theguyfromanotherforum Posted December 16, 2015 Share Posted December 16, 2015 Asians in general love real estate investments because they don't trust banks. This is of course stupid as bubble is a bubble. I am looking at some condos in Bangkok and they cost more than prime locations in Canada. Another reason why Thais may be putting money in real estate might me this http://www.thaivisa.com/forum/topic/879114-banks-lowering-the-insured-amount-of-money-to-1-million-baht/ In any case, I wouldn't invest a baht in this country. If you made money congrats...... Link to comment Share on other sites More sharing options...
Amsterdam Posted December 16, 2015 Author Share Posted December 16, 2015 You all make valid points. When my wife made the investment 8 years ago it was supposed to pay for the kids to go to school. we never expected the value to increase 10 fold. It dos seem the consensus here on Thai visa that long term Land investment might still be the way to go. As the kids are still young my wife might look for a new plot of land to invest in maybe even a Nor sor sam Gor or Nor sor sam (assuming this is cheaper) and sit on it for another 10 years while attempting to get a chanote title. My wife might have to venture in the back country to find some good deals. Cheers Amsterdam Link to comment Share on other sites More sharing options...
swissie Posted December 16, 2015 Share Posted December 16, 2015 Memory refresher: A few years ago the R/E bubble burst in in Shangri-La (USA). Remember? The financial world was on the brink of collapse.= a speculative bubble bust. EVERY speculative bubble will eventually burst. How does one recognize a "bubble-situation? - When selling (asking price) in comparison of the annual yield that the property could generate by renting it out, approaches the "silliness-ratio". (=Renting a mansion for "peanuts", compared to the "Value" of the property.) And the worst of it all: " I am a fool to pay this price, but surely a greater fool than I will come along and pay a higher price soon." This is the food that fuels the "feeding-frenzy " in it's final stages. If that makes me a "party-pooper", my apologies. Cheers. Link to comment Share on other sites More sharing options...
ggt Posted December 16, 2015 Share Posted December 16, 2015 The entire world has been gobbling up some commodities as the fear of fiat money (paper) loosing it's value... Except for the Chinese in the S. China Sea...the world is not making more land...it is a finite commodity of infinite value...purchasing land is a store of wealth...the land will still be there when governments and paper money fail... What can you do with the money when you sell your land? Place it in a bank or CD at little to no interest? Watch the value decrease year after year? Other popular items besides real-estate are high-end art...Precious Metals...and antiques... The value of paper money as we have known it...days are numbered...wealth destroyed by over printing (OK...it is not actually printed...just numbers electronically deposited)...governments running up unpayable debt...junk bonds...and other worthless financial instruments... The world is wising up...paper is not in vogue by many people now... Link to comment Share on other sites More sharing options...
nithisa78 Posted December 16, 2015 Share Posted December 16, 2015 not one good answer. Couldn't one poster have just said, I don't know. Link to comment Share on other sites More sharing options...
Dumbastheycome Posted December 16, 2015 Share Posted December 16, 2015 They are not making any more? My g/f bought a plot up by Chiang Rai about a year and half ago. It has doubled in value. She would not sell it for double. Maybe the posters wife was smart get out while the gittins good. There are a lot of bubbles in the world today and here hi-so's are dabbling in real estate like never before. Crazy yes in my mind. I will be cremated as a 6X6 piece to dig a hole in is getting expensive. Land is one thing that is getting less while population is exploding. If "ownd" with clear and secure title...is better than gold. Link to comment Share on other sites More sharing options...
uptheos Posted December 16, 2015 Share Posted December 16, 2015 I asked a lady why she was buying two rai of uninteresting land? She replied, "so my relatives can't ask me for my money" Link to comment Share on other sites More sharing options...
Issangeorge Posted December 17, 2015 Share Posted December 17, 2015 In the town I live near a brand new shophouse is selling for ฿2.4 million, it is sitting on about 110 square metres of land. If I have ฿2.4 million, and I want to put it away for my newborn sons education, what should I do with it? Put it in the bank where I would be very lucky to get 3% interest, or buy the shophouse rent it out at the going rate of ฿6,000 a month (3%) and at the same time watch the value increase every year. Even if there is a property bubble burst, almost for sure in 18 years when I will need the money for my son's education the shophouse will be worth more than it is today, and in the mean time I've collected more money in rent than I would have in interest. The rich in Thailand buy prosperity and wait. They don't care about bubble bursts, because they are going to own the property a lot longer than any burst will last. Most won't ever sell they will leave it to their children. I think in general Asians think about property differently than Westerners. Most Westerners think of property as a get rich quick thing, most Asians think of it as a wealth preservation thing. Link to comment Share on other sites More sharing options...
Gary A Posted December 18, 2015 Share Posted December 18, 2015 we live in Loei province. The area here is a thousand feet above sea level. Right after the big floods, the land around here appreciated at least five times the former value. I bought my wife ten rai for 18,000 per rai and later another ten rai for 20,000 per rai before the flood. My wife recently bought two rai from an old lady who had five rai total. She paid 100,000 per rai. Shortly after that the lady came back and wanted my wife to buy the other three rai. My wife told her that she didn't have the money. The lady told my wife that her daughter was constantly asking for money and that if my wife would give her 10,000 baht a month with no interest, she could have the other three rai. That way she could tell her daughter that she didn't have any money. Of course my wife accepted the deal. I should add that this land is far from any paved road and likely will never get connected to the electric grid. It is near an irrigation project and has water year round. That's why my wife wanted the land. I can tell you for a fact that even at 100,000 per rai, it will never be paid for by farming profits. I think the increase here was because of no flooding in this area and the fact that they don't make any more of it. Is it a bubble? Who knows. I also know that the banks are not interested in financing bare ground. They will loan only a small fraction of the asking prices. Maybe they know something the buyers don't. Link to comment Share on other sites More sharing options...
slipperylobster Posted December 19, 2015 Share Posted December 19, 2015 Geez, seems everyone is the expert when dealing with land, banks,money, etc., etc. And most likely rich beyond imagination....at least in their own minds....I think it is all smoke coming out their arse.....trust no one, research the shit out of any money project and expect the worst and hope for the best...:-) Up to a point. I think a wise farang who just picked up a new wife, should learn all the tricks of the trade...from those of us (yes...I am included as a scam victim), who have tried and failed (with land). He will just get smoke blown up his own arse by the wife's family/brokers/lenders/lawyers, etc....so much more so than by reading thai visa. It won't hurt to listen a bit. Have not read from anyone that they claim to be "experts"..... but many are speaking from "hard knocks". A blind fool may try to go it on his own...and good luck with that! One thing that I am still learning from TV is how to protect myself in the future. If I am correct, there was a BBC documentary about a brit that thought he had covered his back...but a simple 500 baht power of attorney took his name off as main shareholder. Saw this posted, and watched the video. Seems the only thing safe is a good, solid trust in your wife...and vice versa. I would definitely hope everyone thinking of buying here would watch that. Link to comment Share on other sites More sharing options...
slipperylobster Posted December 19, 2015 Share Posted December 19, 2015 we live in Loei province. The area here is a thousand feet above sea level. Right after the big floods, the land around here appreciated at least five times the former value. I bought my wife ten rai for 18,000 per rai and later another ten rai for 20,000 per rai before the flood. My wife recently bought two rai from an old lady who had five rai total. She paid 100,000 per rai. Shortly after that the lady came back and wanted my wife to buy the other three rai. My wife told her that she didn't have the money. The lady told my wife that her daughter was constantly asking for money and that if my wife would give her 10,000 baht a month with no interest, she could have the other three rai. That way she could tell her daughter that she didn't have any money. Of course my wife accepted the deal. I should add that this land is far from any paved road and likely will never get connected to the electric grid. It is near an irrigation project and has water year round. That's why my wife wanted the land. I can tell you for a fact that even at 100,000 per rai, it will never be paid for by farming profits. I think the increase here was because of no flooding in this area and the fact that they don't make any more of it. Is it a bubble? Who knows. I also know that the banks are not interested in financing bare ground. They will loan only a small fraction of the asking prices. Maybe they know something the buyers don't. Curious if the seller had the "Chanote" for all this property, in her possession ...at time of sale. Or was this land in a lessor category. We have land in Mae Hong Son that is basically on the 1st tier of the lengthy process of acquiring a proper chanote. Since it is government land...it probably will never be qualified. We built a resort...but need to take down the signs whenever government inspectors (from bangkok) come in. Half the town was scrambling around. The power of ownership is only through the mass of "squatters", who received permission to buy/sell locally. We are officially not allowed to sell/nor operate a business. Can live there only. Link to comment Share on other sites More sharing options...
Gary A Posted December 19, 2015 Share Posted December 19, 2015 we live in Loei province. The area here is a thousand feet above sea level. Right after the big floods, the land around here appreciated at least five times the former value. I bought my wife ten rai for 18,000 per rai and later another ten rai for 20,000 per rai before the flood. My wife recently bought two rai from an old lady who had five rai total. She paid 100,000 per rai. Shortly after that the lady came back and wanted my wife to buy the other three rai. My wife told her that she didn't have the money. The lady told my wife that her daughter was constantly asking for money and that if my wife would give her 10,000 baht a month with no interest, she could have the other three rai. That way she could tell her daughter that she didn't have any money. Of course my wife accepted the deal. I should add that this land is far from any paved road and likely will never get connected to the electric grid. It is near an irrigation project and has water year round. That's why my wife wanted the land. I can tell you for a fact that even at 100,000 per rai, it will never be paid for by farming profits. I think the increase here was because of no flooding in this area and the fact that they don't make any more of it. Is it a bubble? Who knows. I also know that the banks are not interested in financing bare ground. They will loan only a small fraction of the asking prices. Maybe they know something the buyers don't. Curious if the seller had the "Chanote" for all this property, in her possession ...at time of sale. Or was this land in a lessor category. We have land in Mae Hong Son that is basically on the 1st tier of the lengthy process of acquiring a proper chanote. Since it is government land...it probably will never be qualified. We built a resort...but need to take down the signs whenever government inspectors (from bangkok) come in. Half the town was scrambling around. The power of ownership is only through the mass of "squatters", who received permission to buy/sell locally. We are officially not allowed to sell/nor operate a business. Can live there only. My wife refuses to buy any land without a chanote. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.