Housing Slump or what ?

[cmsally]

Being on a ring road, especially near a junction is generally not a great location.

Some of these shop houses are also vastly over priced. Whilst referring to the city, I am really

defining that area within the super highway.

[bangmai]

The lady across from me, built 4 shop houses of 170m each on her single family home property of about 260 wah. They are only two bedrooms, no kitchen, no a/c, but nice design with wide stair-cases. Completed in April. She's charging 28K for the end units, and 25K for the inner. A dental office moved in to a 25K unit, and until this week the other three sat empty. They just put a big air-con in front of the other inner. My guess is she borrowed on the lot, to build the block, and can pay her loan with rent from 1 unit. Also, she has determined that the higher rent will get a better tenant, that will be solvent. I don't think a Dental Office would move to save a few thousand THB. As much, as I was hoping for Beer Bar or Massage, I think she has the right idea...but she had good financing in place. Think how much wear and tear a restaurant could put on a place in the 6 months it took it to go out of business. Her land is valued at 100K per wah, right off of Suthep.

Prom is a terrible location. Airport Plaza area would be way better, and the huge difference in land values would support that. I wouldn't be surprised if Imm is getting free rent at Prom, just to get the white hostages in there.

[LivinLOS]

I wouldn't be surprised if Imm is getting free rent at Prom, just to get the white hostages in there.

I would be.. wheres the under the table kickbacks in free rent

[SiSePuede419]

It's always cheaper to rent than buy.

As an owner, you're responsible for maintaining the house. Are you saving 25% of the payment for future maintenance expenses? Of course not, 555.

Renting offers 100% flexibility. Neighbors too loud? Move. Want to live in Santa Barbara, California or Veil, Colorado for the summer (as if someone in Thailand could afford to do so)? Move. Want to go traveling for 6 months? Move.

Renting and investing the difference in a Total Stock Market index produces a better average annual ROI (6-8% historically).

All that being said, I know how to build a house for 30,000B that blows away any concrete sweatbox you can buy in Thailand, 555

Knowledge is power, 555

[bazza40]

It's always cheaper to rent than buy.

As an owner, you're responsible for maintaining the house. Are you saving 25% of the payment for future maintenance expenses? Of course not, 555.

Renting offers 100% flexibility. Neighbors too loud? Move. Want to live in Santa Barbara, California or Veil, Colorado for the summer (as if someone in Thailand could afford to do so)? Move. Want to go traveling for 6 months? Move.

Renting and investing the difference in a Total Stock Market index produces a better average annual ROI (6-8% historically).

All that being said, I know how to build a house for 30,000B that blows away any concrete sweatbox you can buy in Thailand, 555

Knowledge is power, 555

30,000B? Surely you mean dollars or euros. Or you are missing a zero.

There are widescreen TV's that sell for more than that. If you genuinely believe you can build a house for 30,000 baht, my Thai g/f has land for you to put it on.

[Johpa]

What is the question? The entire economy is down. Tourism is way down. Maybe you don't notice it in the major tourist zones but in the secondary zones it is very noticeable. Same with real estate, great locations aren't that impacted but other locations are in the doldrums.

[theguyfromanotherforum]

Well... I'm just reading on Reuters that FAA is downgrading Thailand after all. Perhaps Thai Visa will pick up the story soon.

Bad times for Thailand i think.

[Lampang2]

Well... I'm just reading on Reuters that FAA is downgrading Thailand after all. Perhaps Thai Visa will pick up the story soon.

Bad times for Thailand i think.

Let's see if it gets reflected in the exchange rates.

[SiSePuede419]

It's always cheaper to rent than buy.

As an owner, you're responsible for maintaining the house. Are you saving 25% of the payment for future maintenance expenses? Of course not, 555.

Renting offers 100% flexibility. Neighbors too loud? Move. Want to live in Santa Barbara, California or Veil, Colorado for the summer (as if someone in Thailand could afford to do so)? Move. Want to go traveling for 6 months? Move.

Renting and investing the difference in a Total Stock Market index produces a better average annual ROI (6-8% historically).

All that being said, I know how to build a house for 30,000B that blows away any concrete sweatbox you can buy in Thailand, 555

Knowledge is power, 555

30,000B? Surely you mean dollars or euros. Or you are missing a zero.

There are widescreen TV's that sell for more than that. If you genuinely believe you can build a house for 30,000 baht, my Thai g/f has land for you to put it on.

No, the price is in Baht. It all depends on the cost of the "finish" materials.

Here's one that was done for 240KB that looks like an art piece. Never seen any luxury condo in BKK that looks nicer:

http://inhabitat.com/magical-dome-house-in-remote-thailand-constructed-in-six-weeks-for-just-8000/

Hell, the Rich Russians buy gaudy Italian furniture that looks quite ugly, so money definitely can't buy "good taste", 555

Edited December 1, 2015 by SiSePuede419

[namatjira]

Renting is cheaper than buying....and after a lifetime of renting enjoy your nothing...for what it is worth.

[SiSePuede419]

Renting is cheaper than buying....and after a lifetime of renting enjoy your nothing...for what it is worth.

An 8% average ROI is hardly "nothing". But being bad at math sure can cost quite a lot of $$$$.

Ask any of the real estate "geniuses" on this very thread who LOST MONEY BUYING.

555

[namatjira]

Maybe in Thailand, but not in Australia, New Zealand and other western countries where 20 percent growth per annum has been achieved.......nothing has come close to the gains made in real estate in a city like Sydney in the last 10 to 20 years.

[SiSePuede419]

Maybe in Thailand, but not in Australia, New Zealand and other western countries where 20 percent growth per annum has been achieved.......nothing has come close to the gains made in real estate in a city like Sydney in the last 10 to 20 years.

Wrong. RRE ROI in the US for the past 100 years is less than 1% after inflation.

What you're describing is a BUBBLE. Buyers from China are already pulling back on their bids, because the Chinese stock market took a dive.

You think the Chinese government doesn't know that so much money is ILLEGALLY flowing out of China into Sydney real estate?

You think this bubble will continue forever and there's no way investors in Sydney will lose money on real estate?

Bwahahahahahaha.

Right.

[lcp0761]

I am rolling over and over as I will be retiring in January of 2017 to Thailand. I previously spend 3+ years working in BKK & Laem Chabang so am familiar with the country and people.

Currently my cash money (approx. $350K USD) is tied-up in retirement funds - not available to withdraw until I retire or I will be penalized.

Sorry to those whom are wanting to sell but I am hoping to pick-up a 2nd hand house/condo in the Pattaya area post my retirement.

I hope the housing/condo market stays stable for the next 9-12 months but then drops again just in time for me to pick-up something.

Edited December 1, 2015 by lcp0761

[heybruce]

"the wife is a broker"

If you buy real estate in Thailand, you will be "broker" than renting.

Real estate bubble? What's that?

555

I disagree. I have already saved more rent than the money I put out for land and house in someone else's name and I have a lease on. You can even figure in the interest if you like. Then there are other factore which would be paricular to a person's situation.

However, for most foreigners I would agree you are correct. That is quite the problem in Chiang Mai now.

I am really surprised by the number of people who say that it is better to rent !!! It has been proven over many, many years that that statement is pure bunkum, nearly always used by people who can not afford to buy. I have bought every house I ever lived in, in five different counties. I always sold at a profit and in two cases, more than doubled my money !!

And I've seen the aftermaths of three housing busts, not counting the one that seems to be underway now.

I'd like to see this proof that you refer to. I'll bet many people all over the world wished they'd been renters in 2007.

If you really made money on five houses purchased without regard to what the local housing cycle was like you were very lucky. But remember--you can toss a coin five times and call it correctly each time. That doesn't mean you'll get a winning toss next time.

Edited December 1, 2015 by heybruce

[SiSePuede419]

"I'd like to see this proof that you refer to."

There is none. Anecdotes do not equal facts.

We'll have to wait until this genius buys a RRE property at the peak of the bubble, then we'll all enjoy them whining about how much they're 'upside down'.

No one could have predicted there's a BUBBLE. Except for all those smart people who predicted there was a BUBBLE.

555

[NeverSure]

Renting is cheaper than buying....and after a lifetime of renting enjoy your nothing...for what it is worth.

This is too simplistic and ignores the cost of money. Why would I put $USD100.000 into a house in Thailand that I can't even own?

We farangs have a culture that says we must own our home. In our home countries we can actually own it and be protected by the rule of law. We bring that culture to Thailand, apparently forgetting that the rules are different.

I own my home in the US outright and under the rule of law I am protected. If I were to move to Thailand I would give my home to a rental agency and let them rent and manage it. I could get at least 100,000 baht per month for it. Investors will tell you to expect to net 1/2 of that after management fees, repairs and maintenance, a vacancy factor and so on. So I should net at least 50,000 baht per month.

AND if there is inflation I get that benefit. I don't have to worry about prices going up while I'm out of the market.

I said earlier that to me all of Thailand is a poor location for farangs to own real estate. I stand by that and would never do it. I would rent.

Cheers.

[quandow]

Often I would look out from my patio deck on Jomtien Beach Road at night and would see very few lights on in any of the condos. I would venture to say they had no more than 10% occupancy. The market is currently glutted with vacancies.

[bangmai]

could anyone give one example of a fire sale price on a condo in Thailand...that shows a deep discount? I was able to buy three homes at 80% off+ in Arizona and Nevada in 2009-2010. Let's see if anyone can show one at even a 33% discount...after all, we're in a big slump, right?

[robertthebruce]

Maybe in Thailand, but not in Australia, New Zealand and other western countries where 20 percent growth per annum has been achieved.......nothing has come close to the gains made in real estate in a city like Sydney in the last 10 to 20 years.

London is up there too...

[mesquite]

Renting is cheaper than buying....and after a lifetime of renting enjoy your nothing...for what it is worth.

This is too simplistic and ignores the cost of money. Why would I put $USD100.000 into a house in Thailand that I can't even own?

We farangs have a culture that says we must own our home. In our home countries we can actually own it and be protected by the rule of law. We bring that culture to Thailand, apparently forgetting that the rules are different.

I own my home in the US outright and under the rule of law I am protected. If I were to move to Thailand I would give my home to a rental agency and let them rent and manage it. I could get at least 100,000 baht per month for it. Investors will tell you to expect to net 1/2 of that after management fees, repairs and maintenance, a vacancy factor and so on. So I should net at least 50,000 baht per month.

AND if there is inflation I get that benefit. I don't have to worry about prices going up while I'm out of the market.

I said earlier that to me all of Thailand is a poor location for farangs to own real estate. I stand by that and would never do it. I would rent.

Cheers.

In the US you own your home as long as the government lets you own it. Try not paying your property taxes, and then you will see who really owns your home.

[Paul Catton]

You rent a house or buy a home, there lies the difference.

anon.

[LivinLOS]

Renting is cheaper than buying....and after a lifetime of renting enjoy your nothing...for what it is worth.

This is too simplistic and ignores the cost of money. Why would I put $USD100.000 into a house in Thailand that I can't even own?

We farangs have a culture that says we must own our home. In our home countries we can actually own it and be protected by the rule of law. We bring that culture to Thailand, apparently forgetting that the rules are different.

Theres also issues like maintenance and bad build quality..

I lived in a 30 plus million baht clifftop villa.. It fell off the cliff !!!

I lived in a Phuket hill house that started its slide down the hill.. It also cost the landlord 100s of 1000s repairing a bad pool, and a bankrupt developer had left him never getting a tabien baan also.

Of the last few homes I have lived in the rental return only paid the upkeep of the property, it was that bad.

Yet I would still build or buy simply because of the non financial factors and if I lose it at some point meh.. always make more money.

[LivinLOS]

Here's one that was done for 240KB that looks like an art piece. Never seen any luxury condo in BKK that looks nicer:

http://inhabitat.com/magical-dome-house-in-remote-thailand-constructed-in-six-weeks-for-just-8000/

Oh yeah steves house.. which misses the point that he never paid for the land, and didnt put a lot of his costs into the headline price..

As for 'never seen a condo that looks nicer' wel.. lets just agree to disagree..

[SiSePuede419]

Here's one that was done for 240KB that looks like an art piece. Never seen any luxury condo in BKK that looks nicer:

http://inhabitat.com/magical-dome-house-in-remote-thailand-constructed-in-six-weeks-for-just-8000/

Oh yeah steves house.. which misses the point that he never paid for the land, and didnt put a lot of his costs into the headline price..

As for 'never seen a condo that looks nicer' wel.. lets just agree to disagree..

If you have pictures of condos with more beautiful spaces than this dome house, post them here, 555. So far, I've seen nothing comparable. Fact.

He never paid for the land because foreigners cannot own land THEY ONLY RENT

http://property.thaivisa.com/can-foreigners-property-thailand/

0% of Farangs own the land their McMansion Concrete Sweatboxes are on, 555.

Snobs? Nope. Idiots.

[SiSePuede419]

You rent a house or buy a home, there lies the difference.

anon.

In Thailand, foreigners can only RENT the land their "home" is on. Kinda destroys your cliche, doesn't it?

http://property.thaivisa.com/can-foreigners-property-thailand/

[LivinLOS]

You rent a house or buy a home, there lies the difference.

anon.

In Thailand, foreigners can only RENT the land their "home" is on. Kinda destroys your cliche, doesn't it?

http://property.thaivisa.com/can-foreigners-property-thailand/

Lifetime usufruct works for me.. I cant see me needing it after my death...

Also, invest 40 Mb and you can own a rai too..

Or control a company that does actual work, and it owns it.. Sure thats hazier but lets face it the legality and concepts of 'ownership' of parcels of the planet is all just legal constructs anyway.

[theguyfromanotherforum]

Often I would look out from my patio deck on Jomtien Beach Road at night and would see very few lights on in any of the condos. I would venture to say they had no more than 10% occupancy. The market is currently glutted with vacancies.

Same in Bangkok in any new condo development.

Even Lumpini that is relatively cheap.

[Paul Catton]

You rent a house or buy a home, there lies the difference.

anon.

In Thailand, foreigners can only RENT the land their "home" is on. Kinda destroys your cliche, doesn't it?

http://property.thaivisa.com/can-foreigners-property-thailand/

Far from destroying the cliché, it reinforces it.

Transience requires housing, rent.

Permanence requires homeliness, buy.

A titled deed is not in itself a state of homeliness.

Happily I am past transience knocking on my door.

[ignis]

around where I live appear to all to do with gimmicks .. + has been for years

Used to be with FREE Honda Jazz, now notice is FREE Mitz Mirage........ houses between 3 - 4 million..

1.5 - 2 million appears 'Index' furniture vouchers of 3 - 400,000 baht.