized entrance way etc...

2) The 2nd hand market is Thailand is quite strange because people don't seem to understand "market value". Often people decide their sale price by thinking "I bought it for 2 million, so that means the price must be 3 million" nothing to do with what other houses are selling for , or what the market is doing etc...

And often they'd rather just let the property sit than sell it at a cut price (from their arbitrarily calculated asking price). Which means 2nd hand houses are often priced too high and because of time left sitting empty are often in poor condition.

We thought the same until the Mrs pointed out looking at the banks list of properties for sale. Properties repossesed due to mortgage defaults. There's some great deals out there in the property market !!! But of course, not every farang knows that...

In my experience the bank repo's are hard to get into because of the bank employees buddies getting all the proper bargains, it's usually just rubbish left that they do not want.....

JH

[SantiSuk]

you could add 'or rent one'

we lease a new house, owners get 4.2% return on their investment and are happy with this; maintenance and risk-free for me, getting a better % return on investment and rental at 'home'; we're in our third 'permanent location'; like it here, but in another year or two maybe move again.

Have no interest at all in trying to be seen as the rich farang in some isolated village, as so many seem to do.

And then there's the obvious . . .why build/pay for something you don't own?

What makes you think that some of us live in isolated villages (your concept) because we 'want to be seen as the rich farang'? Personally I like living outside of the main tourist traps and large towns to get away from judgemental farangs like you .

[Geekfreaklover]

why is it so much cheaper to build than to buy?

1) If you are buying from a developer you are paying for all their marketing/advertising teams, their sales people, their management structure, and then the builders and not to mention the often ridiculously oversized entrance way etc...

2) The 2nd hand market is Thailand is quite strange because people don't seem to understand "market value". Often people decide their sale price by thinking "I bought it for 2 million, so that means the price must be 3 million" nothing to do with what other houses are selling for , or what the market is doing etc...

And often they'd rather just let the property sit than sell it at a cut price (from their arbitrarily calculated asking price). Which means 2nd hand houses are often priced too high and because of time left sitting empty are often in poor condition.

We thought the same until the Mrs pointed out looking at the banks list of properties for sale. Properties repossesed due to mortgage defaults. There's some great deals out there in the property market !!! But of course, not every farang knows that...

In my experience the bank repo's are hard to get into because of the bank employees buddies getting all the proper bargains, it's usually just rubbish left that they do not want.....

JH

The bank employees do not have have that many buddies...And their buddies aren't all rich. Come on... There are simply loads of repo properties. In Bangkok, at least. Thousands...

But back to the OP. Most farangs build properties because it's something they have always wanted to do. Who hasn't always wanted to build a house? And its something their partners have always wanted to have. It's affordable so they do it. Fair play.

Edited September 12, 2011 by Geekfreaklover

[toffo9]

Building a 3 bed bungalow for 1.5 million baht... buying the same bungalow 2.5 million baht..

Hmm. Not sure about bungalows as I dont want one and would never buy or build one, but there are plenty of Pattaya condos on sale for far less than the original purchase price. In fact I know of several new units on sale for less than the original developer price, let alone the current developer price.

I suspect the same is true of houses.

well seeing im paralysed from the waist down after breaking my back i guees bungalows are ok for me... Unless you have some miracle cure that lets me climb stairs

[Darrel]

well seeing im paralysed from the waist down after breaking my back i guees bungalows are ok for me... Unless you have some miracle cure that lets me climb stairs

I'm afraid that I dont. However I would point out that several condo buildings in Pattaya have facilities for those in wheelchairs (special elevators with low controls, ramps, wide doors etc.).

Though presumably in your case the major advantage of building your own place would be to get the design that suits your needs, rather than to save money, and that makes perfect sense. Few resale houses would be so equipped, though I'm sure that there are some around, and they may well sell at a discount to more standard places.

[toffo9]

well seeing im paralysed from the waist down after breaking my back i guees bungalows are ok for me... Unless you have some miracle cure that lets me climb stairs

I'm afraid that I dont. However I would point out that several condo buildings in Pattaya have facilities for those in wheelchairs (special elevators with low controls, ramps, wide doors etc.).

Though presumably in your case the major advantage of building your own place would be to get the design that suits your needs, rather than to save money, and that makes perfect sense. Few resale houses would be so equipped, though I'm sure that there are some around, and they may well sell at a discount to more standard places.

I lived in pattaya for 1 year in the avenue residence , they even put the ramps outside built for myself and i was very gracious but living in a condo you dont get much privacy and even though i had no problems there i still think building my new home will be better... 35sqm condo cost 2 mill i think, i can build a 3 bed bungalow 150sqm for that but i understand why you prefer a condo and thats why we are all different.. Best wishes David

[dave111223]

We thought the same until the Mrs pointed out looking at the banks list of properties for sale. Properties repossesed due to mortgage defaults. There's some great deals out there in the property market !!! But of course, not every farang knows that...

There are good deal if you are willing to put in a lot of work and money to fixing them up, and you still won't end up with a "new" house.

I bought my condo as a bank repo, and it was basically a sh*thole when i bought it, took a ton of work to get it looking good.

I find it highly unlikely that one would be able to find a bank repo house that is comparable to a newly built modern house.

Edited September 12, 2011 by dave111223

[billd766]

Why did we build our own house?

Let me see, could it have been that where we live out in a small village in the country there were no houses that my wife or I liked or wanted to buy?

No.

Could it have been because my wife already had some land just waiting to be built on?

That helped.

Could it have been that building our own house we could get what we wanted put in the places we wanted?

That helped too.

Could it have been that I wanted to leave my wife in a better position in the future?

That helped too.

Could it have been that our son (who wasn't thought of when we built the house will have some where to live in or sell when both my wife and I are dead and gone.

That was a bonus. (And so is he)

Could it have been because I didn't listen to all the doomsayers on Thai Visa that once it is built and in her name you will be kicked out, divorced and left nothing.

That happened to me in the UK and I lost much more than I would here plus I ignore doomsayers on principle.

We have known each other 18 years and been married for 11 of them and I figure that if she was wanting too look for a quick pile of money she seems to be taken the long way around to get there.

Ah, I remember now.

It was because we could and because we wanted to.

great answer.. says it all with a nice side serve or sarcasm.. you sound a contented man.. one of the few .. well done

Thank you kindly young man.

I am contented and deservedly so thanks to my wife who did all the hard work.

All I did was provide suggestions, some of which were listened too, but some ignored, and gave my wife the money and she got on with it as the on-site supervisor.

[evanson]

freedom of design

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD! And hastily 'sketch' out the home of their dreams on the back of a fag packet over a Beer Chang or several, leaving the rest of us with an eyesore which may sadly, in the viewers' case, last for years. Or not.

IF you decide to build your own house (and I can appreciate the reasons why some people, such as myself, would), DO engage the services of a professional architect. The most important part of the start to any house being, after all, the design.

If however all you want is a Thai bamboo house (for which I commend you), go ahead. Much more pleasing to the eye than something boring pulled from the pages of any Thai builder's catalogue (readily available at most major bookstores, or the equally pedestrian/dull as ditch water 'free' house plans available on many 'expat' sites and completely unsuitable - ersatz Western copies of houses with low ceilings and large plate glass windows - hot as hell and sending your electricity bill through the roof), totally unsuitable to a Tropical climate.

Edited September 13, 2011 by evanson

[Darrel]

.....35sqm condo cost 2 mill i think, i can build a 3 bed bungalow 150sqm for that but i understand why you prefer a condo....

The condo price will depend on location and view, of course. For just over 2M in Jomtien you can get 48sqm and a great close sea view in a building with low maintenance charges and good security. Or without a sea view you could pay 1M for 40sqm in a brand new building with gym and big pool, or the same in a nice older building with character and gardens. All farang name, of course. Always assuming that you are prepared to wait for a serious vendor and do some hunting, and not just rely on agents. I have seen all of these recently: two are still on sale.

I have two reasons for preferring condos over houses. The first is that I cant legally own a house and the land it sits on which makes it a complete no-no as far as I'm concerned. The second is that I want somewhere that I can safely lock up and leave for a day or a month or a year on a whim and at more or less zero cost, and that rules out houses.

All that said, houses are, of course, better value for money as long as you can put up with the downside.

[ozsamurai]

freedom of design

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD! And hastily 'sketch' out the home of their dreams on the back of a fag packet over a Beer Chang or several, leaving the rest of us with an eyesore which may sadly, in the viewers' case, last for years. Or not.

IF you decide to build your own house (and I can appreciate the reasons why some people, such as myself, would), DO engage the services of a professional architect. The most important part of the start to any house being, after all, the design.

If however all you want is a Thai bamboo house (for which I commend you), go ahead. Much more pleasing to the eye than something boring pulled from the pages of any Thai builder's catalogue (readily available at most major bookstores, or the equally pedestrian/dull as ditch water 'free' house plans available on many 'expat' sites and completely unsuitable - ersatz Western copies of houses with low ceilings and large plate glass windows - hot as hell and sending your electricity bill through the roof), totally unsuitable to a Tropical climate.

BIR

extraction fans

Bath & Shower with hot and cold water

Proper wiring (earthed)

Orientation

Guttering and drainage

Benches at 1m + not 85-90cm (Short people style)

many many more.......

Try and find an off the plan that actually has ANY of these

[stgrhe]

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD! And hastily 'sketch' out the home of their dreams on the back of a fag packet over a Beer Chang or several, leaving the rest of us with an eyesore which may sadly, in the viewers' case, last for years. Or not.

Well, if it is any comfort for you here is one who used both an architect and a structural engineer. Well worth the extra penny to get proper drawings and thorough load calculations. Knowing is better than guessing.

[Darrel]

Try and find an off the plan that actually has ANY of these

Hmm.

When I read "why build instead of buy" in the title, I automatically understood "why buy new rather than buy used".

You apparently understood "why build to order rather than buy new off-plan".

I know from experience in various parts of the world that if you are prepared to do some hunting around, and devote a few months to the task, you will probably find a suitable used property where the owner has actually spent far more on the building than the asking price. With a bit of luck and modification, such a property could be a very suitable bargain, and both cheaper and better than any off-plan or build to order property.

Of course you also need to be able to see past the overpriced dross, of which there is an unreasonably large amount in Thailand.

[rgs2001uk]

Try and find an off the plan that actually has ANY of these

Hmm.

When I read "why build instead of buy" in the title, I automatically understood "why buy new rather than buy used".

You apparently understood "why build to order rather than buy new off-plan".

I know from experience in various parts of the world that if you are prepared to do some hunting around, and devote a few months to the task, you will probably find a suitable used property where the owner has actually spent far more on the building than the asking price. With a bit of luck and modification, such a property could be a very suitable bargain, and both cheaper and better than any off-plan or build to order property.

Of course you also need to be able to see past the overpriced dross, of which there is an unreasonably large amount in Thailand.

'you will probably find a suitable used property where the owner has actually spent far more on the building than the asking price'

Remove probably from the above for a more accurate statement, the only problem tends to be the location of said buildings.

A couple of years ago the mrs and I looked at a very attractive, well designed and constructed property on sale for well below the construction cost, the location basically means its unsellable.

Take a look around upcountry and see properties that stand as testament to white mans folly, as soon as the farang dies the bereaved sees dollar signs and tries to cash in her chips/inheritance, the only problem is the locals cant afford to buy rendering the property almost worthless in the local market.

[katabeachbum]

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD! And hastily 'sketch' out the home of their dreams on the back of a fag packet over a Beer Chang or several, leaving the rest of us with an eyesore which may sadly, in the viewers' case, last for years. Or not.

Well, if it is any comfort for you here is one who used both an architect and a structural engineer. Well worth the extra penny to get proper drawings and thorough load calculations. Knowing is better than guessing.

ad one

and required to get buildingpermit in dense areas

[villagefarang]

I can’t speak for others, but after 30 some years of living in apartments and condos in Bangkok, I simply got the urge to build my own little homestead. That was the only way to get what I wanted, where I wanted it.

Before building the house we lived in a condo for ten years which I bought and sold for a small profit. I could not have rented a nicer place and gotten a better return for my money. For me there is much more to the equation than cost. Location and lifestyle are big factors.

[GreenSnapper]

The condo price will depend on location and view, of course. For just over 2M in Jomtien you can get 48sqm and a great close sea view in a building with low maintenance charges and good security. Or without a sea view you could pay 1M for 40sqm in a brand new building with gym and big pool, or the same in a nice older building with character and gardens. All farang name, of course. Always assuming that you are prepared to wait for a serious vendor and do some hunting, and not just rely on agents. I have seen all of these recently: two are still on sale.

No doubt you know the market in Pattaya well, Darrel!

But my "internet hunting" at agent's websites always gave much higher prices. 1M for 40m2 in a new building sounds quite reasonable. So what's the trick? Visit the places on your own and bargain hard I suppose? Leave the agents out of the business?

[Darrel]

But my "internet hunting" at agent's websites always gave much higher prices. 1M for 40m2 in a new building sounds quite reasonable. So what's the trick? Visit the places on your own and bargain hard I suppose? Leave the agents out of the business?

I didn't say that these prices were common, but they are real (unlike many asking prices which are pure fantasy). The 1MB 40sqm unit was indeed via an agent. The unit was in a building that generally has an asking price of around 2MB, though I doubt that many actually sell at that price. The owner (who was keen to return to Europe) put it up for sale at about 1.6MB via an agent. I was told recently by that agent that it sold for 1MB a couple of weeks later. I have no reason to doubt him.

So that was a bit exceptional, admittedly, but it was a real price and a real sale. For me that makes it much more valid than a thousand places with high asking prices that don't sell. I have come across several other properties that were also priced to sell, and which did so.

One of the problems with keenly-priced properties is that once the sale is with an agent, or other go-between, the agent often just contacts a short-list of friends or investors (aka ghouls) who are waiting to snap up any bargains and who promptly put them back on the market at a higher price. I've seen a few of these this year, including one studio that sold for 1.8MB about six months ago and which has been back on sale at 2.3MB ever since.

These people are basically just ambulance chasers. Thanks to them many of the seriously-priced properties never see the light of day, much to the detriment of the vendor of course, but who here would be concerned about him?

[cheeryble]

Those are just a few of the reasons we decided to build rather than buy. Total cost, 2.5 rai land in the countryside, 20000sf of living space (including the wraparound porch), furnishings, 3 ac, less than 2.5 million baht. House is 12 years old and solid as a rock.

Do you use roller skates to get around indoors?

(interested in the "rolled steel roof"......is that the sort u see on industrial buildings made of very wide pieces? What made you choose it?)

Cheeryble

[cheeryble]

freedom of design

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD!

Are they the geniuses who build 80% of condos and haw puks and walls and the like so they get black streaks down the white paintwork?

One would think a few minutes of "training" would have got them to realise if a building's wall top is flat and horizontal he rain will sit there and grow the black fungus. Another few nanoseconds and they might realise that if on a condo they simply tilted the wall tops inwards at a few degrees and no extra cost the mould wouldn't grow well and in any case any discolouration would run inwards to the roof drains.

It amazes me every time I see it, which is every day a hundred times.

Cheeryble

[NovaBlue05]

I may likely do it because I enjoy messing around with design concepts using home design software so the thought of designing my own space is appealing to me. I have enough construction experience to realize most of the pitfalls to avoid. I think it would be a great project once I retire and can focus on it full time. Here in the States, a project like this would be a very expensive even before the first shovel of dirt is turned with the permits, cumbersome regulations the need to spend $thousands getting a licensed architect to develop, sign and seal plans....yada....yada.

On the other hand, if I found an existing home with a flexible floorplan that lended itself to a renovation/remodeling effort , I could find that attractive as well.

[cheeryble]

Speaking of architects being cheap......what are the rates for

1. full detailed drawings

2. overseeing a project they have drawn up

??

[trogers]

freedom of design

Yes. Never fails to amaze me that when disboarding a flight from Farangland just about anyone can turn into an architect, a profession requiring seven years training, two years more than an MD!

Are they the geniuses who build 80% of condos and haw puks and walls and the like so they get black streaks down the white paintwork?

One would think a few minutes of "training" would have got them to realise if a building's wall top is flat and horizontal he rain will sit there and grow the black fungus. Another few nanoseconds and they might realise that if on a condo they simply tilted the wall tops inwards at a few degrees and no extra cost the mould wouldn't grow well and in any case any discolouration would run inwards to the roof drains.

It amazes me every time I see it, which is every day a hundred times.

Cheeryble

This inward sloping top has been used effectively in roof parapets and balcony curbs of Avenus 61 (2005), in Sukhumvit Soi 61.

[canuckamuck]

My wife and I are having a great time with our house rebuild and I am doing most of the work myself at my own pace, except for the really grunty stuff.

But then I enjoy creative projects.

I have noticed that most Thai projects have considerably different sense of design, space usage, livability, and taste in materials then I do. Have you ever visited a Thai floor tile shop? 90% of tiles for sale seem like some kind of failed joke. Who is buying this stuff??