Thai Baht Appreciates To Strongest Level In Six Years

[ray23]

Sorry guys tried to edit my mistakes but it won't let me my apologies.

[jing jing]

Excellent post, ray23. It's just a little painful for me right now 'cause I'm in the midst of building a house, and hearing that the cost of materials has doubled in the last 3 years and the dollar is off over 10% doesn't exactly get me excited about my timing on this deal.

Fortunately my (wife and son's) house is a modest one, the land didn't cost me anything, and the money I'll be spending - even at higher material costs and lower exchange rates - won't cripple my lifestyle. It's just a little disappointing to know I had to spend a bunch more cash than Joe Farang down the road who got in 3 years ago.

[colinj]

yeah scary

I put the deposit on a 3,000,000 bt house last year and now will bepaying the rest in the next month

does anyone have any advice or info on the best way, ie (baht for pound) of transfering my cash

cheers

Brett.

Same here. In June I will be paying the balance on a new Condo, 1.5M baht. At the current rates it will cost Aus $3000 more than last Xmas. Oh well shit happens.

[ray23]

Truth guys Thailand is changing some for the better parts not. I was looking at the same thing a while back, when I bought, just found a good deal where the finacing fell through and the building costs were lower at the time. I knew that and was able to get a deal at the former pricing, gave me 400K equity the day I moved in besides my down payment. Just lucky.

But at least you got some parts done before inflation nailed you, the sooner you finish I would think the better. Good luck with your projects, it can be a real adventure here

[ColPyat]

So I'm not trying to sell my house, I'm not packing my bags, because what the baht is doing today has nothing to do with the reality of what is happening here.

Absolutely true.

The real estate market here in Thailand is completely inflated all over the country.

Farm land is artificially inflated for speculation purposes since the Chatchai government, has no relation whatsoever with realities of produce prices, rises in price not along normal parameters. I have bought a few years ago 33 rai of farmland for a very reasonable price here in Thailand. Now, 5 years later, the papervalue has doubled, without any substantial infrastructure added in the area, and incased income possibilities. Pure speculation.

In Bangkok most real estate has a buying/rent ratio that is somewhere around 20 to 30 years, which disqualifies it for investment purposes. There still is a vast oversupply of housing space. In addition to that 'second hand' housing market is due to religious believes not very popular compared to the west.

Most houses and apartment buildings are built substandard here.

I can buy hoses in stable western countries far cheaper, with far higher returns on rental income (if you look around carefully, you can get 10% up as returns), and far higher possibilities of increased value.

If you want to buy a house, or apartment, do it because you want to live there, but not as an investment. And better wait a year or two, because now we still are in the middle of a real estate bubble here. And, if you look at the last crash, for some reason in most areas in Bangkok, the prices did not come down to anything that might resemble a realistic value either (apart from Muang Thong Thai, but who wants to life there?).

[rcav8r]

yea i remember the days of 42-43 baht and us feb was only payibg 2.5%...guess it is time to takemy usd somewhere else...

I can remember 25 Baht to a Dollar and less than 40 baht to a pound.

And I remember fondly when I got 98 Baht for a Pound ! MalcolmL

[manjara]

I just bought some land (well, my wife did) with money brought in at 71 baht/pound, and got a contract working in Thailand with a rate in thai baht negotiated from dollars at a rate of 40 baht. Oh, yes, and 8k worth of gold at $550 per ounce

I'm feeling quite pleased with myself at the moment, but knowing my luck, it will be back at 50 baht to the dollar before we know it!

[Maestro]

And I remember fondly when I got 98 Baht for a Pound !

If you have a transaction slip to show that rate, frame it and hang it on you wall.

The highest bank buying rate ever, I believe, was 91.505 Baht, and that was on 26 January 1998. Admittedly, that wasn’t bad, either.

THB_GBP_19980126.pdf

--------------

Maestro

[ray23]

Hit the Atm yesterday 15k baht it was $11.03 more then the transaction three weeks ago. Now that can add up rapidly, but nothing that is going to change my lifestyle yet. But a little less saving each month makes it a little longer before I get my new toy's. So some big bike motorcycle dealer has to wait as well

[rainman]

my wife is buying less new clothes and shoes every months ...that's all i'm feeling of it right now. because that's the amount i get less every month due to the bad exchange rate. gotta save somewhere!

Edited April 27, 2006 by rainman

[Farma]

BOT intervenes to limit baht's rise

The Bank of Thailand (BOT) Governor Pridiyathorn Devakula said Thursday that the central bank has intervened in the foreign exchange market to stem the rise of the baht against the U.S. dollar and will take further action if necessary.

The central bank have intervened, but we cannot do much to change the broad trend, Pridiyathorn told a press conference Thursday.

He also said the baht is likely to be less volatile for the rest of the year, adding that capital inflows - mainly in buy local shares - during the past four months are at new high.

http://www.nationmultimedia.com/breakingne...newsid=30002674

[CSX]

Sure would like to see the days of 40 baht to a dollar again.

This stuff is usually cyclical. Or, I sure hope so!!!!

[Heng]

It's only fair to let the importers have some fun. Exporters have been having a party for the last 8 years.

[george]

Update:

Thai baht expected to be stable around Bt37 a US dollar

BANGKOK: -- The Thai currency has hovered around Bt37 per US dollar over the past two weeks and is likely to continue to stand at the level next week, according to the KASIKORN Research Centre (KSC).

The Bangkok-based research house projected on Friday that the Thai baht would move around Bt37.5-37.9 per US dollar during May 15-19.

Over the past two weeks, the Thai currency had hovered around Bt37.8 per dollar.

The stable baht is due to a steady demand for the Thai currency during the period, the leading think tank noted.

KRC indicated, however, that such external factors as key economic data of the United States to be released next week, including the country's capital inflow figures for March, as well as consumer and producer price indices in April, could affect the direction of the Thai currency.

--TNA 2006-05-13