What Are The Advantages Of Buying Property In Chiang Mai

[LivinLOS]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

[LivinLOS]

OT but im looking for 1/2 a rai in chiangmai, preferably within 60km from cm airport. budget is about 200k, of course the lower is better, you guys think its possible?

i heard people saying to actually drive around and look for potential boards rather than online which prices will be significantly higher, true i guess? any area to recommend guys?

That should be dooable for rice paddy land.

Problem I saw with all the rice land, was 1) the costs of raising it.. 2) you then have to wait to build to compact it.. and 3) your left with rice land and bugs..

Seemed to me much better to look west of the city for more natural land which ultimately cost about the same and is far more appealing, hopefully leading to a better return once a build is done.

[chiang mai]

For those of you who haven't yet read the article that appears on the front page of todays Bangkok Post that discusses this very subject, the Ombudsman said:

"He said the Office of the Ombudsman would propose a bill to prevent nominees holding property within two weeks".

The background to the above statement was as a result of said Ombudsman having carried out a study to see how much land in Thailand is owned by farangs and his answer was one third! That figure is hotly contested by experts but neverthless a new law will be enacted to stop these bad farangs from stealing title to land. The article goes on (and on) to talk about farangs using the 51% of voting rights method to acquire control of a limited company whereas the maximum permissiable under law is only 49% - closer scrutiny of what percentage of a company is based on land and home ownership will be enforced.

Game, set and match I believe.

[LivinLOS]

I pay THB18,000 per month to live here.

I'll bet with a minimal effort you can find as nice or nicer for significantly less per month.

Now *that* would yield a tremendous ROI.

Why do posters in the CM forum always have that 'it has to be cheaper' mindset.. And anyone who wants something of quality or luxury is wasting money ?? We know nothing about the value, quality or size, of the home hes renting for 18k, it might be a 20 mil sale price home.

On Phuket my rent was at one time 75k per month.. and it was still 'cheap' considering the value of the hilltop villa it was.. In CM my rent is a lot more then 18k.. But in the 18 months I have been here I havent found anything renting thats priced near it with the kind of standard it has.. garden, 20m pool, jacuzzi, etc that this has.. Not everyone wants to live in a moobaan home.

[funcat]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

[LivinLOS]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Maybe.. Personally whenever I see an advert without a price for anything car or house etc.. I tend to not bother, simply as have had sellers with such unrealistic prices (one wanted more for a second hand car then the new price, hows that for ballsy) thats it not worth the stress.

So perhaps the lack of pricing is denying you inquiries ?? Just a maybe..

[funcat]

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Maybe.. Personally whenever I see an advert without a price for anything car or house etc.. I tend to not bother, simply as have had sellers with such unrealistic prices (one wanted more for a second hand car then the new price, hows that for ballsy) thats it not worth the stress.

So perhaps the lack of pricing is denying you inquiries ?? Just a maybe..

...maybe...but how do you explain the fact,that I have another add with the price...and the same result...and I also put the magic word "offer" in it...Is there another way to advertize that I don't know off ??

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

[LivinLOS]

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

I have bought land.. And am not averse to buying more..

The kind of home I wish to build doesnt come onto the market often.

[WinnieTheKhwai]

The kind of home I wish to build doesnt come onto the market often.

[lannarebirth]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

I don't agree with you about there not being enough buyers. There are plenty of buyers but as this is a GROWTH market as compared to a MATURE market. Buyers opt to buy parcels of land and build their own dream house. Why pay for someone else's dream?

As land becomes scarcer I expect existing home sales will do better, but there's no telling when.

Edited March 14, 2012 by lannarebirth

[lannarebirth]

The kind of home I wish to build doesnt come onto the market often.

That'd be pretty cool with a wrap around deck.

[LivinLOS]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

I don't agree with you about there not being enough buyers. There are plenty of buyers but as this is a GROWTH market as compared to a MATURE market. Buyers opt to buy parcels of land and build their own dream house. Why pay for someone else's dream?

As land becomes scarcer I expect existing home sales will do better, but there's no telling when.

Good observation.. Also CM isnt restricted by geography to expansion (OK nat park on the west but) and in many ways as town grows the desirable fringe, and services thats its nice to have close spread out to meet the creep.. Having spent years on an island, with an 80 build limit, the supply of good land parcels was small and rapidly diminishing, combined with a much greater number of new arrivals. Totally different pricing considerations.

[chiang mai]

Having lived in Phuket previously I am familair with Land and House in Chalong, now back in Chiang Mai I stopped by Land and House Chiang Mai yesterday to look at their northern offerings. L&H CM houses run in the price range 8 to 12.5 mill whereas Chalong L&H is typically in the 6 to 7 mill range, given that one area has land that is in short supply and the other has oodles of rice paddy on which to build, I reckon L&H is trying it on in CM.

[WinnieTheKhwai]

Good observation.. Also CM isnt restricted by geography to expansion (OK nat park on the west but) and in many ways as town grows the desirable fringe, and services thats its nice to have close spread out to meet the creep.. Having spent years on an island, with an 80 build limit, the supply of good land parcels was small and rapidly diminishing, combined with a much greater number of new arrivals. Totally different pricing considerations.

True; for the typical compound home in the suburbs there is so much space that it won't really run out in our lifetime. The value is pretty much driven only by the building cost. (materials + labour)

It may be slightly different when you're really downtown though, space will run out there, and there are restriction in place on building tall condominiums in the old town area. There the land prices may increase faster.

[triffid]

"prices will not be lower.."

That is a falacy.

Property doesn't always increase.

In my community they are building new houses that are cheaper now for the same size land and house than people paid 4 years ago. Earthquakes, floods and everything else might destroy your house too. 25 years from now, do you really think that your house will be in the same condition? Leaving your children a financial burden what a great gift. Not to mention that property taxes will exist someday here.

Just 1 question...do you know what were the prices in CM 25 years ago ??!!

Good question, do you? And I don't mean that to be smart, but I would be very interested what house prices were 20/25 years ago. However, I don't think they had moo bans back then, but I would be very interested to know what property prices were...Anyone?

I would have to ask my wife...but I'm guessing she is to young to remember

...well,I've asked...she wouldn't know 25 years ago,but her older sister has bought a house 16 years ago in a mooban,2 story,3 bedroom,3 bathroom,75 sq wah land...1.1 mil Baht

Such comparisons are worse than useless, ie they are misleading, until you account for inflation.

[LivinLOS]

Good observation.. Also CM isnt restricted by geography to expansion (OK nat park on the west but) and in many ways as town grows the desirable fringe, and services thats its nice to have close spread out to meet the creep.. Having spent years on an island, with an 80 build limit, the supply of good land parcels was small and rapidly diminishing, combined with a much greater number of new arrivals. Totally different pricing considerations.

True; for the typical compound home in the suburbs there is so much space that it won't really run out in our lifetime. The value is pretty much driven only by the building cost. (materials + labour)

It may be slightly different when you're really downtown though, space will run out there, and there are restriction in place on building tall condominiums in the old town area. There the land prices may increase faster.

Tho given how traffic is now.. and how it has to be projected to increase.. I cant see me personally wanting to live there so I dont consider it as much..

Also as for prices rises.. In % terms I would say its the fringe land, that goes from cheap to desirable as expansion happens, which gets the higher % return.. Past the samoeng junction your sub 1 mil a rai (often VERY sub) just a couple of kms from land thats now 3 - 4+ mil a rai. I think its easier to see the sub mil stuff double or treble than it is to see the land past night safari jumping to 15 - 20..

[OriginalPoster]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Not necessarily. Many people ignore advertisements that do not include an asking price.

Edited March 18, 2012 by OriginalPoster

[OriginalPoster]

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Maybe.. Personally whenever I see an advert without a price for anything car or house etc.. I tend to not bother, simply as have had sellers with such unrealistic prices (one wanted more for a second hand car then the new price, hows that for ballsy) thats it not worth the stress.

So perhaps the lack of pricing is denying you inquiries ?? Just a maybe..

...maybe...but how do you explain the fact,that I have another add with the price...and the same result...and I also put the magic word "offer" in it...Is there another way to advertize that I don't know off ??

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

An unrealistic asking price is apt to discourage inquiries even if you include the magic word "offer".

[funcat]

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Maybe.. Personally whenever I see an advert without a price for anything car or house etc.. I tend to not bother, simply as have had sellers with such unrealistic prices (one wanted more for a second hand car then the new price, hows that for ballsy) thats it not worth the stress.

So perhaps the lack of pricing is denying you inquiries ?? Just a maybe..

...maybe...but how do you explain the fact,that I have another add with the price...and the same result...and I also put the magic word "offer" in it...Is there another way to advertize that I don't know off ??

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

An unrealistic asking price is apt to discourage inquiries even if you include the magic word "offer".

Looks like you know things,so what will be the realistic price for a 4 bedroom,4 bath,250 sq m 2 story house on a 85 sq wah lot in established mooban in Mae Rim ?

[OriginalPoster]

Maybe.. Personally whenever I see an advert without a price for anything car or house etc.. I tend to not bother, simply as have had sellers with such unrealistic prices (one wanted more for a second hand car then the new price, hows that for ballsy) thats it not worth the stress.

So perhaps the lack of pricing is denying you inquiries ?? Just a maybe..

...maybe...but how do you explain the fact,that I have another add with the price...and the same result...and I also put the magic word "offer" in it...Is there another way to advertize that I don't know off ??

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

An unrealistic asking price is apt to discourage inquiries even if you include the magic word "offer".

Looks like you know things,so what will be the realistic price for a 4 bedroom,4 bath,250 sq m 2 story house on a 85 sq wah lot in established mooban in Mae Rim ?

Don't know. At what price is it not attracting any interest?

[funcat]

...maybe...but how do you explain the fact,that I have another add with the price...and the same result...and I also put the magic word "offer" in it...Is there another way to advertize that I don't know off ??

BTW,I wonder,if there is anybody around here who has recently bought a property in CM ??...any insides ??

An unrealistic asking price is apt to discourage inquiries even if you include the magic word "offer".

Looks like you know things,so what will be the realistic price for a 4 bedroom,4 bath,250 sq m 2 story house on a 85 sq wah lot in established mooban in Mae Rim ?

Don't know. At what price is it not attracting any interest?

2.9 mil...

[WinnieTheKhwai]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

There is no logic here...simply not enough buyers...I'm running an add for our house,did not disclose the price(!)...still no calls...If it was about the price,people would make offer,right....??

Not necessarily. Many people ignore advertisements that do not include an asking price.

I know I do. Don't feel like wasting the seller's time and especially not my own. If someone has something to sell, put up a god#$*&$ned price.

[funcat]

I know I do. Don't feel like wasting the seller's time and especially not my own. If someone has something to sell, put up a god#$*&$ned price.

If you're looking for a 4 bd/4bath house and found add like this,you will want more info,right...but if you "just" looking,than you'll probably skip it...for serious buyers only,I guess...

[BigJohnnyBKK]

I'm going out on a limb here to suggest that the current devolution of this thread has eloquently answered the OP.

The OP requested that we ignore the technical/legal issues and focus on the financial only, but I'm afraid that's like saying "never mind about corruption in Thai politics, how can I sponsor an altruistic idealist to run for an MP seat?"

My POV - it only makes sense to "invest" in real estate in Thailand if:

the amount you're sinking is low enough relative to your income/assets that losing most of your investment wouldn't be more than a minor annoyance.

I personally believe the odds to be quite high that it will be very difficult to get back even close to the overall investment back, and it may take a lot of time and energy to do so, work which most likely needs to be done by you personally in that location. The biggest cost from my POV is the loss of freedom and peace of mind, and thus I personally will likely always rent, until I've found a place where I want to live out the remainder of my days.

Other scenarios where buying as opposed to renting **might** IMO make sense:

1. You plan to live in the property yourself, hate the idea of "throwing money away" by paying rent, AND don't mind paying (possibly **much**) more per month overall for the privilege of being an owner.

2. Alternatively, you plan to become a professional landlord, buying up properties as cheaply as possible and renting them out as dear as possible, and have factored in all the cost variables of maintenance costs, deadbeat tenants, legal issues.

3. Your purchase is an expression of love to your significant other and his/her family and you're willing to see it as an outright gift if things don't work out as well as they seem to be going right now.

[kjhbigv]

"The house is not over priced, but there is a massive oversupply where supply far exceeds demand."

Correct, that is exactly what I am saying....

Forgive me if this seems argumentative.. But i dont follow that logic.

When you pick a price point, you must wish to sell it.. If theres oversupply, and you want to sell.. You have to adjust that into it.

If its not selling, after that time, it wasnt priced to sell. Thats overpriced to me (if your wanting to make the sale).

Just saying it priced at what every other muppets asking, when none are moving, isnt it not being overpriced.

Well, pleased to say that it WAS obviously priced at the correct price and has just been sold to a Thai for the price advertised!

2M for a 3 bed, 3 bathroom, modern, western kitchen, 2 balconies, 5km from town on the 118, secure moo baan....looking at other properties it seemed, if anything, excellent value compared to other properties in that price bracket BUT still took a year to sell!