Reasons why one should rent and not buy property in Thailand

[Loptr]

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 ?

It has nothing to do with the ability to purchase, it is about not tying up capital in a country where you have zero rights, cannot own the dirt a house sits on, are subject to dodgy management once you've purchased a condo, the ever-changing political landscape, the changing attitude toward you by your lovely teerak after you have built the house, the chance that your neighbors may start a casino or cock fighting ring or karaoke next door and on and on and on... Once you purchase, you are stuck with it unless you can sell...

I rent because I like the flexibility of being able to up-stakes and go where the grass is greener without having capital tied up that I may or may not get back... I don't care that I am not building equity by not purchasing... I know several expats in Costa Rica that have been trying to sell their properties for years... One guy I know paid over the top for a condo in Jaco prior to 2008, then his attitude soured about Costa Rica after a run-in with the local constabulary... The up-scale property market crashed in CR after 2008... He has been trying to sell the condo at a 66% discount and has had no offers in 4 years... I know Costa Rica is not Thailand, but the same logic applies...

The rule of thumb still applies, no matter what country you are a resident as a expat, which is, never invest more than you are willing to walk away from at a moments notice... If you want to invest 5+ million in a house, go for it... Just don't come here and whinge when your situation changes and you are forced to either flee or liquidate in a fire-sale...

[konying]

If short on money and no way to borrow at reasonable rates, then surely buying is not an option.

Personally I made a choice to migrate to this country and despite how locals see me, I like to feel at home.

So to own my own property makes me feel at home.

PS. Mortgage repayments = monthly rentals , so really I am not loosing any money and 15-20 years down the road , I am certain my property would double in value.

[wangsuda]

^But is it really yours? Do you hold clear title? Or are you claiming "ownership" just because you gave your money to someone else to purchase property?

Many people claim they "own" it: they "own" their business, they "own" their property. My understanding is that a foreigner can only own 49% of his/her business (some exceptions apply), can NOT own real property (yes, you can own the house, but at best the land has to be leased), and can own a condo 100%. Am I entirely off base here?

IMO, if I cannot own it outright, I am not giving money for it. I will not trust someone to buy a house with my money in the hopes that that person will let me stay. I will not start and finance a business where I don't have 100% control. For me, renting is best. No huge losses if I get screwed.

Edited May 4, 2015 by wangsuda

[konying]

^But is it really yours? Do you hold clear title? Or are you claiming "ownership" just because you gave your money to someone else to purchase property?

Many people claim they "own" it: they "own" their business, they "own" their property. My understanding is that a foreigner can only own 49% of his/her business (some exceptions apply), can NOT own real property (yes, you can own the house, but at best the land has to be leased), and can own a condo 100%. Am I entirely off base here?

IMO, if I cannot own it outright, I am not giving money for it. I will not trust someone to buy a house with my money in the hopes that that person will let me stay. I will not start and finance a business where I don't have 100% control. For me, renting is best. No huge losses if I get screwed.

true but its more mine than when rented

How many people in the West or member of TV owned property outright back home?

Most if not people i know or ever met live with 20-30 year mortgages.

[piersbeckett]

Income's the thing after that it's what satisfies one's particular requirements and predisposition regarding renting/leasing, company asset sharing or condo-in-the-sky ownership.

[morrobay]

The reasons for renting now in Pattaya for example are that condos are way overpriced. If there is a correction then buying would be a good option. In about 2003 I saw Jomtien View Talay studios advertised for 400,000 baht. I dont think there is anyone here that could list a reason for not buying then, now.

[Naam]

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

how much of anything is actually in your name when they carry you to the crematorium?

[mikebike]

I guess everyone has their own needs... My wife (from my home country) and I would never consider owning here because we like the flexibility of being able to relocate at a whim. We do however own extensive rental property in our home country and acquire additional rentals whenever possible. Our properties back home are 100% ours, 100% secure, and 100% debt-free allowing us to live off the income they generate monthly while the real estate portfolio accrues in value over time...

[ExPratt]

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

Nothing it will go to her and my kids when I snuff it . Been with her 10 years and she looked after my kids since they were 3 and 4. She's done more than plenty for me and my kids , for me to be shitting my pants about her , doing what ? Selling the house on her land to someone, think about it

[Crossy]

OK chaps, enough!

A flame / troll post has been removed.

This is supposed to be about renting vs buying (property not company).

[Blackfox]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

[konying]

Ok a genuine question and hopefully some genuine answers.

All the people who are anti buying and pro renting.

Would you buy if mortgage was available to you like back home? 20-30 year terms with minimum 10% deposit and standard variable rate

Please do try to answer honestly, not just to support your point of view that renting is better

[wangsuda]

Ok a genuine question and hopefully some genuine answers.

All the people who are anti buying and pro renting.

Would you buy if mortgage was available to you like back home? 20-30 year terms with minimum 10% deposit and standard variable rate

Please do try to answer honestly, not just to support your point of view that renting is better

Only if I was able to own the property outright at the end of the mortgage. Whether in one lump sum or payments spread out over 30 years, I am not going to buy someone else a house. Been there, done that in the California divorce game.

[konying]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

[konying]

Ok a genuine question and hopefully some genuine answers.

All the people who are anti buying and pro renting.

Would you buy if mortgage was available to you like back home? 20-30 year terms with minimum 10% deposit and standard variable rate

Please do try to answer honestly, not just to support your point of view that renting is better

Only if I was able to own the property outright at the end of the mortgage. Whether in one lump sum or payments spread out over 30 years, I am not going to buy someone else a house. Been there, done that in the California divorce game.

You can own condo and after 30 years it would be yours in your name.

House would be in the company name, putting aside all the technicalities with company ownership, in 30 years many laws will change.

[wangsuda]

You can own condo and after 30 years it would be yours in your name.

I overlooked that. Thanks for pointing that out. Definitely makes purchasing more of a viable option.

[bazza40]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

It would be interesting to see some real data and statistics in lieu of opinions.

Rents in Chiang Mai appear to be decreasing rather than increasing. I recently spotted a condo, fully furnished with pool, for 6500 baht a month. OK, that's anecdotal.

I'm just wondering if there's some office in the Thai bureaucracy that collects statistics on falang ownership and renting.

There may not be tmany stories of property confiscation, although I understand some Phuket residents had notices to quit tacked on their front doors by a Thai bank after the falang developer flew the coop.I'm sure there are plenty of stories of falangs being fleeced in a property deal with a Thai.

ASEAN? What measurement of increased demand do you have, apart from your opinion?

[konying]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

It would be interesting to see some real data and statistics in lieu of opinions.

Rents in Chiang Mai appear to be decreasing rather than increasing. I recently spotted a condo, fully furnished with pool, for 6500 baht a month. OK, that's anecdotal.

I'm just wondering if there's some office in the Thai bureaucracy that collects statistics on falang ownership and renting.

There may not be tmany stories of property confiscation, although I understand some Phuket residents had notices to quit tacked on their front doors by a Thai bank after the falang developer flew the coop.I'm sure there are plenty of stories of falangs being fleeced in a property deal with a Thai.

ASEAN? What measurement of increased demand do you have, apart from your opinion?

To your last question about ASEAN.

What measurements? simple logic and common sense.

More people come over to work, more people free to move around= more property is needed for them to live, unless you think they would be living under palm trees

Prices decreasing at the moment, because its a low season. Check the price of the same condo in 6 months time.

Pattaya rentals have gone up

[Naam]

To your last question about ASEAN.

What measurements? simple logic and common sense.

More people come over to work, more people free to move around= more property is needed for them to live, unless you think they would be living under palm trees:lol:

Prices decreasing at the moment, because its a low season. Check the price of the same condo in 6 months time.

Pattaya rentals have gone up

the reality looks different:

Free flow of skilled labour

In allowing for managed mobility or facilitated entry for the movement of natural persons

engaged in trade in goods, services, and investments, according to the prevailing regulations of the receiving country, ASEAN is working to:

Action:

i. Facilitate the issuance of visas and employment passes for ASEAN professionals and

skilled labour who are engaged in cross-border trade and investment related activities.

in other words... the expectation "more people to move around" is just a lukewarm fàrt as nothing will change to causing any measurable impact.

[konying]

To your last question about ASEAN.

What measurements? simple logic and common sense.

More people come over to work, more people free to move around= more property is needed for them to live, unless you think they would be living under palm trees:lol:

Prices decreasing at the moment, because its a low season. Check the price of the same condo in 6 months time.

Pattaya rentals have gone up

the reality looks different:

Free flow of skilled labour

In allowing for managed mobility or facilitated entry for the movement of natural persons

engaged in trade in goods, services, and investments, according to the prevailing regulations of the receiving country, ASEAN is working to:

Action:

i. Facilitate the issuance of visas and employment passes for ASEAN professionals and

skilled labour who are engaged in cross-border trade and investment related activities.

in other words... the expectation "more people to move around" is just a lukewarm fàrt as nothing will change to causing any measurable impact.

We will have to wait and see, no point speculating what the "rules" say because if you ask any lawyers or accountant in Thailand, they do not have a clue what the actual regulations would be.

Edited May 4, 2015 by konying

[Naam]

We will have to wait and see, no point speculating what the "rules" say because if you ask any lawyers or accountant in Thailand, they do not have a clue what the actual regulations would be.

what part of

engaged in cross-border trade and investment related activities

is it the lawyers don't understand?

[konying]

We will have to wait and see, no point speculating what the "rules" say because if you ask any lawyers or accountant in Thailand, they do not have a clue what the actual regulations would be.

what part of

engaged in cross-border trade and investment related activities

is it the lawyers don't understand?

You would need to consult them which part they do not understand

[bazza40]

To your last question about ASEAN.

What measurements? simple logic and common sense.

More people come over to work, more people free to move around= more property is needed for them to live, unless you think they would be living under palm trees

Prices decreasing at the moment, because its a low season. Check the price of the same condo in 6 months time.

Pattaya rentals have gone up

Sorry to be pedantic; however, logic and common sense are based on assumptions. If the assumptions are incorrect, logic and common sense can fail dismally.

The Thai economy is not performing well. Personal debt levels of Thais are very high. So, my logic and common sense is expecting a recession. I think we need data and information. ASEAN could well fail to percolate into the Thai economy.

"All crows are black"

"That bird is black"

"Therefore, that bird is a crow"

[konying]

To your last question about ASEAN.

What measurements? simple logic and common sense.

More people come over to work, more people free to move around= more property is needed for them to live, unless you think they would be living under palm trees

Prices decreasing at the moment, because its a low season. Check the price of the same condo in 6 months time.

Pattaya rentals have gone up

Sorry to be pedantic; however, logic and common sense are based on assumptions. If the assumptions are incorrect, logic and common sense can fail dismally.

The Thai economy is not performing well. Personal debt levels of Thais are very high. So, my logic and common sense is expecting a recession. I think we need data and information. ASEAN could well fail to percolate into the Thai economy.

"All crows are black"

"That bird is black"

"Therefore, that bird is a crow"

You assuming personal debt is in property.

3 of my neighbor at the moment have cars worth 6 million(each),while the house they live in is worth 2.5 million

Recession is also not a permanent factor, it does pass. If you buying to flip then yeah, but if you buying to live, i would be looking at, at least 10 years before i would be selling.

[Naam]

We will have to wait and see, no point speculating what the "rules" say because if you ask any lawyers or accountant in Thailand, they do not have a clue what the actual regulations would be.

what part of

engaged in cross-border trade and investment related activities

is it the lawyers don't understand?

You would need to consult them which part they do not understand

anyway, the logical conclusion (neither assumption nor speculation) is that nothing will happen based on the wishi-washi ASEAN declaration of intention as far as the "managed mobility or facilitated entry for the movement of natural persons" is concerned and further hampered by wide-open backdoors such as "according to the prevailing regulations of the receiving country" as well as "engaged in cross-border trade and investment related activities".

[konying]

anyway, the logical conclusion (neither assumption nor speculation) is that nothing will happen based on the wishi-washi ASEAN declaration of intention as far as the "managed mobility or facilitated entry for the movement of natural persons" is concerned and further hampered by wide-open backdoors such as "according to the prevailing regulations of the receiving country" as well as "engaged in cross-border trade and investment related activities".

Ok, if you say so

[Blackfox]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

I am thinking 10 years ahead, not less.

ASEAN and its advantages will have an affect on the property market but not in the short and possibly intermediate term.

There is more competitive (cheaper labour) in countries either side of us.

Yes, Thailand does have better infrastructure and a strong manufacturing base but it will not grow fast enough to impede the current supply of property, hence rental costs and property values rising significantly.

Since the inception of ASEAN i can only think of an increase in the commercial aviation sector and just several in manufacturing that have increased GDP and more specifically jobs here.

..."but once all land is built up, there will be no more new condo's or housing developments."

That's a long way away yet. I live near Chatuchak and there is still a lot of undeveloped land. Not far from home there are new build condominiums in the making but there is no great demand from buyers yet, however some there are.

Chaeng Wattana saw many new builds several years ago that are still unoccupied and remember the new BTS is covering this area.

I'll keep my 2 properties in Australian city fringe locations.

My situation doesn't warrant either as I live with my wife in what was originally her home; now it's our home.

If I could buy land and dwelling here in my own name with favourable lending, perhaps I would. But since I can't, I won't.

Edited May 4, 2015 by Blackfox

[konying]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

I am thinking 10 years ahead, not less.

ASEAN and its advantages will have an affect on the property market but not in the short and possibly intermediate term.

There is more competitive (cheaper labour) in countries either side of us.

Yes, Thailand does have better infrastructure and a strong manufacturing base but it will not grow fast enough to impede the current supply of property, hence rental costs and property values rising significantly.

Since the inception of ASEAN i can only think of an increase in the commercial aviation sector and just several in manufacturing that have increased GDP and more specifically jobs here.

..."but once all land is built up, there will be no more new condo's or housing developments."

That's a long way away yet. I live near Chatuchak and there is still a lot of undeveloped land. Not far from home there are new build condominiums in the making but there is no great demand from buyers yet, however some there are.

Chaeng Wattana saw many new builds several years ago that are still unoccupied and remember the new BTS is covering this area.

I'll keep my 2 properties in Australian city fringe locations.

My situation doesn't warrant either as I live with my wife in what was originally her home; now it's our home.

If I could buy land and dwelling here in my own name with favourable lending, perhaps I would. But since I can't, I won't.

I use to live in Bkk, about 6-7 years ago in Asok area.

In that area anything new was sold out pretty fast.

I no longer follow BKK market, but seeing some prices, i think it is way over priced.

Many new developments, while nice, are asking Australian prices, which is crazy, considering its Thailand.

Condo where i lived for the entire time, prices doubled if not tripled in 6-7 years i was there.and it was an older building (sukhumvit soi 10)

I am in Pattaya, and while some are overpriced, many are well priced.

Edited May 4, 2015 by konying

[mikebike]

Ok a genuine question and hopefully some genuine answers.

Would you buy if mortgage was available to you like back home? 20-30 year terms with minimum 10% deposit and standard variable rate

Absolutely not. I would never take more than a 10 yr mortgage, nor deposit less than 25%.

[trogers]

Politically unstable, corrupt country with archaic laws.

I'd think its in the best interest of ex pats to keep assets in the west.

Everyone needs a home but considering the limitations here, isn't it better to avoid tying up large amounts of capital you'll possibly never realise?

Each to their own but I've met several who wished they didn't buy/build the big house.

They want to sell but can't.

Worn out excuses.

With all the corruption and unstable laws and all the rest, hardly anyone was kicked out or had their property taken away from them

Now with ASEAN coming in,there would be more "renters? so expect rent prices to go up as demand will also go up.

If demand for rents go up, so will the property prices.

Thailand has experienced development boom, yes, but once all land is built up, there will be no more new condo's or housing developments.

Anything new would be deep into jungle, outside city circles.

Sometimes have to think 10 years ahead, not just 1-2 year prospects.

It would be interesting to see some real data and statistics in lieu of opinions.

Rents in Chiang Mai appear to be decreasing rather than increasing. I recently spotted a condo, fully furnished with pool, for 6500 baht a month. OK, that's anecdotal.

I'm just wondering if there's some office in the Thai bureaucracy that collects statistics on falang ownership and renting.

There may not be tmany stories of property confiscation, although I understand some Phuket residents had notices to quit tacked on their front doors by a Thai bank after the falang developer flew the coop.I'm sure there are plenty of stories of falangs being fleeced in a property deal with a Thai.

ASEAN? What measurement of increased demand do you have, apart from your opinion?

One is easily fleeced in any illegal deal.