Is This A Good Deal?

[Phil Conners]

My wife was just offered 8 rai of farmland somewhere in Issan, for 100,000 baht. The idea is to grow eucalyptus and/or rubber trees. I have no idea what farmland cost, is it a good deal? I'm sure there are no electricity, water or anything else supplied, just farmland.

[Unknown]

My wife was just offered 8 rai of farmland somewhere in Issan, for 100,000 baht.

Well, it is worth nothing (probably the reason why she was offered the 8 rai).

So 100,000 baht is as good a deal as any deal can be...

[soihok]

We purchased 18.5 rai earlier this year about 40 km outside Korat.

The area has a road and a bored well.

At the moment its producing corn (tennents).

We paid 300,000 .

For a reference.

Cheers

[thelegend]

12500 baht a rai is probably as cheap as you will get, and is good value so long as it is accessable.Rice land is going for between 20000 and 30000 a rai, and seems to be getting more and more expensive as more and more walking ATMs arrive in the Province.

[soihok]

Such is life

[Maizefarmer]

PHIL CONNERS - depends on a number of issues:

- the proximity of the land to any town or village centre?

- what access to road system?

- the avalibility of ultilities & services (e.g. domestic water system, mains AC power, telephone)

- the cost on a rai per rai basis of the land around your land (make an effort to check this out

YOURSELF and do so discreetly, and independantly - you can get a professional valuation

down for a few thousand baht - do it!)

- what can the land be used for (with Eucalyptus on it if its anymore than 4 years old and planted

at comercial plantation density then expect it to be well under the nuitrional level required to

support anything else)

- what do you want to do with the land - build a house - then check for any restriction on planning

permission - domestic residance or small business wise (this may have a big impact on the

value of the land 5 - 10 years down the line)

- does it flood in the wet season (not likely if it is planted with Eucalyptus - but can ad

significantly to the cost of land - if you need to land fill before building anything)

Now I know you mentioned it was to grow Eucalyptus or rubber trees - so much of the above will not apply, but I mention it as there is a chance you will not buy this particular plot but look for another in which many of the above may be important, or you may change you rmind regards growing Eucalyptus.

You have read the postings on growing Eucalyptus ?? Ther is very limited milage in this crop - when as a revenue earner (very limited), but more importantly what it does to the land should you ever decide to try and grow anything on it at a later date? To put is blutntly - it will be all but stuffed.

In summary: as a bare patch of land with/wiithout planning permission Baht 100K for 8 rai anything more than about 5 - 8kms from any small village/hamlett, town up in rural Isaan I would think needs to be looked at and discreetly valued against the cost of similar land around it. While hard to say it is expensive, my gut feeling is that it is very much at the higher range as opposed to the lower range for what I pictue you are been offered (i.e. have you been been looking for land to grow rubber and/or Eucalyptus?) But I could be complelty wrong - get it valued - shoudln t cost you more than around baht 4K - 5K to get a professional valuation.

If used rice land (ie no longer good for rice) then it aint much good for anything unless it is filled in first which will add a lot to the cost of the land.

Tim

[bdenner]

My wife was just offered 8 rai of farmland somewhere in Issan,............

As stated earlier there are many variables and there is not much info here. We paid 10K/Rai for good quality land on the side of gently slopping hill, cleared but hadn't been used for many years. Power about 150 meters away and 2km to a main road (bus route). We put Eucalyptus on it and they have grown from seedlings to an average of 1.8 meters since May with very few losses. Located about 80km NE of Udon.

Don't forget you are only buying a bit of paper, most farm land is on a grant from the state and is not covered by a (red) chanot. To make it as legal as you can the transaction should be in writing and witnessed by the Pua Baan (village boss) and the Or Bor Tor (local government administrator), then registered at the Amphor office.

[Maizefarmer]

BDENNER actually raises what is proberbly the most important single consideratiuon of all i.e.:

- what is the ACTUAL ULTIMATE status of the land your are "buying" - wil it be yours lock stock & barrel, or will it ultimately still be a state owned freehold to which you are buying the usage rights to but not the actual ownership. On the other hand, state owned land as BDENNER refers to is usually tranacted between "owners"/"endusers" on a life time usuage basis in any event, so it perhaps is not that significant - accepot that otherwise unapplicable planning/usage restirctions may be in place - so, still wise to check.

Tim

[soihok]

Again for the reference, the area I mentioned came with a red chanote.

Cheers.

[udon]

A bargain Phil. just don't plant <deleted> Eucs on it.

[Issangeorge]

Soihoc, 18.5 rai for 300,000 (16,216/rai) with a red chanot is a really good deal. Issangeorge. And I would say that 8 rai for 100000 baht with any kind of title is a good deal. Issangeorge.

[RamdomChances]

The price sound ok, as has been said I'd have a look as some of the euca growing threads before you decide to go down that route.

[udon]

I think Phil threw that bad word in just to stir us up..... & it worked

[Phil Conners]

Thanks much for the info. Much appreciated!

No stirring, just what my wife told me.

We don't intend to become a farmer, just considered it as an investment, but I think we'll let it pass

[lotus eater]

If I can have the benefit of the obviously shrewd advice available here.

I'm asked to fund the purchase of 10 rai of farm land at 25 000 a rai, ie 250 000 baht. It's accessible by non-tarmac road. It's some 40 kilometres from Pak Chong. The indication from the advice above would seem to be - overpriced.

But as a relevant aside, I'd like to know where/how one gets a professional/independent valuation.

Many thanks.

[Gary A]

I recently bought 10 rai for my wife. It is about 3 kilometers from our village but has no electricity, no water and is on a narrow dirt road. We paid 18,000 baht per rai. It does have a red chanote. At one time it was rice paddy but now has an excellent six foot tall crop of weeds growing. Very nearby is a 28 rai plot that the owner is asking 30,000 baht per rai. Good or not? I have no idea but it seems to have given my wife a feeling of security and I feel like I have provided something for her for when I am dead and gone.

[bina]

maize...

interesting to read here; tried to post questions in real eastate thread but i guess they're too hoity toiuty to really answer my dumb questions....

since in israel we have similar land ownership types: or deeded land, or 'rented' from the state for 99 yrs (most land here is that), the second type meaning that the state can, and often has done, build roads, etc on 'your' land, even ifu are actively farming it etc....

so, i would have to check my husband (in three more days) mom's land that she would give him, to see if it is red chanote or,??? what??? ; then we would have to have someone from the amphur check and mark the land so that (if it is chanote) he could become the owner??? and if it isnt chanote (red paper)? then what???

to clarify the bad wishers: its his money, his land although not sure about rules for thai man/farang woman and house ownership/land... since visa requirements are not the same.

and how do u find out what the 'zoning' requirments of land are: farming, house, nothing, etc. what happens if a large company wants your land, like in udon near some towns of friends (for salt)? if it is state land u are 'leasing' do u get compensation if u are actively using the land, and how much in to the land can u build on if it is not 'red paper chanote' so the gov/t cant 'reclaim' the area u built on?

maybe i hijacked the thread but seemed relavant since it does seem that many farm thai dont have a real clue to dealing with legalities on paper although they may know the quality/value of the land itself.

forgot to mention korat area

bina and anon

Edited October 29, 2006 by bina

[Maizefarmer]

Sorry I took so long to reply Bina

How do you find out what the planning restrictions are for a particular plot of land?

The land office that issued the title papers for that particular piece of land will be the place to ask.

From what you have described off the top of my head I would think you would be able to do anything agrciultural.

The type of title in rural areas in reality seldom turns out to be a restriction of any sort. Its in urban areas that peole complain abouts smells and noises. Out in the country the folk are pretty easy about it - its part of the lifestyle.

The land office that issued the titleship paper is the best place to make enquiriee s regards any usuage restrictions that may/may not be in place.

Tim

[LoveDaBlues]

12500 baht a rai is probably as cheap as you will get, and is good value so long as it is accessable.Rice land is going for between 20000 and 30000 a rai, and seems to be getting more and more expensive as more and more walking ATMs arrive in the Province.

foolish post. Issan is a BIG place covering over 60K square miles and location is everything. I've seen rice land close in to town (Udon Thani) with an asking price of over 1M baht per rai. Probably won't sell for that but to think it could be picked up for 30,000 per rai is laughable. I looked for around 8 months until I finally found a guy hurting for money. All the nearby rice land they are asking 500,000 per rai. Would probably take 200K - 300K per rai. I picked up 5.5 rai for 460K + 25,700 transfer tax. This is a good deal considering the location; only 12K to Charoensri Complex.

There is power, water, and phone line there. Have already been offered a decent profit but won't sell as I am going to build a house.

BTW, Issan is not a province but consists of 19 different provinces.

PHIL CONNERS - depends on a number of issues:

- the proximity of the land to any town or village centre?

- what access to road system?

- the avalibility of ultilities & services (e.g. domestic water system, mains AC power, telephone)

- the cost on a rai per rai basis of the land around your land (make an effort to check this out

YOURSELF and do so discreetly, and independantly - you can get a professional valuation

down for a few thousand baht - do it!)

- what can the land be used for (with Eucalyptus on it if its anymore than 4 years old and planted

at comercial plantation density then expect it to be well under the nuitrional level required to

support anything else)

- what do you want to do with the land - build a house - then check for any restriction on planning

permission - domestic residance or small business wise (this may have a big impact on the

value of the land 5 - 10 years down the line)

- does it flood in the wet season (not likely if it is planted with Eucalyptus - but can ad

significantly to the cost of land - if you need to land fill before building anything)

Now I know you mentioned it was to grow Eucalyptus or rubber trees - so much of the above will not apply, but I mention it as there is a chance you will not buy this particular plot but look for another in which many of the above may be important, or you may change you rmind regards growing Eucalyptus.

You have read the postings on growing Eucalyptus ?? Ther is very limited milage in this crop - when as a revenue earner (very limited), but more importantly what it does to the land should you ever decide to try and grow anything on it at a later date? To put is blutntly - it will be all but stuffed.

In summary: as a bare patch of land with/wiithout planning permission Baht 100K for 8 rai anything more than about 5 - 8kms from any small village/hamlett, town up in rural Isaan I would think needs to be looked at and discreetly valued against the cost of similar land around it. While hard to say it is expensive, my gut feeling is that it is very much at the higher range as opposed to the lower range for what I pictue you are been offered (i.e. have you been been looking for land to grow rubber and/or Eucalyptus?) But I could be complelty wrong - get it valued - shoudln t cost you more than around baht 4K - 5K to get a professional valuation.

If used rice land (ie no longer good for rice) then it aint much good for anything unless it is filled in first which will add a lot to the cost of the land.

Tim

Most excellent post. Find out not only what is the asking price for nearby land but what are some of the actual sale prices.

I recently bought 10 rai for my wife. It is about 3 kilometers from our village but has no electricity, no water and is on a narrow dirt road. We paid 18,000 baht per rai. It does have a red chanote. At one time it was rice paddy but now has an excellent six foot tall crop of weeds growing. Very nearby is a 28 rai plot that the owner is asking 30,000 baht per rai. Good or not? I have no idea but it seems to have given my wife a feeling of security and I feel like I have provided something for her for when I am dead and gone.

[chownah]

Tall weeds can be an indication of fertile soil.....if land has been idle and nothing is growing on it, it probably means it is not fertile. If lush weed growth is made up of a mixture of grasses and legumes then it is a good indication for fertile soil....of course getting a soil test is best.

Chownah