investments in thailand.

[hoffy66]

Hi to all,

I am looking to bring about 100,000.00 aussie dollars into thailand in the next week or so, i am buying a second hand ute. but outside of that , i am looking at what and where i can get some good investments happening? i have read some of the earlier comments on here, but most of them seem to be fairly dates 2012-13, am i better to do foreign funds at the bank[ i have a bangkok bank account] or is there something better out there?

thanks in advance for the advice ,

[GuestHouse]

Leave your money outside of Thailand until you need it in Thailand.

Otherwise it will be burning a hole in your pocket (perhaps assisted by someone who has better ideas for how it might be spent).

[Pinot]

You mean like buy a business in Thailand? That kind of an investment? Condos? Stocks?

No there isn't anything out there.

[hoffy66]

Hi Pinot,

I was looking at investment funds like banks or something like that , no i am not buying any type of buildings, as i have heard that selling further down the track is not easy, might look at some type of stocks if the rate is good, but more wanting to find something that has capital guarantee.

[impartialobserver]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

[hoffy66]

Hi impartialobserver,

I am not sure where you are going with this??? what is your question?? so far i have not seen any question from you???

maybe i do not understand the financial area of thailand, but i was looking for some general info. regarding putting my money into some sort of stocks or high return bank funds, i am of line for the next 24 hours, but will come back then, thanks for your insight.

[WorkingTourist]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

People need to explain why they would like passive income?

Or do you mean why invest in Thailand as opposed to some other country? If so then most likely it’s because they spend enough time here to have expenses in THB and/or they already have investments in other countries and would like some diversification.

Whenever I see people warn against investing in Thailand, starting a business, buying off plan, or just buying a condo, even bringing money to Thailand, I wonder if they have ever tried any of what they warn against, or if they are just repeating the mantra on TV.

[fletchsmile]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

It's also a question of familiarity, understanding and comfort. When I first arrived I would ask why, and would also listen to the "don't bring money into Thailand mantras". Leave your money in a UK/US/Oz (insert country of your choice) bank account earning 6% and live off the interest. Never really believed these to be honest and could see potential flaws in the arguments, but it takes time to get comfortable. Since then some of the flaws in these mantras have been exposed, eg interest rates on cash have also been decimated and most major western country currencies have lost value against THB since the start of this century. Risks that these mantras don't cover.

A couple of decades later, if you're going to live here permanently, for me the questions are "why not?" and "can you afford not to bring money into Thailand?" to address these FX and interest rate issues among others. If you've a big enough pot, and experienced investor, you can no doubt afford not to bring significant money into Thailand. Most people aren't in that position.

Here's some of the many why's? for me:

1) THB has appreciated vs my home currency by around 15% to 25% in the last 10 to 15 years or so or since the turn of the century, depending on which period you take. Expanding that: I also have THB liabilities in terms of school fees, so makes sense to match those with THB assets. I can fund the kids education as it stands. I'd be gutted though if exchange rates moved in a way that meant I was short just because I was too scared to keep money in Thailand.

2) I get tax relief on LTFs, RMFs etc at up to 35% by investing here

3) We bought a home. More for nesting than investing, and it's our family home, but it's an investment in quality of life. It's also a great feeling knowing that a main cost is fixed for life. Plus if I die my wife and kids have a guaranteed roof over their head. When I've not been working, it's nice not having to worry about rent. If I'd had overseas money instead and rented, I'd be subject to exchange rate fluctuations and landlord whims

4) If you want investments that will over time keep pace with inflation, equities make sense. In the UK I'd buy UK equities, US buy US equities etc as part of my investments, so learn about the Thai equity market and apply the same concepts. Thailand has a higher growth rate than most developed markets, I wish to participate in that

5) Convenience - easy to just go to my local bank and buy products.

6) Estate planning - Also if I die, having a Thai spouse, it's more convenient for her. Additionally it protects our family. Keeping all my money overseas would be a potential nightmare for them to sort, and manage, going thru foreign probate etc. My wife can carry on living off Thai assets and sort out foreign probates in a more relaxed atmosphere, rather being desperate to get to overseas assets immediately because all money has been kept outside Thailand

7) Diversification.

8) Historic returns and successes. I started cautiously dipping my toes in. The first Thai fund I ever bought (post Asian Crisis) is up around 1,000 % in the last 15 years, even factoring in recent pull backs and a poor last couple of years.

I'm not saying bring all your money here by any means. For me it's not an either/or question, Building some THB assets make sense, and these are some of the "why's" for me at least.

Cheers

Fletch

Edited February 29, 2016 by fletchsmile

[xylophone]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

It's also a question of familiarity, understanding and comfort. When I first arrived I would ask why, and would also listen to the "don't bring money into Thailand mantras". Leave your money in a UK/US/Oz (insert country of your choice) bank account earning 6% and live off the interest. Never really believed these to be honest and could see potential flaws in the arguments, but it takes time to get comfortable. Since then some of the flaws in these mantras have been exposed, eg interest rates on cash have also been decimated and most major western country currencies have lost value against THB since the start of this century. Risks that these mantras don't cover.

A couple of decades later, if you're going to live here permanently, for me the questions are "why not?" and "can you afford not to bring money into Thailand?" to address these FX and interest rate issues among others. If you've a big enough pot, and experienced investor, you can no doubt afford not to bring significant money into Thailand. Most people aren't in that position.

Here's some of the many why's? for me:

1) THB has appreciated vs my home currency by around 15% to 25% in the last 10 to 15 years or so or since the turn of the century, depending on which period you take. Expanding that: I also have THB liabilities in terms of school fees, so makes sense to match those with THB assets. I can fund the kids education as it stands. I'd be gutted though if exchange rates moved in a way that meant I was short just because I was too scared to keep money in Thailand.

2) I get tax relief on LTFs, RMFs etc at up to 35% by investing here

3) We bought a home. More for nesting than investing, and it's our family home, but it's an investment in quality of life. It's also a great feeling knowing that a main cost is fixed for life. Plus if I die my wife and kids have a guaranteed roof over their head. When I've not been working, it's nice not having to worry about rent. If I'd had overseas money instead and rented, I'd be subject to exchange rate fluctuations and landlord whims

4) If you want investments that will over time keep pace with inflation, equities make sense. In the UK I'd buy UK equities, US buy US equities etc as part of my investments, so learn about the Thai equity market and apply the same concepts. Thailand has a higher growth rate than most developed markets, I wish to participate in that

5) Convenience - easy to just go to my local bank and buy products.

6) Estate planning - Also if I die, having a Thai spouse, it's more convenient for her. Additionally it protects our family. Keeping all my money overseas would be a potential nightmare for them to sort, and manage, going thru foreign probate etc. My wife can carry on living off Thai assets and sort out foreign probates in a more relaxed atmosphere, rather being desperate to get to overseas assets immediately because all money has been kept outside Thailand

7) Diversification.

8) Historic returns and successes. I started cautiously dipping my toes in. The first Thai fund I ever bought (post Asian Crisis) is up around 1,000 % in the last 15 years, even factoring in recent pull backs and a poor last couple of years.

I'm not saying bring all your money here by any means. For me it's not an either/or question, Building some THB assets make sense, and these are some of the "why's" for me at least.

Cheers

Fletch

Nice post "fletchsmile" with some well explained reasons for your decision.

Edited February 29, 2016 by xylophone

[Gutenberg]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

It's also a question of familiarity, understanding and comfort. When I first arrived I would ask why, and would also listen to the "don't bring money into Thailand mantras". Leave your money in a UK/US/Oz (insert country of your choice) bank account earning 6% and live off the interest. Never really believed these to be honest and could see potential flaws in the arguments, but it takes time to get comfortable. Since then some of the flaws in these mantras have been exposed, eg interest rates on cash have also been decimated and most major western country currencies have lost value against THB since the start of this century. Risks that these mantras don't cover.

A couple of decades later, if you're going to live here permanently, for me the questions are "why not?" and "can you afford not to bring money into Thailand?" to address these FX and interest rate issues among others. If you've a big enough pot, and experienced investor, you can no doubt afford not to bring significant money into Thailand. Most people aren't in that position.

Here's some of the many why's? for me:

1) THB has appreciated vs my home currency by around 15% to 25% in the last 10 to 15 years or so or since the turn of the century, depending on which period you take. Expanding that: I also have THB liabilities in terms of school fees, so makes sense to match those with THB assets. I can fund the kids education as it stands. I'd be gutted though if exchange rates moved in a way that meant I was short just because I was too scared to keep money in Thailand.

2) I get tax relief on LTFs, RMFs etc at up to 35% by investing here

3) We bought a home. More for nesting than investing, and it's our family home, but it's an investment in quality of life. It's also a great feeling knowing that a main cost is fixed for life. Plus if I die my wife and kids have a guaranteed roof over their head. When I've not been working, it's nice not having to worry about rent. If I'd had overseas money instead and rented, I'd be subject to exchange rate fluctuations and landlord whims

4) If you want investments that will over time keep pace with inflation, equities make sense. In the UK I'd buy UK equities, US buy US equities etc as part of my investments, so learn about the Thai equity market and apply the same concepts. Thailand has a higher growth rate than most developed markets, I wish to participate in that

5) Convenience - easy to just go to my local bank and buy products.

6) Estate planning - Also if I die, having a Thai spouse, it's more convenient for her. Additionally it protects our family. Keeping all my money overseas would be a potential nightmare for them to sort, and manage, going thru foreign probate etc. My wife can carry on living off Thai assets and sort out foreign probates in a more relaxed atmosphere, rather being desperate to get to overseas assets immediately because all money has been kept outside Thailand

7) Diversification.

8) Historic returns and successes. I started cautiously dipping my toes in. The first Thai fund I ever bought (post Asian Crisis) is up around 1,000 % in the last 15 years, even factoring in recent pull backs and a poor last couple of years.

I'm not saying bring all your money here by any means. For me it's not an either/or question, Building some THB assets make sense, and these are some of the "why's" for me at least.

Cheers

Fletch

I always enjoy reading your posts.

For me, I never understood those people writing how they only can lose money in Thailand. I think that most people don't know how a real wild west capitalistic system functions because they always get their light versions in their home countries with all the social protection systems. In this real capitalistic country, you can lose but you can also make a fortune. Greed is good.

[Naam]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

a good answer doesn't exist because the reasons for investing or not investing in Thailand are based on individual perspectives and circumstances.

take a look what "Fletchsmile" wrote (a TV-member whom i respect very much and from whom i received several times valuable advice).

his points are no doubt logical but except one none of them apply to me and my family:

-being a cosmopolit i don't have a "home currency",

-i don't have children = no school fees,

-as a retiree i don't get any tax relief,

-like Fletch i consider our home an investment in life quality. whether the price goes up or down is irrelevant.

-i'm since decades a niche investor and don't touch equities. but i beat inflation.

-both my local banks are stuffed with nice looking girls who can't handle any instruction beyond "need x Baht cash" and "my debit card expired",

-in case of my demise there's no probate somewhere as assets are wrapped in a corporation cum trust, id est even our heirs are protected in case of both our demise.

last not least i am quoting Fletch "these are some of the 'why's' for me at least."

[talayjay]

Whenever I see people talk about investing in Thailand, I notice they don't have a good answer to one simple question:

Why?

As opposed to the much more reasonable question of 'why' would anybody invest (or even listen) to a Thai based / focussed financial advisor?

Some of the reasons are very well explained in Fletchsmile's response.

[khunpa]

With the current shape of the country, I would personally recommend you to not spend/invest your money here. There is a reason why foreign investment as expericed a huge decline in 2015.

Personally, I have all investments outside Thailand and have only spent money on a house and car here, which I do not consider to be categorized as "Investment".

Also have my money stored outside and only send in, what I need to spend. Why? Simply because the current situation of the country is unpredictable and their attitude towards foreigners to me seems not welcoming.

If you should "invest" in anything here, then I hope you are ready to walk away from it at any time. Good luck!

Edited March 1, 2016 by khunpa

[mcfish]

With the current shape of the country, I would personally recommend you to not spend/invest your money here. There is a reason why foreign investment as expericed a huge decline in 2015.

Personally, I have all investments outside Thailand and have only spent money on a house and car here, which I do not consider to be categorized as "Investment".

Also have my money stored outside and only send in, what I need to spend. Why? Simply because the current situation of the country is unpredictable and their attitude towards foreigners to me seems not welcoming.

If you should "invest" in anything here, then I hope you are ready to walk away from it at any time. Good luck!

Can you are elaborate on "the current shape of the country" and how exactly that would affect anyone investing. Im very curious

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