Must...Resist....Buying..........Condo....

[TommoPhysicist]

I think you've made a good decision. But I've been wrong before (many, many times!).

Me too!

[Parker1973]

My old boss used to say...If it flies,floats or f***s....rent it.....!..Id apply that maxim to Thai property too...

Having owned 2 properties in Thailand and struggled to sell both,even at 'give away' prices,id rent...

Having said that,i have a mate in Pattaya who is a realtor and has made a fortune buying and selling condos,but then hes working in that business and always manages to 'steer' buyers/renters to his own properties....

Lifes a gamble....

Edited April 3, 2012 by Parker1973

[kruangfaifar]

Hey Grawburg,

just sharing a thought. Having lived here for the past 7 years and still not purchased a condo already points in the direction i'm going to be shooting at. That's becuase i think the property market in bangkok is overrated, and although i'm not great in creating valuation system, i do have to agree with what CCterry has mentioned. Firstly, this is thailand and just being a foreigner itself is a drawback as we cannot fully comprehend the thai laws here. Your real estate agents might come up with some explanation as to why you should buy but, not knowing the language the law will really be challenging. Secondly, the growing economics in the region and the changes that you see around should alret you that, thailand is not the next big thing in the region anymore. Post flood, the no. of foreign companies that have shifted production out of thailand is increasing as their trust in the government to overcome such mishpas is perishing. At the same time, focus in this region is shifting to burma. Thirdly, this country is spectaluar in terms of culture and people and definitely would be a great home but, in terms of economics, most of the systems are volatile. I might be wrong but based on few readings, it shows that thai people who have an average salaray of 15k are eligible for a credit card with credit limit of 50k. This is almost similar to the bubble where people are receiving loans without the ability to pay back increasing your credits and making the economy unstable. This is just the tip of the iceberg but anyways, i'm just sharing random thoughts in hopes to atleast shed some lights on your question. I hope it makes sense

Where did you get the information about foreign companies leaving Thailand post flood. I haven't seen one instance of this actually occuring have you? If so please share and prove me wrong for thinking that you are yet another TV Doom and Gloom merchant gleefully predicting the demise of Thailand without a single fact to support your argument. I think that your comment about Burma being a country of focus is years ahead of the reality. Burma hasn't even got a tradable\exportable currency or even te basic regulatory framework in place to support foreign investment.The lack of infrastucture there doesn't help either and that won't get fixed overnight. Anyway non of this addresses the O.Ps questions. His or Her questions are about 1) the feasibility of buying a condo in BKK with a view to renting it whilst he works overseas He also wants to return to BKK when on leave and stay in his condo. This to me isn't practical as the people who rent the condo won't be to happy about having to move out when the owner returns on leave. I also wonder whether renting might cause tax problems as the rent would be personal income wouldn't it? He would possibly have problems exporting the rent income back to his home country so he may have to spend it all here. Question number 2) seeems to relate to the longer term investment potential of buying a condo here. I think the answer to that is that nobody really knows but I do know that you can't export more funds than you imported to pay for it in the first place. If he is looking to buy a place to live in for his retirement for example I would think that it would be better to wait until closer to reaching retirement age as this would avoid maintaining the place for years including paying condo dues. If buying a place to live in then the investment aspect becomes less important as you are buying without the intent of selling again. .

Edited April 3, 2012 by kruangfaifar

[theblether]

NewlyMintedThai is Thai, keep that in mind, he has made a long term commitment to living in Thailand and good for him.

NMT pointing out that his condo doubled in value in the last 8 years is really worthless information, you're not asking what happened in the last 8 years, you're asking what is going to happen next.

If you are looking for a property for investment purposes, go look for a property in an area that you feel is at the bottom of the market. You obviously feel that Bangkok is nearer to the top of the market than the bottom, so you have answered you're own question in your OP.

If you are looking at BKK being your long term home ( retirement home?? ) then the current valuation is less relevant, it's only a question of will your rental income cover your investment. There will always be ebbs and flows in property prices, however if you reckon that this purchase would be self financing through rental income then it's a no brainer.

So get your head straight as to why you want to buy before you make a move, if it's for capital growth then don't buy in a market you suspect that is overheating. Trust your own judgement, it's not rocket science.

ps. Please note that the lifting of restrictions on foreigners owning condos in 2002 created a rapid rise in condo prices. Condos rose by 27% in 2003, and 30% in 2004.

Edited April 3, 2012 by theblether

[watcharacters]

As mentioned in another thread, I bought a condo in 2004 and just sold it for double what I paid, before factoring in THB appreciation. I am happy I didn't listen to naysayers.

Me too...

People who have nothing to invest are usually the ones who "know it all"

Well I could certainly buy a condo and congratulate those who bought at the beginning of the bubble. I'd say those owning a condo and promoting others to buy have a vested interest in keeping the sellers market robust.

[farang000999]

Well I've just had a punt.

60m2 - 2 bed

30k/m2

Ploenchit BTS 500m

30k/m2 sounds very cheap for ploenchit bts 500m. building name?

[soomak]

Price to rent ratios sure to vary by location and timing (job market). Some examples:

http://www.numbeo.co...year=2011&OK=OK

http://info.trulia.c...055&item=125286

I second your point.

price/annual rent= 10 is just wishful thinking.

I come from a country were this ratio has been 20 for some time now, and there is no change in the horizon.

It basically depends on the preferences of the locals, and the alternative investments. If the bank will only give you 3.5% per year, and the stock market is very risky, then a 6% return on a condo seems like a good investment.

[forumuser10]

delete

Edited August 15, 2012 by forumuser10

[KED]

I moved here 6 years ago and rented for 3 years and then bought a condo. I didn't really buy as an investment - but I felt confident that Bangkok would be my home for a long time - if not the rest of my life.

The advantages for me was the ability to really make my condo my home - buy he furniture I wanted and even paint the walls in colors I liked - not beige. Also, with interest rates at 2-3% on savings and the stock market so volatile - I felt better spending some savings on a home.

Hopefully, I will keep the condo and live in it for many years to come - but I don't regret buying -