Is it worth Buying a Condo in BKK, for 5 years?

[Cracker2000]

Dear All,

 

Next year (fingers crossed) I'll be starting a job in Bangkok which could potential run for 5+ years right in the center near Phloen Chit.

 

Since potential I'll be in BKK so long, the question is should I rent for the whole period or is it worth investing in a Condo rather than paying rent?

 

I get a signing bonus and relocation package of about US$25k so potential I could buy outright a 1Bed or Studio condo up to bht 875,000....is there likley to be anything worth that near the center of the city? I'm not into broom-closets under 30m sq.

 

But I've read some nightmare tales of Farang condo purchase and arguments that you can never make a profit from them unless you sell to another Farang as Thais prefer to buy new and will only buy used as substantially knocked down prices.

 

Any though or advice

 

Richard

[trogers]

What do you hope to save?

 

Your budget of under a million would only get you a used closet renting out at US$150 a month.

[blackcab]

There is going to be absolutely nothing near the centre of the city for that price. Additionally, I very much doubt you would like to live in that style of property if there were.

 

Good property in the central business district is not cheap. Recently completed developments are currently selling for about 200,000 baht per square metre.

Edited November 23, 2016 by blackcab

[Cracker2000]

cheers for that, puts it into context.

 

 

[bubblewrap]

51 minutes ago, trogers said:

What do you hope to save?

 

Just so we're clear, the OP also mentioned the word 'profit'.

[blackcab]

OP it is highly unlikely you will make profit by buying a new unit.

 

You would have to shrewdly seek out the correct used unit and hope that in 5 years the management company was still good and rental prices had held.

 

It is definitely possible to make a profit, but that is often as a result of a favourable exchange rate as much as capital gains.

[Paul944]

You just have to do the math and take the risk into account. There is always a change your job gets terminated earlier as you expect. If you buy a place expect selling it for 10% less. If you are not into 25 m^2 condo's expect something in the 3 million baht range. Forget getting a mortgage so if you do not have 3 million baht available only option left is renting. Around 30,000 baht a month will get you something decent. 

[HampiK]

I not would buy if you only plan to stay there for 5 years.

Even with 10 years I would think very good about it.

 

what is the reason you want buy instead of rent?

- Money wise I think you will be much better with rent

- In the designated area it's almost impossile to find a such cheap condo.

 

I not agree with many posters here who say never buy... but for only 5 years, I would agree...

[lkn]

As someone else said, if you cannot buy the condo in cash, then forget about buying.

 

If you do have enough cash to buy a condo, still you should start by looking at rentals. Find out what is an acceptable condo for you and rent that for 6-12 months before making a buying decision.

 

Once you have a condo you will have a better idea about budget/savings by buying and a better idea about Bangkok in general. You want to know the city a little bit before making a buying decision.

Edited November 25, 2016 by lkn

[trogers]

1 hour ago, lkn said:

As someone else said, if you cannot buy the condo in cash, then forget about buying.

 

If you do have enough cash to buy a condo, still you should start by looking at rentals. Find out what is an acceptable condo for you and rent that for 6-12 months before making a buying decision.

 

Once you have a condo you will have a better idea about budget/savings by buying and a better idea about Bangkok in general. You want to know the city a little bit before making a buying decision.

 

There aren't any condo units of walking distance to mass transit that is priced at a million of less.

 

Even old condo units built before 2000 and near to the BTS cost two million and above...

 

At the budget given, all I can think of is the class of Nirun Residence...

Edited November 25, 2016 by trogers

[helloagain]

On Wednesday, November 23, 2016 at 7:38 PM, trogers said:

What do you hope to save?

 

Your budget of under a million would only get you a used closet renting out at US$150 a month.

So so so so so so many for sale. No

[anotheruser]

You can't get a broom closet in Ploen Chit for that. Condos are over priced and even new ones are falling apart 5 years after they are built. It's just a bad idea to buy.

[trogers]

36 minutes ago, helloagain said:

So so so so so so many for sale. No

 

For sale is different from distress sale...

[hdkane]

if your thought is to invest, the answer is no...condos are being built everywhere, and so they do not appreciate in a dependable pattern...long term appreciation is restricted to the areas that are close to mass transit...i assume you are from the usa...so if you buy a 100,000 usd house in the usa, you can expect to rent it for 1000 a month and expect a dependable 3% appreciation annually...in thailand, there is no appreciation, and a 3 million baht condo will rent for 500 usd...plus you will be stuck with the condo for quite some time...i have known people here who have been trying to sell their condo, at the purchase price, for more than 10 years...also, the condo management companies have earned a reputation for corruption...thais steal when given the opportunity, becaue there are no penalties...the manager where i lived stole 1 million baht, with no penalty...she only said "sorry" and that was enough for the thai residents...consequently, the entire development fell into disrepair...also, most thais do not pay maintenance fees, as they see it as unnecessary...your development will look great for a while, then begin to show wear and tear and look shabby, all because people steal and do not care...also, it only takes one person to ruin the atmosphere of an entire building...one thai woman might have a dog that she allows to shit everywhere in the public areas, and no one will say or do anything...so...unless your budget is large enough to live somewhere that values luxery, never buy property here, unless you are willing to keep it forever (e.g., the weekend retreat in Pattaya)...or buy in a new development and sell before it starts to go downhill...

[speckio]

if you buy... after the 5 years or you have to leave the country sooner you can just rent it out.

 

In anycase pleon chit you should expect to pay between 3-5 million for a 1 bedroom in that area.

 

If you want to commute back and forth for about an hour each way you can probably save about 1 million baht.

 

look into houses way cheaper than condos.

 

 

[1FinickyOne]

This is a very dicey market. That said, knowledgable people have made money but they have invested the time in learning the market. 

 

But as others have said, not much that you might like for that price... 

[chilli42]

You will get nothing you like for that price.  Condo's today are over supply and overpriced.  You will not make a profit in this market and certainly not with the kind of condo you can afford.  

[KittenKong]

3 hours ago, hdkane said:

also, the condo management companies have earned a reputation for corruption...thais steal when given the opportunity, becaue there are no penalties...the manager where i lived stole 1 million baht, with no penalty...she only said "sorry" and that was enough for the thai residents...consequently, the entire development fell into disrepair...

 

My experience of condo managements here is that their incompetence is only matched by their dishonesty. I dare say that there are some good ones, but I've never known one.

[Brer Fox]

No is the short answer. Never buy anything unless lust dictates otherwise.

Edited November 25, 2016 by Brer Fox

[Wazza1]

Yes, buy a Condo, if you get one for 2,000,000 - 3,000,000 baht over 5 years you will save 25,000 baht a month or 1,500,000 of rent over that time, even if you end up selling the Condo under what you paid you will still be ahead.

Edited November 25, 2016 by Wazza1

[trogers]

52 minutes ago, Wazza1 said:

Yes, buy a Condo, if you get one for 2,000,000 - 3,000,000 baht over 5 years you will save 25,000 baht a month or 1,500,000 of rent over that time, even if you end up selling the Condo under what you paid you will still be ahead.

 

With abundant supply, you will be lucky to rent it out for Bt20,000 to a long staying tenant.

[newnative]

27 minutes ago, Wazza1 said:

Yes, buy a Condo, if you get one for 2,000,000 - 3,000,000 baht over 5 years you will save 25,000 baht a month or 1,500,000 of rent over that time, even if you end up selling the Condo under what you paid you will still be ahead.

 I agree, if you are fairly certain you will be there for 5 years and you can afford something in the 2 to 3MB price range give or take.  Personally, I would rather live in a smaller condo that I own rather than a bigger condo that I rent.  Several of the big condo developers are very clever with room plans and floor space and you may find that you can get along with 30 to 35sqm.  Most new, big condo complexes come with lots of amenities--pools, gyms, sky lounges, libraries, etc. so if the condo starts to feel a little small you can always escape to the lounge or pool.  Check some out and see what you think.   If you decide to buy, take your time and buy wisely--see if your co-workers have any recommendations.  Any condo that's being maintained and is walking distance to a subway stop should at least hold its value and you won't be throwing all that rent money down the drain. 

[Grubster]

If you rent you can move around a bit if you like.  I wouldn't invest in Thai property unless you don't care about a loss or a big pain in the ass. Easy to rent hassle free.

[AlexRich]

So many variables would have to go well for you to invest in a Bangkok condo and sell it 5 years or so later at a profit. In the UK or US it may well be a sensible thing to do, but in Thailand it is more likely to go very wrong ... so why risk it? Find a decent rental in an area close to work and transit and just concentrate on your new job and enjoying Bangkok. If you are a disciplined saver you can leave at the end of 5 years with a pot of money and without the hassle of liquidating assets.

 

Oh, and if it flies, floats or f%cks, rent it, don't buy.

[mcfish]

TV is the worst place to ask real estate advice. Farang can not get finance here so I would guess 90% would be renters. As a landlord myself you can google Bloomberg's latest article showing Bangkok jumping from 19 to 8 in the best place to invest in Asia and that's coming in with momentum

Sent from my SC-01D using Tapatalk

[lungnorm]

Do not buy for 2 reasons, 1. Its hard to sell at the best of times and in 5 years time most of Bkk may be under water. Don't believe me just check it out Google is a good place to start. 

[chiang mai]

Yes buy, over five years you'll see a return almost certainly. BUT, make sure you do your homework on exchange rates because that's the area where you'll make or lose the largest amount of money on the deal.

 

Trivia: a co-worker in Hong Kong in the late 1990's had a two year contract there, he used his per diem to buy a boat which he lived on for the duration of the contract, at the end of it he sailed the boat away, all paid for free and clear. The OP needs to do similar.

[Briggsy]

Fill in the figures

 

Costs

1. Costs involved in the purchasing process

2. Furnishing

3. Building Service Charge for 60 months.

4. Time and hassle of buying. (create your own figure)

5. Loss of use of capital for 60 months.

6. Advertising costs related to selling.

7. Transfer costs related to selling.

8. Time and hassle of selling. (create your own figure)

9. Loss of value in furniture if leaving Thailand.

10. Loss of freedom to move (create your own figure)

 

Savings

1. Appreciation of property. (If property depreciates, this will be a cost)

2. Rent for 60 months.

 

Use this template, fill in the figures and you have some information on which to base a decision.

Edited November 26, 2016 by Briggsy

[trogers]

9 hours ago, newnative said:

 I agree, if you are fairly certain you will be there for 5 years and you can afford something in the 2 to 3MB price range give or take.  Personally, I would rather live in a smaller condo that I own rather than a bigger condo that I rent.  Several of the big condo developers are very clever with room plans and floor space and you may find that you can get along with 30 to 35sqm.  Most new, big condo complexes come with lots of amenities--pools, gyms, sky lounges, libraries, etc. so if the condo starts to feel a little small you can always escape to the lounge or pool.  Check some out and see what you think.   If you decide to buy, take your time and buy wisely--see if your co-workers have any recommendations.  Any condo that's being maintained and is walking distance to a subway stop should at least hold its value and you won't be throwing all that rent money down the drain. 

 

He is given an annual budget of Bt160,000.

 

He would probably end up with a 30+ sqm unit at Onnut or Rachada paying rent of Bt12,000, with the balance for utilities.

[Cracker2000]

Thanks for all the info and views guys,

 

Have to say i'm leaning towards renting at the moment, but if find a place that looks good in the future I'll be sure to careful do my research.

 

Cheers