It's official - Thai real estate bubble pops.

[metisdead]

Inflammatory posts and posts containing inappropriate language have been removed as well as the replies.

[lannarebirth]

On 12/18/2017 at 10:21 PM, smutcakes said:

Personally i would still prefer an 8mb condo in Pattaya to a 2mb house in wherever you live.

I could sell it for half price and buy two of yours.

Yes, but would you want to?

[edgarfriendly]

On 12/19/2017 at 7:28 AM, EVENKEEL said:

An hour south of Patts you can get a 5 bed 3 bath townhouse on the beach for 4m.

would you mind sharing a link or two?

 

my biggest issue with buying anything here is the often shockingly bad quality.

 

i have 'wasted' a good year and a bit looking for anything reasonable in bkk and its nigh on impossible.

 

its either garbage at extortionate prices or decent but simply insane prices..

 

i fear im going to end up in hua hin or up north somewhere!

[EVENKEEL]

5 hours ago, edgarfriendly said:

would you mind sharing a link or two?

 

my biggest issue with buying anything here is the often shockingly bad quality.

 

i have 'wasted' a good year and a bit looking for anything reasonable in bkk and its nigh on impossible.

 

its either garbage at extortionate prices or decent but simply insane prices..

 

i fear im going to end up in hua hin or up north somewhere!

Don't have a link. If you take the 3 south to Ban Chang, turn right at Tesco.....this requires a U-turn as you pass Tesco. About 5 KM to Phla Beach, left at the round a bout, it's between there and nam rin beach.....on the right side. The entrance sits directly on the road, probably have to park on road and walk thru gate. On the beach there's a giant Dragon's head that's used as a foot bridge......you can see it from the road.

 

I just landed in Ca. last night so can't give exact directions. I bought a small house in Phla beach, close to beach.

[cheeryble]

would you mind sharing a link or two?

 

my biggest issue with buying anything here is the often shockingly bad quality.

 

i have 'wasted' a good year and a bit looking for anything reasonable in bkk and its nigh on impossible.

 

its either garbage at extortionate prices or decent but simply insane prices..

 

i fear im going to end up in hua hin or up north somewhere!

 

I wouldn’t fear Moving from Bangkok to Chang Mai… But I would fear the opposite.

 

Ps. Out of Interest, what price range is available in Bangkok?

 

 

Sent from my iPad using Thailand Forum - Thaivisa mobile app

[lannarebirth]

Does anyone contributing here have any graphical evidence if a corelation exists (or doesn't) between Thailand property valuations and Thai SET valuations? It is my impression that in the past two bull markets in Thai stocks that property values also appreciated. It is only my impression and that is why I'm seeking graphical confirmation or refutation as the case may be. 

[lannarebirth]

11 hours ago, lannarebirth said:

Does anyone contributing here have any graphical evidence if a corelation exists (or doesn't) between Thailand property valuations and Thai SET valuations? It is my impression that in the past two bull markets in Thai stocks that property values also appreciated. It is only my impression and that is why I'm seeking graphical confirmation or refutation as the case may be. 

 

Anyway, I couldn't find it in postable form but my recollection about corelation was somewhat correct. Going back to 2000, when SET is climbing property also climbs but with a 1-2 year lag.  If anyone else has anything better to show I'd like to see it. Thanks. 

[Cashboy]

On 3/8/2017 at 7:32 PM, bangkokorbust said:

The biggest losers in the Thailand property market are the British. Always always screaming from a bar stool do NOT buy in Thailand. Buy back home and live off the rent.
I truly believe that it's karma whats happened to the sterling.

Any brit with half a brain would have bough in the country he has retired in and here is the thing.. Any brit that had bought 5 to 10years ago could have sold even at a loss and converted Baht back to STERLING and made a 40 %killing on exchange rate alone!

Hahaha I love it.. So instead a massive profit they have taken a 40% hit... In the other direction lol

Could have just opened a Thai bank account and received interest on the money.

[Naam]

3 hours ago, Cashboy said:

Could have just opened a Thai bank account and received interest on the money.

interest for Thai Baht is a pittance since years

[Cashboy]

On 12/19/2017 at 12:28 AM, EVENKEEL said:

An hour south of Patts you can get a 5 bed 3 bath townhouse on the beach for 4m.

Where please?

I ask because I like going to Koh Chaing and always think a house away from Pattaya would be nice.

 

[Cashboy]

27 minutes ago, Naam said:

interest for Thai Baht is a pittance since years

You can still get 2.5% ; the interest rate in switzerland is (-) 0.4%  ; yes negative interest rates.

 

I would also say (excluding perhaps the SwissFranc) that Western currencies will fall against Asian currencies.

[EVENKEEL]

1 hour ago, Cashboy said:

Where please?

I ask because I like going to Koh Chaing and always think a house away from Pattaya would be nice.

 

Read this page where I gave someone else basic directions.

[Cashboy]

I have just finished reading the 54 pages of this thread and shall add my points.

 

I am from the UK and live in SE England (fantasy property prices area) and also in Switzerland.

I have been coming to Thailand and staying in Bangkok most of the time for the last 6 years.  

The purpose at first was for import /export and investment in Asia.

I have invested in nothing in Thailand as yet, unless you include paying off the Thai secretary (now girlfriend) student loan (27,000 bt); Honda Scoopy for her to get around (48,000 bt) and a cow and its calf for (30,000 bt) for her family as a bonus instead of some crap branded handbag.

In fact the cows were the best investment as have had calves and more calves and sold and returned her 120,000 bt in 4 years with still 4 cows left for no outlay (they graze in her farm and other farms for free in Isaan).

 

I concluded that there was no point in exporting in a big way due to customers in the west requesting 120 days credit and when I agreed would not give me a personal guarantee in the event of their companies going bust.

Rather than rent a commercial office, I rented a brand new 30 m2 condo in Chatuchak area.

I paid 4,500 bt per month for this furnished condo and about 1,000 bt for water and electric (didn't use the air conditioning much).

I bought a Honda Wave 125i  (second hand 36,000 bt) to get around Bangkok on.

I have to say at this point, I just don't get renting at 20,000 bt per month as some of you are talking about !

 

I started to look at purchasing a condo in Sathon Kwai because it was near Ari (Thai secretary had a day job as Company Secretary for large Thai company) and seemed good for connections with the BTS, a Big C and not far from Mochit bus garage.

The Condo was only 40 m2 but in an upmarket well maintained building and only 8 floors high.  I couldn't live in one of those high rise monstrosities that everyone seems to want.

 

The Condo was a year old, furnished but had never been lived in; possibly a "flip" and the asking price was 4,200,000 bt though it seemed being sold by the construction company.

There was 65% parking included.

I was quite confident that I would be able to screw them down to 3,700,000 bt.

I did the resarch on the rent and I think 10,000 bt rent was achievable.

Nobody on here seems to mention that the landlord has to pay the service charge and that equated to about 1,000 bt per month.

Nobody seems to to mention that after rental periods things will have to be updated and replaced (kitchen and bathroom fittings) and would not say that the quality of furniture in these condos is very robust.

However,  I was going to buy this condo none the less for the me and the Thai girl and as an office only on the basis that I could put it in her name and take a 30 year lease on it.

The basis for this was that I understood that if I drop dead within the 30 years, I could not pass it on and it would revert back to the building owner.

The Thai girl applied and was offered a 2,000,000 bt mortgage.

I spoke to a Thai guy that had a condo in the bulding and a couple close by.  He told me that his service charge was doubling over a 5 year period on condos.

That is something one should consider because I had my condo for 3 years and the rent never went up.

I probably would have gone through with the purchase at 3,700,000 bt but unfortuantely the Thai girl's mother got cancer and the Thai girl had to give up her job to look after her mother in Isaan.

 

There are many reasons to buy a condo for yourself to live in as opposed to rent as well as many reasons to rent; however I certainly would not buy a brand new condo in Bangkok as a foreigner as an investment expecting a good return at this moment in time.

 

 

 

 

 

[chrisandsu]

5 hours ago, Naam said:

interest for Thai Baht is a pittance since years

I’m with Bangkok bank , as I’m a foreigner I’m not allowed to earn interest ! 

[smutcakes]

14 hours ago, Cashboy said:

I have just finished reading the 54 pages of this thread and shall add my points.

 

I am from the UK and live in SE England (fantasy property prices area) and also in Switzerland.

I have been coming to Thailand and staying in Bangkok most of the time for the last 6 years.  

The purpose at first was for import /export and investment in Asia.

I have invested in nothing in Thailand as yet, unless you include paying off the Thai secretary (now girlfriend) student loan (27,000 bt); Honda Scoopy for her to get around (48,000 bt) and a cow and its calf for (30,000 bt) for her family as a bonus instead of some crap branded handbag.

In fact the cows were the best investment as have had calves and more calves and sold and returned her 120,000 bt in 4 years with still 4 cows left for no outlay (they graze in her farm and other farms for free in Isaan).

 

I concluded that there was no point in exporting in a big way due to customers in the west requesting 120 days credit and when I agreed would not give me a personal guarantee in the event of their companies going bust.

Rather than rent a commercial office, I rented a brand new 30 m2 condo in Chatuchak area.

I paid 4,500 bt per month for this furnished condo and about 1,000 bt for water and electric (didn't use the air conditioning much).

I bought a Honda Wave 125i  (second hand 36,000 bt) to get around Bangkok on.

I have to say at this point, I just don't get renting at 20,000 bt per month as some of you are talking about !

 

I started to look at purchasing a condo in Sathon Kwai because it was near Ari (Thai secretary had a day job as Company Secretary for large Thai company) and seemed good for connections with the BTS, a Big C and not far from Mochit bus garage.

The Condo was only 40 m2 but in an upmarket well maintained building and only 8 floors high.  I couldn't live in one of those high rise monstrosities that everyone seems to want.

 

The Condo was a year old, furnished but had never been lived in; possibly a "flip" and the asking price was 4,200,000 bt though it seemed being sold by the construction company.

There was 65% parking included.

I was quite confident that I would be able to screw them down to 3,700,000 bt.

I did the resarch on the rent and I think 10,000 bt rent was achievable.

Nobody on here seems to mention that the landlord has to pay the service charge and that equated to about 1,000 bt per month.

Nobody seems to to mention that after rental periods things will have to be updated and replaced (kitchen and bathroom fittings) and would not say that the quality of furniture in these condos is very robust.

However,  I was going to buy this condo none the less for the me and the Thai girl and as an office only on the basis that I could put it in her name and take a 30 year lease on it.

The basis for this was that I understood that if I drop dead within the 30 years, I could not pass it on and it would revert back to the building owner.

The Thai girl applied and was offered a 2,000,000 bt mortgage.

I spoke to a Thai guy that had a condo in the bulding and a couple close by.  He told me that his service charge was doubling over a 5 year period on condos.

That is something one should consider because I had my condo for 3 years and the rent never went up.

I probably would have gone through with the purchase at 3,700,000 bt but unfortuantely the Thai girl's mother got cancer and the Thai girl had to give up her job to look after her mother in Isaan.

 

There are many reasons to buy a condo for yourself to live in as opposed to rent as well as many reasons to rent; however I certainly would not buy a brand new condo in Bangkok as a foreigner as an investment expecting a good return at this moment in time.

 

 

 

 

 

Why would you take a 30 year lease on a condo when you can buy it 100% outright as a foreigner?  Before offering advice to people, you should probably understand the very simplest differences between apartments and condos as you seem a little confused.

 

Could you also tell me where you are getting 2.5% Interest?

[smutcakes]

10 hours ago, chrisandsu said:

I’m with Bangkok bank , as I’m a foreigner I’m not allowed to earn interest ! 

I'm a foreigner with a Bangkok Bank account and i receive interest on my deposit. Negligible and under 1% after tax, but still receive it.

[chrisandsu]

16 minutes ago, smutcakes said:

I'm a foreigner with a Bangkok Bank account and i receive interest on my deposit. Negligible and under 1% after tax, but still receive it.

Do you have a work permit ? I don’t . My wife can get interest if she opened another account but I can’t . I have been told this repeatedly . They also said Bangkok bank is getting rid of its visa debit card as it’s not using visa anymore (bit of extra info you may not need )

[smutcakes]

26 minutes ago, chrisandsu said:

Do you have a work permit ? I don’t . My wife can get interest if she opened another account but I can’t . I have been told this repeatedly . They also said Bangkok bank is getting rid of its visa debit card as it’s not using visa anymore (bit of extra info you may not need )

Yes i do have a work permit.  I still have my account there but don't use it anymore. I tried to transfer my accounts from one BKK branch to another about 1 km away and they said i had to close one branch and open a new at another. I said forget it and opened a new account with Krungsri who i find much better. The only reason i keep BB is they make it harder and harder to open accounts (KYC) i may as well keep it in case i need another account in the future, and also i have numerous direct debits payments out of the account i was to lazy to move.

[chrisandsu]

3 minutes ago, smutcakes said:

Yes i do have a work permit.  I still have my account there but don't use it anymore. I tried to transfer my accounts from one BKK branch to another about 1 km away and they said i had to close one branch and open a new at another. I said forget it and opened a new account with Krungsri who i find much better. The only reason i keep BB is they make it harder and harder to open accounts (KYC) i may as well keep it in case i need another account in the future, and also i have numerous direct debits payments out of the account i was to lazy to move.

Yeah that’s the same for me . I was going to close it as Bangkok bank is pretty useless . I went to get a new card as the cards seem to wear out really easily , I went to the headquarters in bkk where they told me they couldn’t do it as my original bank was slightly out of their jurisdiction ? their computer system sucks !! I would close it but without a work permit I’m not sure I can open another account . Krungsri is a much better bank especially when transferring money as their exchange rate is almost spot on .

[Cashboy]

1 hour ago, smutcakes said:

Why would you take a 30 year lease on a condo when you can buy it 100% outright as a foreigner?  Before offering advice to people, you should probably understand the very simplest differences between apartments and condos as you seem a little confused.

 

Could you also tell me where you are getting 2.5% Interest?

I understand that when you buy a condo in Thailand as a foreigner, you only get a 30 year lease and if you drop dead before the end of the lease, the condo cannot be inherited but reverts back to the building / land owner.

Is there any difference between a condo, apartment and flat; maybe you could define them because I believed them to be the same?

I saw only last year in the main Thai banks offers of 2.5% per annum tied up for 72 months.

Did I say that I had my money in a bank and getting 2.5 % interest?

Smut -  cakes; it seems like you got out of bed on the wrong side this morning.

Edited January 22, 2018 by Cashboy

[Naam]

1 minute ago, Cashboy said:

I understand that when you buy a condo in Thailand as a foreigner, you only get a 30 year lease and if you drop dead before the end of the lease, the condo cannot be inherited but reverts back to the building / land owner.

little do you understand!

[Cashboy]

Little I know; explain to me please then.

I was informed that you could not pass the title of the condo on to anyone else at death.

 

I was under the impression that thailand never wanted to give the rights to foreigners to own any property in thailand but were forced to by the IMF when they loaned money to the Thai government in the Asian 1997 financial crash.

Edited January 22, 2018 by Cashboy

[Naam]

11 hours ago, chrisandsu said:

I’m with Bangkok bank , as I’m a foreigner I’m not allowed to earn interest ! 

i'm a foreigner too, have no work permit but i'm getting since 14 years interest from Siam Commercial and Kasikorn. for the last few years as mentioned a pittance. but that pittance is more than the zero percentage i'm getting on my accounts in German and Singapore.

[chrisandsu]

3 minutes ago, Cashboy said:

I understand that when you buy a condo in Thailand as a foreigner, you only get a 30 year lease and if you drop dead before the end of the lease, the condo cannot be inherited but reverts back to the building / land owner.

Is there any difference between a condo, apartment and flat; maybe you could define them because I believed them to be the same?

I saw only last year in the main Thai banks offers of 2.5% per annum tied up for 72 months.

Did I say that I had my money in a bank and getting 2.5 % interest?

Smut -  cakes; it seems like you got out of bed on the wrong side this morning.

A condo you can own if it’s a freehold ( as long as it’s part of the 49% quota for the building) You own it 100% outright no leasing or anything . But if it’s part of the 51% of the building that a Thai owns you would have to buy in a business name and lease to yourself (that would be a dumb way of doing it) . Just be part of the foreign quota you may have to pay a little more ...

[chrisandsu]

1 minute ago, Naam said:

i'm a foreigner too, have no work permit but i'm getting since 14 years interest from Siam Commercial and Kasikorn. for the last few years as mentioned a pittance. but that pittance is more than the zero percentage i'm getting on my accounts in German and Singapore.

Are you a retiree ? I’m not . I’m guessing they don’t give me interest as I have no legal standing in Thailand . I think I was lucky they even let me open an account 

[Cashboy]

4 minutes ago, chrisandsu said:

A condo you can own if it’s a freehold ( as long as it’s part of the 49% quota for the building) You own it 100% outright no leasing or anything . But if it’s part of the 51% of the building that a Thai owns you would have to buy in a business name and lease to yourself (that would be a dumb way of doing it) . Just be part of the foreign quota you may have to pay a little more ...

Can you buy second hand from a non Thai that bought in the 49% then and have the same rights as a foreigner that bought new?

Or do you have to buy new ?

Edited January 22, 2018 by Cashboy

[chrisandsu]

1 minute ago, Cashboy said:

Can you buy second hand from a non Thai that bought in the 49% then and have the same rights as a foreigner that bought new?

Or do you have to buy new ?

Yes you can buy off a foreigner and take their quota . Again it may be a little more expensive but worth it in the long run. We are not talking massively expensive either but if you see a price difference in the same building that could be why (along with view and other reasons to be considered )

[Naam]

25 minutes ago, chrisandsu said:

Are you a retiree ? I’m not . I’m guessing they don’t give me interest as I have no legal standing in Thailand . I think I was lucky they even let me open an account 

being a retiree is irrelevant. i have a few friends who hold Thai Baht with Thai banks and they are getting interest. they are tourists and spend a few weeks every year in Thailand.

[chrisandsu]

1 minute ago, Naam said:

being a retiree is irrelevant. i have a few friends who hold Thai Baht with Thai banks and they are getting interest. they are tourists and spend a few weeks every year in Thailand.

I have no idea then . I can assure you bangkok bank 100% refuse to give me any interest . I’d double check with your friends to be sure . 

[Kieran00001]

All I see are a couple examples of failed off plan developments, but nothing about the bubble having burst!  Where are the decreasing prices, isn't that what a burst bubble results in, cheaper property?