Is it better to rent or buy if you can afford to buy and have spare cash ?

[RichardThailand]

I have some small rental units in the US but now spend all my time in Asia and I'll be this time back to renting in Bangkok. If I was to retire full time here in Thailand and given that I already have rentals, do you think it would be a good idea to sell one of the units in the USA, purchase a unit in BKK and use that instead of renting.

[nidieunimaitre]

Why would you buy a house or condo in BKK or in any other Thai city or built up area?

Renting is cheap, and you never know what the future brings: unpleasant neighbours, a karaoke joint, a cement factory,...

A house in the country side could be different though.

I had a small house built in a dream location for 700.000 baht.

It will not last for generations, and my wife could walk away with it (it is on her land),but the huge garden and small swimming pool (free mountain water) are things that I could only dream about in Farangland.

So even if money was not a concern, I would never buy a unit in a built up area.

[HampiK]

Here a oposite thinking than to the poster before.

I love to own a condo, because then it is mine. And i can renovate or change things which i not like. When I rent, i am not allowed to do so. But i also have to agree with some points from "nidieunimaitre" that there are risks. You can't know who will become your neighbour. With rent you are able to move away easy.

[CharlieH]

Bickering posts removed.

[bartender100]

Up to you

[dean008]

I would suggest buying can be a very good idea esp if its from a reputable developer and off plan. No one knows what the future holds but I have benefited from buying with excellent capital gains and a small monthly income in Thai baht, so its also a good hedge as well as a risk against currency fluctuations

[Nick167]

With the way that things are brewing in Thailand.....economically, politically and socially.....RENT.....at least when things happen, its easier to pack and leave. I made the mistake of buying a lot of properties in Bangkok and Up Country....but whne you need to sell......its hopeless....no one is buying and only whne you discount at a losts, maybe your porperty can move in this market. Rent and wait till you are really sure. Many long term decent expats that I know are now selling their properties cheaply to ove to Cambodia, Philippines, Vietnam and even Malaysia. Just take a look at prakard.com (avoid Craiglists and other farang sites as you have garbage farang real estate agents trying to rip off other farangs!)

[Crossy]

The "Rent don't buy and Buy don't rent" discussion really has been done to death over the years and the threads invariably go down the "bickering and flaming" route.

If this one continues that way it will not live long.

Play nicely chaps.

[Sviss Geez]

There is no right answer to this question, it is different for every individual's situation. The amount of the rent has to be considered, the cost of the property if it's being purchased has to be considered as does the length of time you will be renting for. Renting for 5 years is a whole lot different from renting for 25 years.

[PattayaPhom]

Rent you can pack up and go so is much more flexible but the money is wasted, also you are restricted to what you can do regarding updating etc. My house has already been paid for in 8 years of living there if I had rented something similar, so financially to me is a definite plus...yes you could get bad neigbours but that happens anywhere in the world not just Thailand. A lot of sellers do advertise rent/buy so you can try befor you buy so to speak...I don't know the BKK market but apparently prices are expensive however there are some that want to sell in a hurry for various reasons. What return could you expect on the funds available against saving monthly rent for a condo will give you an idea if its worth buying or not.

[geoffphuket]

Depends on whether you've got anyone to inherit any purchase in the future. We've just rented a new house and the rental would take 25 years to pay for the market value. There's very little difference financially.

Edited September 21, 2015 by geoffphuket

[trogers]

Depends on whether you've got anyone to inherit any purchase in the future. We've just rented a new house and the rental would take 25 years to pay for the market value. There's very little difference financially.

Market value of land can increase ten-fold in 25 years...

[ldnguy]

Depends on whether you've got anyone to inherit any purchase in the future. We've just rented a new house and the rental would take 25 years to pay for the market value. There's very little difference financially.

But that's at today's rental rates. Rent is bound to rise over 25 years. People used to say he same thing when I first bought in London 20 years ago. Now both rent and property prices are up around 10-fold.

If your money comes from outside Thailand you also need to think about currency movements. 25,000 baht a month rent now would be around $700. What if it turns out to be $1,400 in 10-20 years time? Could you still afford it. If you're planning to stay long-term it can be better to buy because you have locked in the price. Rent and you're at the mercy of the markets and currency exchange rates. You never know what the future will hold. If an area suddenly takes off you could be priced out of both renting and buying, as many have found out in other countries.

But it's up to each person to decide based on their own circumstances. I plan to buy a property in next 2-3 years. It will most likely be a house, although a condo is a possibility. But that's me. I'm not suggesting that would suit anyone else. But I like to renovate to my on tastes and own designs and can't do that with a rented place.

[WorkingTourist]

Depends on whether you've got anyone to inherit any purchase in the future. We've just rented a new house and the rental would take 25 years to pay for the market value. There's very little difference financially.

But that's at today's rental rates. Rent is bound to rise over 25 years. People used to say he same thing when I first bought in London 20 years ago. Now both rent and property prices are up around 10-fold.

Not just that, even if rent stays the same for 25 years and property values do not appreciate, after 25 years you would have paid off the house, so from then on, you live rent free and have an asset worth several millions that you can sell or use as collateral when taking a loan.

[Sam Jones]

Just 1 advice if you decide to buy : Pay Thai-Price, not farang-Price ... Usually they almost dobble the Price for farang

[MaeJoMTB]

Depends on whether you've got anyone to inherit any purchase in the future. We've just rented a new house and the rental would take 25 years to pay for the market value. There's very little difference financially.

But that's at today's rental rates. Rent is bound to rise over 25 years. People used to say he same thing when I first bought in London 20 years ago. Now both rent and property prices are up around 10-fold.

Not just that, even if rent stays the same for 25 years and property values do not appreciate, after 25 years you would have paid off the house, so from then on, you live rent free and have an asset worth several millions that you can sell or use as collateral when taking a loan.

Assuming you live another 25 years.

Assuming you don't get too old/infirm/senile, and have to return to your home country for long term health care.

Assuming you don't get deported and black listed.

Assuming you have 800kbht in the bank to get a VISA.

I dunno, but some people might think buying in a country where you have no right to live might be somehow foolish.

Edited September 22, 2015 by MaeJoMTB

[WorkingTourist]

Not just that, even if rent stays the same for 25 years and property values do not appreciate, after 25 years you would have paid off the house, so from then on, you live rent free and have an asset worth several millions that you can sell or use as collateral when taking a loan.

Assuming you live another 25 years.

Assuming you don't get too old/infirm/senile, and have to return to your home country for long term health care.

Assuming you don't get deported and black listed.

Assuming you have 800kbht in the bank to get a VISA.

I dunno, but some people might think buying in a country where you have no right to live might be somehow foolish.

The 25 years wasn’t an inflection point, you can sell the house before and still have a high likelihood of coming out net positive.

And what’s this fear mongering about being one step from being deported or killed? I would think that most TV members are not in any significant risk of these things happening. Contrary to the old wives’ tales sometimes repeated here on TV, if you abide by the rules, no-one will come and cease your property or deport you, and I would be rather surprised if this changes, even with the political turmoil.

Also, the talk was actually about a house, so it was somewhat implied that the house would be “family property”.

[dotpoom]

I own a house here and I have also rented. I never did like paying rent as it always felt like "money down the drain" as I could afford to buy. I have a good few acquaintances here and it always puzzled me that why when we would arrange to meet it would always be at a restaurant (none of us are drinkers) ...never in each other's home. These guys seemed to spend practically all of their day sitting in coffee shops. Then one day it dawned on me that the common denominator with them all was that they were renting their condos. As mentioned before, when renting you cannot even hang a picture of your dear old Mum without getting permission. What I mean is...they couldn't turn their condo into their "home". I myself like to have all my favourite bits and pieces around me and hanging on my walls. It gives me a sense of comfort and security. It can be the size of a "dog box" but if I can afford to buy it I will. It's a must for me to have a place that I enjoy and look forward to coming home to. Not a cold condo with 4 bare walls.....but everybody's different, I'm aware of that.

[ronthai]

It is of course a personal choice, but I would never buy a condo/house in Thailand.

My main reason is that I love my freedom. If I want to leave my current place I can do tomorrow and rent elsewhere. No ties to the place.

If you buy and want to leave, either a very long time to sell it or sell to cheap or rent it out.

Just be sure to get a good deal when renting longterm.

My place in Pattaya 70sqm costs me 4500baht with a 3 year contract. If I decide to go tomorrow all I loose is a small deposit of 8000baht.

[GAZZPA]

I suspect you will get views for and against buying, my view is for and here's why.

I sold a property in my native land and bought 3 condos in Pattaya (and had plenty of change). I bought them in an older condo block with larger rooms and renovated all 3.

I rent them out for a very sensible rate and all 3 are now generating income and a yield of nearly 15% on my investment. Yes, there are always risks to buying some property but in my view if you are for the longer term the risks are small.

However, buy wisely,, I would NEVER buy off plan unless the block is very near completion and I would refrain from buying brand new 25 sq mtr units at high pricing because the condo block is considered "up market". In my view these are difficult to rent at the right price in order to get a decent return on your investment.

If you are buying to live in then consider an established block that is within 10years old and has good expat community. Rent free, mortgage free life is a good way to be, lets face it we all chase it back home.

Good luck.

[whiteman]

In my case I bought a house which will take 11 years from the time I bought it to the time it will pay it self off versus rental. I know one would say that the cost of the money used is a lost that could be used for some much safe % yearly return as well which should also be counted in the overall costings.

Also I know it is never my land blar blar blar. But I think I have taken all things into consideration eg rent v buy and all the other issues mentioned above still make me go to buy. I have lived in Thailand 11 years and in my eyes I have at last found the place I wish to stay till I turn my toes up. My Thai partner off 12 years agrees too. Only another 9 years to go to break even and if I die b4 that time then I still have lived in a nice home in my kind of life styl. I am 68 years young.

Hope this helps.

[MaeJoMTB]

I own a house here and I have also rented. I never did like paying rent as it always felt like "money down the drain" as I could afford to buy. I have a good few acquaintances here and it always puzzled me that why when we would arrange to meet it would always be at a restaurant (none of us are drinkers) ...never in each other's home. These guys seemed to spend practically all of their day sitting in coffee shops. Then one day it dawned on me that the common denominator with them all was that they were renting their condos. As mentioned before, when renting you cannot even hang a picture of your dear old Mum without getting permission. What I mean is...they couldn't turn their condo into their "home". I myself like to have all my favourite bits and pieces around me and hanging on my walls. It gives me a sense of comfort and security. It can be the size of a "dog box" but if I can afford to buy it I will. It's a must for me to have a place that I enjoy and look forward to coming home to. Not a cold condo with 4 bare walls.....but everybody's different, I'm aware of that.

To be brutally honest, I don't want many (if any) of the foreigners (sexpats?) I know hanging round my home, wife or teenage daughter.

Home is a place where me and my family are, nobody else is welcome.

Now you're gonna answer it's the company I keep.

To which I will reply, OK so your pals are different (in your mind).

Anyways,

My wife has a house, 90% home loan over 30 years, I make the repayments, 29 years left.

My money is safe in the bank, and if the misses is nice to me,eventually I'll buy her a house, assuming I reach 90.

PS

Did you read this thread?

http://www.thaivisa.com/forum/topic/856992-defrauded-by-my-wife-and-criminals-in-thailand-bbc-special-report/

Common theme all over the world ................ I bought a house and my wife took it from me.

Played that game myself in the UK,once was enough.

Edited September 22, 2015 by MaeJoMTB

[elviajero]

There is no definitive answer.

IMO prices in Bangkok are over inflated and there is too much being built. Many speculators are buying up units with the idea of off loading them in the future, but I don't see where the future demand will come from. I think a market adjustment is inevitable. I would rent.

Edited September 22, 2015 by elviajero

[thehelmsman]

The same can be asked regardless of where you live. If you have paternal children in Thailand then you would buy for the sake of the children.

I looked at a townhouse on the beach in Ban Chang 5 br. 2 1/2 ba. 4.5 Mil asked the rent 15,000 baht a month. You do the math.

[MaeJoMTB]

The same can be asked regardless of where you live. If you have paternal children in Thailand then you would buy for the sake of the children.

I looked at a townhouse on the beach in Ban Chang 5 br. 2 1/2 ba. 4.5 Mil asked the rent 15,000 baht a month. You do the math.

Let your children make their own way in life, it's good for them.

Dunno why all these old guys want to give their money to their children/wife/gf/MiL, nobody gave me anything, I had to go out and work for what I wanted.

[trogers]

Just 1 advice if you decide to buy : Pay Thai-Price, not farang-Price ... Usually they almost dobble the Price for farang

I avoid this dual pricing by buying from the secondary market, in projects well located with renters demand.

Investment potential would only be based on rental income vs investment price. Capital gain needs only to cover inflation cost to money invested.

[SheungWan]

It is an interesting question from the OP and not just purchase Vs renting. It is whether he should sell up an income flow in the US for a purchase in BKK. I think the first question to address is whether the OP intends to sell up all his properties in the US if he intends to retire full-time in Thailand. If not then I would be inclined to sit on my hands right now.

[circusman]

Never buy. I bought and I rented. Rent is MUCH safer.

[jamie2009]

Why would you want to buy a property in a country under Military Rule and where they change the Visa rules at the drop of a hat. With rental you are in control of your capital, keep the places at home room to cover your expenditure in Thailand.

[Sutty]

Easy answer you decide it's your cash and in the end you will get an even split on here of buy and rent. Go with your head.