Can I buy a house?

[Thighlander]

Best think about a condo purchase. Better still - rent.

Every housing market that I have ever become familiar with, always has a chorus of "rent, rent, rent." The chorus was still going strong in Las Vegas and Phoenix after prices dropped 75%. Most of the renters still didn't buy. So not only did they miss out on 100% appreciation from the lows; they are still paying rent that is at historical highs. The guy next door to me rented for 10 years, same place, loved his cheap rent and figured he could stay forever. Landlord approaches him and tells him he has to move, because she want tos sell. He buys it from her, and never moves. Just maybe he would have been a lot better off financially, if he had just bought 10 years ago, before prices went consistently up?

Keep your money in the US, earn 1% and you are a guaranteed loser....Real estate has produced more millionaires than any other endeavor. The stock market is better in the long run, but it's not for the faint hearted, and you can't live in it. I'm not saying put all your marbles in Thai Real Estate, but if you plan on being here at least three years...buying a unit to live in is not a bad idea. Speculating and being a property manager are quite different, but for some that has worked out well. Of all the tales of horror posted on TV over the years, how many went like this: "I bought a condo in Thailand and lost my shirt"? I don't recall seeing one. OTOH, there have been countless "I bought property in someone elses name, and now stand two lose several million THB."

The real estate investment risk-reward calculations in Thailand and the US are so different I won't even attempt to summarize them. I'll just say I'm looking for another house to buy in the US while I happily rent in Thailand.

Regarding: ."Real estate has produced more millionaires than any other endeavor."; I don't know of any westerners who became millionaires investing in real estate in Thailand. Do you?

Yes, a friend from high school, on his first trip to Thailand, bought 3.5 rai at Khao Takiab in 2004. He paid about 8000 per Wah. Three or four years ago, the land office said 30,000 per Wah. He had borrowed against a house in Virginia that he had paid 170K USD for in 1996, that was worth 550K in 2004. He built houses on 100 wah lots that cost him 2 million each to build....some brought over 10 million. He took the risks, took his lumps, and made a bundle. Still has never been married. He started out manually digging out 150 year old sewer lines in row houses in DC, which were not accessible to backhoes.

[opalred]

I had my own building and devolping company and civil contracting in oz for 45yrs been millionare 2times and broke 3 times so if can hang through bad times which 99% cannt maybe you can be the lucky one in bad times which happens very often to make money thailand started world down fall in 80 couldnt give property away cheers

[jobin]

Now wait a minute, Thailander. This ditch digger chap 'bought' some land in T'land, cheap, and over the years it appreciated greatly. But everyone here says farangs CANNOT buy land. So something's fishy.

[Thighlander]

He set up a company, which is not really that efficient for one home.

[jij]

Thighlander - why is it not that efficient for only one home?

[elektrified]

Thighlander - why is it not that efficient for only one home?

First of all it it illegal to set up a company in Thailand for the purpose of buying property. The property could be seized. Secondly it costs a lot of money to start the company, third you end up with less than 50% of the stock in the company and can be out-voted, then you have to employ several Thais, submit an accounting each month, and at some point the company has to be profitable.

Correct?

My friend in Bangkok had a company for about 6 years and he had to regularly produce photographs of the shareholder meetings (pay to fly in people from all over the country), produce the minutes, etc. The government often made unannounced appearances at his house to be certain his company was legitimate, had customers, etc. I think the accounting cost him 10K per month. Hardly worth it unless you have a legitimate company.

[Thighlander]

His company is legitimate, but yeah, it cost a lot in legal/accounting fees. It is a construction company. Last I heard; he kept two of the houses, and they generate about a million thb per year, on annual leases. He hasn't bought any land here since, and is back buying and selling in the US. He got out before the crash in the US and got back in after. Many of his associates were zeroed out. This was just my example for Bruce about someone I know, who became a millionaire in Thai Real Estate. There were lots of risks and problems that he dealt with as they came along. That also started in 2004, and things do change.

But, as was pointed out by me, and re-iterated by another poster; the paperwork and legalities involved in doing this for a single purchase are really not viable. He had the Thai board members and the whole nine yards......BTW, legal/accounting fees don't come cheap in America, either. His project is about 700m west of the Hua Hin Blue Wave Hotel, for those interested...but it is waaaay too late to be buying down there now. Look for potential; don't be a sheep. In 2004 it was pretty obvious that that area would explode, but Phuket was the place to be.....lol, and it was hard to find a decent Shepherd's Pie in HH, let alone Khao Takiab.

[heybruce]

His company is legitimate, but yeah, it cost a lot in legal/accounting fees. It is a construction company. Last I heard; he kept two of the houses, and they generate about a million thb per year, on annual leases. He hasn't bought any land here since, and is back buying and selling in the US. He got out before the crash in the US and got back in after. Many of his associates were zeroed out. This was just my example for Bruce about someone I know, who became a millionaire in Thai Real Estate. There were lots of risks and problems that he dealt with as they came along. That also started in 2004, and things do change.

But, as was pointed out by me, and re-iterated by another poster; the paperwork and legalities involved in doing this for a single purchase are really not viable. He had the Thai board members and the whole nine yards......BTW, legal/accounting fees don't come cheap in America, either. His project is about 700m west of the Hua Hin Blue Wave Hotel, for those interested...but it is waaaay too late to be buying down there now. Look for potential; don't be a sheep. In 2004 it was pretty obvious that that area would explode, but Phuket was the place to be.....lol, and it was hard to find a decent Shepherd's Pie in HH, let alone Khao Takiab.

Your friend had an impressive accomplishment, and, assuming he was new to Thailand with no connections and without knowing the language or culture, I'm amazed he pulled it off. However this is property development on a moderately large scale, and as you indicated, it's not easy.

Buying a house without being able to buy the land under it is unlikely to be a money-making investment. Buying one of the new condos being built like crazy, and overpriced in the view of many, is also unlikely to be good investment. Buying a fixer-upper used condo might be a good investment, but with the future of Thailand as a retirement destination uncertain (political instability has long-term consequences) and Thai people having an aversion to buying used property, even this would be risky as an investment.

I'm not certain, because I never seriously considered this option, but I think that buying property and renting it out qualifies as a business and foreigners are legally required to go through all the Thai partnership BS mentioned. It's probably possible for a small-scale operator to fly under the radar, but there are risks in this as well. I don't advise it.

Fortunately I consider Chiang Mai rents to be affordable and the selection of properties in my price range to be decent, so I'm happy to rent. I'm not adverse to small scale real estate investment, which is why I'm looking for a good priced fixer-upper house in a good location in the US. Good luck to those who want to do the same in Thailand, but think carefully and do your homework; big risks can bring big rewards, but can also bring big losses.

[mikey88]

Everything depends on how much money you've got doesn't it? If you've got heaps ....who cares.

Loving in a condo is a completely different living experience to a house...

'Owning' is completely different from renting...

Depends on what suits....

A house has land and a garden and maybe a dog and maybe a pond and maybe a hut.....

A condo has ..... A kitchen and a bedroom...

M