Phuket It Is

[NamKangMan]

<snip>As a fair amount of Phukets expat population could be put into the 'gods waiting room category' I would suggest renting or a 30 year lease to anyone over 50.

I think you have hit the nail on the head. The 30 year option gives a nice retirement home until death. Cheaper/more comfortable than renting for 30 years. Fact of the matter is that the Thai girlfriend or wife hates that option. On the other hand the 30 year lease costs much the same as buying freehold so why not give your life partner a bonus.

I think one thing that should be considered is the raising of the retirement age in many countries. Basically, many of the Governments around the world do not want pensioners being a burden on their welfare system, so, they put the retirment age up to keep you at work longer.

Whilst many who work hard in their lives may be able to retire earlier than others, for the majority, with the high cost of living, they will have to work until they are older.

Currently, the retirment age in my home country is 67. If someone was to come to Phuket/Thailand as soon as they can unlock their superannuation and associated benefits, and "buy" a house, one must consider how much use you would be getting out of the property.

Say you live to 85, which would be "a good innings" - that's only 17 years of your 30 year lease.

I have no problem leaving the Thai missus a property upon your death, but, as posted earlier, you may be leaving her more of a problem than a luxury, because property will get harder and harder to "liquify" (sell and turn to cash) or rent out here.

So, even on that morbid basis, wouldn't renting make more sense????

[NamKangMan]

As a fair amount of Phukets expat population could be put into the 'gods waiting room category' I would suggest renting or a 30 year lease to anyone over 50.

If you are under that age maybe buying is a viable option, Im intrigued now. I might get the missus to get finance and Ill just slip here the monthly rent and if its the same as the repayments on the house then Im not losing anything...better the money goes to her than the landlord. Then in 20 years if we are still together and flip the joint I havent lost anything

Some people doing that now snamos. Foreigners going guarantor on a mortgage that's in the wife/girlfriend's name.

It appears that the loan over the property is used to see if the relationship is genuine.

There is payable interest to consider, so, for me, it still goes back to renting is the best option.

[Peterocket]

<snip>As a fair amount of Phukets expat population could be put into the 'gods waiting room category' I would suggest renting or a 30 year lease to anyone over 50.

I think you have hit the nail on the head. The 30 year option gives a nice retirement home until death. Cheaper/more comfortable than renting for 30 years. Fact of the matter is that the Thai girlfriend or wife hates that option. On the other hand the 30 year lease costs much the same as buying freehold so why not give your life partner a bonus.

I think one thing that should be considered is the raising of the retirement age in many countries. Basically, many of the Governments around the world do not want pensioners being a burden on their welfare system, so, they put the retirment age up to keep you at work longer.

Whilst many who work hard in their lives may be able to retire earlier than others, for the majority, with the high cost of living, they will have to work until they are older.

Currently, the retirment age in my home country is 67. If someone was to come to Phuket/Thailand as soon as they can unlock their superannuation and associated benefits, and "buy" a house, one must consider how much use you would be getting out of the property.

Say you live to 85, which would be "a good innings" - that's only 17 years of your 30 year lease.

I have no problem leaving the Thai missus a property upon your death, but, as posted earlier, you may be leaving her more of a problem than a luxury, because property will get harder and harder to "liquify" (sell and turn to cash) or rent out here.

So, even on that morbid basis, wouldn't renting make more sense????

Why would giving your money to someone else over that period of time be seen as making more sense. Even if you buy and sell after 15 years you are still better off. In my opinion the only time it would not be better to buy would be if you were planning on not being here more than 10 years.

Setting up a BVI or Thai company to buy a property is not difficult and even if you die the property still belongs to the company (or your family or whoever is the joint director). There are lots of options to buy here now and contrary to NamKangMans thoughts I expect that property in Phuket specifically will start to rise quite substantially in the next 10 years. Remember Thailand is still ranks in the top 10 Expat destination worldwide.

[LivinginKata]

Why would giving your money to someone else over that period of time be seen as making more sense. Even if you buy and sell after 15 years you are still better off. In my opinion the only time it would not be better to buy would be if you were planning on not being here more than 10 years.

Setting up a BVI or Thai company to buy a property is not difficult and even if you die the property still belongs to the company (or your family or whoever is the joint director). There are lots of options to buy here now and contrary to NamKangMans thoughts I expect that property in Phuket specifically will start to rise quite substantially in the next 10 years. Remember Thailand is still ranks in the top 10 Expat destination worldwide.

This topic is becoming much more interesting, Yes, i would agree that 10 years is the break even point where 'buying' makes more financial sense that renting. On the other hand many folks prefer to rent and have the option to move on without any burdens. I suppose it comes down to your life philosophy.

[petercallen]

When we were genuinely looking for a house to purchase in 6 months we found 5 houses that were value for money and still negotiable on price 2 in the north east of the island 1 in thalang 1 in Kathu and 1 in Rawai,

There are a lot more around now, good buys as a investment but not to speculate with you speculate on a fast rising market

People who speculate have stopped building because they cannot sell the properties, there are to many on the market already both for sale and rent and this keeps the price of renting a house down

10 years is not a long time to invest money in a property and i believe in 10 years the property market here will be increasing in value again and rents will be more expensive

[pagallim]

Another factor affecting both the current sale and renting markets is the exchange rates. As an example, when I bought my property 4 years ago, the exchange rate was just under 70 baht/1 UK pound. Now of course it's just under 50 baht/1 UK pound, so nearly 30% more expensive in non Thai currency terms.

A word of advice here regarding bringing currency into the country to make a major purchase. Keep documented proof, as this will help with any possible reverse transfer of baht to a home country.

[Old Croc]

When I came here two years ago (how time flies!) I was determined to rent, never buy, for all the reasons stated here.

I was of the opinion the worst of the finacial crisis was over and traditional investments would start to grow again.

I had sold my house in Oz for a price near the top of the market, and the plan was to keep that money invested where profits/interest would easily cover rent in Phuket and the principal would remain intact.

After a year here it became apparent to me that the world's economy wasn't going to recover in the short term, or even perhaps in my lifetime! The years of getting 12-20% on my money will never happen again for me. (I'm not one of those anonymous smartarses on this forum who bought gold at thruppence halfpenny a kilo years ago because they knew it would go to $1900 an ounze)

So I bought a little 3x2 house towards the south end of Phuket. (Pool Villa sounds so much better!) It had a few problems, but the price was discounted and a lot less than I expected to pay for something here. Less than a million baht fixed the problems and added security and lifestyle. It cost about a third of what I sold my 35 yo shitbox of place in Australia for. I could sell it for a profit now in the first year of ownership. It's in a quiet area with great mountain views.

I still have sizable, but slow growing, investments back home.

I found I hated renting here in that first year or so, something I had last done in my twenties. The crappy furniture and the restrictions in not being able to make changes in house or garden were frustrating. Having to wait for landlords to fix problems with crappy plumbing, etc, gaulled.

It may not be suitable for others, for instance, someone younger and yet to retire, but I've found having my own place (company owned) is much better for me.

[Peterocket]

Another factor affecting both the current sale and renting markets is the exchange rates. As an example, when I bought my property 4 years ago, the exchange rate was just under 70 baht/1 UK pound. Now of course it's just under 50 baht/1 UK pound, so nearly 30% more expensive in non Thai currency terms.

A word of advice here regarding bringing currency into the country to make a major purchase. Keep documented proof, as this will help with any possible reverse transfer of baht to a home country.

Documented proof of fund transfers is also necessary to setup a company should you decide to do so for property purposes.

[stevenl]

It may not be suitable for others, for instance, someone younger and yet to retire, but I've found having my own place (company owned) is much better for me.

I think you nailed it with that last sentence. It is all about personal choices, not about general statements.

[snamos]

When I came here two years ago (how time flies!) I was determined to rent, never buy, for all the reasons stated here.

I was of the opinion the worst of the finacial crisis was over and traditional investments would start to grow again.

I had sold my house in Oz for a price near the top of the market, and the plan was to keep that money invested where profits/interest would easily cover rent in Phuket and the principal would remain intact.

After a year here it became apparent to me that the world's economy wasn't going to recover in the short term, or even perhaps in my lifetime! The years of getting 12-20% on my money will never happen again for me. (I'm not one of those anonymous smartarses on this forum who bought gold at thruppence halfpenny a kilo years ago because they knew it would go to $1900 an ounze)

So I bought a little 3x2 house towards the south end of Phuket. (Pool Villa sounds so much better!) It had a few problems, but the price was discounted and a lot less than I expected to pay for something here. Less than a million baht fixed the problems and added security and lifestyle. It cost about a third of what I sold my 35 yo shitbox of place in Australia for. I could sell it for a profit now in the first year of ownership. It's in a quiet area with great mountain views.

I still have sizable, but slow growing, investments back home.

I found I hated renting here in that first year or so, something I had last done in my twenties. The crappy furniture and the restrictions in not being able to make changes in house or garden were frustrating. Having to wait for landlords to fix problems with crappy plumbing, etc, gaulled.

It may not be suitable for others, for instance, someone younger and yet to retire, but I've found having my own place (company owned) is much better for me.

Ive made major mods to my house with no dramas, and the landlord is cool....we only see each other once a year when I give him the rent. Whenever I need to fix something I get my own guy to do it if its a small job

BTW Im impressed at the amount of posts youve managed to rack up 6000 in 2 years! thats 10 a day

[Old Croc]

When I came here two years ago (how time flies!) I was determined to rent, never buy, for all the reasons stated here.

I was of the opinion the worst of the finacial crisis was over and traditional investments would start to grow again.

I had sold my house in Oz for a price near the top of the market, and the plan was to keep that money invested where profits/interest would easily cover rent in Phuket and the principal would remain intact.

After a year here it became apparent to me that the world's economy wasn't going to recover in the short term, or even perhaps in my lifetime! The years of getting 12-20% on my money will never happen again for me. (I'm not one of those anonymous smartarses on this forum who bought gold at thruppence halfpenny a kilo years ago because they knew it would go to $1900 an ounze)

So I bought a little 3x2 house towards the south end of Phuket. (Pool Villa sounds so much better!) It had a few problems, but the price was discounted and a lot less than I expected to pay for something here. Less than a million baht fixed the problems and added security and lifestyle. It cost about a third of what I sold my 35 yo shitbox of place in Australia for. I could sell it for a profit now in the first year of ownership. It's in a quiet area with great mountain views.

I still have sizable, but slow growing, investments back home.

I found I hated renting here in that first year or so, something I had last done in my twenties. The crappy furniture and the restrictions in not being able to make changes in house or garden were frustrating. Having to wait for landlords to fix problems with crappy plumbing, etc, gaulled.

It may not be suitable for others, for instance, someone younger and yet to retire, but I've found having my own place (company owned) is much better for me.

Ive made major mods to my house with no dramas, and the landlord is cool....we only see each other once a year when I give him the rent. Whenever I need to fix something I get my own guy to do it if its a small job

BTW Im impressed at the amount of posts youve managed to rack up 6000 in 2 years! thats 10 a day

I've been a member of Thaivisa for over seven years. About 2.2 posts a day, compared to just under 4 a day for you.

I finally made the move to live here permanently two years ago.

[Felt 35]

This topic is becoming much more interesting, Yes, i would agree that 10 years is the break even point where 'buying' makes more financial sense that renting. On the other hand many folks prefer to rent and have the option to move on without any burdens. I suppose it comes down to your life philosophy.

If careful and skeptical is included in that philosophy I agree.

Looking away from terms, conditions, stability and location but as example call this a “permanent home point” minimum 300 days a year for 10years - eternity there would in most ways be logical to buy,……..if the value of the property at least increases 3-4% annually but preferably 6-10% and extra expenses on the property are low. If the value of the property stagnates or if you have significant extra costs annually on the property, example, one year the garage broke down, next year the balcony or fence falling apart or as here now and then high cost for fixing flood related problems…….then the time period vs. rent or buy would be extended!

Personally I see Thailand as a place where I have my cabin or hut. A place where ting shall be different than home (They sure are) It shall be comfortable but at the same time easy and simple and a bit less structural than life back home. Sometimes I’m here 9-10 months a year, sometime house and family back home have done that I have preferred to be there more and I have maybe been here 5months a year.

As I have mentioned once in another treed here on Tv we have been very lucky with our landlord and I’m not sure I could have make to rent from the same landlord all this years if that was an up and down kind of type. Maintenance goes more or less automatically and if anything there are not many hours to wait before their engineer come and look at the problem. Not to forget I have paid 12K monthly all this years but like the market am now or have been the previous years I will believe it at least should have been 18K month.

To buy for me have never really been an alternative. I have never wanted it enough and I like to look after and have control over what I own and that’s difficult when here on and off, but to rent a cabin here for rest of my life that is a good number 2 retirement home for me. If in Phuket well time will show.

[petercallen]

Another factor affecting both the current sale and renting markets is the exchange rates. As an example, when I bought my property 4 years ago, the exchange rate was just under 70 baht/1 UK pound. Now of course it's just under 50 baht/1 UK pound, so nearly 30% more expensive in non Thai currency terms.

A word of advice here regarding bringing currency into the country to make a major purchase. Keep documented proof, as this will help with any possible reverse transfer of baht to a home country.

Of coarse if you sold your house now you would be paid in Thai baht and if you were returning to the UK would change it into GBP and be well in front

[F1fanatic]

This topic is becoming much more interesting, Yes, i would agree that 10 years is the break even point where 'buying' makes more financial sense that renting. On the other hand many folks prefer to rent and have the option to move on without any burdens. I suppose it comes down to your life philosophy.

If careful and skeptical is included in that philosophy I agree.

Looking away from terms, conditions, stability and location but as example call this a “permanent home point” minimum 300 days a year for 10years - eternity there would in most ways be logical to buy,……..if the value of the property at least increases 3-4% annually but preferably 6-10% and extra expenses on the property are low. If the value of the property stagnates or if you have significant extra costs annually on the property, example, one year the garage broke down, next year the balcony or fence falling apart or as here now and then high cost for fixing flood related problems…….then the time period vs. rent or buy would be extended!

Personally I see Thailand as a place where I have my cabin or hut. A place where ting shall be different than home (They sure are) It shall be comfortable but at the same time easy and simple and a bit less structural than life back home. Sometimes I’m here 9-10 months a year, sometime house and family back home have done that I have preferred to be there more and I have maybe been here 5months a year.

As I have mentioned once in another treed here on Tv we have been very lucky with our landlord and I’m not sure I could have make to rent from the same landlord all this years if that was an up and down kind of type. Maintenance goes more or less automatically and if anything there are not many hours to wait before their engineer come and look at the problem. Not to forget I have paid 12K monthly all this years but like the market am now or have been the previous years I will believe it at least should have been 18K month.

To buy for me have never really been an alternative. I have never wanted it enough and I like to look after and have control over what I own and that’s difficult when here on and off, but to rent a cabin here for rest of my life that is a good number 2 retirement home for me. If in Phuket well time will show.

I agree. When we first moved here I was determined to buy as that meant 'security' back in the West.

After various problems (having basically lost all the money I spent on a plot of land - lease)... I now rent a wonderful place in a location that I could have never afforded to buy. My landlord has been (and I hope will continue to be) wonderful.

Maintenance costs here are constant in view of the climate and not to be under-estimated.

Edited July 17, 2012 by F1fanatic

[petercallen]

This topic is becoming much more interesting, Yes, i would agree that 10 years is the break even point where 'buying' makes more financial sense that renting. On the other hand many folks prefer to rent and have the option to move on without any burdens. I suppose it comes down to your life philosophy.

If careful and skeptical is included in that philosophy I agree.

Looking away from terms, conditions, stability and location but as example call this a “permanent home point” minimum 300 days a year for 10years - eternity there would in most ways be logical to buy,……..if the value of the property at least increases 3-4% annually but preferably 6-10% and extra expenses on the property are low. If the value of the property stagnates or if you have significant extra costs annually on the property, example, one year the garage broke down, next year the balcony or fence falling apart or as here now and then high cost for fixing flood related problems…….then the time period vs. rent or buy would be extended!

Personally I see Thailand as a place where I have my cabin or hut. A place where ting shall be different than home (They sure are) It shall be comfortable but at the same time easy and simple and a bit less structural than life back home. Sometimes I’m here 9-10 months a year, sometime house and family back home have done that I have preferred to be there more and I have maybe been here 5months a year.

As I have mentioned once in another treed here on Tv we have been very lucky with our landlord and I’m not sure I could have make to rent from the same landlord all this years if that was an up and down kind of type. Maintenance goes more or less automatically and if anything there are not many hours to wait before their engineer come and look at the problem. Not to forget I have paid 12K monthly all this years but like the market am now or have been the previous years I will believe it at least should have been 18K month.

To buy for me have never really been an alternative. I have never wanted it enough and I like to look after and have control over what I own and that’s difficult when here on and off, but to rent a cabin here for rest of my life that is a good number 2 retirement home for me. If in Phuket well time will show.

I agree. When we first moved here I was determined to buy as that meant 'security' back in the West.

After various problems (having basically lost all the money I spent on a plot of land - lease)... I now rent a wonderful place in a location that I could have never afforded to buy. My landlord has been (and I hope will continue to be) wonderful.

Maintenance costs here are constant in view of the climate and not to be under-estimated.

Correct me if i am wrong but isn't your first name *** and don't you give other people advice on buying real estate

Edited July 18, 2012 by LivinginKata
name removed. Forum privacy rules

[pagallim]

I agree. When we first moved here I was determined to buy as that meant 'security' back in the West.

After various problems (having basically lost all the money I spent on a plot of land - lease)... I now rent a wonderful place in a location that I could have never afforded to buy. My landlord has been (and I hope will continue to be) wonderful.

Maintenance costs here are constant in view of the climate and not to be under-estimated.

Correct me if i am wrong but isn't your first name *** and don't you give other people advice on buying real estate

If 'F1fanatic' is involved in real estate, given her experience, she's probably better qualified than most to offer advice to potential purchasers. The way that I'm reading her experience is that she lost the funds that were going to buy a property, so perhaps renting is now the only option?

[snamos]

I wouldnt trust a real estate agent that rents....especially when every real estate agent throughout the world has the same mantra: 'nows the time to buy' even through recessions, depressions and booms.

[CrazyKid]

Thank You All...Time to close this..Pease

[snamos]

Thank You All...Time to close this..Pease

yeah your right...its becoming too popular, im surprised its gone to 6 pages and hasnt been closed down

[LivinginKata]

One personal post about a member and a nonsense post removed.

[NamKangMan]

Thank You All...Time to close this..Pease

I posed this question to you in an earlier post.

Why have YOU decided to buy, rather than rent, and on what basis have you made that financial decision?

Edited July 18, 2012 by NamKangMan

[CrazyKid]

Thank You All...Time to close this..Pease

I posed this question to you in an earlier post.

Why have YOU decided to buy, rather than rent, and on what basis have you made that financial decision?

Hi Sorry missed that. I am planning travel SEA and use Phuket as my base (Bangkok would be more convenient for travel I know). I have no idea where I will end up so renting is the best bet.

I did own (sold it in early 90's) the third largest Real Estate Apprailsal Company in San Francisco bay area and have a pretty good grasp of RE principles. I like smaller towns, in Tucson, AZ now, and think I will fit in on the island.

I am still very young at 61 and may buy/lease on the island after taking some time to look around and get a better understand. Counting all of you for some help with that.

Thx again

[petercallen]

Thank You All...Time to close this..Pease

I posed this question to you in an earlier post.

Why have YOU decided to buy, rather than rent, and on what basis have you made that financial decision?

Why does anyone have to give you a reason why they are thinking about buying a house here its not your business

You rent for your own reasons but if you want information about buying a house and want to know the ins and outs you should contact a good accountant who has access to legal opinions if required

[jackh]

As mentioned in a previous post, you may discover that many more people are leaving Phuket than are moving to Phuket. You should ask yourself, "Why?"

This thread is a joke right? You got to be off you're nut to even consider moving to Phuket.

[KarenBravo]

Hah...there again you bash Phuket. What happened? Ladyboy stole your wallet in your room?

[NamKangMan]

Thank You All...Time to close this..Pease

I posed this question to you in an earlier post.

Why have YOU decided to buy, rather than rent, and on what basis have you made that financial decision?

Why does anyone have to give you a reason why they are thinking about buying a house here its not your business

You rent for your own reasons but if you want information about buying a house and want to know the ins and outs you should contact a good accountant who has access to legal opinions if required

I had no problems stating the reasons why I rent. You had no problems stating the reasons why you bought. Why would the OP have a problem stating why he thinks it's a good idea to buy????

Having a bad day, are we Peter? :)

[petercallen]

Thank You All...Time to close this..Pease

I posed this question to you in an earlier post.

Why have YOU decided to buy, rather than rent, and on what basis have you made that financial decision?

No i am not but i notice it takes you 2 days to think of a response

Why does anyone have to give you a reason why they are thinking about buying a house here its not your business

You rent for your own reasons but if you want information about buying a house and want to know the ins and outs you should contact a good accountant who has access to legal opinions if required

I had no problems stating the reasons why I rent. You had no problems stating the reasons why you bought. Why would the OP have a problem stating why he thinks it's a good idea to buy????

Having a bad day, are we Peter? :)

No i am not but i notice it takes you 2 days to think of a response

[Jimi007]

As mentioned in a previous post, you may discover that many more people are leaving Phuket than are moving to Phuket. You should ask yourself, "Why?"

This thread is a joke right? You got to be off you're nut to even consider moving to Phuket.

Nah, I think you're a joke on this forum. Aren't you a travel agent in China? Hum, what is your agenda, besides slamming Thailand and Phuket at most any opportunity? Have you ever added anything helpful to this or any other forum you've posted on? Get a life...

[pagallim]

This thread is a joke right? You got to be off you're nut to even consider moving to Phuket.

In that case, there are many hundreds if not thousands of expats who live happily full time here in Phuket. Those who don't like it here generally can't adapt to change, and are likely to find the same form of change and hence complain wherever they end up.

Very few resident expats use tuk tuks, girlie bars, jet skis or any other facility commonly used by tourists. Most are only concerned about the availability of certain products, an occasional moan about the increase in traffic, or seeking some other form of information.

Perfect, no; very good, most definitely.

[LivinginKata]

In that case, there are many hundreds if not thousands of expats who live happily full time here in Phuket. Those who don't like it here generally can't adapt to change, and are likely to find the same form of change and hence complain wherever they end up.

Very few resident expats use tuk tuks, girlie bars, jet skis or any other facility commonly used by tourists. Most are only concerned about the availability of certain products, an occasional moan about the increase in traffic, or seeking some other form of information.

Perfect, no; very good, most definitely.

Could not have written it better. Thanks.