Thais and 'Instant Wealth'

[ozyjon]

W-O-R-K is a dirty 4 letter word,

keep well clear of it,

[bbbbooboo]

Lol.....stupidity abounds in Thailand......who cares?

[kinmaew]

Who cares what she does your primary concern is that she should not ever be getting another cent out of you. Not paying for the work you did on the website would be just a small taste of things to come and I think you know that...

[Lewis711]

Hi Brester, I am interested to know more about the 750k condo in Korat, could you share where is it located?

[wabothai]

it is not an aunt, just my mia wants to sell my hotel while I am still around. Only 7 mill. baht. around Phu Rua.

[Brewster67]

Buy some Limos and rent them out..Asians where I am, would work a Taxi..

Some do create that passive income stream..

What an idea!

Well said

Aloha

Naaa the value of the limos depreciate, while the value of condos appreciates.... Especially here in Korat which is expanding fast and land and property values have been soaring.

[HenryB]

Sit back, observe and do nothing.

Have fun !

Get away quickly soon you will be asked for money. After when all spent only you will have some money.

Money is spend

[Brewster67]

If I were her, I'd start a nice collection of chinoots for any money outlayed to the new found friends (cents on the dollar or real perceived value). That is unless she's prepared to lie and say most of the money is gone due to being kind, and see how many drift away. I doubt she'd listen, but most people get a break or two in life and a couple of them build on it. Mostly though they burn it down to nothing then go cap in hand to the next person who comes into money. Either that or they dust themselves off and carry on walking as if they'd never seen the opportunity. 50mill is a nice chunk of money for a very comfortable life if middle aged or above, but if divided between 30-40 people plus a few sob stories, even the wealthiest couldn't sustain it for long, not even the Bill Gates types.

People who earn their money seem to have a different appreciation of it than those who are unlucky enough to win the lottery. They remember how much sweat it took to get where they are.

Top post.

[Brewster67]

"The first thing his wife did was to put the hotel on the market which sold for 50 million baht.... That blew me away because I would have valued the whole thing under 20 million, "

Chiang Mai, the hub of drug money laundering

That's not laundering money...that's throwing it away. Laundering involves recovering the money, and buying a lemon doesn't permit that to happen.

It may even attract attention if the buyer can't be seen to be worth B50M!

Actually the wife told me last night that she found out the buyers were Chinese paying with cash.... No mortgage.

[catman20]

lottery winners ...........gone to her head, skint in 3 years then she will be on your ear hole

[catman20]

If I were her, I'd start a nice collection of chinoots for any money outlayed to the new found friends (cents on the dollar or real perceived value). That is unless she's prepared to lie and say most of the money is gone due to being kind, and see how many drift away. I doubt she'd listen, but most people get a break or two in life and a couple of them build on it. Mostly though they burn it down to nothing then go cap in hand to the next person who comes into money. Either that or they dust themselves off and carry on walking as if they'd never seen the opportunity. 50mill is a nice chunk of money for a very comfortable life if middle aged or above, but if divided between 30-40 people plus a few sob stories, even the wealthiest couldn't sustain it for long, not even the Bill Gates types.

People who earn their money seem to have a different appreciation of it than those who are unlucky enough to win the lottery. They remember how much sweat it took to get where they are.

Top post.

very true words

[Brewster67]

Hi Brester, I am interested to know more about the 750k condo in Korat, could you share where is it located?

Actually probably around 800K now, Wife's dad bought one for 750K around 2 years ago and had students in it within a day at 5000 a month, but the wife's other aunt buys land, usually half a rai as close to the universities as she can and will build say a block of 6 or 8 condos on it and rent out at 3000 to 5000 a month each depending on size and proximity to the university, they are quite small. I am not even sure if they are actually condos, in the UK we would call them 'flats' in the USA 'apartments'. They have a small lounge with a bedroom and small bathroom upstairs.

Unlike the west, when universities are out of term, the students leave and you won't make rent, but for most of the year they are full to bursting. Not only students live in them though, they do have migrant workers too which is rent all year round.

It is a good business because once you reach a certain critical mass, you constantly have the funds coming in to expand almost relentlessly.

Like I said in another post, if it were not for the pi$$ poor laws and rights surrounding farangs and property, I would be doing the same.

Edited April 16, 2016 by Brewster67

[Mises]

Brewster, Surely you have a few business ideas to throw her way? She seems ripe for the pickng....don't let everyone else bleed her dry...

She should buy a couple of dozen cheap condos at about 750K each and rent them out to students and have a good monthly income with her money invested in a property portfolio that is only going up and up.

So did Tulips and then South Sea Company shares. More recently US property after 2008 demonstrates the risk in believing this. Ask anyone who has bought a condo in Phuket in the last 10 years whether they could sell it for a profit, 50% capital loss is more realistic.

The next global recession will most likely occur within the next two years and no amount of funny money (QE) or negative interest rates is going to stop a collapse in bubble activities, property included.

[Brewster67]

Brewster, Surely you have a few business ideas to throw her way? She seems ripe for the pickng....don't let everyone else bleed her dry...

She should buy a couple of dozen cheap condos at about 750K each and rent them out to students and have a good monthly income with her money invested in a property portfolio that is only going up and up.

So did Tulips and then South Sea Company shares. More recently US property after 2008 demonstrates the risk in believing this. Ask anyone who has bought a condo in Phuket in the last 10 years whether they could sell it for a profit, 50% capital loss is more realistic.

The next global recession will most likely occur within the next two years and no amount of funny money (QE) or negative interest rates is going to stop a collapse in bubble activities, property included.

You are talking about areas that got caught up in property bubbles.... I can assure you now that Korat is far from in a property bubble.... Rises here have been slow but steady, and not crazy like Phuket and BKK. Those are the places that went insane and those are the places that will suffer.

These are not holiday homes or permanent residencies I am talking about, the universities will always be here and the students will always need somewhere cheap to live.

This is a smart investment that is future economy proof. Korat is emerging fast, but luckily the land and property prices have remained in stability.

Also, these are long term investments with a passive income, and we all know the economy is alweays up and down.... Everything recovers, so as long as you don't need to sell anytime soon (and why would you) then you are in no danger. Property fluxuation only affects those who must sell or can not rent out.... In the areas mentioned above, there has been much over-development over the years and that makes things hard to shift both as sales or rentals, and in a supply and demand economy...........

Edited April 16, 2016 by Brewster67

[AZBill]

My experience with Thais is that they aren't good with money. Nobody teaches them about handling it. My wife's family makes a pretty good living by Thai standards but I can't believe how they piss money away and forget about saving a dime. I've tried to show them how to handle money over the years but it just falls on deaf ears.

[Ghostnigel]

Brewster, Surely you have a few business ideas to throw her way? She seems ripe for the pickng....don't let everyone else bleed her dry...

She should buy a couple of dozen cheap condos at about 750K each and rent them out to students and have a good monthly income with her money invested in a property portfolio that is only going up and up.

So did Tulips and then South Sea Company shares. More recently US property after 2008 demonstrates the risk in believing this. Ask anyone who has bought a condo in Phuket in the last 10 years whether they could sell it for a profit, 50% capital loss is more realistic.

The next global recession will most likely occur within the next two years and no amount of funny money (QE) or negative interest rates is going to stop a collapse in bubble activities, property included.

You are talking about areas that got caught up in property bubbles.... I can assure you now that Korat is far from in a property bubble.... Rises here have been slow but steady, and not crazy like Phuket and BKK. Those are the places that went insane and those are the places that will suffer.

These are not holiday homes or permanent residencies I am talking about, the universities will always be here and the students will always need somewhere cheap to live.

This is a smart investment that is future economy proof. Korat is emerging fast, but luckily the land and property prices have remained in stability.

Also, these are long term investments with a passive income, and we all know the economy is alweays up and down.... Everything recovers, so as long as you don't need to sell anytime soon (and why would you) then you are in no danger. Property fluxuation only affects those who must sell or can not rent out.... In the areas mentioned above, there has been much over-development over the years and that makes things hard to shift both as sales or rentals, and in a supply and demand economy...........

I can pretty much vouch for that, I live in Korat city, so i can see what you mean. Phuket, Pattaya, Bkk property is well overpriced for what you get, but the price of property in Korat moves along at a nice slow steady pace. Korat isn't a tourist city, but its definitely on the way up, big things are happening here slowly.

[off road pat]

"The first thing his wife did was to put the hotel on the market which sold for 50 million baht.... That blew me away because I would have valued the whole thing under 20 million, "

Chiang Mai, the hub of drug money laundering

No,...There might be some in Chiang Mai for sure, but Koh Samui, Phuket or Pattaya.....most certainly....!!!

[off road pat]

"The first thing his wife did was to put the hotel on the market which sold for 50 million baht.... That blew me away because I would have valued the whole thing under 20 million, "

Chiang Mai, the hub of drug money laundering

That's not laundering money...that's throwing it away. Laundering involves recovering the money, and buying a lemon doesn't permit that to happen.

It may even attract attention if the buyer can't be seen to be worth B50M!

Actually the wife told me last night that she found out the buyers were Chinese paying with cash.... No mortgage.

You will find out that Chinese are buying every property that is for sale around Chiang Mai....If they can not buy they rent long term....!!!

I know of two guest houses in Chiang Mai that are rented out, one for 30 years and is constantly full now...

The Chinese have the customers already booking a year ahead....they are certain to be full booked year long...

Now they are prospecting along the beaches in the South....trying to buy or rent resorts....!!!

There is a whole new future on the making for Thailand !.. Do no if Thailand is realising it ?

Best Regards.Off Road Pat.

Edited April 16, 2016 by off road pat

[Brewster67]

"The first thing his wife did was to put the hotel on the market which sold for 50 million baht.... That blew me away because I would have valued the whole thing under 20 million, "

Chiang Mai, the hub of drug money laundering

That's not laundering money...that's throwing it away. Laundering involves recovering the money, and buying a lemon doesn't permit that to happen.

It may even attract attention if the buyer can't be seen to be worth B50M!

Actually the wife told me last night that she found out the buyers were Chinese paying with cash.... No mortgage.

You will find out that Chinese are buying every property that is for sale around Chiang Mai....If they can not buy they rent long term....!!!

I know of two guest houses in Chiang Mai that are rented out, one for 30 years and is constantly full now...

The Chinese have the customers already booking a year ahead....they are certain to be full booked year long...

Now they are prospecting along the beaches in the South....trying to buy or rent resorts....!!!

There is a whole new future on the making for Thailand !.. Do no if Thailand is realising it ?

Best Regards.Off Road Pat.

Something I have been sying for a long time..... The Chinese invasion.... Their economy is tanking and they are all looking for hard assets. They all know the USD is going to collapse and they are converting cash into hard assets wherever they can

[Jimbo2014]

Hey dude not just thais. I read that a very large % of pro sportsmen and lotto winners are broke within 5 years of getting their payout. Very few people have the financial discipline and vision to manage large amounts of money. Hence the polarisation of wealth.

[FritsSikkink]

The wife has an aunt who lives up in Chiang Mai.

Her aunt I would say is about 60 who was married to a guy who owned a modest spa hotel. Now this hotel was not exactly a gold mine, in fact every time we went there to visit, we were almost al;ways the only people there. In fact we built her a website (that she didn't pay us for) that was multi-language, just so she could attract foreign customers.

I would go as far as to say, the place provided them with a modest living, not too flash and they never really had a very new car, which to me is the most visible symbol of success. Especially among the Thais.

Anyway, sad to say husband passed away some 6 months ago, which was a pity because I really liked the guy. The first thing his wife did was to put the hotel on the market which sold for 50 million baht.... That blew me away because I would have valued the whole thing under 20 million, so I don't know how she managed to pull that one off. Someone certainly bought a lemon

Now the money has come through, in the first few weeks she has blown 20 million, seriously, she is now constantly surrounded with a family entourage that was never there before now. When she used to visit in the past they would be sat there 3 or 4 of them, now it is 30 to 40 and she is the 'belle of the ball'.... the 'toast of the town'.

I do not have a clue what she has blown 20 mill on, she has not bought property according to the wife. I think she has just splurged it on family members who come begging or with their lame brained business schemes, oh and apparently 4.6 million on a car that she can't drive, because she doesn't drive.... lol

But anyway, I am sitting in the background watching all this with much amusement. I have a feeling a few years from now there won't be a lot of that money left.... Hope I am wrong. I want to get hold of her and give her some advice, but I am sayting out of this one.

so your wifes aunt represents all thais according to the headline

[Mosha]

Wife always says that if she won a lot of money. Family would be the last to know.

Sent from my SMART_4G_Speedy_5inch using Tapatalk

[puukao]

i would blow it all IF...IF...I was under 40 years old. 100% under 30, maybe 50% under 40. BUT over 40, zero percent chance of just blowing it.

but i made good money in my 20's and spent it.....so i got it out of my system. and that is a big factor.

[Stray]

thai personality traits are not conductive to investing money or creating passive income streams.

not sure why, but likely has to do with inability to control emotions well and being much more closely emeshed others resulting in needing to be accepted and gain face. makes living frugally and saving for the future a rare trait.

the money will be gone soon unless they happen to buy a better business which succeeds with its own income stream and which can be seen by friends and relatives and gain face (shown off basically).

So, by that logic, there are no rich Thais and there are certainly no Thais living well on their investments and passive income streams?

Just looking at some of the wealth around Bangkok, there be an huge number of foreigners in Thailand.

there are a few, usually have higher education and better thinking skills.

but on the whole most thais dont have the education and thinking skills to manage large amounts of money or to set limits when faced with emotional demands from others.

those skills translate into ability to plan for the future and delay gratification for future reward. also dont usually have the math skills to deal with it from elementary or high school classes.

most of it is just about havinf fun now. and most people dont find self control that fun. im sure you caught onto that somewhere diring your visit.

And this only applies to Thais?

What's that old statistic regarding the richest and poorest in the world?

Most people, globally, are living beyond their means. Be they perceived as rich or poor.

While this thread is concerned with a local in Thailand, the sudden influx of wealth affects most people (regardless of their country of birth, standard of education, emotional ties to family and friends) who have not had such financial security, in the past.

The saying, "easy come, easy go", as far as I'm aware, was not coined in Thailand.

[thairookie]

<<But anyway, I am sitting in the background watching all this with much amusement. I have a feeling a few years from now there won't be a lot of that money left.... Hope I am wrong. I want to get hold of her and give her some advice, but I am sayting out of this one.>>

Perhaps you should really refrain from dishing out good advice. After all, you didn't get your fees for the website you built, but she managed to flip the property for a good 30m baht in excess of your valuation.

If I were you, I would go to her for advice instead.

[Brewster67]

<<But anyway, I am sitting in the background watching all this with much amusement. I have a feeling a few years from now there won't be a lot of that money left.... Hope I am wrong. I want to get hold of her and give her some advice, but I am sayting out of this one.>>

Perhaps you should really refrain from dishing out good advice. After all, you didn't get your fees for the website you built, but she managed to flip the property for a good 30m baht in excess of your valuation.

If I were you, I would go to her for advice instead.

I don't need her advice. I am doing very well with my own businesses and when she is broke, I will be more than comfortable thank you.

With a 4th income coming in a couple of months from now, I will be the one with 50 million in the bank 10 years from now and she won't have a pot to pi$$ in.

Edited April 17, 2016 by Brewster67

[Baerboxer]

thai personality traits are not conductive to investing money or creating passive income streams.

not sure why, but likely has to do with inability to control emotions well and being much more closely emeshed others resulting in needing to be accepted and gain face. makes living frugally and saving for the future a rare trait.

the money will be gone soon unless they happen to buy a better business which succeeds with its own income stream and which can be seen by friends and relatives and gain face (shown off basically).

Totally agree.

Add to that the pressure to "show face" and demonstrate your wealth by expenditure; and the inability to say know to relatives asking for "loans" - for business ideas, vehicles, kid's education, health bills, homes or whatever, which there is no intention of ever paying back.

My closest Thai friends are in their 60's and fairly wealthy with old money. They've several children late 20's / early 30's. All have been well educated some overseas. All still rely on parents for monthly allowance, funding "business" ideas, and all spend like crazy, multiple cars, lots of holidays , eating out, clubbing etc.

They have to keep up with their peers and can react like an immature soap star when brought to task over things.

One additional note is that many Thais think best spend today as you might not be here tomorrow. They don't worry about the future as Westerners do, or about actions in the past. They live for the present.

[AlexRich]

I think her biggest mistake was to tell people how much money she received on the sale. If she had said 20 million Baht and shared half of it amongst the family, face would be saved, and no one would be any the wiser.

[FritsSikkink]

<<But anyway, I am sitting in the background watching all this with much amusement. I have a feeling a few years from now there won't be a lot of that money left.... Hope I am wrong. I want to get hold of her and give her some advice, but I am sayting out of this one.>>

Perhaps you should really refrain from dishing out good advice. After all, you didn't get your fees for the website you built, but she managed to flip the property for a good 30m baht in excess of your valuation.

If I were you, I would go to her for advice instead.

I don't need her advice. I am doing very well with my own businesses and when she is broke, I will be more than comfortable thank you.

With a 4th income coming in a couple of months from now, I will be the one with 50 million in the bank 10 years from now and she won't have a pot to pi$$ in.

you could be dead in a year Edited April 18, 2016 by FritsSikkink

[Brewster67]

<<But anyway, I am sitting in the background watching all this with much amusement. I have a feeling a few years from now there won't be a lot of that money left.... Hope I am wrong. I want to get hold of her and give her some advice, but I am sayting out of this one.>>

Perhaps you should really refrain from dishing out good advice. After all, you didn't get your fees for the website you built, but she managed to flip the property for a good 30m baht in excess of your valuation.

If I were you, I would go to her for advice instead.

I don't need her advice. I am doing very well with my own businesses and when she is broke, I will be more than comfortable thank you.

With a 4th income coming in a couple of months from now, I will be the one with 50 million in the bank 10 years from now and she won't have a pot to pi$$ in.

you could be dead in a year

Let's just say, the odds are I won't be.