How much is enough to retire in Phuket?

[NamKangMan]

why would anyone want to buy a condo at 57 years of age, he is a single guy, so go and waste 3 million on a condo, that is a lot of rent money, i know on the law of averages i will be long gone before my rent spendings total 3 million baht, and with renting the guy can always move on, if ya buy your stuck in one place maybe after one year you no longer like your surroundings, so i say at that age mate rent every time.

I have done a fair amount of calculations on this, and believe the break even is around 6-7 years Basically:

If you are only going to live in country 6 months or less per year - cheaper to rent.

Buying makes financial sense in the long term because carrying costs are so low (no property tax.)

General assumptions:

Rent 6% of property value

Expense inflation 2.5%

Property appreciation 2.5%

Invested cash appreciation 5% (stock/bond alternatives)

IMO the flexibility in renting currently trumps the long term advantage of owning when the future is in flux. Wait until the succession issue sorts itself out. Rent and figure out where you want to live. Wait on a deal.

That said: the sooner you buy and the longer you hold the larger the potential financial payoff.

That said: do not invest more money than you could ultimately walk away from. Anything could happen in crazy Thailand.

SunLover

"I have done a fair amount of calculations on this, and believe the break even is around 6-7 years" - really?

No mention of maintenance, repairs, management fees, lowering of 30 year lease - year by year etc etc.

Also, look at what Phuket has turned into in the last 2 years.

I would hate to think what will become of Phuket "around 6-7 years" from now.

Your "fair amount of calculations" obviously didn't take into account many wanting to sell up and leave Phuket, therefore a massive depreciation of the property market here.

It's actually happening now.

You can buy a place now, thinking you got a good deal, in a buyers market, until 5 years from now, you will see what you have bought has become worthless, if it pratically isn't worthles already, as there are no buyers.

Edited July 2, 2015 by NamKangMan

[VIPinthailand]

why should I buy second hand when I can buy new for cheaper?

[NamKangMan]

why should I buy second hand when I can buy new for cheaper?

Why should you buy at all????

Serious question.