Building a House in Bangkok Right Now, Am I Mad?!

[paulklee]

There are several ongoing developments in Thailand with potentially conflicting outcomes, for expats and Thais in general. For example, we have The Military Coup and lack of civilian Government; the Immigration Department clampdown on border runs etc and thus maybe affecting some expats' ability to stay in Thailand longer-term; The South East Asian Economic Community and the free movement of labour from 2015.

In the midst of this, I'm planning to start building a small house (detached, 120sm, 2 floors, flat roof) next month,in the Sukhumvit area of Bangkok! It's been on the cards for a while and we already have Planning Permission from the Local Authority. We also have a trusty builder (touch wood!) who has done lots of work for us before and has done new build stuff as well. So that side of the project seems OK. It's a Baht 2.5m (maybe plus) project, so not a huge risk. It's also a longer-term project and will be used for rental (if ever possible), not as the family house.

But...is it just plain stupid to be considering a new build under any circumstances at the moment? is it better to leave the small plot of land as land (80sw) rather than locking in a house? If not a house, then how best to use the money rather than have it sit in a no-interest account. On the other hand, will building materials keep going up in price if I don't do it now? And if I do build, as it is a house not a condo, will that make the potential risk worse or better?

I've got a builder just waiting to get the contract while all these external forces are trying to influence the final decision. This isn't a post about construction, or the economy, or property, or the (lack of) Government etc - it's about all these things and more and I hope to get maybe a few sensible comments about what you would do, or maybe even another way to look at the situation.

[AYJAYDEE]

how far above high tide level is it?

[thailiketoo]

The only problem builders seem to be having in Bangkok right now is finding labor to finish construction. Many large projects are late because of the labor shortage. The smart money is in.

[paulklee]

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how far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

[AYJAYDEE]

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how far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

bangkok is slowly sinking and ocean levels are rising. how long u planning on living?

[thailiketoo]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

how far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

bangkok is slowly sinking and ocean levels are rising. how long u planning on living?

Central Embassy just opened in Bangkok. I believe it is one of the most expensive malls in the world.

You think the management at Central is stupid?

[Soutpeel]

why has the coup changed your outlook ?

Is building now any more silly than putting money into a house that you couldn't legally own anyway even before the coup, unless of course your a Thai citizen

[krisb]

Sounds good to me. Feel free to post some construction pics anytime.

Ps, we are probably all mad building in Thailand, but you only live once.

[paulklee]

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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

how far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

bangkok is slowly sinking and ocean levels are rising. how long u planning on living?

I plan on living until I die! But fair point to you. A ThaiVisa thread in 2011 says "Many international experts believe that due to global warming, Bangkok will be permanently submerged under water within 50 years". More recently "some experts" "are afraid" that "some parts" of the city will be underwater "maybe as soon as" 2030 years (Time). Anyway, thanks for bringing that point up, it's certainly another way of looking at it.

[thailiketoo]

why has the coup changed your outlook ?

Is building now any more silly than putting money into a house that you couldn't legally own anyway even before the coup, unless of course your a Thai citizen

I think there is a real estate adage something about blood and streets........

[paulklee]

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why has the coup changed your outlook ?

Is building now any more silly than putting money into a house that you couldn't legally own anyway even before the coup, unless of course your a Thai citizen

As I said, it's so many things happening at the same time. Will the Coup change investment or the general attractiveness of the country to outsiders (tourists, businesses). Will the SEAEC bring a lot of people to Bangkok who will want housing? Generally, in times of major upheaval, people might suggest to not invest. So are the external influences good or bad for a small house, is all?

Sounds good to me. Feel free to post some construction pics anytime.

Ps, we are probably all mad building in Thailand, but you only live once.

Thanks for that, YOLO to you too! If the decision is GO, I will be taking lots and lots of pics.

[i claudius]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

how far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

bangkok is slowly sinking and ocean levels are rising. how long u planning on living?

I plan on living until I die! But fair point to you. A ThaiVisa thread in 2011 says "Many international experts believe that due to global warming, Bangkok will be permanently submerged under water within 50 years". More recently "some experts" "are afraid" that "some parts" of the city will be underwater "maybe as soon as" 2030 years (Time). Anyway, thanks for bringing that point up, it's certainly another way of looking at it.

most of these "global warmin hexperts" dont know their arse from their elbow

[paulklee]

How far above high tide level is it?

Don't know but will try to find out. However, the 2011 flooding didn't come anywhere near the site and since then the roads and main drains have been completely upgraded. We paid for an extension to the main drains (10m) to the site in preparation for building at some point. The Prakanong Pumping Station.is about 3km away.

As far as I can find out, High Tide in Bangkok is usually 1.3m above sea level (1.5m in the time when the high tide meets major northern Thailand run off). The site is approx 3.6m above sea level. So, a bit safe - much safer than some areas of Bangkok, not as safe as others.

[AYJAYDEE]

most of these "global warmin hexperts" dont know their arse from their elbow

and what qualifications make you more expert? the FACT is the antarctic ice shelf is melting far faster than everyone expected. that aint a theory, its a fact!

http://www.theecologist.org/News/news_analysis/2404476/antarcticas_ice_collapse_threatens_metres_of_sea_level_rise_within_decades.html

Edited May 28, 2014 by AYJAYDEE

[excelchain]

Do as you want.

[thailiketoo]

The Antarctic Ice Sheet is on land, not floating in the ocean. Actually, it is dipping its toes in the sea, but the majority of the ice is on land. (Antarctica's glaciers end in floating ice shelves that extend into the ocean.) Thus, the vast majority of the ice is not currently displacing water and will raise sea level when it melts and flows into the ocean. Fascinating side note: Land in West Antarctica is already rising up where the ice cover has retreated. Called glacial rebound, this phenomenon is still taking place in North America, where the land is recovering from the weight of the massive ice sheets that covered the continent during the last ice age.

http://www.livescience.com/45571-antarctic-melting-myths.html

[Crossy]

Flame and reply removed, let's play nicely people.

[wow64]

Is it to live in or an investment? To have both is very hard.. Living somewhere because you want too is not always the best investment so to me it depends on why I am getting a place.

[EASYDOGG]

OP, yes you're mad! BKK is a horrible, busy city. A city that is sinking, run and policed by numpties and numbnuts!

[i claudius]

most of these "global warmin hexperts" dont know their arse from their elbow

and what qualifications make you more expert? the FACT is the antarctic ice shelf is melting far faster than everyone expected. that aint a theory, its a fact!

http://www.theecologist.org/News/news_analysis/2404476/antarcticas_ice_collapse_threatens_metres_of_sea_level_rise_within_decades.html

and the artic one is getting bigger ,strange that

[neverdie]

Here we go, ice slanging match and the guy only asked if he was mad.

Go for it OP ! If it's where you want to build and you like living there, just go for it. 2.5 mil baht, chicken feed.

[jpinx]

one presumes you have already sorted out who REALLY owns the land and what your REAL rights are on it and for how long. Divide investment by land-lease years = ??? per year? Be prepared to walk away from it with no return -- possibly because of a high tide or some new regime changing the rules. At the least I'd build it so the the lowest level is at least a metre above the ground. You can put it up on pillars with open air below, or wall the space in with trapdoor access for storage.

[Benmart]

why has the coup changed your outlook ?

Is building now any more silly than putting money into a house that you couldn't legally own anyway even before the coup, unless of course your a Thai citizen

Silly is such a...silly word to be used to reply to a serious request from the OP. On second thought, the entire sentence is rather condescending and equally silly. The OP doesn't seem to have asked for an opinion about legal ownership, citizenship, etc.

OP, good luck on your project. I would give it some serious thought and perhaps seek advice from someone who has traveled the same path without bias and "silly" comments.

[Thai-Aust]

Funny, you and I are looking at the same direction.

I am planning to build a 2 - 3 level building which will be used as 'guest-rooms' on the upper floor while I live downstairs. Because of it's proximity to Suwannapumi airport and the airport raillink I hope we can do small business. Unlike you I still struggle finding a builder.

With the political climate, this will pass. Thailand has a huge potential as far as tourism is concerned. To me, as long as you don't heavily invest in the business the break even will take shorter term before you can start making profits. And the advantage is you're living there as well so it's like you're building your own house with some spare rooms to rent out.

[Lancashirelad]

You won't take any harm to build now. You could consider changing the plan to 2 apartments, 1 up, 1 down. This should produce more rent. (with the option to keep 1 empty for your own use)

On the other hand you could use your 2.5m to buy 2 or 3 brick built detached houses in the Detroit suburbs. You would have 100% ownership of house and land. Using a property management co. to rent them out should produce a net monthly rent in the region of $500 each.

A lot of Detroit bashing will now ensue from those who are ignorant of what's happening in Detroit these days.

Edited May 28, 2014 by Lancashirelad

[thailiketoo]

OP, yes you're mad! BKK is a horrible, busy city. A city that is sinking, run and policed by numpties and numbnuts!

Sure Central Embassy is mad. Ya, sure.

The most luxurious shopping mall in Asia” This shopping paradise occupies an area of 144,000m² with a budget of 18 billion baht, divided into 6 billion baht for the land, 7 billion baht for structure, and more than 5 billion baht spent on the interior and stores. As a result, the investment per square metre for Central Embassy is the highest in Thailand’s retail business history.

[thaicookingchef]

how far above high tide level is it?

You are right, this is the only useful question !!!

I would never build anything in Bangkok and won't buy any more condo because it's plain stupid knowing how better areas and safer are so close to BKK.

[belg]

you are paying for it, but it will never be in your name, so yes, mad indeed

[davidst01]

ive read plenty of comments by guys wishing they have never built- only rented. The main comment is that it all goes to the thais

[BudRight]

My Thai friends want you to build them some houses too.