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Oaktoad
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owning does not affect it, but if you apply, it can't hurt.. the biggest thing to have is the income or cash in the bank..
I think you need B800K in the bank once a year.. certainly not that hard to do... only about US$20K.. and you could replenish it once a year and then live off it and just add as needed..
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 11:48 am on June 2, 2005
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dotcom
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Quote" Does owning your home in Thailand effect your visa/residency status at all ?"
Answer: Not in the least. Not one bit. You can buy - You can rent. Has nothing whatsoever to do with a visa.
Might in some other countries; not here.
I see nothing wrong with buying a unit to rent out. Ride the next property boom. Just don't overpay in the first instance. Hand it over to an agent to deal with the day to day hassels.
I see lots of reasonably priced units every Sunday in the Bangkok Post. 3 to 4 million baht is all you need to pay.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 12:20 pm on June 2, 2005
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Oaktoad
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dotcom wrote:
"I see nothing wrong with buying a unit to rent out. Ride the next property boom. Just don't overpay in the first instance. Hand it over to an agent to deal with the day to day hassels."
much easier said than done.. I get the sense that you have 1) never shopped for a condo and 2) have never tried to rent one out...
Not overpaying is a matter of belief.. there is a lot of speculation in farang type units (i.e. higher priced) and there could be another crunch similar to 1997.. if there is, then there is no way to avoid overpaying..
It is easy to get caught up in the buying binge.. B8M is "only" US$200K.. that is cheap for many in large cities in farangland.. many could sell their house and buy two for this price..
finding an agent to handle rentals is not easy.. just finding one can be difficult due to the language problem.. then on top of that, you have to find an honest one.. not easy.. I see what people go thru trying to rent out units.. I see what a hassle it is for my Thai G/F to rent out her unit.. and she is well educated and connected.. and still a hassle finding someone who can "deal with the day to day hassles"
I would never choose to be a farang landlord in Thailand.. unless you don't have a choice..
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Thai Girls : Meet Sexy Thai Girls
Posted on: 12:35 pm on June 2, 2005
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dotcom
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I would consider anything over 30,000 per sq. meter to be overpaying.
I would suggest you not use falangland prices to judge Thai values. Sure 200 k soiunds like chump change to you. That is how shit gets real f***ed up real fast.
Better to use average hourly wage.
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 1:43 pm on June 2, 2005
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manowar
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Quote: from dotcom on 9:55 am on June 2, 2005
I would consider anything over 30,000 per sq. meter to be overpaying.
I would suggest you not use falangland prices to judge Thai values. Sure 200 k soiunds like chump change to you. That is how shit gets real f***ed up real fast.
Better to use average hourly wage.
Most new " Class A " condos in BKK are now quoting 80,000 bahts/m and up. The tallest and the best ( yet to be built) is the "Met" on Sathorn. The upper units there are quoting at 120,000 bahts/m. If you are looking for high-end condos, CBRE in BKK is the best and most professional brokerage firm. The best deal I saw on my last trip was a nice townhouse project ( Class B) in Thonglor for like 40,000 bahts/m. It's all sold out now.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 2:01 pm on June 2, 2005
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Oaktoad
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dotcom wrote:
"Sure 200 k soiunds like chump change to you. That is how shit gets real f***ed up real fast"
I didn't write that 200K sounds like chump change...
B30K per metre?? almost impossible to find in Bkk unless you go out quite a bit and the OP wanted something more downtown.. B80K per metre is in the high priced places, but I have not noticed anything under B60K in new places..
In our building there are one bedrooms for B2.5M and they are about 60 metres.. good location, but not a fancy building... that is about rock bottom in the Sukhumvit corridor.
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Bangkok Women : Meet Beautiful Thai Girls
Posted on: 3:11 pm on June 2, 2005
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Broken Leg
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Quote: from DaffyDuck on 11:30 pm on June 2, 2005
He's got a point - once a lot of the additional living space goes online, and there are too few takers, prices can/will drop.
You are quoting what is happening *right now*, which is pretty normal -- obviously they are trying to fill the units now, and at their best prices (for them, that is) - and, really, once they are sold, it matters little to the real estate guys if the market goes down.
There is the alternate factor of the new airport opening up, which could could bring about higher traffic of people needing living space (or so the market is hoping).
I think what's going to happen is something similar to what's going on in Miami right now - WAY too many condominiums are being built, bringing way too many units online, with way too few people buying them -- prices are poised to drop and fall precipitously.
I'm waiting and seeing for another 5-6 months before makking a move in that BKK/Thai market.
DvQ!
Daffy you're back!!
Somebody crazy guy referring to himself as "Harry" was posting as you.
Thank god you're OK, I was worried, very worried you had been abducted or worse.
http://bkkx.com/cgi-bin/forum/topic.cgi?forum=10&topic=352&start=0
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 4:38 pm on June 2, 2005
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Abrak
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As I am involved in this business, I will give you guys a few pointers.
For those that don’t know, there is a legal difference between an apartment block and a condominium. An apartment block has one owner, you can therefore only rent (rather than own) a single apartment. With a condominium every unit typically has a separate owner and each owner has a share in the common facilities. So you can both rent and own a condominium. In order to get a block registered as a condominium in Thailand, you need to meet various requirements, such as parking spaces per unit etc..
I only know about the Bangkok condo market. I am involved in new build projects rather than resale of existing units. Prices range from below Bt30k/sqm to over Bt100k/sqm. 2 bedroom units range from 50sqm to 250sqm, so you can pay anywhere between Bt1.5m and Bt20m for a 2 bedroom condo in Bangkok depending on the location and the quality of the build. The secondary market is typically about 20% below that of the new build market.
Prices have risen roughly 70% in baht terms from the post 1997 post crash lows and are roughly at the same levels as pre-crash. Of course, the baht has gone from US$1:Bt25 to US$1:Bt40, so in dollar terms, prices are still well below pre-1997 highs.
The top end of the market (Bt7m+) is basically a ‘buyers’ market. There was a huge increase in new projects last year and it will take a year or so for the market to absorb the supply. Prices will not fall much though and there will certainly be no property crash. Unlike the last property cycle, the banks are only lending to condominium projects dependent on achieving pre-sales in excess of 40%. In other words, you will see that some high end projects that have been announced will not get built.
The other factor that will support prices is rising build costs. Cement prices have over doubled in the past 4 years, the same with steel. Condo build costs range from Bt15k/sqm to Bt60k/sqm and those costs have risen at least 50% in recent years. Land prices have doubled from the post crash lows but are still below pre-1997 highs in baht terms and about half pre-1997 levels in dollar terms. My best guess is that land prices will continue to rise and could easily double again over the next 5 years. (Obviously if land prices do double, then property prices will rise a lot further).
The bottom end of the market (sub Bt5m) is pretty hot. Remember that rents are roughly at pre-crisis levels but interest rates are a third of where they were pre-crisis. You can now buy a condo within 3 minutes walk of the BTS for as little as Bt7,000/month on a mortgage. At pre-crisis interest rates (which never fell below about 11%) that monthly mortgage payment would be nearer Bt20,000/month (making the very big assumption that you could actually get a mortgage then).
So for the first time, the average Thai bar girl can actually afford to buy a condo within 10 minutes from work. Admittedly this is an unlikely scenario as they prefer to spend their money on partying but you will find your average sponsored TG will be showing a lot of interest in the condo market.
Probably the best value is in the secondary market. You can pick up condo units at below replacement cost. You will have to do it up yourself and for many people that is more hassle than its worth. My personal opinion (for what its worth which, I admit, is not a lot) is that all the risk in prices is on the upside. Bangkok is one of the cheapest major cities in the world to buy property. Thailand is a great place to stay. That seems something of an anomaly.
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Thai Girls : Meet Active Thai Girls
Posted on: 11:19 pm on June 2, 2005
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dotcom
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Thanks Abrak for that useful information. Makes a lot of things much more clear.
Rather than worry about what stuff costs in falangland let me relate a little tidbit about THAILAND.
Last night my phone goes. It's a ex-girlfriend. She says "I not work Nana any more. I have taken a job as a bus boy at a restuarant in MBK & move my room." Where you move to? " On-Nut" How much your salary? "170 baht a day" So if we figure she works 25 days a month that comes out to 4250 baht a month. Her rent is 1500 baht a month.
Work out what a Thai can afford to pay.
Thanks again Abrak.
Quote Oaktoad: "B80K per metre is in the high priced places, but I have not noticed anything under B60K in new places.. "
New Places? you mean new construction? I assume you mean CBD Sukhumvit.
Abrak can go on to explain the very most important aspect of condo ownership. Management. Some places won't even replace a lightbulb in the lobby or hallways. If the elevator breaks you had better buy a pair of tennis shoes. Due Diligence was never so important as it will be prior to buying a condo here. Talk to existing residents. Some places are pure scam.
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Thai Women : Meet Matured Thai Women
Posted on: 4:36 am on June 3, 2005
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Broken Leg
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Excellent Post Abrak, interesting stuff. But could I ask you to clarify what you mean by secondary market. Do you mean sales of "second hand Condos" The reason I ask is that I read somewhere that the resale of a condo can be difficult especially at the high end of the market because hi -so thais don't buy second hand condos!!. And pretty much all thais wouldn't like the idea of buying off a falang!! so resale may be limited to the farang market?? You say the secondary market is typically about 20% below, does this mean that a 2nd hand condo sells for 20% less than a new one??
This of course is the opposite to how the property market works in the west and does confuse me, I apologise if I am being stupid and this is obvious to everyone else.
Anyway Stueyb stated at the start he wanted to buy as an investement, and considering this is not the UK, where pretty much any fool for a long time could buy a property and expect to make a good percentage return, FWIW here are the main things I would initially focus on if buying in LOS.
1) Can you buy legally and safely - Well I think thats been answered
2) know the market, know the prices in different areas for the quality of build (easier said then done) Can you identify any condo you can get at below market prices. Can you identify "hot" or up and coming areas where there is greater opportunity for price accrual, such as services/ infrastructure being added, will resale be easy and can you make a capital profit? this of course depends on point 3
3) If it is for investment then what is the potential resale value which depends on Abraks answer as to what the “secondary market” is, but do you feel confident the market will continue to rise Is the property market and of course the economic outlook good for thailand. (obviously no one knows for sure the future, and bubbles are extremely easy to spot but only with hindsight).
4) If you are going to rent what yield can you get, and importantly as Dotcum points out what will be the maintenance, service charges, upkeep and insurance costs and what would your responsibilities be as landlord? After all this what is the likely profit. Will you have to pay tax on this, is it a better deal than other investment opportunities you may have.
5) Foreign Currency exchange. I really believe anyone making significant capital investments into a foreign country should be aware of this if at some stage they intend to repatriate the money. Although if you could predict foreign currency exchange accurately you would be an extremely rich person indeed and hardly need to worry about buying a condo, there are several "big picture" events occurring in the world that could affect in particular asian exchange rates and you should be aware.
These points of course assume you are a cash buyer.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 4:44 am on June 3, 2005
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