What are the "hidden costs" of relocating to Phuket?

[mrchicago]

Hello!

My wife and I live in the US, and I've been interviewing with a company in Phuket. The discussions have been going well and there is a strong possibility that I will get a job offer. If that happens it will be unlike any offer I've had before because it would require us to move overseas. That's a greater-than-usual impact on our personal life, and will undoubtedly bring about a whole slew of new expenses. In order to properly consider an offer I need to understand all of the costs involved. Here are a few of our circumstances that would be impacted by an international relocation:

• My wife is a professional and earns a good income, but her job is not very portable. She'd likely have to quit.
  
• We own a home, and are not interested in selling until we know the job works well for us
  
• We are close to our family, all of whom are in US
  
• We have a dog
  

Much of that needs to be compensated for by the offer. But what else? What are the "hidden costs" of relocating to Phuket that I'm overlooking?

Lastly, any resources you can share, or thoughts on what we should consider/expect, are appreciated.

Thanks for reading; I look forward to your comments!

[DonaldBattles]

Traffic, crime and the cost of living are 3 good reasons not to move to Phuket. The island is also overrun with people, slop shops girly beer bars and trash on the sides of the road and in public places. Better give it some more thoughts.

[Sharp]

Traffic, crime and the cost of living are 3 good reasons not to move to Phuket. The island is also overrun with people, slop shops girly beer bars and trash on the sides of the road and in public places. Better give it some more thoughts.

Poopycock!!

Another generalisation which relates mainly to Patong!

There are still some great, quiet beautiful places which are far superior to locations most countries.

You could do alot worse OP.

[Old Croc]

It's a bit hard to answer a question about hidden costs when you don't share the costs you are aware of.

Most things are cheaper here than in the western world. Posters may interject here to point out they can buy a cheaper lettuce or similar in Miami or where ever, but overall living costs, when earning a western level income, are very cheap here.

An exception would be International level schooling fees if you have children, which I guessing you do not.

Don't sell the house you own there if you don't need to, it's always wise to keep an escape plan if things don't work out for you . Many here maintain residence in two countries.

An American on this forum, spends time between both countries and travels with his dog, so I gather it is relatively easy to bring the pooch with you.

Be aware Phuket is in the tropics and is therefore hot, humid and at times mosquito infested. Depending on your own comfort levels, aircon costs could be high. Electricity is something that's relatively expensive here.

[cat funt]

Traffic, crime and the cost of living are 3 good reasons not to move to Phuket. The island is also overrun with people, slop shops girly beer bars and trash on the sides of the road and in public places. Better give it some more thoughts.

Poopycock!!

Another generalisation which relates mainly to Patong!

There are still some great, quiet beautiful places which are far superior to locations most countries.

You could do alot worse OP.

hmm yes we forgot, he comes from US. WE WERE COMPARING WITH OTHER PLACES IN THAILAND

[Eclipse]

Phuket is the most expensive place in Thailand.

Before setting out for your stay in paradise make sure the company is sorting out a legal Visa and Work Permit.

Plenty of people come here to work and find out that they are actually working illegally.

[stevenl]

Traffic, crime and the cost of living are 3 good reasons not to move to Phuket. The island is also overrun with people, slop shops girly beer bars and trash on the sides of the road and in public places. Better give it some more thoughts.

As I said on another forum, ignore the grumpy old men here.

I really feel you're going to need 2 cars though.

[bearpolar]

Just dont move to Kata, Karon, Patong or Kamala and you'll be happy.

Edited April 14, 2016 by bearpolar

[Sharp]

Just dont move to Kata, Karon, Patong or Kamala and you'll be happy

A balanced reply BP...

[phuketrichard]

Phuket is no more expensive than most large cities in america

Rent WAY LESS, gas for cars about the same,

meat costs more, wine costs more, cheese costs more, appliances about the same, used cars cost more, clothes ( in local shops) cheaper, if ur buying western clothes More.

There are no Hidden costs, it is what it is.

Phuket is the most expensive place in Thailand.

everyone keeps saying this, I find Samui and even parts of Krabi ( Ao Nang) more expensive.

For two of ya, make sure the job includes the wp ( ur wife can than get attached to your visa). IF they are paying in excess of $2,500/month you will be fine, less than that turn it down

I live in Kamala and have for 18 out of the last 20 years, great place to live

only down point is if u need travel to Phuket town

Edited April 14, 2016 by phuketrichard

[Old Croc]

One of the hidden hazards of living on Phuket is having to read the strange, and at times idiotic, posts of the Phuket bashers who crop up all the time in threads like this. Many have failed here in business or life, have had a bad time when on a visit here, or have never actually visited Thailand at all . Bitter little people.

Not to whitewash things, traffic is bad in Thailand, all of it. The country ranks near the bottom of the scale in road deaths. Thais are relatively new to driving, and the skills and commonsense are lacking with far too many road users.

Phuket has it's own unique problems with an inordinate amount of small motorcycles on the road, the result of generations of bad or non existent planning by authorities in charge of roads and public transport. Most fatalities here happen to MC riders. I don't recommend this form of transport. However, cars are probably safer on the Island than elsewhere in Thailand because it does not have the high speed, long distance highways found elsewhere.

Traffic jams are bad at times, but in my opinion are improving as new road projects open. Plan where you live and work to avoid peak hour bottlenecks.

Crime - I've done comparisons with my home city in Australia and found Phuket has far less serious crime than back there. As a small place with very active media, most crimes here are sensationalized to the effect that many think the place is akin to Colombia or Mexico. Most who live here consider it to be safer than the places they came from. Obviously, if you act like a drunken victim, in the early hours, in the nightclub zones you could get in trouble, anywhere.

Petty crime and scams are common, as they are in any tourist resort in the world. You can remain apart from these if you don't think like an idiot tourist.

Thailand does have a duel pricing policy with some attractions. If you are asked to pay more than the Thai next to you to get into a park or whatever, and this causes you to get upset and scream racism, perhaps you shouldn't be living outside your own country.

Rubbish is a problem here, as in many parts of SE Asia - Singapore excepted. Official rubbish collections and disposal are inadequate on the Island, and many of the populous need to be educated about the hazards of tossing or burning their waste. This is exacerbated by the many migrant workers camps where the residents come from even less educated countries.

[steelepulse]

One piece of advice I'd give to anyone moving here is to try and be close to your work.

[Naam]

Phuket is no more expensive than most large cities in america

Rent WAY LESS, gas for cars about the same,

meat costs more, wine costs more, cheese costs more, appliances about the same, used cars cost more, clothes ( in local shops) cheaper, if ur buying western clothes More.

There are no Hidden costs, it is what it is.

Phuket is the most expensive place in Thailand.

everyone keeps saying this, I find Samui and even parts of Krabi ( Ao Nang) more expensive.

For two of ya, make sure the job includes the wp ( ur wife can than get attached to your visa). IF they are paying in excess of $2,500/month you will be fine, less than that turn it down

I live in Kamala and have for 18 out of the last 20 years, great place to live

only down point is if u need travel to Phuket town

i have strong doubts that anyone relocates from the US to Thailand for a $2,500 or even $3,500/mth salary.

[lopburi3]

1. Be very sure about this "company" and your legality in Thailand - there are a lot of bad apples here.

2. Be aware more than routine medical care will likely require travel to Bangkok or Singapore - will you have adequate insurance?

3. Will the wage really replace the wife's income - and more importantly her self esteem?

4. Income tax will involve much more paperwork - who will be doing that?

5. Stay in Thailand requires annual extensions based on work permit/income as well as 90 day reporting of address so may not be a comfortable feeling.

6. Western food in general will be more expensive - but good Asian food quite inexpensive. But safeguards are not high.

7. You will not have heating expense - but air conditioning will be required and electric is moderately expensive.

8. If fan of TV there will be changes required.

9. Cars are expensive in Phuket but may be required as taxi service not up to city standards.

10. Housing/rents are reasonable if not in most expensive buildings/areas. Who is paying?

11. Domestic help is available - but likely 3rd country national and may not be worth the efforts.

12. There are probably more foreign marriage relationships ended in Thailand than any other country.

[DrDave]

Member Old Croc has given a lot of very good information in his two posts above.

Regarding your dog, take a look at posts by member Jimi007, who has traveled between the US and Thailand with his dog several times. You might want to PM him to get additional information.

Things that are more expensive in Thailand include cars, gasoline, electronics, cosmetics, quality furniture, wine and basically anything that's imported.

Things that are cheaper include most food, clothing, scooters (motorbikes), regional air travel, movies, and housing (depending upon which part of the US you're comparing to).

There are no property taxes, and income taxes are about the same as they are in the US. Anything that you buy online and import from outside of Thailand will most likely be subject to fairly high duty charges. In your case, this can also apply to anything you bring with you when relocating to Thailand, since you're not a repatriating Thai.

If you plan to maintain a more western lifestyle (in terms of food), then this can get expensive. Western food in restaurants, as well as groceries like beef and cheese are all much more expensive here than in the US, on the other hand pork and chicken are much cheaper. Many expats eat primarily Thai food, and find that its no more expensive to eat out in little eateries that mostly cater to local Thais than it is to cook at home. My wife and I probably spend around $350USD per month on groceries and low-end restaurants.

One expense that you may need to factor in is the cost of visits back to the US. Airfare, car rental, hotels, etc. Airfare alone will generally be around $2,000USD for two.

[mrchicago]

Thanks for the replies everyone! This thread has been very helpful; the insight is obvious and the bad apples are too. A few things about our situation that might help elicit more great comments:

• We don't have children.
• Phuket was not an option. The company is based there and certainly seems legit. I've been working out logistics with a recruiting firm in Singapore.
• It's expected that we would visit Phuket before an actual offer is made.
• Visas, Thai taxes, and high quality international insurance is expected to be paid for by the company.
• We will likely pay for housing, but it's expected that all housing will be covered in an offer.
• My wife's income will probably not be replaced in full, but if the numbers work we won't miss out on an unreasonable amount.
• We are from a big US city, so are used to big city US costs, crime, etc.
• I've never been to Phuket, but I've spent about a year in Thailand before. Haven't been since 2004 but the culture isn't brand new to me. My wife has never been.

We wouldn't be moving to Phuket to party and be all crazy. We're up for a once-in-a-lifetime experience, I'd be following up on a great career opportunity, and as a couple we'd be getting some much needed change.

I hope my comment paints a better picture. Thanks again!

[KNJ]

Losing the non working wife to the golf course.

The cost of deep sea fishing for marlin

Too much excellent food which will stretch the waistline

No snow skiing, sorry no snow you will have to do wakeboarding, kite surfing etc

Exorbitant tip charges 10....Baht not 10%

Same o same o sunsets every day, damm it not enough memory on the camera

Need to purchase a new camera to capture everything

Too hot, going to need to jump in the pool again......

Care in case you get a DUI, which might cost you $15.......please be on your way

Damm it is the weekend again and time for HHH followed by excessive consumption of the amber nectar

Oh no it is Monday again and I need to go to work, these weekend are too short

[LivinginKata]

Lots of great advice given here. Ignore the Phuket bashers here on Thaivisa.

I would reinforce -

1. Choose your rental home location with care. Many rentals come fully furnished and equipped.

2. Try to stay close to your place of work to save commute times, wife can drive you to work so no need for expense of 2 cars.

3. Have very good health insurance (thing you said compnay arranges).

4. Quality of life can be terrific here. Many nice beaches a short drive away.

5. Much is made of crime here, I've lived here 20 years and not suffered any personal theft. Road rage is a bigger problem.

Welcome to Phuket ...

[bearpolar]

don't 99.5% of break ins happen in small moobaans in rawai? Past 8 years i have read the news in phuket and this forum, all breakins happen there.

Best advice imo is if you earn a lot, hire a full time driver. Life is at least 50% better if you don't have to deal with road users and the roads.

Sit in the back and watch a movie or read the news. Certainly you can get a guy from 7am to 7pm for 20-30k baht per month

Edited April 14, 2016 by bearpolar

[Somtamnication]

1. Be very sure about this "company" and your legality in Thailand - there are a lot of bad apples here.

2. Be aware more than routine medical care will likely require travel to Bangkok or Singapore - will you have adequate insurance?

3. Will the wage really replace the wife's income - and more importantly her self esteem?

4. Income tax will involve much more paperwork - who will be doing that?

5. Stay in Thailand requires annual extensions based on work permit/income as well as 90 day reporting of address so may not be a comfortable feeling.

6. Western food in general will be more expensive - but good Asian food quite inexpensive. But safeguards are not high.

7. You will not have heating expense - but air conditioning will be required and electric is moderately expensive.

8. If fan of TV there will be changes required.

9. Cars are expensive in Phuket but may be required as taxi service not up to city standards.

10. Housing/rents are reasonable if not in most expensive buildings/areas. Who is paying?

11. Domestic help is available - but likely 3rd country national and may not be worth the efforts.

12. There are probably more foreign marriage relationships ended in Thailand than any other country.

13. Contracts mean nothing in Thailand.

[The Big Mango]

^^ employment contracts are actually very important and the labour court is extremely active in enforcing employees rights against employers

[NamKangMan]

I would encourage the OP to visit Phuket for as long as possible before either accepting the offer, negotiating a higher salary, or refusing the offer.

To expand on DonaldBattles' post:

Phuket does have the highest road fatality rate in Thailand, and Thailand has one of the highest road fatality rates in the world, so that makes Phuket one of the most dangerous places, if not the most dangerous place, to be on the road, AND, they only count the fatality if the road user dies at the scene, not in a hospital, after the accident, so, the stats would be much more worse than reported.

Reported crime is on the rise here, but of particular concern is the increase in violence related to crime here. In my opinion, harsher economic times and drugs, particularly ice, are the two main causes of the increase, both of which are only going to get worse in the future. Policing on Phuket is non-existent. We have some of Thailand's most corrupt police here, many of whom have paid to be transferred to Phuket because police bribes and extortion reaps more reward here, and they do it with impunity. This results in criminals remaining in the community, and attracts criminals to Phuket, because they know if they are caught, they can pay their way out of it.

In relation to the cost of living, Phuket is the most expensive place in South East Asia, Singapore aside. You will still find it cheaper than in the west, but considerably more expensive than the rest of Thailand, and neighboring countries. "The Phuket Tax" raises the price of everything here.

Many of the members "bashing" other members for being "Phuket bashers" are in business here, or own property here. They have a conflict of interest, and it shows in their posts. I am single, have never had a relationship with a Thai woman, have never sent money to Issan for a "sick buffalo" and have never had a business here, and have never owned a property here. You can take or leave what I say about Phuket, I don't care either way, but if you were to do some internet research, I'm sure it would confirm what I have posted.

A word of caution, Phuket is changing very fast. It's not just the property development, it's the changing demographic of tourist, and the way the tourism industry is being managed, or should I say, mismanaged, here. What gives you confidence your employment will still exist on Phuket, say, 2 years from now?

Also, for your information, Kata, Karon, Rawai etc etc - are all on Phuket.

Edited April 14, 2016 by NamKangMan

[GiantFan]

Check out the tax blogs for Americans working abroad. You may qualify for an exclusion for first USD 100k. Lots of rules like no more than thirty days in USA per year. All benifits in kind are also taxed, as you may know from your previous stint.

You should also look at opting out of IL state tax if possible. State rules are a bit different than the fed.

Local accountant to handle Fed and state returns impossible in Phuket. I use a company in Singapore. American owner and they specialise in helping Yanks. Budget for USD 500 fee plus RT air and hotels for first year. Year two and afterwards, can mail it in.E

[sanuk21]

There seems to be a perception with some posters that electricity is relatively more expensive in Phuket than in their home countries.

Actually at less than 4 baht per kWh here in Phuket it is marginally cheaper than the US at 4.2 kWh.

In UK the average cost is 7 baht and where I come from in Oz it is 9 baht per kWh.

Edited April 14, 2016 by sanuk21

[lopburi3]

There seems to be a perception with some posters that electricity is relatively more expensive in Phuket than their in home countries.

Actually at less than 4 baht per kWh here in Phuket it is marginally cheaper than the US at 4.2 kWh.

In UK the average cost is 7 baht and where I come from in Oz it is 9 baht per kWh.

If that was me I said moderately expensive, and remember anyone renting will likely be paying a lot more than the 4 baht per unit price (which also can rise) - I understand many places in the world it costs more - but do not believe in most of those places you would be using more. The heat of Thailand requires the use of a lot of electric to keep both yourself and your food cool in very poorly insulated buildings - and in many cases you will also have to boost water supply with electric pumps and have electric showers.

[dick dasterdly]

There aren't really any 'hidden (financial) costs' when relocating to Phuket as most are obvious, namely - shipping/flight fees for bringing the things you want to bring (including of course, your dog).

Other considerations are:-

Cars are expensive

Depending on where you live crime may be a problem at night

Western foods are expensive and wine is ridiculously expensive

Some things are either impossible to find or, if you're lucky enough to find them, v expensive

Electrical power goes up and down like a yoyo - and a few times per year there is no power for a few hours. This doesn't sound like much of a problem, but it can be when everything is powered by electricity and, it is v hot...

Additionally, you may hate it here after the first year because our values are VERY different to Thai values and we all get fed up at times with the greed shown at times/poor service etc. etc.

Many leave after a couple of years, but at least as many get used to the negatives and decide that the positives outweigh the negatives.

[dick dasterdly]

There seems to be a perception with some posters that electricity is relatively more expensive in Phuket than in their home countries.

Actually at less than 4 baht per kWh here in Phuket it is marginally cheaper than the US at 4.2 kWh.

In UK the average cost is 7 baht and where I come from in Oz it is 9 baht per kWh.

I think that's because in the UK most power comes from gas? i.e. central heating/cooking - so electricity bills (on their own) are lower in the UK than Thailand where pretty much everything is supplied by electricity.

On top of that, for those renting houses, the unit charge is sometimes decided by the landlord so charges vary - as do the meters supplied in my experience....

[sanuk21]

There seems to be a perception with some posters that electricity is relatively more expensive in Phuket than their in home countries.

Actually at less than 4 baht per kWh here in Phuket it is marginally cheaper than the US at 4.2 kWh.

In UK the average cost is 7 baht and where I come from in Oz it is 9 baht per kWh.

If that was me I said moderately expensive, and remember anyone renting will likely be paying a lot more than the 4 baht per unit price (which also can rise) - I understand many places in the world it costs more - but do not believe in most of those places you would be using more. The heat of Thailand requires the use of a lot of electric to keep both yourself and your food cool in very poorly insulated buildings - and in many cases you will also have to boost water supply with electric pumps and have electric showers.

My personal experience is that yes most apartment owners will try to scam 6 to 9 baht a unit. But with rental houses not so much.

I rent a house and with fans for living areas and AC for bedroom most nights my electricity bill never exceeds 1,500 baht a month.

An offset to the use of electricity for Phuket's "special conditions" is the cost of heating in other temperate countries.

I understand 1,000 USD a year in the US is not uncommon.

Sorry, I cannot see the cost of electricity being a negative factor to consider in moving to Phuket.

[LivinginKata]

There seems to be a perception with some posters that electricity is relatively more expensive in Phuket than in their home countries.

Actually at less than 4 baht per kWh here in Phuket it is marginally cheaper than the US at 4.2 kWh.

In UK the average cost is 7 baht and where I come from in Oz it is 9 baht per kWh.

How I wish it was 'less than 4 baht per kWh' for electricity.

I compute the kWh charge each month for each of our properties and it is more than 4 baht. Yes perhaps if you have a small home and use not much electric then it might be less than 4 baht.

But in a commercial property the charge is higher and this is passed onto the tenant. Sometimes marked up to 6 and more baht.

And we have not even talked about water charges ...

Edited April 14, 2016 by LivinginKata

[seedy]

Bickering / Off Topic / Flaming posts Removed