Buy Or Rent

[paulnuek]

Hoping to move to LOS very soon.

Own a house in CM (or at least the wife does) but would prefer to spend most of the time in Pattaya.

Question:

Is it better to rent or buy?

While in Pattaya over xmas/new year I saw many condos for rent from 7000 Baht/£100 a month.Maybe even cheaper for a year lease.

Buying on the other hand would be at least 2 mil for somewhere decent.

Any views?

[bmanly]

You are dead right in what you say. There are several condos for rent for around 7 to 8K a Month. I always ask my self this question, if I was to invest my 2 Million baht in my home country in stocks or bonds would I make more money doing that than buying a condo in a market that you may not understand or trust? I always come with the same answer which is yes, "however" there is more to it than just money.

I know a guy who has lived in Pattaya for 16 years and last year he bought a condo. Set him back 1M THB. He said the reason he did it was because he was sick and tired of living out of a suitcase and wanted a place of his own. Something he could renovate the way he liked and somewhere where no landlord could kick him out or put up the rent. A lot of my mates have gone down this road for they same reasons but they all say the same thing. Should the Thai economy go belly up or should a political uprising or new laws stuff them up in way that they may need to leave in a hurry or lose the condo then that is the amount they will lose, what they paid for the condo. If you can be relaxed and live with that this could be a good way to go. I myself only live in Thailand 6 Months a year so it is not worth it for me.

On another point there is hundreds and hundreds of condos for sale in the Pattaya area and there is thousands more coming online, there is no rush. I think there could even be an over supply in the future. Here is a URL from the Pattaya Mail, this is just one small snippet from one paper so you can see for yourself there is plenty around. Good luck anyway.

[paulnuek]

Thanks for the Pattaya Mail article.

There are some very cheap condos in the article.

Definately food for thought.

But a condo at say 1.5 mil baht/£22,000. to buy or a condo for rent at say 8000 baht a month?

I could in theory rent for 13 years and still keep my money in the bank/bonds etc.

[bmanly]

But a condo at say 1.5 mil baht/£22,000. to buy or a condo for rent at say 8000 baht a month?

I could in theory rent for 13 years and still keep my money in the bank/bonds etc.

You could easily rent a 1.5 mil baht condo for 8000 baht a month. I have lived there on and off for 10 years, I know a guy who rents a condo in PBC which is in the heart of Pattaya, about 200 metres from the water for 8000 baht a month. Then there are several of my friends who rent for around 8000 a month inland near Carrerfour off soi Arunothai but that is 20 minutes walk from the water. My advise is to check into a cheap hotel for a few days then go visit the offices of the condos. The best leads come from ex pats that know the place like the back of their hand. It is not uncommon to pay double the price for the same kind of condo in the same complex. Different owners different rents. It's funny really, the greedy landlords would rather leave their condo empty than come down to the real price and get nothing. Meanwhile those that are at market price has a farang ready to move in the moment the other moves out, see it all the time.

[paulnuek]

I know whot you mean about the prices.

I looked in a few estate agents in Pattaya and noticed the different prices for View Talay complex.

Starting from arount 8500 Baht a month to some stupid prices.

And the apartments were the same size and on the same floor.

Staying in a hotel for a while and having a good look around does seem the best option.

I was also thinking that the prices quoted were for short term rent,so if I were to take a 6month/year lease I would like to think that I would be able to get the price down.

[thaigene2]

Renting is cheaper and condos for sale are overpriced when comparing the quality (most are B-grade in Pattaya I believe), with other countries.

Also if you ever want to leave and sell..you could be waiting along time to get what you think is a reasonable price given what you'd paid earlier.

Houses on the other hand seem to be fair value (even good value sometimes), but of course we can't buy in our names..and the company registration game is risky if the govt ever clamps down.

I've mulled this over many times, and here's my conclusion for what it's worth:

If you are rich enough to buy one for cash, and aren't bothered by walking away with nothing in a few years then buy either - a condo in your name - or another house in your wife's name, with the house owned by you (but not the land).

If money is an issue (i.e. the purchase would represent most or all of your finanial net worth) then just forget it....and rent. You'll have peace of mind...and money in the bank - never khow what you might need it for in the future!

[paulnuek]

Renting is cheaper and condos for sale are overpriced when comparing the quality (most are B-grade in Pattaya I believe), with other countries.

Also if you ever want to leave and sell..you could be waiting along time to get what you think is a reasonable price given what you'd paid earlier.

Houses on the other hand seem to be fair value (even good value sometimes), but of course we can't buy in our names..and the company registration game is risky if the govt ever clamps down.

I've mulled this over many times, and here's my conclusion for what it's worth:

If you are rich enough to buy one for cash, and aren't bothered by walking away with nothing in a few years then buy either - a condo in your name - or another house in your wife's name, with the house owned by you (but not the land).

If money is an issue (i.e. the purchase would represent most or all of your finanial net worth) then just forget it....and rent. You'll have peace of mind...and money in the bank - never khow what you might need it for in the future!

Wise words.....

I (or should I say the wife) already own a bungalow in the Chiang Mai area.

But as you rightly said I can not own land.

If anything ever happens to the wife I will be left with all sorts of problems.....

Having said that Chaing Mai is not the place that I would want to live "full time"....

Maybe I will look at 6 months there and 6 months in Pattaya....

I even thought about buying a condo and renting out,but this is not a good option as so many other people seem to already have this idea.

There are so many condos for rent in the Pattaya/Jomtien area that I think it would be very difficult to rent on a regular basis...

Conclusion.......

I think that renting would be the best option for me,at least in the short term..

[bangkapiboy]

Some people are comfortable renting for the long haul. But after the long haul, you're still left just simply renting with nothing to show for it. I learned that lesson the hard way while I was renting in NYC, then prices just went out of control. Not that prices will go out of control here, but I'm glad I have a piece of Thailand.

[paulnuek]

I already have a place in Chiang Mai(or should I say the wife has as I can`t own land).

Owning a condo outright does have an appeal...

But like so many people have said in the forums,why are most of these condos empty/for sale?

There are bargains to be had but what happens if I was to buy and the condo building could not sell /rent the majority of its units???

Its not like owning your own house/land....

Still an option,if the right place was found.

But I think I will rent in the short term and see how things pan out.....