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Future Park
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Without getting into the subject of ownership requirements, what do the long term Thai residents on this board think about the property market in Bangkok and/or rural Thailand?
What l'm getting at is, if you bought residential property in Thailand now, do you think, in general it would increase in value, say over the next five years, or with the economic ups and downs of Asia over the past few years, do you think the future outlook for real estate in Thailand is poor?
We currently rent a small three bedroom townhouse on the outskirts of Bangkok for 4,500b per month. The owner has asked if we wish to purchase it for about 950,000b. I'm happy to keep renting but am interested in your comments.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 10:17 pm on May 7, 2003
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craigoz
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FP
Thats 5.7% return on investment, less if you include maintenance costs, assuming you bought it and rented it to someone else. 6% if you secured it for 900K. An average ROI for many western property rental markets.
I dont live in BKK and only know what I have looked at by way of property investment in the general asian region in the last 5 years, but I would suggest that a non-central property, in a low marketable area (if that is where it is) on the outskirts of anywhere, has little chance of signifficant capital gain over the next 3 years.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 10:31 pm on May 7, 2003
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Whisper
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Future Park,
GO BLUES!
;)
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Thai Girls : Meet Sexy Thai Girls
Posted on: 10:33 pm on May 7, 2003
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craigoz
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Whisper & FP,
Two peas in a pond. Up the POWER.
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 10:51 pm on May 7, 2003
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turk182
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if you are getting a fair price for the place - it seems smart to buy in and not pay rent then pay the rent indefinitely. So long as you can recoup what you pay.
Craigoz,
are you a real estate or finance guy?
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 11:22 pm on May 7, 2003
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craigoz
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turk182,
Rent can sometimes be a better commercial decission, (paricularly in the shorter term in a subdued property market),given investing in real esate is more likely to be a longer term strategy. If you intend to "Buy in" a live there for 10 years plus, then its a different story.
When you weigh up the total of the "Initial investment purchase price", the "Buy in & possiibly Exit sale taxes" (if applicable) the "Agents fee" on sale, your "Maintenance cost", you need a strong capital gain/increase in property value over the term of your investment. This type of gain doesn't normally happen in a short term, unless you are in a highly volitile property market, which Thailand is not at present. Hence the probability of the 950K Baht house increasing significantly in 3-5 years, is unlikely. Its location also has a significant effect.
So, if you have the 950KBaht (available funds)and can place it in a reasonably low risk capital growth investment or a guarranteed bond for 3 years, the chances are you will make more money on your 950K (than you pay in rent)and still be able to buy the same house at 950K in 3 years. This also assumes the value of the property doesnt drop from 950K to 850K which it can. Either way you can end up financially ahead.
The question is: Can one get 5.5 to 6 % or more on investment capital in todays world?
Unless its an exceptionally good buy, undervalued at this time, with strong potential because of its location, then there is no need to rush into the property purchase (not that I am saying he is). He has time, as its unlikely that 4 potential buyers are knocking on the owners door.
OTHER THREADS: Still there are some other threads in this section and maybe the Pattaya threads, where some forum members have indicated that they have recently bought into the Thai property market. Best to PM these guys direct and they will give him more specific info on their actual Thai experiences.
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Bangkok Women : Meet Beautiful Thai Girls
Posted on: 12:00 am on May 8, 2003
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thaiprivateeye
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IMHO - Not that Im any landowner/developer, but if I was buying anywhere in Bangkok, Id go for the Ratchada area, zoned for nightlife, and the undergound due to run that way sometime ....
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 12:36 am on May 8, 2003
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Fanta4
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nice insight there tpe. that would be the money play if anywhere in bkk. subway, entertainment etc..
but what is the market in and around ratchada? what's available more or less?? am I out of line to think that youre not going to find a town house or condo in that area for 5000 bt a month??
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Thai Girls : Meet Active Thai Girls
Posted on: 1:20 am on May 8, 2003
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griffin
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most of the smart thai people i know are all buying into ratchada these days! only problem is that for foreigners there aren't many offers and if they are way overpriced in this area!
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Thai Women : Meet Matured Thai Women
Posted on: 4:19 am on May 8, 2003
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Packripper
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The really smart bought it up when it was rice paddies.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 10:55 am on May 9, 2003
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