Thoughts on investing on land in Krabi?

[mike324]

I'm keen on investing around 5 rai or less of land in Krabi? Any thoughts on this?

Before this turns into another - "stay away" or "put your money somehwere else" thread.

I'm a naturalize citizen, so I can buy land. I have my own business and have invested in condos/apartments. I would like to diversify my portfolio with some land.

Why I am looking at Krabi?

Its still relatively undeveloped compare to other major tourist destinations such as Phuket, yet still close to all the major tourist islands.

There is no major shopping area yet but there are still talks of opening one, the time is still not right due to the population and demographics.

Airport is only a short 30min drive to the beach

Lots of land left.

Although value has gone up quite a bit close to the beach areas, I find that land within a 10 minute drive is still reasonably priced.

Krabi is still known as a family destination and cheaper compare to other major islands.

I foresee land prices will continue to rise once the economy rebounds. This place still has great potential. New hotels continue to be built due to the land availability and ROI.

Other positives include a potential to build a port for cruise ships (but that is not the main reason I want to invest, just a plus)

What will I do with the land later? Resell / Rent/ or Develop it are all on the table. But lets save this for another thread.

So for the folks who live in Krabi? What are some good locations that you find nice to live in? lively parts of the town during weekdays and weekends? HIdden locations worth looking at?

Edited April 4, 2016 by mike324

[cornishcarlos]

Next to the coal fired power plant will be cheap...

[grumpyoldman]

Next to the coal fired power plant will be cheap...

Going to jot you down right next to old Seligne2 as a "less than helpful" contributor. From your nic I'm guessing you're not French, just as helpful though!

OP, a couple of thoughts.

Seems to be a lot of land inbetween Ao Nang and Khlong Muang, some of it really nice with views of the big karsts. Obviously need water and electricity, would also be nice if it were near a road that could quickly get you toward the main road headed for all the shopping, Big C etc in Krabi Town.

International schools or lack thereof. I don't have kids so cannot give advice. Is there or are there yet decent schools for foreign kids? If yes, you might consider how far away from the school(s), if not moot point guess you'll be renting to holidaying foreigners selling to Thais.

As far as just plunking investment coin down, build shophouses at the "T" junction where you turn left off the main road going into Ao Nang, the left going to Big C, and all the shopping. Rent those out or just sit on the land.

[cornishcarlos]

Next to the coal fired power plant will be cheap...

Going to jot you down right next to old Seligne2 as a "less than helpful" contributor. From your nic I'm guessing you're not French, just as helpful though!

OP, a couple of thoughts.

Seems to be a lot of land inbetween Ao Nang and Khlong Muang, some of it really nice with views of the big karsts. Obviously need water and electricity, would also be nice if it were near a road that could quickly get you toward the main road headed for all the shopping, Big C etc in Krabi Town.

International schools or lack thereof. I don't have kids so cannot give advice. Is there or are there yet decent schools for foreign kids? If yes, you might consider how far away from the school(s), if not moot point guess you'll be renting to holidaying foreigners selling to Thais.

As far as just plunking investment coin down, build shophouses at the "T" junction where you turn left off the main road going into Ao Nang, the left going to Big C, and all the shopping. Rent those out or just sit on the land.

You think my comment is "less than helpful" ?

Suppose the OP knows nothing of the proposed power plant project, even though it has been the subject of news coverage in both Thai and English.

How would you feel if you bought land and no-one gave you a heads up !!

[taninthai]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

[kinmaew]

You lucky dog how did you get a Thai passport? What is the story behind this so the rest of us can learn how someone has actually "Done it"

[Caca4u]

I never understand why a place like Ao Nang doesnt attract more tourists. It is much prettier than Phuket.

I have been to Phuket only once, Ao Nang 7 times. I had a gf there and once I asked her why isnt Ao Nang another Phuket.

She told me because most of the people are muslims and the rain reason is lenghier than phuket or samui. She put more emphasis on the muslim issue.

Last few times I was there I noticed the thai muslims are not as friendly and they care even less about making customers happy. "People make the place". I would invest in the Kao Lak area instead of Krabi.

[mike324]

Next to the coal fired power plant will be cheap...

Going to jot you down right next to old Seligne2 as a "less than helpful" contributor. From your nic I'm guessing you're not French, just as helpful though!

OP, a couple of thoughts.

Seems to be a lot of land inbetween Ao Nang and Khlong Muang, some of it really nice with views of the big karsts. Obviously need water and electricity, would also be nice if it were near a road that could quickly get you toward the main road headed for all the shopping, Big C etc in Krabi Town.

International schools or lack thereof. I don't have kids so cannot give advice. Is there or are there yet decent schools for foreign kids? If yes, you might consider how far away from the school(s), if not moot point guess you'll be renting to holidaying foreigners selling to Thais.

As far as just plunking investment coin down, build shophouses at the "T" junction where you turn left off the main road going into Ao Nang, the left going to Big C, and all the shopping. Rent those out or just sit on the land.

You think my comment is "less than helpful" ?

Suppose the OP knows nothing of the proposed power plant project, even though it has been the subject of news coverage in both Thai and English.

How would you feel if you bought land and no-one gave you a heads up !!

Yes, I read about the power plant....thanks for the heads up again! For some reason, I don't think land would be cheaper around there, Thais have a funny logic, many would think that you might be able to sell your land to the government or investors can do stuff to cater to folks working at the power plant.

[mike324]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

Seems to be the trend in many places from the building boom the past couple years, with the downturn in economy everything is stagnant

Yes, I don't plan on catering to tourist if I do plan on doing something with the land, high/low season makes it difficult to run a business.

[mike324]

You lucky dog how did you get a Thai passport? What is the story behind this so the rest of us can learn how someone has actually "Done it"

Nothing really lucky about the whole process, just decades of hard work and paying taxes to the Thai government. I moved my manufacturing business to Thailand more than 2 decades ago. The year that I moved my company (1989-1990), Board of Investment offered permanent residence for that year, so my whole family got PR. Took almost 10 years from the application date until I got citizenship, most important thing the government looks at is that you pay enough taxes.

There really isn't an easy way to get citizenship unless you are a foreign women married to a Thai, if you have a baby you can apply for citizenship easily. There is no requirements for females. As for the men, you are out of luck if you don't pay taxes to the country.

[Khun Robert]

Ao Nang is over develloped. Take a look in Ao Nammao.

The new yacht harbour opens in May at Baan Leampo and the Government is still building a port for ferry and yachts at Ao Nammao pier.

It is a developing area for the next few years.

[onni4me]

Up to you. One needs to know a lot about the local situation giving any advice and IMHO you are in the wrong place to ask here. Or you expect TV contributors have some clairvoyant abilities when it comes to location, price and...*gasp*...future?

Are you the same guy asking similar thing few weeks ago? I remember someone asking about a plot on Krabi that was so CHEAP, a real bargain? Go for it!

I really suspect that you are a businessman or long-term resident of Thailand if you need to come here asking such questions...

[grumpyoldman]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

Hi taninthai,

this is still people just parking money though. If they get a renter, or a buyer they are happy, if not, they still will get a better return in the long run than if they had parked that same dough in an interest bearing savings. Cheers, GOM

Edited April 5, 2016 by grumpyoldman

[onni4me]

Oh, it wasn't you or about Krabi but someone who asked similar question to just disappear from the forum with staggering 4 (!) messages...

This site is soon becoming an advertising channel of all property in Thailand. Seems no end to blowing air in to the real estate balloon.

http://www.thaivisa.com/forum/topic/901564-is-this-a-reasonable-price-to-buy-on-phangan/

[grumpyoldman]

Oh, it wasn't you or about Krabi but someone who asked similar question to just disappear from the forum with staggering 4 (!) messages...

This site is soon becoming an advertising channel of all property in Thailand. Seems no end to blowing air in to the real estate balloon.

http://www.thaivisa.com/forum/topic/901564-is-this-a-reasonable-price-to-buy-on-phangan/

Out there post of the year? Bwaahaahaaa

[TheCruncher]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

Hi taninthai,

this is still people just parking money though. If they get a renter, or a buyer they are happy, if not, they still will get a better return in the long run than if they had parked that same dough in an interest bearing savings. Cheers, GOM

Please enlighten us how you can be better of with money invested in an empty sitting shop house than having it in an interest bearing bank account.

We are all ears.

[grumpyoldman]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

Hi taninthai,

this is still people just parking money though. If they get a renter, or a buyer they are happy, if not, they still will get a better return in the long run than if they had parked that same dough in an interest bearing savings. Cheers, GOM

Please enlighten us how you can be better of with money invested in an empty sitting shop house than having it in an interest bearing bank account.

We are all ears.

The land is a long term appreciating asset.

[bitcoinforever]

I think you should look at the trends in tourist arrivals. I know in Chiang Mai 1,000,000 Chinese came last year this year 25% increase if it keeps up at that pace ,Northern Thailand will become a Chinese province. Chinese buy and never sell hold on much longer than normal investors look at Australia they buy and hold. The big beach tourist are no showing up any more in my opinion. That is why price in the beach area are not keeping pace with other areas. i know that 66 tal wan in Chiang mai land locked small pathway no road traffic ,no walking traffic use to be a dojo just sold for 7 million baht. The greatest land appreciation in coming years will be in northern Thailand because of the Chinese they are only 400km away and they do not do beaches no sun for them. hope that helps

[bojo]

Loads of new build shophouses sitting empty already grumpy,I presume because overpriced,as normal everything is oversupplied in krabi loads of hotels/guesthouses everywhere and its a very short busy/high season .

Already in the last 3 weeks it's gone pretty quiet,my advice would be cater to the Thais not rely on anything that just caters to westerners for 3 months of the year.

5 years ago building houses to rent was quite good but everyone jumped on that wagon and again now you have over supply.

Hi taninthai,

this is still people just parking money though. If they get a renter, or a buyer they are happy, if not, they still will get a better return in the long run than if they had parked that same dough in an interest bearing savings. Cheers, GOM

Please enlighten us how you can be better of with money invested in an empty sitting shop house than having it in an interest bearing bank account.

We are all ears.

The land is a long term appreciating asset.

Regarding interest bearing bank account...... will you share? coz I'm struggling to find any decent returns at the mo....thanks

[12DrinkMore]

I think you should look at the trends in tourist arrivals. I know in Chiang Mai 1,000,000 Chinese came last year this year 25% increase if it keeps up at that pace ,Northern Thailand will become a Chinese province. Chinese buy and never sell hold on much longer than normal investors look at Australia they buy and hold. The big beach tourist are no showing up any more in my opinion. That is why price in the beach area are not keeping pace with other areas. i know that 66 tal wan in Chiang mai land locked small pathway no road traffic ,no walking traffic use to be a dojo just sold for 7 million baht. The greatest land appreciation in coming years will be in northern Thailand because of the Chinese they are only 400km away and they do not do beaches no sun for them. hope that helps

No sun?

They will certainly appreciate the smoke for a couple of months every year.

Maybe the CM tourist guys could use it to attract them?

"Feel at home in CM, we have no sun and all the pollution benefits you are used to"

[Charlie1]

If interested in long term investment, you should buy land with palm trees on it. Apart from the land price going up throughout the years, you'll get an additional ROI with the palm trees of approx. 3% (Depending on how cheap or expensive you've bought the land).

It's what I did with 28 rai and it works out really well

[Ace of Pop]

You lucky dog how did you get a Thai passport? What is the story behind this so the rest of us can learn how someone has actually "Done it"

. LUCKY, What use is it.?.

[fiddlehead]

I agree with the assessment of Caca4U's girlfriend.

If I was to buy land in that area, I would make sure it has a great view of the karst rock formation mountains.

They are amazing.

[impulse]

Just out of curiosity, is there anything in the Thai constitution (or even on the coconut telegraph) about the possibility they'll implement some kind of property tax that would change the investment calculations?

[Top man]

I think you should look at the trends in tourist arrivals. I know in Chiang Mai 1,000,000 Chinese came last year this year 25% increase if it keeps up at that pace ,Northern Thailand will become a Chinese province. Chinese buy and never sell hold on much longer than normal investors look at Australia they buy and hold. The big beach tourist are no showing up any more in my opinion. That is why price in the beach area are not keeping pace with other areas. i know that 66 tal wan in Chiang mai land locked small pathway no road traffic ,no walking traffic use to be a dojo just sold for 7 million baht. The greatest land appreciation in coming years will be in northern Thailand because of the Chinese they are only 400km away and they do not do beaches no sun for them. hope that helps

great post, and your so right.

[likewise]

If interested in long term investment, you should buy land with palm trees on it. Apart from the land price going up throughout the years, you'll get an additional ROI with the palm trees of approx. 3% (Depending on how cheap or expensive you've bought the land).

It's what I did with 28 rai and it works out really well

Same here with 50 rai, yet I have to disagree on the ROI, ours is more around 7 to 9% depending on the season.

[mike324]

If interested in long term investment, you should buy land with palm trees on it. Apart from the land price going up throughout the years, you'll get an additional ROI with the palm trees of approx. 3% (Depending on how cheap or expensive you've bought the land).

It's what I did with 28 rai and it works out really well

Same here with 50 rai, yet I have to disagree on the ROI, ours is more around 7 to 9% depending on the season.

Thanks for the advice. Perhaps a silly questions, what value does the palm tree generate? from the palm oil?

Likewise - Do you rent your land back out?

[mike324]

I think you should look at the trends in tourist arrivals. I know in Chiang Mai 1,000,000 Chinese came last year this year 25% increase if it keeps up at that pace ,Northern Thailand will become a Chinese province. Chinese buy and never sell hold on much longer than normal investors look at Australia they buy and hold. The big beach tourist are no showing up any more in my opinion. That is why price in the beach area are not keeping pace with other areas. i know that 66 tal wan in Chiang mai land locked small pathway no road traffic ,no walking traffic use to be a dojo just sold for 7 million baht. The greatest land appreciation in coming years will be in northern Thailand because of the Chinese they are only 400km away and they do not do beaches no sun for them. hope that helps

great post, and your so right.

That is good observation, hence I already have Chiang Mai land in my portfolio bought 2 years ago , valuation already up 30% or should I say I bought below market price and have been approach with offers. But chinese won't be able to buy land so .... the chinese buy and never sell doesn't really apply in Thailand, it won't be another chinese province, just with more visitors in the future.

[likewise]

No, we do not rent the land out. It is part of our monthly income. We harvest every 20 days, some every 15 days. Palm gets cut by the workers, they load it up on the truck we bring it to the weigh station, we get paid the daily price. At the moment that's around 5 baht/kilo. A palm fruit weighs around 15 to 40 kilos depending on the age of the trees.

Edited April 12, 2016 by likewise

[taninthai]

No, we do not rent the land out. It is part of our monthly income. We harvest every 20 days, some every 15 days. Palm gets cut by the workers, they load it up on the truck we bring it to the weigh station, we get paid the daily price. At the moment that's around 5 baht/kilo. A palm fruit weighs around 15 to 40 kilos depending on the age of the trees.

I'm sure I read something in the last week thatvpalm is at an all time high off 30 bht a kilo,trying to remember where I read it.