Buying Power, Baht To USD Comparisons

[Pepe']

I have heard that your dollar buys ten times what you can buy in the states.

That's definitely not true with automobiles which may be the same or sometimes higher.

Real Estate- Generally cheaper certainly beach front and islands and some areas of BKK will bring a premium price.

But how about day to day Bhat to Dollar comparisons;

Food

Fuel

Car Maintanance

Utilities

Insurance

Clothing

Rent

Health Care

Others

[Yohan]

You can take the SAME item and to compare the prices in Thailand and overseas. For sure, if it is a JAPANESE car, cars are about double price in Thailand compared to the same model here in Japan.

Generally, all what is imported from overseas, is rather expensive in Thailand...

to compare food? what food?

Italian wine? Thailand is very expensive for food!

French cheese? Thailand is very expensive.......

Contrary the same:

Thai mango Juice? Expensive in Tokyo!

However Thai salary is also 5 times lower compared to Japan.

Expensive - cheap does not mean that an average wage earner has a better life in Japan compared to Thailand.

To compare prices - living standards is very difficult.....Insurance? how much will the Thai insurance pay compared to the Japanese one? Of course the Japanese is more expensive, but the damaged car they replace in Japan is cheaper than in Thailand.

So to compare what with what?

In winter it is cold here, so I pay for heating, but heating is not required in Thailand in most places....

All in all, I think, Thailand is about 5 times cheaper than Japan or USA or Western Europe.

If you need as American usd 3000,- in the States, USD 600,- or USD 800,- will do for a similar life as a local Thai in Thailand.

10 times cheaper? No, not true, this is not the case......

This is just my feeling after many years here and there.

Johann

[randyksf]

First you have to understand that anything built in Thailand will be much cheaper. Cars from running shoes. They have there buy from Thailand mentality.

Food

Cooking at home is a lot more expensive. Also if you need imported things it can drive up the cost. I would say I average 300 baht per day in food because i cook a lot.

Fuel

15 baht per Ldr

Car Maintenance

depends on the car. if built in Thailand 50% less for parts but could be much more.

Utilities

2000 baht depends on the AC and how much the place you are in charges. should be 3.5 4.5 baht per Kilowatt.

Insurance

depends. get a catastrophic policy from home with a high deductible. Out of pocket everything else. I had a full GI exam with an BE and lots of high tech x-rays, meds, and lab. Paid 2300 baht.

Clothing

US brands or high end 20% more but Thai/Asian brands 50% less or more. I have some great shorts and pants that cost 200 baht.

Rent

Depends on the area and size. budget 12k - 20k

Health Care

I have a GI issue and have had lots of tests and meds still payed less than $100 for everything.

Dental cleaning was 300 baht. Bleaching was 1500 baht.

Others

Electronics expect to pay 20-40% more than the US. Also name brands can be 20-30% higher than local stuff.

Budget 50k per month and then you might spend more. But I find most people spend less as time goes on.

[mrmnp]

Housing is much cheaper if you build your own. I did a custom made home for $25 a square foot vs. U.S. of a minimum of $50. My 30% equity in my stateside condo paid for my entire house and land here, and I have alot more square-footage to enjoy. No annual propertry taxes to deal with as well. Economics was a major factor in my decision to move to Thailand and I have lived to certify that it was the best decison I have made in my later life.

[Pepe']

Good info and much appreciated as allways. Bottom line again. Can you live on the interest from a 14 million bhat savings account?

[dr_Pat_Pong]

Good info and much appreciated as allways.  Bottom line again.  Can you live on the interest from a 14 million bhat savings account?

Park the money in a bank in Singapore. Reasonable interest, and absolutely no tax on earnings in Singapore. ATM facilities worldwide too.

[lopburi3]

Bottom line again. Can you live on the interest from a 14 million bhat savings account?

At current interest rate here (which is 0.75%) no. Survive; maybe.

[Pepe']

Thanks for the info. Well I guess I'll be semi retired.

[Yohan]

There are no interests anymore, which makes your life in Thailand more comfortable, either you have money from somewhere or you have it not.

14 Million Baht is however quite a lot of money, and should be enough for the rest of your life in Thailand, if you spend it carefully.

Buy your own condominium for about 2 million baht, so you do not depend on rent.

No need to work anything anymore.... and do not bring all money into Thailand, just keep maybe 2 million in your nearby Thai Bank for visa guarantee and for the daily life, to be ready to pay in a case of emergency.

I would leave my job here in Japan and take the next plane into retirement, if I had 14 million baht..

Johann

[Pepe']

Yohan,

That's encouraging. I appreciate the different perspective. I was just talking with my wife who said her grandfather lived for thirty years on the interest from 5 million Bhat..

[lopburi3]

I was just talking with my wife who said her grandfather lived for thirty years on the interest from 5 million Bhat

Yes. But what was the interest rate then? More like 10-20% I expect. Now if you are willing to spend savings you do have a chance to live well (if problems don't develop) but you seemed to be asking about using baht savings interest only and that is not going to provide much of a life here.

[mrmnp]

My math is poor but if you amortize your 12 million baht nest egg, (after buying home and car) at 30k a month for expenses you can live in Thailand for 30 years and have money left over and that is not factoring in the interest you may earn on the money.

[Pepe']

Hi Mrmnp,

We do have land. Several properties luckily. One is being developed into a fifty room medium income studio apartments in Samutsakorn. We can live in a master suite being built there or with my wife's mom that has a large house there in Samutsakorn for a while.

We've already got a car and pickup available. Although I may want a car of my own. I'm not sure.

Actually I would like to develope a nice property we have in Sattahip into a camp ground and massage school. It's walking distance from the beach and a very nice Buddhist temple.

It's sounding more and more from the input from you guys that we're in pretty good shape.

I know nothing is guaranteed. Maybe I'm being overly cautious but I've worked my ass off for a long time and want to try to make the best educated decision.

I really appreciated the clarity you guys are giving.

Good Health, Pepe'

[Yohan]

Let me explain you my own situation:

We have, all together about 6 million baht, beside that we have the apartment in Jomtien (74 sqm, fully paid) - we are both now 52 years old, children grown up, and from 65 yrs. on we both will get a small retirement allowance (we think both together around baht 20000,-/monthly)

Yes, we are willing to spend SOME of our savings, why to be forced to work anything in Japan for the next 12 or 15 years, while we could live a similar life WITHOUT obligations in Thailand?

Yes, next year is departure from Japan (and we can go back to Japan anytime we like, my wife is Japanese, and I am European, but holding a permanent Japanese resident status)

Should we suddenly find ourselves in troubles, we can go back anytime to Japan, as the parents house is here, and my older daughter is also living in Japan.

Yes we think about to do SOMETHING in Thailand, I have even some small offers from European companies....ok, IF I introduce a customer, or IF I fix any technical problem, pay me a commission.... something like that, without any real obligations.

Why to run after business in Thailand, instead to run after business in Europe or the USA? It does not make sense to me, if you have enough money for a life in Thailand anyway.

By the way, I know about foreigners, who LOST their money because of business in Thailand. (this is in reply for your idea about Sattatip camp ground and massage school!)

Make it sure, that a good part of your money is outside of Thailand, if you make that, what I am calling business-experiments.... It might work out, but there are many cases, where it did not......

Johann

http://www2.gol.com/users/johann

[Pepe']

Johann

Why to run after business in Thailand, instead to run after business in Europe or the USA? It does not make sense to me, if you have enough money for a life in Thailand anyway.

---You are correct. I just sat down today and did the math and found I really don't have to work. This however is the plight of a recovering workoholic.

By the way, I know about foreigners, who LOST their money because of business in Thailand. (this is in reply for your idea about Sattatip camp ground and massage school!)

---Prudent advice again. However we do own the land already and all business would be run through my wife who has never given me any reason to not trust her.

Also she has her degree in marketing and business management from Siam Universty. She was a sales executive with Mercedes in Bangkok for years and managed s couple of the larger hotels after she came out of college.

---I see lots of opportunities.

Make it sure, that a good part of your money is outside of Thailand,

---Will do.

if you make that, what I am calling business-experiments.... It might work out, but there are many cases, where it did not......

---I hear you thanks for the warning.

Good Health, Joe

Johann