Price of Land

[sheldoncollier]

Hello all,

 

I'm wondering what you think of the price of 2.5 million baht for 3.5 rai of land. The land is residential, next to the road on the outskirts of Nong Bua, Nong Bua, Nakhon Sawan. I have not idea if this is a good price for land. The guy selling it seems to keep increasing the price exponentially each year, so it has me worried.

[CharlieH]

Wrong forum

 

MOVED to Real Estste.

[trogers]

Why would you be worried? So what if he should tack a rai for Bt1b?

[NanLaew]

Not familiar with exact costs in that region but anything around 750k/rai is commensurate with prices seen in other parts of Thailand where you are within 10 or 15 km of a good sized regional town. The main things to consider if the land has been filled, has proper drainage been addressed and the accessibility to the main utilities.

 

If the OP is eyeing this plot for a future home and garden, unless he is planning a bit of recreational/commercial gardening, it is too big. Friend of mine bought around 3 rai in the middle of the Huayyai (Pattaya-Jomtien) boonies for about 800k /rai about 20 years ago and eventually built his overly large retirement villa with a pool and had the grounds landscaped around a fish pond. Once he turned 60, it just became too big for hands-on care and maintenance and the bills for other people to come and clean and trim were a growing concern. Despite using construction materials and techniques that fostered money saving and carefully selecting pumping, heating and cooling options, the electric bill was always over 7000 baht.

[sheldoncollier]

1 hour ago, NanLaew said:

Not familiar with exact costs in that region but anything around 750k/rai is commensurate with prices seen in other parts of Thailand where you are within 10 or 15 km of a good sized regional town. The main things to consider if the land has been filled, has proper drainage been addressed and the accessibility to the main utilities.

 

If the OP is eyeing this plot for a future home and garden, unless he is planning a bit of recreational/commercial gardening, it is too big. Friend of mine bought around 3 rai in the middle of the Huayyai (Pattaya-Jomtien) boonies for about 800k /rai about 20 years ago and eventually built his overly large retirement villa with a pool and had the grounds landscaped around a fish pond. Once he turned 60, it just became too big for hands-on care and maintenance and the bills for other people to come and clean and trim were a growing concern. Despite using construction materials and techniques that fostered money saving and carefully selecting pumping, heating and cooling options, the electric bill was always over 7000 baht.

Thanks. The land is filled, which is one reason why he said the price went up. Part of the land is a big pond, which we plan to use for growing frogs. We also want to have a large flower & vegetable garden, selling the flowers perhaps.

[Kwasaki]

15 hours ago, sheldoncollier said:

I'm wondering what you think of the price of 2.5 million baht for 3.5 rai of land. The land is residential

Different area prices vary as already pointed out,  if you make more inquiries around the general area you get a more realist price IMO.

Many ask OTT prices and end up taken lower offers, that said it depends on their financial circumstances.

I asked my Mrs once because of silly prices on land etc in our village to how and where do Thai people get their prices from, she said  " From the heart ".  

[seajae]

on the outskirts of Surat Thani we got a rai for 750,000 baht, nice block and there are houses being built in the area so it seems a reasonable price  for 3 rai especially if it has been filled

 

[just.a.thought]

Don't buy if it doesn't have a chanote


Sent from my iPad using Thaivisa Connect

[Khun Jean]

A chanot is best but a Nor Sor Sam (kor) is also good. The price will also reflect the kind of land title. All Nor Sor Sam (kor) will be changed to a chanot, you can ask the land office when this is scheduled for your area of interest.

 

[Cashboy]

I have been studying land prices around Kumpawapi in Udonthani Province in Isaan Region for the last 5 years.

The prices asked don't make any sense to me.

Thai farmer gets about 300 bt per day and would be lucky to get anywhere close to 200 days of work a year.

One reads that Isaan is the region of poor Thai people.

One reads that the Thai young leave Isaan to work in factories around Bangkok in the indutrial area or in bars in Pattaya because there is no work in Isaan.

One would therefore make the assumption that there would be no demand for land in Issan and this would be reflected in the price.

 

I live in a village on the A2 road.  The A2 road is the main road that runs from Bangkok to Udonthani town.

The village is about 8 kms from Kumpawapi Town (largest town in Udonthani province after Udonthani town) that boasts a Tesco Lotus and large market and plenty of shops supplying agricultural supplies.

KhonKean is 70 kms away on the A2 road or railway line.

Udonthani city centre is 30 kms away on the A2 road or railway line.

Udonthani Airport is 30 kms away.

 

The railway line, coming from Bangkok to Udonthani and then Laos is 2 kms from the village.  

There are basically four passeneger trains a day stopping at the station that go to Bangkok (about 10 hours) via KhonKean and to Udonthani (1 hour away).

This is the railway line that one hears is going to be made into a high speed line to China and part of the future Silk Road.

For some reason the locals seem to believe that this makes the village and surrounding areas highly desirable when few can afford any transport and the highspeed train would not be stopping at the local stations.

Personally a high speed passenger line seems a daft idea when I would have though a two line normal speed line taking freight and a regular affordable service for passengers would make more sense.

 

You are lucky to be able to find any farm land for less than 100,000 bt per rai and no way would that have full chanot.  The land will have no electricity or water supply and will be at least 500 metres from the main road and if you are lucky a government dirt track.

 

There is full chanot land of 15 rai with 30 metres of road front on a concrete road 1 km from the main A2 road with electric on offer for 4,500,000 bt => 300,000 bt per rai. about 200 metres from a secondary school.  Obviously at that price is not viable for farming. This has been on the market for 5 years where the price has risen from 3,500,000 bt to 4,500,000 bt

 

In the village half a rai of land with one of those old wooden houses on concrete posts sells for about 1,500,000 (3,00,000 bt per rai).  Saying that, the only buyers in the last 5 years seem to be Thai girls of farang.  

The property (1/2 rai with one of those wooden houses) next door to the Thais girl's house has been up for sale for the last three years (parents died and has 5 children) .  The Thai girl offered 1,000,000 bt two years ago but was told they want 2,000,000 bt.

 

Agricultural land actually on the main road (A2) has asking prices of 2,500,000 bt per rai !!

 

But if you look at earnings (300 bt per day farmer), how could anyone afford to buy anything.

Saying all that nothing is selling.

The Thais seem to base their valuation and selling price on what others have the property for sale, not for the fact that what anyone would pay.

That could be the reason that nothing is selling, except the odd farang buyer.  The last farang bought two years ago 1/2 rai opposite the temple where they burn people and no Thai would want to buy.

 

[baansgr]

If it hasnt sold in years its obviously not an interesting purchase to buyersfor some reason, you could have problems if wanting to resell, 

[Cashboy]

56 minutes ago, baansgr said:

If it hasnt sold in years its obviously not an interesting purchase to buyersfor some reason, you could have problems if wanting to resell, 

I think it is just a matter of them living in fantasy world with regard to price.

There are five children in this inheritance, so would think it is just a matter of time before a couple of them will need the money in the future and need to push for a sale.

I don't actually need their half rai but if the price was right would buy it to make our garden one rai in the centre of the village or split the half rai plot into four  200 m2 plots for development in the future.

 

 

 

Edited February 9, 2018 by Cashboy

[smutcakes]

First stop is look up the Government assessed value of the land. That will give you a rough idea. One rai is to small for most developers to look at. 4.5 seems a bit steep to me for NS but perhaps its a good location.

[Kwasaki]

Price of land around us I find is a matter of the what price it is in the beginning of negotiations, the price it is what their heart thinks.

[watcharacters]

19 hours ago, baansgr said:

If it hasnt sold in years its obviously not an interesting purchase to buyersfor some reason, you could have problems if wanting to resell, 

 

 

 

 

A clearly unmotivated seller.

 

No interest in lowering the price.

 

The heart says only increase the price each year.

 

 

 

[jackdd]

Probably the people who offer it are not in need to sell it. So they just keep it, as investment, or maybe to move back there when they are older, unless somebody offers them a maybe unreasonable high price.

So if you want to buy a piece of land you probably have to call a lot of people, maybe one of them is in need of money and tries to make a quick sale and thus agrees to a reasonable price.

[chrisandsu]

Let’s put this into perspective they want over $100k for one acre of arid farm land! I think everyone can agree it’s not worth it . Although The beautiful bit about Thailand is there is no property tax so sitting on a chunk of land forever costs you nothing ! You can then sit on that land forever if you like until the next idiot comes in wanting to buy  a massively over inflated bit of land . To get that land at a good price You have to be in the right place at the right time to get a deal . Remember nearly every Thai is a real estate agent as they get 5% commission (sometimes less sometimes more ) if they bring a buyer . You said part of the land is built up and part has been dug out .... well the dug out bit is worthless! No Thai would even consider buying it other then to dump their trash in it , wait until it’s near full then put a bit of top soil on top and then call it good !

Put the feelers out that you are looking for land (if you totally insist on buying land you can’t own) the location you want and the price you will Pay ,then let the som tam lady gossip everyone’s ears off until you find a desperate seller . 

Edited February 17, 2018 by chrisandsu

[Khun Jean]

Often you end up paying more then a Thai because you will be too late. Land with good prices sell quickly and often neighbors/friends/family etc have neighbors/friends/family that know it long before you do.

My strategy is to live as close to the location as i am interested in and keep my eyes and ears open. It will also give you a much better idea about prices and if the area is actually where you would want to live for a long time. And of course have cash ready, you'll have about an hour to to get that deal before others jump on it so make sure there are no delays.

This worked with some condo's we bought (rented in the building we were interested in until someone needed to get cash quickly). With land so far only one time (7 rai for 120.000 per rai while the going asking price at that moment was around 250.000, now more then 15 years later it is about 500.000). And we did pay taxes as this does exist, but so low that it is as good as nothing. This changed however for people who own a lot of land. One of the reason why there are so many new banana 'plantations'. Most of those are owned by rich Bangkok people who rather buy land and just leave it then putting their money in the bank and get so little interest it doesn't even keep up with inflation.

 

 

 

[chrisandsu]

12 minutes ago, Khun Jean said:

Often you end up paying more then a Thai because you will be too late. Land with good prices sell quickly and often neighbors/friends/family etc have neighbors/friends/family that know it long before you do.

My strategy is to live as close to the location as i am interested in and keep my eyes and ears open. It will also give you a much better idea about prices and if the area is actually where you would want to live for a long time. And of course have cash ready, you'll have about an hour to to get that deal before others jump on it so make sure there are no delays.

This worked with some condo's we bought (rented in the building we were interested in until someone needed to get cash quickly). With land so far only one time (7 rai for 120.000 per rai while the going asking price at that moment was around 250.000, now more then 15 years later it is about 500.000). And we did pay taxes as this does exist, but so low that it is as good as nothing. This changed however for people who own a lot of land. One of the reason why there are so many new banana 'plantations'. Most of those are owned by rich Bangkok people who rather buy land and just leave it then putting their money in the bank and get so little interest it doesn't even keep up with inflation.

 

 

 

Pretty much bang on there . What’s funny is even people from bangkok get the same treatment . At times we will drive around looking at land, we will ask the neighbours the price and they will tell us , when  she calls the price all of a sudden jumps to Bangkok price  due to her accent ! As you said be local, do your research ,and pay true value not the value somkit got from the village whispers (normally bs)

[Tagaa]

Thais in our area base their asking price on what they "heard" somebody in the area got for their land.

 

If you don't know it by now, Thais lie about everything, especially money. If they are fortunate enough to sell their land, they tell everybody they got a million, when in fact they got 200,000. This makes them appear to have great face & be elevated from Lo-so to village Hi-so. Then the next rice farmer that wants to sell land to pay off yet another loan, asks a million, because that's what Somchai got. Or so they think.

 

There is no data base of what property actually sells for. You just have to rely on the old tried & true definition of value:

 

Value is defined as what a person under no obligation to sell and a person under no obligation to buy agree on.

 

If land has been for sale for years & no one is willing to buy at their asking price, it is over priced.

 

The problem is Thais lack the ability to process logical thought. If they want a million & no body buys the land, they lose face if they sell if for it's apparent value of, lets say, 200,000. So the land goes unsold, until they post it as collateral to the village loan shark. When they can't payback the loan, they may sell it for a reduced price. But again, maybe not. Like I said, logic does not exist in Thailand.

[chrisandsu]

6 hours ago, Tagaa said:

Thais in our area base their asking price on what they "heard" somebody in the area got for their land.

 

If you don't know it by now, Thais lie about everything, especially money. If they are fortunate enough to sell their land, they tell everybody they got a million, when in fact they got 200,000. This makes them appear to have great face & be elevated from Lo-so to village Hi-so. Then the next rice farmer that wants to sell land to pay off yet another loan, asks a million, because that's what Somchai got. Or so they think.

 

There is no data base of what property actually sells for. You just have to rely on the old tried & true definition of value:

 

Value is defined as what a person under no obligation to sell and a person under no obligation to buy agree on.

 

If land has been for sale for years & no one is willing to buy at their asking price, it is over priced.

 

The problem is Thais lack the ability to process logical thought. If they want a million & no body buys the land, they lose face if they sell if for it's apparent value of, lets say, 200,000. So the land goes unsold, until they post it as collateral to the village loan shark. When they can't payback the loan, they may sell it for a reduced price. But again, maybe not. Like I said, logic does not exist in Thailand.

Some very valid points . Only problem comes when the buffalo (farang) rolls into town defying logic by massively overpaying .