Retirement House, Buy Now Or Later

[muse]

Myself and my Thai wife are planning to retire in about 15 year’s time, and we are probably aiming for the Hua Hin / Cha Am area. We plan to spend approx 2 or 3 million Baht on the property. At the moment we are not in a position to buy, we hope to have enough savings in about 5 years time. All we will need is a bungalow, and on the outskirts of the Town. If anyone could give there advice and/or personal experience this would be very helpful in our decision, Here are my questions :

1 - Should we plan to buy land and then sit on it till were ready to build ?

2 - How much do you expect the house price’s to rise in Hua Hin ?

3 - Should I spend e.g.: £30,000 on a property now or keep the money in a ISA and let it grow 5-7 % a year for 10 year’s. ?

4 - When buying a property should I keep out the way and let my wife take over the Buying process so as the seller might put up the price if they think a farang is

Interested in buying the property. ?

Personally I think my choice would be to keep the money in an ISA let it grow and then when we are ready to retire we would then look to buy. What do you think ? If you can give any kind of opinion it would be very helpful.

Many Thanks

[rocky]

(1) Buying land and sitting on it, I can not be totally sure but I do believe that some

law was put into place to encourage land owners to develop it rather than let is sit

idel.

Land generally goes up in price. I can see no reason for this over a 15 year period to

change. The new airport opens next year in Bangkok. This will allow more airlines

and more holiday makers into Thailand. The recent house price boom could be very

easily held or even increase with respect to more tourism and more real estate

customers.

(2) Real estate price have increased over the last few years in Thailand especially near

holiday resorts. How high can they go? Can the market be sustained? I do not believe

anyone has the real answers to this.

(3) If you are getting 7% on an Isa you are doing well, money in the bank is not a risk.

(4) I would do the business myself. You will need a Thai speaking person to help so

your wife will be of great help. Buying and working on property can be hard work.

The one thing Thai builders taught me was Patience. From my experience prices have

not gone up because I am no Thai.

(5) Money in an Isa is safe. You know the outcome. In property it is not the same,

You have many questions to ask yourself and only you have the answers. These are a

few questions that maybe helpful.

Am I sure in 10 years time that I will still like to live there.

Can I afford to lose money if the market goes the wrong way.

Will I be able to afford to buy in 10years in the market goes the other way.

If I buy a property now, how will I be able to maintain it if I live out of country.

[muse]

Rocky, Many Thanks for your quick reply, It was very helpful.

Cheer's

[lopburi3]

As your plans are long term I would not be in any hurry to spend money I did not have. Your plans could well change and what may be idyllic today may be an eyesore in a few years time. As rent generally is very low it is not normally cost effective to own property that you do not live in (unlike most places).

Only if I had family here (who could make use of the property) and I thought I could live in that area would I be thinking of buying that far in the future - especially with a solid 7% option.

[muse]

Lopburi3,

Your comments are very true, what maybe idyllic now may be an eyesore later, Because i have got time on my side, i guess we will just build up the savings and then see what the situation is later.

Many Thanks

[stevehaigh]

Lopburi3, 

Your comments are very true, what maybe idyllic now may be an eyesore later, Because i have got time on my side, i guess we will just build up the savings and then see what the situation is later.

Many Thanks

<{POST_SNAPBACK}>

since time is on your side, keep a look out for a great deal just in case something comes up. if your wife has family or friends there, have them keep a look out. land prices can vary greatly depending on how desperate the seller is, so you may find your self in the fortunate position of falling into a great deal that you can hang onto for the future or sell if you change your mind.

There is virtually no cost to owning land in LOS, just a few hundred baht per year tax.

[Morden]

I don't know the OP's area in LOS but I do know that land and building prices are increasing appreciably in popular areas. Wherever there are factories or tourists it will certainly be true. Building costs seem to have risen by about 10% during the last few months. Land prices close to Korat where factories are appearing are also on the increase. If there's much building going on in your area, prices are increasing.

Something else to bear in mind just at the moment is that the Baht is strong against the £ - I assume that you are from the UK, Muse. That might suggest that you should wait but I, personally, would expect the Baht to remain strong against the £ for the foreseeable future.

From my own experience, ISA's are pants. If you want to invest in the UK, speak first to and IFA. He isn't allowed to give you investment advice but he can show you what are your options.

My inclination would be to buy some land now if you can afford it. It will be in your lady's name of course. Land prices will probably increase by more than the cost of building a house. There's plenty of land left fallow in LOS so I doubt that any government official will even notice yours. If necessary, when the time comes you could always build a smaller house - most of your time will be spent outdoors in any case.

Good luck!

Edited November 24, 2005 by Morden

[Boon Mee]

When buying a property should I keep out the way and let my wife take over the  Buying process so as the seller might put up the price if they think a farang is

Interested in buying the property. ?

The general rule for Farang making any major purchase is to stay well out of the way and do it by trusted proxy.

Best of luck with your retirement plans.

[dclaryjr]

4 -  When buying a property should I keep out the way and let my wife take over the  Buying process so as the seller might put up the price if they think a farang is

Interested in buying the property. ?

<{POST_SNAPBACK}>

I'm making payments on land and a house that I've haven't actually seen with my own two eyes! My brother-in-law took care of it all. I thought I was making a land purchase until my wife told me the house was going up as well. I have mixed feelings about it but at least I know that when I do retire (in 8-10 years), I will have a residence that's paid for in a good location, and will be able to live well on my retirement income. Meanwhile, my family has a nice weekend retreat to go to (near Khao Yai).

[muse]

Many Thanks from you all for your helpful advice, Much appreciated.

Cheers

Muse

[astral]

As others have said the cost of ownership in LOS is minimal and prices only ever go up.

The only problem I see is the ownership.

The simplest way is for your wife to own the property.

If she predeceases you there could be a problem, as you will not be able to

inherit the land.

PM me if you want more info on other alternatives.

Edited November 30, 2005 by astral