Land Price Updates

[SidJames]

Folks,

The missus has been offered 20 rai of rice land with main road access at 200,000/rai by a village not far from her's & about 10K from a market town

I'm looking at a long term investment for our young children.

I know next to nothing about the price of shoe laces outside of the bright lights so is that price in the ballpark?

I have searched the forum but the posts were older & I'm assuming that land prices have risen with inflation plus the fact that the floods damaged a lot of farms so driving up the cost of decent land.

No plans to work it myself either.

SJ

[fezzy]

Hi without knowing the exact area you will not

be able to get proper

answers as isaan is a

large area and also their

are many factors that

alter the price of land

eg; water avail, electrics

avail , land title and on

and on

I have 10 rai land for

sale in Khon Kaen it's

100 mtrs from the road

and its 800000 baht for

example Your 200000 baht a Rai sounds expensive but depends on where it is ?

Edited March 21, 2012 by fezzy

[IsaanAussie]

Sid,

Forget it, its that simple, forget it. Invest the money for your kids in something you have an interest in and can control.

IA

[grimleybob]

Unless it's alongside Highway 24 it's about 300% too much. Forget it.

[maprao]

Way way too expensive even next to a main road!

[macksview]

sage advice from the farmers, keep the money in an interest bearing account, it will probably earn more than the rice field.

wifes father has been saying that farmers are trying to sell at the moment in her local area, 12 rai at 800 000, one farmer offered land at, good farm land 10 minutes from the city, not on main road, good water supply..

4 million baht for 20 rai, it would want to be in an ideal location and even then it is very expensive.

[SidJames]

It's in the Nong BUa Lam Phu area & has been farmed until last year.

I don't know abouit water or utility supply but I am indeed grateful for the replies.

There's no point in asking opinion of folks in the game if you don't heed any of it.

My thinking was to lease it off & basically wait for value to rise as I was under the impression that farm land will outstrip inflation over the long term as population increases, hence more land turned residential & more food required.

[diggledunc]

Agree with 'grimleybob' at least 300% to expensive. This is probably only the ridiculous high price which is often first asked. Rice land would never provide a return. Very much depends where you are and the location and like all the factors 'fezzy' says. If I may quote 'fezzy' selling at 80,000/rai that would be expensive where I am Sakon Nakhon province where rice land with chanote can be bought for 50,000/rai or so. A freind in Amnat Charoen province was telling me that land there last year was cheaper than where i am.

Suggest do a lot of research before you buy and listen out for what is on offer and deals which have been done. you can then put all things like this into a perspective in your area.

Would have been good if you could have given an idea about the province, just to narrow it down.

Example I was offered a 2 nan plot in the village 450,000 which had a 'house' rather block building on it. I valued it at 100,000 but my Thai friend i think quite rightly said 'yes but you don't want the building a Thai would and live there probably worth 150,000' Shows the difference between offer price and Thai reality. Maybe the vendor also knows your missus has farang husband, that's always worth a high ask as some will bite.

Good luck.

[diggledunc]

It's in the Nong BUa Lam Phu area & has been farmed until last year.

I don't know abouit water or utility supply but I am indeed grateful for the replies.

There's no point in asking opinion of folks in the game if you don't heed any of it.

My thinking was to lease it off & basically wait for value to rise as I was under the impression that farm land will outstrip inflation over the long term as population increases, hence more land turned residential & more food required.

We must have posted same time. Sounds like area not to different to mine, I have been through NBL. Where I am not heard of anybody renting usually if someone takes it over for a year they split the rice 2:1 Worker:owner. Ok as long as the person working it does their job well but if they work badly you get less. My partner now sets a figure of how many bags, some years she wins some she looses but at least she knows where she is.

Will the value of rice land rise that quick. Note government subsidies now and Thailand maybe loosing its number one spot because for one reason Vietnamese rice is cheaper. Where i am prices have accellerated well ahead of inflation, not sure how far they can go. Don't forget how much thailand exports if those markets go flat because the rice is expensive how long will the government continue to buy in at a high price and then again a government can always change.

[IsaanAussie]

There are a few comments I would add here in light of some of the comments.

The farming community is declining and aging. Labour is getting harder to find and more expensive. Mechanisation and other input costs are rising faster than wholesale output prices.

The ASEAN economic community moves into gear in 2015 clearing many obstacles restricting free trade, Vietnam and others are cheaper and will have the advantage. Thailand is considered to be set to become a net food importer within 10 years.

Rice farming provides most families their food and a little spending money. I have returned between 4 to 5,000 baht a rai for the last 3 years, hardly the basis for a long term ROI.

Mono-cropping is a thing of the past. At best it yields boom and bust cycles. The worst of it is you are more dependant on external resources at retail prices. Integrated farming while many income streams smooth the bumps and byproducts replace purchased inputs is the way forward. This is poorly practiced here.

Thai people have a different outlook on life. You cannot assume that someone will do what is in your best interests as owner or employer, or even as family member. Unless you are present you will be well advised to let let things flow naturally. Trying to manage from a distance will drive you crazy.

Property investments always have a risk attached. Just look at the 2008 situation in the US, it isn't a Thailand specific issue. I retired in 2008 and took a massive smacking realising assets.

But for the risk takers here's something a little lighter.

You do not need a parachute to skydive! They only become necessary if your want to do it twice....

[SidJames]

Sage advive indeed gentlemen.

I always tell folks to stick to what they know when it comes to investing otherwise you might as well go down to the bookies.

Many thanks!

SJ