What is a safe investment for a Thai expat?

[simon43]

Before all the financial advisors rush to PM me with their suggestions, I can tell you to save your energy - my savings are modest and are not about to become part of your commission...

This board is full of posts about never to invest in Thailand, keep the money in your home country etc. That is probably sound advice ( to a point) for those of us who still retain a house or bank account in their home country.

But what about the expats in Thailand who no longer have ties to their home country? What should they do with their savings?

I have lived in Thailand since 2002, and no longer have any home-country ties. I have previously invested in building/managing a transit 'mini-hotel'/guesthouse at Phuket International Airport. That venture has been modestly successful, and despite the negative input of my various ex-wives, I have now built no less than 4 such businesses in the airport locality. My shareholding in these businesses varies from 0% - 100%, depending on whether I have now sold my shareholding, or whether an ex-wife is involved or not.

I now find myself with modest savings (less than 10 million baht), and a small business model that has been proven over the past 10 years of operation to provide me with an acceptable income to enable further savings. (Despite the various attempts by the Tourist Authority of Thailand to destroy tourism in Phuket, the tourists keep coming, and it is unlikely that the airport will relocate or close).

So what do I do with my money?

- Build another transit hotel? ==> Unlikely, one can have too much of a good thing

- Buy land? ==> Certainly the purchase of land in Thailand can reap a good profit, but such a purchase/ownership would generally have to involve my Thai relatives, and I don't want to introduce such a 'risk' into the equation.

- Buy a freehold condo(s) and rent them out? ==> This could provide a bricks and mortar investment, and a possible home for me in the future if my transit businesses fail.

- ???

I don't like to leave money sitting in the bank earning diddlysquat interest. But of course, I can't really take a high risk with my savings either.

Is there an investment that provides a reasonable rate of return, and is more 'exciting' than watching the balance in one's bank account increase by 5 baht?

Perhaps investing in antique stamps? Vintage wine etc etc ??

I'm open to any ideas that don't require ties to the home country (no, I'm not a criminal over in the UK, but trying to open a bank account seems to be more difficult than actually robbing the bank...)

[CharlieH]

Gold ? Gold is usually a good investment, the Thais/Chinese always tend to lean that way with surplus cash.

Just a thought.

[AnotherOneAmerican]

I assume I will be dead by age 80.

I need 500k a year to live on (with 4 hangers on).

(without the extras, I would only need 360k/year)

So if I had 10M in the bank earning 3%, and I was 60+, no need to do anything.

How old are you?

How much do you need to live on per year?

Do you have any other income?

Edited August 10, 2014 by AnotherOneAmerican

[JesseFrank]

Gold ? Gold is usually a good investment, the Thais/Chinese always tend to lean that way with surplus cash.

Just a thought.

Guess you've been sleeping for the past 2 years.

[RolandRat]

Gold ? Gold is usually a good investment, the Thais/Chinese always tend to lean that way with surplus cash.

Just a thought.

Guess you've been sleeping for the past 2 years.

2 years ? ......Thats nothing in investment terms, take a look at the bigger picture,

Edited August 10, 2014 by RolandRat

[stiggy]

Spread your investments regionally, in Singapore or Malaysia.Some sing banks offer good rates right now, with short term withdrawal as an option.

[AnotherOneAmerican]

Gold ? Gold is usually a good investment, the Thais/Chinese always tend to lean that way with surplus cash.

Just a thought.

Guess you've been sleeping for the past 2 years.

2 years ? ......Thats nothing in investment terms, take a look at the bigger picture,

GraphEngine.png

That graph shows an average gain of 4% per year on gold over 24 years.

Leaving it in a bank savings account in most countries would have made you more money.

In the last 10 years land in Mae Rim has averaged a 100% rise per year.

Edited August 10, 2014 by AnotherOneAmerican

[simon43]

How old are you?
How much do you need to live on per year?
Do you have any other income?

I'm 55 years old - my family generally lives into the late 80s.

I need very little to live on. I don't smoke, drink little, don't frequent bars, don't have a gambling or drug addiction etc. I enjoy my own company and a simple life. My personal expenses are no more than 20,000 baht a month

I have my hotel income, typically about 8,000 USD per month, (so substantially more than my living expenses). I earn an extra 2,000 GBP when I work as a teacher/Headmaster outside of Thailand, (which I do regularly because I am bat-bored sitting in my hotel all day).

So you see, what I earn is substantially more than what I either require or want. I do have 4 kids and intend to leave any savings to them in equal share. My 3 ex-wives, who have excelled at greed and selfishness, will not receive one baht......

My idea of 'something to do' with my income would be to invest say 50% in an 'interesting' (???) but safe investment, and use the rest for philanthropic purposes. (I used to run a philanthropic website with the tagline 'a little extra can go a long way' ==> a little help or investment can make a major change in the life of someone who has little or nothing).

[AnotherOneAmerican]

Well there you go.

On your outgoings you could live till 95, without any other income.

Why take any risk?

[Costas2008]

David, your best investment is your expertise, in building and managing hotels.

Money in the bank, or buying gold means nothing.

Expand your business, don't be afraid, you are not a novice , you will do well.

You are still young, and you need to fight for a better living, don't rest and rely on money stashed under the bed, use them to create more wealth.

[simon43]

Why take any risk?

Because if I don't, I will probably die of boredom.....

[DogNo1]

There are various investment vehicles: stocks, bonds, ETFs, open and closed funds, etc. I do my investing through them but then I am not a successful enterpreneur as you are. That's a great talent and would seem to offer great opportunities for you. You could begin a new line of businesses!

[Deacon Bell]

- Buy a freehold condo(s) and rent them out? ==> This could provide a bricks and mortar investment, and a possible home for me in the future if my transit businesses fail.

Wait just a few more years, to see what the situation is like once it settles down from the coming event.

[Noi657]

I do enjoy Simons Posts....

[Naam]

Gold ? Gold is usually a good investment, the Thais/Chinese always tend to lean that way with surplus cash.

Just a thought.

Guess you've been sleeping for the past 2 years.

actually it's exactly three years since Gold was quoted $1,900/ounce. looking at today's price of $1,300+ it seems that the attribut "usually good investment" does not exactly apply.

[Naam]

Spread your investments regionally, in Singapore or Malaysia.Some sing banks offer good rates right now, with short term withdrawal as an option.

the problem is that these "Sing Banks" exist only in wet dreams

[Loptr]

Well there you go.

On your outgoings you could live till 95, without any other income.

Why take any risk?

Exactly... Time to go walk on the beach and enjoy life...

[Jasun]

If you've got the time, consider a self-managed holiday rental. Sites like Air BNB and are only just taking off in Thailand, but they are growing exponentially around the world. The right property will yield more than double a long-term rental.

[SteveFong]

Gold is certainly an answer, but bullion is difficult to leverage,

look at shares.

AEM

ABX

IAG

EXK

there is interest from China in NEM and ABX, and surely, with a rise over $1,350, the bull market will reignite

many pay dividends

IAG cut its dividend two years ago but with a rise over $1,400 per ounce, that will be reinstated.

shares are the way to go and are very close to their 10 yer lows

[jpinx]

Stick to what you know, but find some way to spice it up a bit. Maybe start a hotel business and add a restaurant / nightclub? You could run an "employment agency" for all those online workers that are currently illegal in Thailand. You could run local tours from your hotel, trips to islands, motorbike, car or even jetski rental. Life will be much more exciting when the local heavies arrive looking for their tea-money !! You can run student exchange programmes in hotel management. Catering and food hygene courses for big chain hotels kitchen staff. Get yourself government approved status for certificating all the local kitchen staff in food hygene.

I need to lie down now -- too early to think so much,,,,,,,,

[SteveFong]

that got me tired just reading it

[SteveFong]

Well there you go.

On your outgoings you could live till 95, without any other income.

Why take any risk?

Exactly... Time to go walk on the beach and enjoy life...

agreed,

times have changed,

no one in their right mind would invest in Thailand, for now,

much needs improving, that one junta, which is already showing cracks, will fix,

example, the police, watching the police

I wanted to crack up from that, but didnt want to wake my dog

who's dead

[worgeordie]

Get married to wife number 4, that will stop you been bored,

but not so good an investment.

regards Worgeordie

[chiang mai]

Decide on a safe amount you want to invest and split it three ways between SGD, AUD and RMB that way you're hedged against USD and China - no point in investing in THB or Pounds because you already earn in those currencies.

Then split each currency into five investment strands, equities/mutual funds, property, government bonds gold and property, you'd probably want to adjust the weighting of each based on markets at any point in time. Doing the research into each of those investment streams and their ongoing management will put a strain on even your brain and certainly your time.

[Emster23]

rubber glove factory, bleach factory, face masks, etc.

[PMZ]

Consider a broad range of quality stocks on the Thai Stock Exchange.

I have netted 15% upwards per annum on my portfolio over the past 8 years.

You could also consider Stocks in Singapore and Sri Lanka.

[tortoise128]

Given that you have expertise in tourism accommodation, the AirBnB option seems quite a good one. Buying a condo or two and leasing it for short-term rental seems a natural fit to your other businesses and skills, and you could probably leverage some of your existing set-up like cleaners, and maybe maintenance arrangements.

With the remarkable business changes occurring as a result of the internet and mobile devices, I find the Deloittes digital disruption model a good way of thinking about new businesses, and where not to invest. While Thailand is slightly behind behind the western curve, the same general trend applies.

Here a link to some material about this model for interest.

http://www.deloitte.com/view/en_AU/au/news-research/luckycountry/digital-disruption/map/index.htm

Edited August 11, 2014 by tortoise128

[kingstonkid]

SET is working well for me although I bought when the country was full of fear.

Easy in and out. It is the top companies in the country. You can follow it's progress easily

[simon43]

Get married to wife number 4, that will stop you been bored,

but not so good an investment.

It is no surprise to me that since getting divorced (er... again and again and again..), my financial position has markedly improved. The urge to marry again or shack up with a steady GF is tending to zero

[Kabula]

In view of current International financial conditions it is my opinion there currently is no safe investment.

Financial experts recommend gold and silver coins, however those are not to be considered investments, but insurance.

There is a time to make money and a time to preserve your money.

The best investments depending on what part of the world you are in is storable food, water, and security. They can also be great for bartering with.

Spend your money and enjoy it as life is short!