Land Investment

[Rj 81]

Hi people,

Does anyone know the expected rate of inflation over the next ten years or so. I know it's not something that you can predict with accuracy but I was just wondering what the general consensus is here from members who may already own land ect..

For example I watched a TV programme that predicted with a £100,000 investment in the UK, you would see a return of £300,000 in ten years time. Although this was property they were talking about not land.

How has it increased in Thailand over the past ten years or so?

If I bought 100,000 THB worth of land in the Buriram area now, what could I expect to see as a return in 10 years?

Thanks

[wolf5370]

Depends on the type of land, its potential and the area.

I bought a piece of land (27 Rai) about 10 years ago and its worth about 5 times what I paid. However, it is building land on a main road with a new coach station, university and zoo (!) nearby that did not exist ten years ago. I had a heads up about the coach station and the uni, but the latter was a real runour (the coach station was likely).

Another piece of land is long and narrow and may flood (but is above the road so will not be under water) - its about 2 rai I think. I have been made offers, but all for about what I paid (I did take an exchange hit, so I took this into account too) - no sale.

Farm land that floods hardly changes price as the cost of turning it into other than rice paddies is high. Of copurse, it may be worth it if there is call for a new housing complex, superstore or hotel, but unless you are in the know, then its all luck of the draw - especially out of town.

[mrbojangles]

Hi Rj,

As Wolf says it really does depend on a lot of other factors. We have about 12.5 rai, in Chaiya Phuum. 3.5 rai has a road going past it and it also has Water and Electricity.

The other 9 Rai has a road to it but no Electric or Water. So, not worth as much. However, the village head told us a couple of month's ago, that there are plans to take Electric and Water right past our bit within the next two years. Then it will be worth more.....................but by how much??? I dunno.

Either way, 100,000 baht isn't going to be a huge gamble but it could pay off. Good luck either way buddy

[Rj 81]

Cheers guys

ps, how big is a rai?

[GuestHouse]

One Rai is 1600 square meters.

40x40 meters (80X20 ) etc

As for the investment potential you must also consider the risks.

What risk is money invested in land in Thailand at? How you hold the land is a huge factor, and don't miss the risks that go with all ownership routes.

The general rule applies.

Do not invest money in Thailand that you cannot afford to loose.

As for returns on investments in the UK, the current best investments are ISA's, they are tax free and have varying levels of security (all more secure than owning land in Thailand).

[wolf5370]

...but limited to the amount you can invest. There are lots of investments: Gold, FTSE 10 Index Trackers etc - they all have a risk. As GH says: Golden Rule = Invest what you're willing to lose and no more - and never buy on margin