Planning To Grow Palm Oil Trees

[tothemark]

It depends.

If you have alot of cash lying around, doing palm or rubber is better than

having the money in the bank.

(Never borrow money to do this)

If you came and bought the land like 10-15 years ago, it was actually quite

a good investment.

I calculate that I got my whole investment back in about 5 years, back then.

Today I guess it'll take between 20-30 years, cause of the high land prices

and maintenance costs,(fertilizer etc).

10 years ago the oil palm price was exactly the same as it is today !

Most Thais don't seem to realize this, but what it means is, that the price has actually decreased over the years.

High land prices??

I can still buy land in the province of Nakhon Si Thammarat for 30 - 50,000 bht/rai.

Ah , but us it land that will grow rubber or palm. Brother in-laws wifes family, big PO and rubber in Krabi come up looking to buy rubber land. After a week of looking they found nothing of interest at a good price. Jim

But why would you want to buy land without a proven crop at 30-50k. If you planted rubber your costs by the time you came to tap in 6 years will have hit 100k a rai and thats without the compound interest you could have achieved on a measly 2% bond that has got to be worth another 10k per rai over the same period.

James, did your family use land agents ?

There's still good rubber available between 100-120k per rai in the NE but finding it (and negotiating it) is an occupation in itself.

[jamescollister]

It depends.

If you have alot of cash lying around, doing palm or rubber is better than

having the money in the bank.

(Never borrow money to do this)

If you came and bought the land like 10-15 years ago, it was actually quite

a good investment.

I calculate that I got my whole investment back in about 5 years, back then.

Today I guess it'll take between 20-30 years, cause of the high land prices

and maintenance costs,(fertilizer etc).

10 years ago the oil palm price was exactly the same as it is today !

Most Thais don't seem to realize this, but what it means is, that the price has actually decreased over the years.

High land prices??

I can still buy land in the province of Nakhon Si Thammarat for 30 - 50,000 bht/rai.

Ah , but us it land that will grow rubber or palm. Brother in-laws wifes family, big PO and rubber in Krabi come up looking to buy rubber land. After a week of looking they found nothing of interest at a good price. Jim

But why would you want to buy land without a proven crop at 30-50k. If you planted rubber your costs by the time you came to tap in 6 years will have hit 100k a rai and thats without the compound interest you could have achieved on a measly 2% bond that has got to be worth another 10k per rai over the same period.

James, did your family use land agents ?

There's still good rubber available between 100-120k per rai in the NE but finding it (and negotiating it) is an occupation in itself.

Can't really say if they used an agent or not,. They just rocked up stayed the night then set off with the Brother in-law. Don't think rhey were impressed with Issan in general. Jim

[Carlson]

Dear all, 

 

PALM OIL TREE FARM for sale at Thung takoo, Chumphon area. 

143 rai and 146 rai. 

a) 143 rai (2~5km from Highway) with 2 entrance. Tree age 5 ~10 years

b) 146 rai (5km~ 8km from Highway). Tree age 5 ~8years

 

P/S: Serious buyer only

 

Add Line ID: kslow08

H/P no: 0993068525