Jed Yod area a good investement?

[Bassosa]

G'day gents,

Just wondering if any of you had any opinions or thoughts on the Jed Yod area of Chiang Mai for investment purposes.

As we know land values in Nimmanhaemin have skyrocketed and areas around the convention centre have also gone up in price. But what about Jed Yod? It seems to be in the right position to gentrify and develop the next few decades?

I might be able to get hold of a piece of land (~300 wah) on the Nimmanhaemin side, walking distance from Maya. My, admittedly very broad, idea is to purchase the land and perhaps build some townhouses. One for ourselves, the rest for sale or rent, perhaps to tourists as the location might be of interest to them.

Any thoughts?

Thank you.

Disclaimer: I realise land values can fluctuate and even drop significantly. I realise that as a foreigner I am not legally able to possess land. I know that I should never invest a sum of money I can't afford to lose.

Cheers guys!

[bangmai]

6 million for the land...build 2 x 5 townhouses, 200 sm for 2 million each....sell for 4 million.....rent for 15,000....something like that?

[Bassosa]

Not too sure yet about the specifics. Just researching the area as of now. Initial thought was to build our own home (I like the freedom of being able to get around by foot and do enjoy Nimman) but 300 wah is more than we need.

There is a good chance we'd get the land for a realistic price as it's in the family.

Any thoughts on the area?

[bangmai]

great area. I don't know it that well, but there are some drainage nuances there (like a lot of places). Doing business with family carries its own set of risks. If you want to own townhouses, you could probably buy individual units for about 2 million. You might be astonished at how much faster a 10K per month rents out than a 20K per month....How much per wah are they talkin'?

[baywatch82]

Jed Yod area seems to be some kind of forgotten area of Chiang Mai.

There is couple of bigger investments there, including Moda condo, Promt condo, some new hotel (forgot the name) etc.

Walking or short drive distance to Maya, Nimmanhemin. Easy access to canal road and Superhighway.

Many short time hotels and small bars, lot of students living there. Lot of small thai style businesses, street food.

Very similar to Santitham, but more quiet.

For some reason north side of Huay Kaew Road is more "thai" and less developed than the south side.

I would say that area will follow south side in next years or decades, and prices will go up, more investments will come.

If you have a good deal then I would suggest you to go for it.

However, I wouldn't build anything on it. Keep it for 10 years or more and sell to someone who has much bigger project in mind.

[masuk]

Two thoughts come to mind.

1) Jed Yod area is directly under the take-off path of the airport, which now has 24 hour flights.

2) There are now in excess of 250 apartment blocks/condominiums under construction at present. A walk around the side streets/sois off Nimman will show you buildings going up or coming down for new projects in almost every block.

I'd be a bit worried about over-supply, but I'm out of my depth there.

[WinnieTheKhwai]

Super area. I'd go for it when the price is reasonable. 6 million seems unlikely actually, will likely be more.

[Bassosa]

Thanks everyone for the valuable input. Going to check out the land a little later.

Will keep the thread alive if there is news.

[MaeJoMTB]

It has a reputation for drugs and violence.

At least 1 meth factory was raided and closed there a short time ago.

There is a pool hall that regularly has stabbings and gang fights.

Not to mention the five large short-time hotels. (Love Boat, Movement, China Chic, etc.)

Edited November 11, 2015 by MaeJoMTB

[namatjira]

As you say, it's in the family........funnily enough I have heard that before somewhere

[LarryBird]

I am bearish on Thailand's future.

[namatjira]

Actually if I had a dollar for everytime I have heard the old " going to get a bargain as its in the family " I would have a few quid,

It's in the family and it stays in the family, you just buy into something they already own...it's brilliant......

[Paagai]

Would have been a great plan.... two years ago.

[cmsally]

Bear in mind although "values" go up there is a lack of liquidity in the Thai market. There are the buyers with heaps of cash but they are small in number. Same goes for the rental market. In my opinion this situation will only get worse over the next few years.

[baywatch82]

Oversupply, bubble, property crash coming etc etc. How many years (decades ?) we hear that already ?

In the mean time ... the landlords and land owners got more rich, properties value went up, rental condos or houses were rarely empty.

And it will continue - due to very specific demographic, geographic and economic situation of CNX.

[bangmai]

I sold my last condo in Arizona to a Taiwanese businessman, about 30 months ago. I just saw where he resold it. But what is somewhat unique is that basically he locked the door, never lived in it, and never rented it out, meanwhile paying 7000 thb in fees/taxes/insurance per month. He still made about a 7% annual return. He could have easily rented it out for 20000 per month....apparently not his cup of tea. It's relevant because I think you will get a lot more of the same here in CNX, especially with no property taxes, high rental taxes, and low rent and condo fees. And it is a bit of a safety net, if they have to flee PRC, ROC, or HK.

[wisemonkey]

Seems like a few others are doing your idea as of right now, I live in the area, in the last 6 months ive seen small plots of land being cleaned up, then next thing you know small block of townhouses put up. Long term it does make sense that land price will increase here, basically just an extension of nimman, close to maya, old city, superhighway, very convenient.

Would be curious to know the actual construction prices of some of the townhouses, looks simple and generic design. I like the idea, best of luck, keep us updated on prices you find. I might do the same out of interest with some blocks im seeing.

[LarryBird]

Op, under the assumption you are purchasing the land in your wife's name, how can it possibly be a good investment for you?? If you were in your own country, would you expect her to take her money, buy land, and put it in your name?

For those arguing the bubble talkers are doomsday types, have you driven out on the 1317 to Saenkampang? Have you seen the congestion around this city? Have you considered the effects of a totalitarian regime with capricious laws? What is there to be optimistic with Thailand? Is there a good legal system which doles our reasonable judgments.

Put your money somewhere else, OP.

[baywatch82]

Op, under the assumption you are purchasing the land in your wife's name, how can it possibly be a good investment for you?? If you were in your own country, would you expect her to take her money, buy land, and put it in your name?

For those arguing the bubble talkers are doomsday types, have you driven out on the 1317 to Saenkampang? Have you seen the congestion around this city? Have you considered the effects of a totalitarian regime with capricious laws? What is there to be optimistic with Thailand? Is there a good legal system which doles our reasonable judgments.

Put your money somewhere else, OP.

We obviously need people like you. The more the better. Renting from us. Thank you.

Also, you might be surprised, most families do live in harmony and good partnership.

[wisemonkey]

It has a reputation for drugs and violence.

At least 1 meth factory was raided and closed there a short time ago.

There is a pool hall that regularly has stabbings and gang fights.

Not to mention the five large short-time hotels. (Love Boat, Movement, China Chic, etc.)

Reputation for drugs and violence? With who? Im curious Ive been living here a while, been very peaceful.

Link to meth factory story would be nice, did a google search and came back with nothing.

Where is the pool hall with regular stabbings and gang fights? Where is it located, im out and about all the time, havent come across it.

Only thing that rings true with your post is the short time hotels Not that if the other things you did say was true would really matter, happens everywhere as space becomes scarce in the city areas, areas that were known to be scummy slowly become trendy and expensive, happens everywhere.

[Bassosa]

Thanks for the input. Valuable information.

I should note that I'm not out to 'have a bargain', just a decent sized plot of land at a realistic price to further develop, or perhaps just build our own house if I don't see development potential. I just don't believe in buying in moo baans at the moment (nor in condos) even if some of the developments are luxurious in appearance. Plot size too small, not enough garden space, houses too close too each other, poor maintenance (in time), oversupply? If the economy and real estate market go south, surely these properties would be the first to take a hit as demand slips and supply is high and still increasing?

In that regard I think a contemporary but modestly sized property (200 m2, perhaps bungalow) on 300 wah of fenced in property in Yed Jod would be more crash-resistant. Even if property values drop I will at least have a place to live and as I'm not reliant on any financing the financial burden of living there would be limited.

Obviously just an assumption, any thoughts?

It seems that the area is not without problems but that doesn't bother me very much as I'm hoping to buy into potential and not into the current situation. I'm 36 years old so have time to let it mature.

Anyway, I had a look at the land at is a bit further North than expected and hoped. Very close to Hohm Cafe if that makes sense. As such it is not feasible to walk to Maya, Nimman etc. and this lowers the potential for renting out to tourists in my opinion. The immediate area has almost a rural feeling at the moment, as if you're in the countryside but I'm not 100% sure whether townhouse would rent out in this part of town? Is there a market for townhouses in this particular section of Yed Jod if the price is right?

I realise that I'm all over the place with my ideas but I'm just trying to get to grips with the Chiang Mai property market. As such your input is greatly appreciated.

If we go ahead with these plans I will regularly update this forum on our progress.

[WinnieTheKhwai]

In that regard I think a contemporary but modestly sized property (200 m2, perhaps bungalow) on 300 wah of fenced in property in Yed Jod would be more crash-resistant. Even if property values drop I will at least have a place to live and as I'm not reliant on any financing the financial burden of living there would be limited.

Obviously just an assumption, any thoughts?

I agree completely.

Anyway, I had a look at the land at is a bit further North than expected and hoped. Very close to Hohm Cafe if that makes sense. As such it is not feasible to walk to Maya, Nimman etc. and this lowers the potential for renting out to tourists in my opinion. The immediate area has almost a rural feeling at the moment, as if you're in the countryside but I'm not 100% sure whether townhouse would rent out in this part of town? Is there a market for townhouses in this particular section of Yed Jod if the price is right?

Yes, that's a bit further, and indeed for renting to tourists it seriously helps when people can walk to places, and have easily accessible public transport. (Frequent Red Buses passing, etc.)

As for townhouses, if you make them slightly more spacious and modern then that's more interesting than the old way of cramming them in a small area resulting in tiny, dark, dank places.

Overall it's still not a bad area, though traffic is pretty bad around Nimman/Huay Kaew/Canal Road/Rincome intersection. What sort of money are we talking about?

BTW, Hohm Cafe looks really nice. I think you can expect that area to develop with some more places like that.

Edited November 15, 2015 by WinnieTheKhwai

[LivinLOS]

properties value went up, rental condos or houses were rarely empty.

Really ?? Big difference between asking prices and actual sales.. I have seen some absolute firesales the last year where places sold for 30% of the asking price..

Houses very rarely empty ?? half my old moobaan was empty.. some of the for rent and for sales signs were sun bleached and falling off they had been hung up so long..

Land prices in many areas have gone.. resale house prices ?? Thats a different story.

[clokwise]

I have a bit of experience in this part of town. Five years ago my wife and I bought a chunk of land in Santitham, opposite side of the road from Jet Yod. We built an apartment on 1/3 and left the other 2/3 empty. The apartment has been at maximum capacity since day one (73 rooms) and brings in a decent net profit of roughly 300,000 Bt per month. Considering the state of some of the neighboring apartments, we are doing amazingly well, but I'd attribute that to running and maintaining the apartment sensibly instead of being kee neow. We decided two years ago to sell the other land but only managed to sell it in the last month, making appx 20% gain, not bad, but not great, for 5 years. Buyers are few and far between. That said, the area is rapidly changing, the shabby short time hotels are going down like dominos, and nice looking apartments and hotels are going up everywhere.

[bangmai]

How much per wah did your land sell for?

[heybruce]

Would have been a great plan.... two years ago.

Almost exactly two years ago, things went from looking promising to not so good.

[heybruce]

Oversupply, bubble, property crash coming etc etc. How many years (decades ?) we hear that already ?

In the mean time ... the landlords and land owners got more rich, properties value went up, rental condos or houses were rarely empty.

And it will continue - due to very specific demographic, geographic and economic situation of CNX.

"And it will continue - due to very specific demographic, geographic and economic situation of (fill in location of interest)."

How many times have we heard that already? I assume that in Bangkok people were saying it in 1996.

A basic rule of life is that if something can't continue forever it won't. Continued development of property without improvement of infrastructure, combined with increases in property values, can't continue forever.

Of course if you can get on the bubble while it is still expanding and get off before it bursts, you'll do well. Lots of people think they can do that, and many are wrong.

In regards to the OP's question, wait ten years and you'll know. If the military is still in charge and Thailand in the 2020's looks like Burma in the 1990's, the answer will be no.

Edited November 15, 2015 by heybruce

[baywatch82]

properties value went up, rental condos or houses were rarely empty.

Really ?? Big difference between asking prices and actual sales.. I have seen some absolute firesales the last year where places sold for 30% of the asking price..

Houses very rarely empty ?? half my old moobaan was empty.. some of the for rent and for sales signs were sun bleached and falling off they had been hung up so long..

Land prices in many areas have gone.. resale house prices ?? Thats a different story.

I am not talking about Chiang Mai but about this particular area.

I never had any of my condo empty and they vary from studios to expensive 2 bedrooms units.

[bangmai]

We have 2 units out of 120 available to rent, in an "A" location. Rents are up a little. The trends seem to start at the bottom.

[LivinLOS]

properties value went up, rental condos or houses were rarely empty.

Really ?? Big difference between asking prices and actual sales.. I have seen some absolute firesales the last year where places sold for 30% of the asking price..

Houses very rarely empty ?? half my old moobaan was empty.. some of the for rent and for sales signs were sun bleached and falling off they had been hung up so long..

Land prices in many areas have gone.. resale house prices ?? Thats a different story.

I am not talking about Chiang Mai but about this particular area.

I never had any of my condo empty and they vary from studios to expensive 2 bedrooms units.

condos I never look at.. I really have no idea on those, I readily admit.. you couldnt pay me to live in a sky box surrounded by others.. It just doesnt feel like a home to me..

I have been looking at free standing homes with gardens this last 6 months.. And from what I have seen, selling homes outside the city is a task that is not easy..