Reasons why one should rent and not buy property in Thailand

[Crossy]

For the 'Rent not Buy' crowd, your very own thread so you don't have to hijack other discussions.

Keep it friendly.

[Brit_Doggie]

Options open buy or rent at 6 k per month x 8 years = 576,000

Glad i chose option 1 @ 500,000, and at least i have something to show for it even it is only to handover to gf when i die.

[bazza40]

"Next time, I'll find a woman I don't like, and buy her a house" ( Rod Stewart )

Seriously, there are pros and cons for renting in Thailand. I pay AUD 4000 a year for a fully furnished studio apartment in Chiang Mai, includes pool. That's ridiculously cheap by Western standards.

On the other hand, I know my landlord paid 800,000 baht for my apartment 10 years ago. Current pricing 1.5 - 2.0 million baht. So he's making a

12.5% per annum return on capital, plus a 100% capital growth. Nice work if you can get it.

I think I'll stick with renting. Due to the 51% Thai ownership rule ( condos ), the arcane nature of Thai property laws and titles, various risks such as condo management and antisocial neighbours - I feel safer that way. Others may feel differently - you pays your money and you takes your choice.

[fatfather]

The advantage of owning the land/property is that nobody can send you away, except your wife. Own land gives you a feeling of being home. I agree with those who don't trust their partners, but if the partner is right, buy!

Fatfather

[elgordo38]

"Next time, I'll find a woman I don't like, and buy her a house" ( Rod Stewart )

Seriously, there are pros and cons for renting in Thailand. I pay AUD 4000 a year for a fully furnished studio apartment in Chiang Mai, includes pool. That's ridiculously cheap by Western standards.

On the other hand, I know my landlord paid 800,000 baht for my apartment 10 years ago. Current pricing 1.5 - 2.0 million baht. So he's making a

12.5% per annum return on capital, plus a 100% capital growth. Nice work if you can get it.

I think I'll stick with renting. Due to the 51% Thai ownership rule ( condos ), the arcane nature of Thai property laws and titles, various risks such as condo management and antisocial neighbours - I feel safer that way. Others may feel differently - you pays your money and you takes your choice.

Spot on I am with you. I pay 4,000 baht a month for a condo with a pool and yes I concur with your last paragraph.

[ozzieovaseas]

"Next time, I'll find a woman I don't like, and buy her a house" ( Rod Stewart )

Seriously, there are pros and cons for renting in Thailand. I pay AUD 4000 a year for a fully furnished studio apartment in Chiang Mai, includes pool. That's ridiculously cheap by Western standards.

On the other hand, I know my landlord paid 800,000 baht for my apartment 10 years ago. Current pricing 1.5 - 2.0 million baht. So he's making a

12.5% per annum return on capital, plus a 100% capital growth. Nice work if you can get it.

I think I'll stick with renting. Due to the 51% Thai ownership rule ( condos ), the arcane nature of Thai property laws and titles, various risks such as condo management and antisocial neighbours - I feel safer that way. Others may feel differently - you pays your money and you takes your choice.

Spot on I am with you. I pay 4,000 baht a month for a condo with a pool and yes I concur with your last paragraph.

Its a no brainer really..

rent per month:4000

cost of condo: x million

You could probably rent for 40 or so years for the same inflated price of buying a condo here. Many of us will probably not live long enough to make it worth while.

Plus you dont get what you pay for here. Not enough room to swing a cat and everything made as cheap as possible...cardboard doors and things falling apart all the time.

Add to that all the uncertanties mentioned above. Law changes, horror neighbours mooving next door ect ect youd be crazy.

Dont know about what the first poster said in regards to leaving it to his GF either. I have been a bit of a gambler in my time, but no way id punt on having the same GF when i die. I wouldnt even punt on 6 months ahead

[NeverSure]

...but if the partner is right, buy!

The partner is always right on the day the guy buys, LOL.

[redandyellow]

Some consider their Thai wife as property.

It's all about money.

So you have much more in common with Thais than you thought

Signed,

Care to Dance?

[balo]

You should rent so you can move if your'e not happy with the noise. It could be the neighbors, the dogs , the karaoke , the extended family etc. Rent is cheap , buying is ok if you're sure you want to live there long time, but TIT expect changes.

[Crossy]

A post with a veiled reference to the Royal Family has been removed.

[Crossy]

We Brits have always had a home ownership culture, everyone's aim has been to buy their own home. Renting was for those who couldn't afford to buy. Things may be changing now with even starter homes getting out of reach for young couples, but I'm of the previous generation.

My wife and I rented a condo here for 8 years, over that period we paid 1,400,000 Baht in rent, at the end of our rental we had exactly zero to show for that investment. If we had bought the same place on a mortgage with an equivalent payment we would be well on the way to owning it outright. Of course that's the main argument for buying.

During the time we lived there all the reasons to rent showed their faces, from the loony woman next door to the noisy karaoke joint outside. I would never buy a condo.

During our rental Wifey suggested that we 'help out' a family member by buying some of their land (how often have we heard that one?). As it happens said plot was in a good location with a full Chanote title and an easy commute to BKK also the price was right (before we built the house we were offered double what we paid).

We have now built our home on that plot (which is large at 1.5 Rai) and intend staying put. We are in a well established village, no loudspeakers, no factories, occasional karaoke, occasional weddings in the Wat next door and if the wind is wrong a rather annoying nightclub across the river.

Wifey has assorted pets, geese, ducks, chooks (yes we have roosters), fish and her plants and fruit trees, I cut the grass.

Retirement beckons, I'll be happy to sit by the (as yet unbuilt) pool with a G&T and watch the trees grow

[JB300]

Options open buy or rent at 6 k per month x 8 years = 576,000

Glad i chose option 1 @ 500,000, and at least i have something to show for it even it is only to handover to gf when i die.

Other factors aside, those numbers are pretty clear cut, but paying 1/84th of a properties value in rent isn't normal, so the figures could just as well look like...

1 - Working on a multiplier of paying 1/200th in rent, the rent would be 2,500 (or pay 6,000 & live in an apartment worth 1,200,000)

2 - Your 500,000 could have been invested elsewhere & could have accrued interest/gains, assuming 4%pa = 20,000 pa or 1,667 per month (more with compound gains if re-invested)

3 - There are "Ownership" fees to be paid (not just the direct ones like condo maintenance fees, insurance etc... but repairs/breakdowns that your landlord would normally cover), if these add up to 833 per month then it's a scratch, any more you're better of renting.

Obviously many more factors involved, you seem happy with where your staying & happy with the financial aspect so double win [emoji4][emoji4][emoji4]

Edited April 24, 2015 by JB300

[Blackfox]

If you don't have any blood children here, I don't get why you would want to buy....including children to a skanky bg.

If otherwise you do, haven't you then been played the "long game"?

Better options in a developed nations property and equities than buying in this country.

I live with my wife in her house.

I'll never spend a dollar here.

She is wise enough to know why and agrees.

Edited April 24, 2015 by Blackfox

[Asiantravel]

I would never buy here because of the ever changing Visa rules in Thailand, political uncertainty and now economic uncertainty (Thailand personal debt is now at crisis point and is likely to reach 90% of GDP this year)

I always think of the salient words of Robert De Niro playing Neil McCauley in the classic movie “ Heat “

“Don’t let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner.”

[MaeJoMTB]

"Next time, I'll find a woman I don't like, and buy her a house" ( Rod Stewart )

Seriously, there are pros and cons for renting in Thailand. I pay AUD 4000 a year for a fully furnished studio apartment in Chiang Mai, includes pool. That's ridiculously cheap by Western standards.

On the other hand, I know my landlord paid 800,000 baht for my apartment 10 years ago. Current pricing 1.5 - 2.0 million baht. So he's making a

12.5% per annum return on capital, plus a 100% capital growth. Nice work if you can get it.

I think I'll stick with renting. Due to the 51% Thai ownership rule ( condos ), the arcane nature of Thai property laws and titles, various risks such as condo management and antisocial neighbours - I feel safer that way. Others may feel differently - you pays your money and you takes your choice.

Not to mention, you have no right to live in Thailand, and can be asked to leave at any time.

[MaeJoMTB]

Options open buy or rent at 6 k per month x 8 years = 576,000

Glad i chose option 1 @ 500,000, and at least i have something to show for it even it is only to handover to gf when i die.

Other factors aside, those numbers are pretty clear cut, but paying 1/84th of a properties value in rent isn't normal, so the figures could just as well look like...

1 - Working on a multiplier of paying 1/200th in rent, the rent would be 2,500 (or pay 6,000 & live in an apartment worth 1,200,000)

2 - Your 500,000 could have been invested elsewhere & could have accrued interest/gains, assuming 4%pa = 20,000 pa or 1,667 per month (more with compound gains if re-invested)

3 - There are "Ownership" fees to be paid (not just the direct ones like condo maintenance fees, insurance etc... but repairs/breakdowns that your landlord would normally cover), if these add up to 833 per month then it's a scratch, any more you're better of renting.

Obviously many more factors involved, you seem happy with where your staying & happy with the financial aspect so double win [emoji4][emoji4][emoji4]

6k a month is a lot for a 500k property, most Thais would rent that property for 2k/month.

I paid 5k a month on a 1.5M property.

Sure if you're daft and overpay rent by a factor of 3, might be a good idea to buy.

(trouble is, you'll probably be taken for a fool by the seller too)

[Sealbash]

What you pay for rent today will increase over the years also.

[Blackfox]

What you pay for rent today will increase over the years also.

Yes, but so will the value of your assets kept out of country also.

[bazza40]

What you pay for rent today will increase over the years also.

My rent has actually decreased over 5 years. I'd submit Chiang Mai is a special case, there is an oversupply of condos and housing for rent here, landlords are keen to lock in good tenants on a long term basis. You may be right for areas such as Pattaya or Bangkok.

[ttthailand]

The current place I rent would be a 21 year payback if I buy and rent it out as an investment. For the risk you would have to be crazy.

I hear people say that if you rent you have nothing to show for your money after so many years. What people forget is that the 3 or 4 million baht that you paid up front would be drawing compounded interest or gaining perhaps two or three times its value over 20 years if invested properly.

Now if you buy at a good price, you have lived in the building for a few years and plan to live there, it is a condo that will be in your name, and you are able to finance 80 % with a reasonable interest rate then I think fine. But putting out a large sum of money in a unstable country that you have no voting rights in and can not even own ( except condo) the property I think is too high of a risk.

I also like being able to move to other areas and cities. If you own you are more restricted.

Edited April 24, 2015 by ttthailand

[hhgz]

A reason not to buy is that you do not want to own a home, and desire to invest in other things.

[questionsreplies]

What is the purpose of this unclear topic?

Everything is so cheap, why eventhinking about rent ?

http://www.thaivisa.com/forum/topic/820563-what-if-a-landlord-wants-to-sell-their-property-while-im-renting-it/

[ExPratt]

We built a 3 bedroom house 8 years ago on my wifes land, we had a couple of kids so it will go to them if me and the missus go pear shaped. Spent about 2 on it and its handy now as if I am not working I we have no rent to pay

[Mr Somtam]

The money you save when renting, you can spend on other things.... Left in the bank or invested it will even grow a little... House prices will not always rise...

[questionsreplies]

Look at your title and look at your content:

For the 'Rent not Buy' crowd, your very own thread so you don't have to hijack other discussions.

[questionsreplies]

I guess that you renting people do not buy a 5mb car right?

Why a 5mb car, you can buy a truck for 500k :-)

i still wonder whyyou are working in this life ?

Edited April 27, 2015 by questionsreplies

[smutcakes]

"Next time, I'll find a woman I don't like, and buy her a house" ( Rod Stewart )

Seriously, there are pros and cons for renting in Thailand. I pay AUD 4000 a year for a fully furnished studio apartment in Chiang Mai, includes pool. That's ridiculously cheap by Western standards.

On the other hand, I know my landlord paid 800,000 baht for my apartment 10 years ago. Current pricing 1.5 - 2.0 million baht. So he's making a

12.5% per annum return on capital, plus a 100% capital growth. Nice work if you can get it.

I think I'll stick with renting. Due to the 51% Thai ownership rule ( condos ), the arcane nature of Thai property laws and titles, various risks such as condo management and antisocial neighbours - I feel safer that way. Others may feel differently - you pays your money and you takes your choice.

Obviously renting or buying is someone's choice and their are pros and cons of both, but i am not sure why the 51% ownership rule is an issue for Condo's. The 51% ownership is for the Condominium as a whole, but individual units can be owned outright in your name 100%, as long as the total unit space of the whole Condominium does not become owned in excess of 49%, which is the job of the JPM to ensure.

For me the safest way to invest here is purchasing a Condo 100% in your own name.

[ExPratt]

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The advantage of owning the land/property is that nobody can send you away, except your wife. Own land gives you a feeling of being home. I agree with those who don't trust their partners, but if the partner is right, buy!
Fatfather

We built a 3 bedroom house on my missus land and we've lived in it with the kids for about 7 years. Cost about 2.5 with every thing in it

Edited May 4, 2015 by ExPratt

[wangsuda]

^And how much of that is actually in your name?

[trogers]

^And how much of that is actually in your name?

The TV?