Shop houses...

[Lucky mike]

Can anyone explain to me why there  so many ?  I have seen them all over Thailand in our travels and some of them appear to have been vacant for over 20 years...I still struggle with the pricing of real estate....thank you in anticipation!

[tutsiwarrior]

we bought 2 adjacent, newly built freestanding 2 storey shophouses (unfinished interior, concrete floors, no ceiling, etc) in a small provincial town in Suphanburi (12k pop) for 1.3 million in 2002...good location off the main drag, next to the district tesseban premises, 10min walk to the principal district school (we had 4 school aged kids with us at the time) and 15min walk to the market...municipal water supply, regular garbage collection and etc...

 

bought the adjacent lot and built a third identical unit and then joined the 3 units with front and rear 1st floor terraces...the wife dolled it up nicely and we've been living here ever since...

 

 

Edited May 21, 2017 by tutsiwarrior

[trogers]

The spirits here shop too...

[dotpoom]

Can't answer your question but I think they're a great idea.....could use them back home....but then again, knowing back home, the rates on them would be so high that one could never afford to live in them.

[Lamkyong]

so many derelict  and empty units   ? reason being overloaded market   and Thais like new,

rental same old  new  its a  ooooo look what i have got   we are so rich   maybe i will buy a new truck to sit outside  for everyone to look at with envy

[malt25]

Somewhat like all the market stalls side by side selling the same thing.

[phantomfiddler]

An Asian friend told me that the shophouse was the secret of success for the Asian people. They could do business on the ground floor and the families could live on the floors above. Makes sense to me, total usage of the property :)

[Peterw42]

I dont think Thais look at assets in the same way they are looked at in the west.

In the west, you dont just have an asset, its looked on in terms of growing the asset or getting a return on the asset. Property, shares or term deposit is all about speculating for a capital gain or a return on investment.

Thai people love investing in gold, most of the time there is no great capital growth or return on investment. They are happy just to hold the asset. I think they view property the same, they dont buy and sell for capital gain or look for a return.

 

Maybe that mindset comes from years of mistrust of governments and corruption, if you make a gain or a return someone wants a share. 

 

[gjoo888]

I have no idea why there are so many shophouses in Thailand, but it makes a lot of sense in Bangkok not having to drive or commute to work. 

[Laza 45]

22 minutes ago, phantomfiddler said:

An Asian friend told me that the shophouse was the secret of success for the Asian people. They could do business on the ground floor and the families could live on the floors above. Makes sense to me, total usage of the property :)

I believe that is true.   Our town is overrun with them too... and the rents on the new ones are not cheap..  I asked my wife how people could afford them when they only have a small business downstairs.. her thinking  is that it is home base .. the small shop earns a little.. but others go out to work and cover expenses & living costs..    We lived in one for several years before we bought our own place.. it was a good way to get started here.. the biggest drawback for me was not having a garden..  but it only cost 2,500 Bt a month plus elec & water...   but I often wonder what the future is for all these small business with the BigCs, Tesco, Makro and the other big ones moving into just about every big town..

[smotherb]

Shop houses are common throughout Southeast Asia and a traditional building form among the overseas Chinese. The shop house conserves land, is used as a dual-purpose business and home, and as often seen a garage or communal space downstairs which can be easily converted to a business site when the space is emptied.

[Grusa]

Actually it's very simple. Every Thai national over the age of, I think, 16  is entitled to own a home, tax free, and can run a business from that home. You will find many families where every member owns a property in his or her own name, irrespective of where they actually live, or with whom. Many of the businesses run from such properties, which may or may not be shophouses, pay no tax at all!

Shophouses tend to be built along main roads, so no costs in running utilities to the property, access, etc., and the Thai in general have no interest in gardening - they all like to live in each others pocket. The shophouse is an ideal low cost multi-purpose unit with a small footprint and minimal maintenance required.

[trogers]

2 hours ago, phantomfiddler said:

An Asian friend told me that the shophouse was the secret of success for the Asian people. They could do business on the ground floor and the families could live on the floors above. Makes sense to me, total usage of the property :)

This secret would soon be killed off in the same way those big retailers face. Only small turnover of service oriented businesses in repairs, beauty and food can survive. This would place a cap on most locations except areas of heavy footfalls.

[Suradit69]

3 hours ago, Peterw42 said:

In the west, you dont just have an asset, its looked on in terms of growing the asset or getting a return on the asset.

Or in the west losing everything you "invested" when the market for what you're trying to flip evaporates and you have a bank loan balance that's 150% of what you'd get if you were lucky enough to find a buyer.

 

[bangkokairportlink]

Because it is plain stupid to buy a house that can only be a house when you can buy one that can also be a shop and help you to make money ?

 

 

[mike324]

3 hours ago, Laza 45 said:

I believe that is true.   Our town is overrun with them too... and the rents on the new ones are not cheap..  I asked my wife how people could afford them when they only have a small business downstairs.. her thinking  is that it is home base .. the small shop earns a little.. but others go out to work and cover expenses & living costs..    We lived in one for several years before we bought our own place.. it was a good way to get started here.. the biggest drawback for me was not having a garden..  but it only cost 2,500 Bt a month plus elec & water...   but I often wonder what the future is for all these small business with the BigCs, Tesco, Makro and the other big ones moving into just about every big town..

Well you have to keep in mind that there are a lot of other types of business that operate out of townhouses - restaurants, repair shops, etc not just convenience stores. So they are unlikely to go out of business with big c and lotus moving in.

[bangkokairportlink]

3 hours ago, phantomfiddler said:

An Asian friend told me that the shophouse was the secret of success for the Asian people. They could do business on the ground floor and the families could live on the floors above. Makes sense to me, total usage of the property :)

 

Correct, this is the only smart way to do business without investing a lot.

 

When I find all these stupid people who are not smart enough to understand that paying a rent for a house AND for a shop is so retarded, without speaking about how difficult it is to manage your private life and at the same time as your business when they are not located at the same premise, I feel pity for them.

 

 

 

 

[elgordo38]

3 hours ago, phantomfiddler said:

An Asian friend told me that the shophouse was the secret of success for the Asian people. They could do business on the ground floor and the families could live on the floors above. Makes sense to me, total usage of the property :)

Sounds like a great idea providing your neighbors are not all selling the same thing. They have a tendency to copy cat each other till everyone goes broke. 

[Bulldozer Dawn]

I always ensure that I have a house and a separate place of business.  Many years ago I owned a 36 room hotel and a 86 seat restaurant.  I lived onsite.  I would never live where I work again.  Unless it is working from home, such as online, where the customers have no direct access to you.

[trogers]

39 minutes ago, bangkokairportlink said:

 

Correct, this is the only smart way to do business without investing a lot.

 

When I find all these stupid people who are not smart enough to understand that paying a rent for a house AND for a shop is so retarded, without speaking about how difficult it is to manage your private life and at the same time as your business when they are not located at the same premise, I feel pity for them.

 

 

 

 

Depends on the type of business. Hopefully not the same business as those pushcarts filling both sides of the street to your shophouse...

 

Some people do prefer a different way of life for their families...

[Deli]

1 hour ago, bangkokairportlink said:

 

Correct, this is the only smart way to do business without investing a lot.

 

When I find all these stupid people who are not smart enough to understand that paying a rent for a house AND for a shop is so retarded, without speaking about how difficult it is to manage your private life and at the same time as your business when they are not located at the same premise, I feel pity for them.

 

 

 

 

So, the rest of the world is retarded but Thailand ? I personally would never like to live above my business in a 3 story shophouse with part wise windowless rooms and steep stairs you need to walk up and down. I prefer to be a stupid farang in this case

 

Edited May 22, 2017 by Deli

[Bulldozer Dawn]

7 minutes ago, Deli said:

So, the rest of the world is retarded but Thailand ? I personally would like to live above my business in a 3 story shophouse with part wise windowless rooms and steep stairs you need to walk up and down. I prefer to be a stupid farang in this case

 

No the rest of the world is forced to be retarded by their tax hungry governments and local councils who have zoning laws in place to make shop house development and occupations almost impossible.  There is no better example than Australia.

[elgordo38]

43 minutes ago, Bulldozer Dawn said:

I always ensure that I have a house and a separate place of business.  Many years ago I owned a 36 room hotel and a 86 seat restaurant.  I lived onsite.  I would never live where I work again.  Unless it is working from home, such as online, where the customers have no direct access to you.

Time is sure one hellva teacher. 

[elgordo38]

2 hours ago, trogers said:

  3 hours ago, bangkokairportlink said:

 

Correct, this is the only smart way to do business without investing a lot.

 

When I find all these stupid people who are not smart enough to understand that paying a rent for a house AND for a shop is so retarded, without speaking about how difficult it is to manage your private life and at the same time as your business when they are not located at the same premise, I feel pity for them.

 

Please stop calling people stupid and retarded. Its one thing to disagree with their ways but not to this extreme. I think most of us trodding the planet have had our moments of S and R. Intelligence is a rare thing today  you seem to have it do not abuse it. 

[trogers]

33 minutes ago, elgordo38 said:

Please stop calling people stupid and retarded. Its one thing to disagree with their ways but not to this extreme. I think most of us trodding the planet have had our moments of S and R. Intelligence is a rare thing today  you seem to have it do not abuse it. 

Stupid and retarded, no!

 

Ignorance, yes. That's why they post questions and queries on this forum. 

[madusa]

9 hours ago, Peterw42 said:

I dont think Thais look at assets in the same way they are looked at in the west.

In the west, you dont just have an asset, its looked on in terms of growing the asset or getting a return on the asset. Property, shares or term deposit is all about speculating for a capital gain or a return on investment.

Thai people love investing in gold, most of the time there is no great capital growth or return on investment. They are happy just to hold the asset. I think they view property the same, they dont buy and sell for capital gain or look for a return.

 

Maybe that mindset comes from years of mistrust of governments and corruption, if you make a gain or a return someone wants a share. 

 

Yes, that's what happened, just like in India. In India they will buy gold and hoard them. Bury them in the backyard, hide them somewhere.....they don't trust the bank and the government.

A bank and a government is only as good as the people running it.

[thehelmsman]

An hour south of Pattaya 2 floor shophouses are selling for 3 mil bht and rent for 12,000bht for a new one.  3 floor shophouses go for about 4 mil bht.

 

The ground floor is open with 1/2 bath and the other floors have 2 rooms plus a bathroom. A lot of wasted space with the staircase. Many have an outside area in back to use for Thai style kitchen.

[NoshowJones]

11 hours ago, dotpoom said:

Can't answer your question but I think they're a great idea.....could use them back home....but then again, knowing back home, the rates on them would be so high that one could never afford to live in them.

I agree, I presume you are referring to the UK.

[Stocky]

They're very versatile buildings. 

 

We bought a 4 storey shophouse in Hat Yai, 23m x 4.5m, easy to convert to whatever you want. Currently the ground floor is a living room at the front, dining room and kitchen to the rear, the stairs run up the middle of the house. But  should anything happen to me the wife could turn the ground floor into a shop, a restaurant,  or rent the space out. The upper floors give me one room as a study,  plus four bedrooms (two ensuite). The top floor includes a garden patio to the rear and then the roof is garden too. The small window and door to each balcony has been replaced with sliding patio windows; so no they're not dark & gloomy inside. The stairs are good exercise.

 

.

 

Edited May 22, 2017 by Stocky

[Farma]

We bought a double shophouse, heavily renovated it to an apartment with balcony upstairs and shop/warehouse on the ground floor. It suits us fine and going on local sales it has doubled in value from what we invested in it.

A lot of Thais will build a row of shophouses with the intention of keeping one for themselves then rely on the sale of the others to cover the build costs/make a profit. Unfortunately many sellers set the price too high and the buildings lay empty.