Buying Real Estate--buyer Beware

[Firefan]

And all these condos makes the Pattaya rental prices so much more attractive - renting would be my choice in the Pattaya area at least at current rental prices. Cheers!

[ThaiBob]

I don't understand what you guys see in View Talay anyway. We rented one of the condos from the management office for a couple of days because we wanted to stay at Jomtien for a change (with kids).

Judging from the Agent's office window, dozens and dozens of these joints were up for resale (don't know which number it was 1 or 2 or 3 whatever). Many looked like they had been for sale for a few years, including the one we stayed in for a couple of days.

I'll bet it's even harder to shift these places now.

The owner had done a reasonable job of decorating etc..but these buildings are huge depressing blocks..I believe they are "B" Grade too aren't they? Why anyone would pay 70000-72000 Baht per SQ M for a B Grade building is incredible (to me anyway). Silly money.

I agree the old View Talay buildings were hardly beautiful. Each iteration of the View Talay model is always a step up and now with beachfront property. As they say in real estate location, location, location!!

[thaigene2]

I don't understand what you guys see in View Talay anyway. We rented one of the condos from the management office for a couple of days because we wanted to stay at Jomtien for a change (with kids).

Judging from the Agent's office window, dozens and dozens of these joints were up for resale (don't know which number it was 1 or 2 or 3 whatever). Many looked like they had been for sale for a few years, including the one we stayed in for a couple of days.

I'll bet it's even harder to shift these places now.

The owner had done a reasonable job of decorating etc..but these buildings are huge depressing blocks..I believe they are "B" Grade too aren't they? Why anyone would pay 70000-72000 Baht per SQ M for a B Grade building is incredible (to me anyway). Silly money.

I agree the old View Talay buildings were hardly beautiful. Each iteration of the View Talay model is always a step up and now with beachfront property. As they say in real estate location, location, location!!

It's true I haven't seen the most recent re-creation..and yes I saw the ad that it is (apprently) at beach front..but it is still B Grade right?? What about Northshore is that A Grade? Just curious..if anyone knows

[mbkudu]

we would have to wait until the project is finished in 2 years. Then we would be notified so we can go down to the land office and register it in foreigner name.Never did they say you are one of the first to buy into the project and your contract number is in the 49% FOREIGNER NAME BRACKET.

they said if you got down to the land office early enough there should be no problem getting the condo in your name.

What you've said here in a sense is that these people have 'bought airline tickets on overbooked flights, and whoever is at the check-in counter first for their boading pass gets on their flight.'

[thailanddave]

I find this situation very interesting. The thai company scheme is basically a sham. If the thai authorities ever examine the corporation, the truth comes out.

However, this might open an interesting investment opportunity. I have contacted my former employer in NYC about finding investors that would be willing to purchase thai corporation properties for a very substantial discount.

If a number of properties become available, we would negotiate with the locals for preferencial treatment of our corporations. The property would become unsaleable. We would use it as rental property for at least five to ten years until the law changes.

If enough properties are located, the properties could be rolled in one Thai corporation and stock could be issued to the public. Then the original investors could sell their stock or let the corporation liquidate and pay dividends. The dividend should be fairly substantial just from rental income.

Another alternative would be set up a thai corporation to purchase the properties. If stock were offered to the right banking authorities, I would image a fairly sizable proportion of the property would be bank financed. Leverage would increase risk and profitability.

However, property values would have to fall at least 30%, a 50% fall would be optimal. A fall of more than 50% would indicate instability within the Thai system and would be to risky.

Im having trouble understanding how you intend to set up a foreign company to buy properties have lost value because they were in companies that were not actually majority thai owned. Aren't you just setting up another illegal company because its funded by someone other than thais? Isnt that why the government is investigating the thai shareholders to see if they have the income/funds to be actual partners? Where are you going to find thai investors that will invest the 51% vs your old companies investors 49%?

[pepi1]

THAILANDDAVE, You have got it in one!

[number6]

I posted this on another thread but am observing how tihngs work here - anyway its relevent here as well

I think a lot of the problems people have here is that they want to believe it works same here as in west – it does not – I have been in property investment in UK for over 30 years and of course have done very well out of it there – when I first came to Thailand (15+ years ago) I though it would be much the same here – so my first plan was to buy quite a lot of property and live on rents etc – luckily or because I researched reasonably well I soon realized that it was completely different here – first they don’t really have a rental market except for parts of Bangkok – second standards of build, maintenance and care are in a lot of cases by western standards appaling. Third few Thais look after their property – just look around at perfectly good buildings that even in good areas look like shxxxxx.

So lots of forangs looked at incredibly low prices here and thought wow and the whole thing exploded in popular tourist and forang areas – I have 2 houses (sorry my Thai wife has them and she’s welcome to lock the door but I don’t think will) and had 2 condos (all legally in my name as allowed) – I don’t regret these purchases after all they cost in total a small fraction of my previous house in UK. 1 condo we have now put in our childs name and since its in a high sought after area in a well managed block in central BKK I am 100% sure will appreciate a lot over the years. The other Condo is our BKK home and again I am 100% sure being in a central well maintained block will appreciate a lot. 1 House in Ciang Mai but local house (not overpriced foreigner estate) will probably depreciate but maybe not after all being older it was a bargain at 1.5 million bath (4 beds 2 bath 100 sq wa lovely place in hills) – point is its our sort of second home and cost less than a car so what can we loose really – second house – ok new 3 bed 2 bathroom for 1 million bath has a shop that my thai wife’s mum runs – it is on a thai only estate – will probably look a dump in 10 years but maybe not – I notice the new middle class Thais seem to be starting to look after their places better. My main property investment is still in west where I get a decent return and know long term it will also appreciate (ive ridden through 2 property crashes and by sitting tight won in end). Im still tempted to buy more here but when I feel urge I just drive around new estates and complexes and note how many are for rent for ages and how many owners are quite keen (almost desperate to sell) – that usually cures me and if not my lovely Thai wife always brings me back to reality with words “you always told me forget Thailand for property except central BKK etc).

So whats my advice – keep to law – don’t try fancy tricks like company purchase – remember this is not the west - property here often devalues not appreciates ( except as always prime location prime best quality build) – if you want to invest do it in best BKK locations not cheaper places and u have a chance – if its to live in buy second hand much cheaper (not like west Thais don’t like older buildings) – don’t get carried away by supposedly cheap deals theirs a good reason why by western standards their cheap.

AND LIKE EVERYONE SAYS DON’T PUT MORE INTO HERE THAS YOU CAN AFFORD TO LOOSE THEN YOU WONT WORRY – HERE ITS STILL A GAMBLE _ YOU CAN WIN BIG AND LOOSE BIG

AND FINALLY BE CAREFUL OF WHAT ADVICE YOU GET HERE A LOT OF IT IS CRxxxxxxxxx CHECK FACTS YOURSELF CAREFULLY BUYER BEWARE