Finally, someone said it! Maintenance fees are the real bottleneck. Most real estate agents try to hide these costs for as long as possible. Make sure you insist on seeing them upfront, with clear details and exact numbers.
A Exelent vidio, I have lived in Bangkok for 18 years, Rented the same condo. Very cheap rent. No maintenance fees, Anything goes wrong, Repaired no charge. No rates, no insurance. Swimming pool, gym etc. All well maintained, Good security, Never had a problem in 18 years, A good friend who i met in Bangkok, Gave me good advise, If it flys, drives, floats, or Fks, Rent it and you cant go wrong.😂😂
Thailand especially Pattaya is changing fast, it's not the cheap care free holiday resort of old. A lot of xpats now regret buying property in like Pattaya that they'll never resell ,too many new builds, also since COVID Pattaya as been taken over by the Indians, walking st is more like down town Bombay, I'm not racist but, the Thais are losing their country very quick 😢😢😢
Agree same. But you forgot few more reasons. - if you go sell your most likely gonna take a loss and be on market for a while - Brand new condo they sell for 5 million, used one 3.5 million and you can rent for 15,000-20,000 baht. - you have to pay cash, banks won’t finance farangs - if condo is $130k but only rents $450. Instead I can make 10% in the market which would cover that rent and then some After 10 years lot building in Thailand go shit they don’t maintain en - a new building is being built left and right. You’re stuck if you bought. Meanwhile I’m in a brand new crib - so many condos sit empty in Bangkok.
Thanks for the video….I was planning to buy a property in Thailand, but after watching several videos, including yours, I’ve decided against it. You’ve saved me a host of problems.
I can't argue with any of that... in fact I've been saying exactly the same thing for over 20 years now! Buying in Thailand is bonkers! I've seen lovely places with a sea or beautiful country view for very reasonable money and within 6 months a huge condo had been built right in front of it. The rate of development and construction is insane, and as you say, renting is so cheap. The moment a nightclub/karaoke/condo appears immediately next to you, or some Thai moves in next door with a load of chickens and a cockerel that's crowing at 5AM every morning, you just pack up and move somewhere else!
In Hua Hin lately and at night all the Condos are in darkness ,empty rooms all over Thailand . Bad neighbours rooting bar girls all night , rude arrogant digital nomads filling the social areas/ pool , ongoing maintenance ,poor construction , hideous infrastructure , high Service charges ,over priced over developed in nearly all areas, potential market correction looming as Thailands property market has been booming for years now , there's much more, Paradise wont always be paradise. Great video realistic video .
I purchased a 2 bed 75sqm condo in the city in 2015, under the auspices of foreign ownership. The complex is equipped with a cafe, two pools, a gym, steam, and a sauna room. I originally lived in the condo for 6 mths after I rented the property via a local agent. I pay 36k in fees to the management a yr. Maintenance for the yr has averaged 30k. The agent charges one months rent. So, about 3/12 of gross income is consumed in costs. On the positive side, nine years later, the property has increased 40% in value, and I have received 75% in gross income when compared to the original purchase price. Over the nine years, I have had no issue with employing contractors or problems with troublesome tenants. Further, I own two houses in T and rent both. The yearly cost of these represents 2/12. The upside of rental income is you side step any currency fluctuation. As pointed out in the video, many downsides exist. Condos are easy to buy, and in the most instances, are difficult to sell. My advice is to rent or at least rent in the first instance in the complex you intend to buy. Get a good feel for the area, the building culture, management, your neighbors, and such like.
I bought a 30 sq m condo 17 years ago in Jomtien for 965,000baht ($27k usd exchange rate at the time). In 2007 there were not many condo choices in the area like there is now. I would be lucky to get my money back if anyone would even buy it today, because there are so many newer choices. The pros- 1. My condo has good management and maintenance 2. Low maintenance fees compared to new condos (only $7,000baht per year) 3. Good location as close to the beach and markets 4. Gives me a home base to leave my belongings (surfboard, clothes, motorbike, etc) while travel around SE Asia 5. Saved on rent and hotel cost for last 18 years while in Thailand. I stayed in Thailand anywhere from 2 weeks to 3 months a years over the last 17 years. The cons- 1. Bad investments as could of made more if invested that money elsewhere 2. Although my condo is in an okay location I would now prefer to live in another area of Thailand Overall from my personal experience I would rent instead of buy to give you more flexibility in changing location and use those funds for a better investment.
Totally agree. Much better to keep your options open Better own property in your own country where you understand the rules. My friend owned a condo in pattaya and all the maintenance money was stolen. 😂
I bought a condo in Bangkok a few years ago, I bought it off plan from a decent developer and it's an awesome building in the Asoke Area. I work a month on and a month off so it's an excellent for my time off work. I also didn't want the hassle of landlords and I can do whatever I want with the place. Im only 42 so fingers cross retire at 55 and Bangkok will be a great base for retirement.
I bought a condo in Pattaya 19 years ago. I still live in it today. If l had rented l would have paid more then l paid for the condo so all.l have to pay is the maintenance of 8500 baht a year. Less then one monrhs rent. But if you are not planning on living in it for at least 10 years or more then rent. If you do buy only buy in your name only. And make sure you hire s good lawyer to make sure everything is proper. I wouldn't buy to rent out to many condos available. Make sure if you buy new you get maintenance costs and all fees up front and sinking fund witch can be crazy cost.
Good for you but as I said in the upload I was just making people aware of how complicated it could be. They're not built as good as they were 19 years ago plasterboard walls and very small units
@ThailandBound yes l agree new condos much less cement and lighter buildings materials and huge maintenance costs . Likes said if you see not going to live in it for at minimum of ten years you sould rent.
@spirittravels. the price is private. I also have a house in Pattaya so l have lived in condo on a off over 19 years the.last 6 years in condo as it is 350 meters from beach and house is 8 kl from beach
People only look at the immediate situation. New country, new lover, new lifestyle, everything is exotic and they want to live there forever. But they don't look beyond their exhilaration of today. Tomorrow, things may change. Political uncertainty, or your lovelife, health, currency rate, geopolitics, government takes a change. Then with your heavy investment you're stuck. You're most likely at retirement age and accept it, you're not going to live forever. Perhaps a few more years, then upon your demise, who inherits your property? What are the laws, are your rights protected, or you're about to be scammed out of your property and bank account balances? Different land. Don't expect the same kind of certainty as you have back in your first world country.
If a neighbour from hell moves in next door and starts to blast the stereo at all hours your in trouble. The laws here are not in your favour. New builds walls are not noise insulated to western standards either.
Had a house built in Phuket 24 years ago. Total investment at that was 1$million. It was just sold for $ 12.2 million. Over the last few years it was rented at a 3.9% net yield. Real estate as an investment requires the right location, the right timing, and patience.
The biggest issue with condos in Thailand is that they simply don’t age well. The materials used are often poor quality, and in general, things break down more frequently and are rarely fixed or properly maintained. It can be a real nightmare.
If you've ever got into a situation where a Thai girl is hanging around your home and being a pain in the arse then just tell her casually that you think you saw a ghost when you were in the kitchen or bathroom etc. She'll be packing her bags immediately.
Very well presented. I decided against a condo and my wife and I purchased a house with the land in here name and property in mine with a yellow book. You are right condos are better to be rented than purchased.
100% with you, I am here for over 25 years and seen a lot of misery with people buying properties. I always suggest, buy a property in your home country, find a good tenant and take the rental income to rent a place in Thailand. No issues when you sell, no limitation of funds transfer (look into late 90th), in case of dispute a solid legal system etc. And not to forget, assume you move into your own place and you experience that you have a "difficult" neighbour etc..... you are fu....d. With a rented place you just move out as you been smart and signed initial a 6month only with option to extend. Or, you learn 70% of the building is used by airbnb, great having party people all over the building and facilities (particularly mid Sukhumvit to On Nut area).... you rented... just move, been an owner too bad.
I’ve watched some “construction “ workers on site pouring piers for a cottage development. The workers were all from Myanmar and had no training from what I could tell. There was a cement mixing truck but the concrete coming out was still dry and lumpy. Then they didn’t use the funnel instead they put it into a vat and used buckets to scoop it out and pour into the piers. I looked at a few of the 100s of dried piers. I could see the layers where the concrete was lumpy dry rocks in between. Each 30sm cottage had 6 piers holding it up about 2m above ground. It was so weak looking that a few strong men could have probably pushed the piers down. Mind you the piers did have rebar but the unmixed concrete layers didn’t inspire confidence. I can’t believe an inspector would approve of such a build. A 4-year old condo I rented had tile floors buckling and were crunchy underfoot. The front door frame had gaps that you could see right through into my bed (it was a studio). They did a poor job with the finish plaster. Thai construction standards are so poor that I don’t think the building will last very long. The maintenance fees will surely go up. Then if owners sell or don’t pay the maintenance funds are depleted and maintenance gets neglected. It’ll be a downward spiral. Are you sure you want to buy a condo?!
I have had 2 condos in Bangkok bought from off plan and sold them both after 6 or 7 years of ownership and both buyers were Thai,. Also, the new prices were the same for Thais also, I checked before buying. So, I got lucky then?
@@ThailandBound Yes I know you were, Wasn't having a pop. I am sure in some tourist areas there are many pitfalls. Maybe easier if you buy in the suburbs where there aren't as many scams.
You had me at reason #1, Peter. I don’t know of any other country on earth that has dual real estate pricing. It’s called interfering with free markets and price gouging. People buy 7m baht apartments to rent them out for 25,000 when it doesn’t make sense financially to rent them for less than 70,000/month and good luck getting that. But just like with the bar girl situation, idiots will still buy or get involved because “this time is different.” Thailand keeps building malls in an increasingly virtual era where you can find much better deals online (and avoid people) and new buildings even though the current occupancy rate is suuuper low. Something will eventually break. Great video!
I rented an apartment in Patong for six months and got to know a little about foreigners and residential buildings. What happens is that foreigners come out to Thailand to retire and eventually pass on. Often, their relatives have no idea about this property and the apartment ends up vacant with no one to sell it. This results in a condominium complex having a low occupancy rate and consequentially less condo fees coming in to maintain the building. I spoke with management, and they had no idea how to contact the owners of the apartments which were vacant.
Another problem is no maintenance being done. I rented a condo and the complex had 3 elevator banks but only one of them worked and sometimes only 1 of elevators worked. I asked my landlord and he said the Thais who own 51% would not vote to put in new elevators.
Bottom line its too hard and most of all risky, I'd rather keep my property at home, rent it out and surplus funds invest in cash or stocks. Investing in Thailand is not favorable at all unless you have been there a long time and really know what you are doing. Rent is better also, imagine you bought a new condo and a 24/7 idiot Karaoke bar opens with noise all day and night!! Nothing you can do about it but if you rent, you can just move very easily.
I live in Thailand. I live in an older condo in Pattaya (a 5-minute scooter ride to the beach). It is all concrete, so the rooms are quiet (I have a video of the condo). I am on the ninth floor, so the sunsets are great, and I do not have much trouble with mosquitoes or road noise. We have a large pool with a slide. There is a restaurant by the pool; most meals are 3-7 dollars. My rent is $207/month. I have a new wall unit A/C, that I run 24/7 and my electric bill is $30/month. My room is 270 square feet or 30 square meters. It has plenty of room for a single guy. I have no plans to move back to the States.
Quite a lot of good information in this video. I've noticed there are quite a few unoccupied units in the condo block where I live in Jomtien. Now I understand why ... I don't mind, though, as that keeps it quiet around here! 🙂 Personally, I'd prefer to buy a pool villa here in Thailand but as you point out, foreigners cannot own land. I think there are options to lease the land, and own the house/villa, but I think that's too complicated/risky. I think better for us expats to rent here.
There are no "new" tax laws. You won't be paying any tax on your money coming into Thailand unless you are here in Thailand over 180 days in a year. Thailand is looking into worldwide tax whether you bring that money into Thailand or not, this is years away if it ever gets introduced. BTW some of your points were very good.
That may be so, but you can’t say how many years away until the tax laws change, nobody can now. It could kick in next year, or the year after or who knows…so the point is still relevant.
Having lived and worked in Asia for 20 years I would only buy property as foreigner in Singapore. I know many people who got burnt in Malaysia, Thailand, Cambodia etc. You cannot foresee political changes, currency fluctuations, taxes, health costs, environmental issues and all the other things that impact your investment. As a foreigner you will have little or no rights compared to locals. Even Singapore is now too expensive for foreigners.
Great video. I have aways thought point 9 is a major issue. I have seen loads of you tube videos on appartment blocks, they look wonderful when new, after a few years they look rundown. At last someone who tells the truth.
Land is what thais value. Buildings are just a placeholder. Land prices are often astronomical compared to the price of building materials. They will never let foreigners own land, but letting us buy small concrete apartments in buildings of poor workmanship and quality that can be torn down and replaced by even larger buildings after 30-50 years because of concrete cancer or general lack of maintanence? Sure.
Your best argument is that one never know if or when they change the playing field.. 🇹🇭 has so much soft power that they can do pretty much what they want. Letting the currency run amok is another thing. Cheers🙂.
Having first come to BKK in late 80’s and a regular visitor since then and worked in BKK for 5 years in early 2000’s, I do agree it is better to rent than buy. But there are instances when buying a condo can be justified - 1) wish to have a permanent based and wish to accumulate better furniture like more comfortable bed, better kitchen appliances that better meet your needs than the cheap stuff provided by landlords, 2) have found a spacious condo that is well located (mine is only 50 meters from a MRT station, 3 bedroom 134 SQM), 3) maintenance fee is reasonable (I pay only THB 25 per SQM), and 4) reasonable price (I paid less than THB 40,000 per SQM when I purchased in early 2000). If I wish to move I would not take a loss.
hi Peter i did buy a condo in jomtien beach 15 years ago and so far i got back 30 percent of my money by not paying rent after deducting managements fees , one thing i have been told i had to bring money as currency not Thai bath and keep the exchange paper in order to be able to return money back to your country after selling your condo. cheers
Peter - excellent vlog and topic, it certainly shows in the number of comments & views after your posting - you listed all good points to consider (well done). For me, I own my condo and I am happy with my purchase. I had previously worked & lived in Singapore, Jakarta, Bangkok, and other cities in SE Asia starting in the 90’s and was provided free condo accommodations in each location, also I was in the property industry for local property companies building condos, so I had an idea of the in’s & out’s of property investing. I knew I wanted to retire in Thailand so I purchased a completed high-rise condo unit in the early 2000’s - a larger 3-bedroom 2-bathroom penthouse unit at 134 SQM for less than THB 40,000 per SQM. The location is not “down the Soi” but rather it fronts the main road. I had used my unit as a vacation home and now live in the unit full time as a retiree. I do not intend to sell but rather will live in the unit until my dying days and will give the unit to my Thai wife. If I had rented my unit, I would have paid more then the purchase cost. Since buying my unit - 1) a new MTR station was built 50 meters from my unit, 2) newer condos have been build nearby at much higher price (at least THB 150,000 per SQM), and 3) a new shopping mall is being built next door. My maintenance cost has increased only 2 times and now is about THB 25 per SQM. And I had a law firm review the sale / purchase documents. The unit has 3 large windows / sliding glass doors that stretch floor-to-ceiling and wall-to-wall. Moreover, the rooms have traditional 90-degree corners that provides nil unusable space, as opposed to newer units with angular corners that do no enable easy furnishing. Though I am not in the trading game of selling & buying property, if I needed to sell and move to another location (in Thailand or outside), I am quite sure I would make a profit. Nowadays, units are getting smaller and smaller with newer properties having maintenance cost 3-4-5 times higher. I am not in the city center, but major schools & universities, shopping malls, and BTS / MRT stations are nearby with some within walking distance. Amenities are a “double edge sword” - the more elaborate the higher the maintenance fee will be charged. I often see YT’ers showing new properties with 5-star amenities but tiny units - sure it looks impressive to friends back home “look where I live”, but after a few months living in a tiny unit with no storage space or room to grow, it gets depressing. Moreover, the maintenance fee will be much higher to the owner. The points you raised are definitely SPOT ON for an “investor” who might be in the trading game. In my case, my unit is my home. And I lived in my complex as a renter for a short period, then decided to buy a unit as a long-term situation. I think I'm one of the lucky condo buyers.
Spot on ….also Be aware that the new condos are badly built - a Japanese friend said that no Japanese will ever buy the new Thai condos because the local Developers construction is compromised in several foundational areas… This will also explain that condos are defective n become dilapidated very fast… Worse unless you have middle class Thai who actually stay in the condo, the maintenance will be very bad because the Thai investors do not want or refuse to contribute to maintenance fees.
Great video Peter as an American i was always taught to buy, but everything you said makes sense for Thailand . Best of all i know i can trust what you are telling me because of your experiences and honesty thanks again.
I have entertained the idea of purchasing a modest condo because I visit Thailand at least 2 times a year and it can be difficult to rent an apartment during high season. I have never bought because of many of the reasons you outlined so well. I would just add that the people selling real estate in Thailand are not well regulated and can be very unscrupulous, buyer be warned.
Yeah thinking much the same buying property in Thailand is never about the financial reason. Also I am thinking about buying but already I know I need to keep it for many many years. For friends staying, girlfriend(s), mistress, myself, man shed, own office studio type space, any other reason except for making money. You might make a little bit from rent/appreciation, but it's not really a good investment, more a life style choice if you have cash to spare.
@@paulshay4854 I actually admire the Thais for putting Thai people first, even though it can be annoying. However, they do shoot themselves in the foot by having all these racist property laws. It means property prices stay low, and have no real value to anyone who is not Thai.
I arrived here 18 years ago. Over the years I’ve purchased 17 condos never have I regretted it. If you don’t have dough so be it. You can still rent in Chiang Mai for 3,000 a month with a hot plate a squat toilet and a shared bathroom. Maintenance fees are not the bottleneck the bottleneck is your inability to have vision
Declaring income and offsetting income tax on maintenance on 17 units must be quite challenging. We need an accountant just to manage my wife's business
Good video. You should also bring up that these properties usually depreciate on average vs buying in western countries where they tend to appreciate greatly. (Note: I just saw you mentioned this around 18:34, great video!)
After 16 years of visiting Thailand, I have come to the same conclusion and see no reason to risk my capital buying when renting makes better financial sense and virtually no risk. Most of my opinion has come after knowing and talking to actual expat owners of real estate in Thailand telling me to either not do it because it's not worth the hassle or that you better think about it ten times over before you buy.
Great advice. I've spent many years in Thailand. If you're super rich and can afford to just drop a few million without worrying about it, go for it. Otherwise, just rent. Peter's last point was the one for me. You can just up and leave and have a change of scenery so easily. The last condo I rented, from viewing it to moving in took 2 hours!! No credit checks, no bullshit like that, just pay your deposit and month in advance and you're in!! 👍😊
Very good video... Thank you You forgot 2 very important reasons for not buying a condo : 1) You will be taxed by Thai government if you need to import funds in Thailand to buy a condo. And it is a big amount ! 2) If the owner of a condo pass away, the foreign inheritants will have to sell the condo very quickly and of course, at a very low price (see Condominium act) The best solution is to rent... Don't invest 1 euro in TH
And the ForEx has to happen in Thailand too, at poor rates. You must bring the foreign currency into the country and have it converted (at crap rates) by a Thai bank. You can't use Wise to convert to THB and bring it over.
Thai people's mentality is different to ours in Europe. I live in a gate community with my wife (she is owning the house). There are at least 3 houses in our direct neighbourhood which are empty for some years already. In Europe no one would do that. I personally would never buy, only rent.
You looking very slim and healthier Peter 👍👏 I think your home cooking meals are doing great on yourself. Very interesting and informative Topic. Cheers Mate 👍🙏👏
This is a super video. I have watched a lot, as I have considered moving there and buying a house, however 95% of videos avoid the downfalls and traps of buying a house/condo. Important things I learned were the 2 tier pricing and that Thai's also share the Asian mindset of buying new rather than 2nd hand. Thanks to you, I'm more likely to rent for 6 months and enjoy the experience while also researching buying in Vietnam or elsewhere. 😃
Early this year i was on my way to Thailand with a stop in Qatar,i met two old Men from north europe, both retired, they was also going to Thailand, both of them was married to thai ladies, both of them did invest to build house in Thailand , in the name of their ex wifes ofc, and this trip they was going to meeet new futur wifes,both of them 😅, i just said goodluck
Very true. Many people think too highly of Thailand in term of the politeness of the people when they only go for a holiday of around 10 days. I have friends who have worked in Thailand for more than 10 years and they can tell u otherwise. Even my Thai colleagues( very close ones) said that don’t just see the surface.
Invest in High Yield Dividend paying stocks or ETFS in your respective countries and enjoy SE asia with no tension .Going forward we should be more concerned about tax planning also as tax rules are being changed pretty enthusiastically by governments these days .
Thanks to these real state policy in THAILAND, foreigners and locals can pay a low rental cost, cause if THAI Government let speculators from OUTSIDE buy CONDOS easily the prices will be higher and inflation will come up together. รัฐบาลไทยจงเจริญ!!
The two-tier pricing system is outrageous. To enter Khao Yai National Park, locals pay 40 THB, while foreigners are charged 400 THB-ten times the price. It’s beyond unfair; ‘ripoff’ doesn’t even begin to cover it.
Good video. I think that people just need to make an informed decision. Cons include: 1. Rent is reasonably cheap (at the moment) 2. Less flexibility to move elsewhere 3. Difficult to sell and may not make a profit, may sell for less than you paid Pros: 1. If bought outright you rent proof yourself for the future (rent increases every few years so you’ll be paying gradually more for rent over time. Also, if your currency depreciates against the baht over time, your rent will in effect cost you more of your income each month, add long term inflation and rent may not be as cheap in 10 years time compared to your income, as it seems now. 2. You can sell it (difficult) and get a lump sum back in the end (may not be the full amount you paid but you won’t have been paying rent for 10 years or more) 3. Some older well maintained established condo blocks provide quite a bit of space at fairly cheap purchase prices. 4. Can purchase with a rental agreement for 12 months to 3 years to recoup some of your purchase cost before moving in to it yourself 5. You have an asset that can be passed on, placed in trust to offspring etc Opinion: Purchasing may be worth while if you have the cash lump sum upfront and are sure you want to stay where you are long term (more than 10 years) and still have a reasonable monthly income or savings you can live on. Like life, it’s all a gamble… just don’t gamble more than you can afford to lose.
Good points. Just thinking about it though, Thailand has historically been an unpredictable country politically. Its all sweetness and light right now for tourists and ex-pats but what if there’s a major revolution or coup, could they kick foreigners out? I realise that doesnt seem likely today but who knows 5 years from now.
@@9tarko Just out of curiosity, do you know how much the property taxes, and maintenance fees are for the condo? With that information and the rental fees you are paying I could do an analysis on the investment and share that with everyone here
I bought a 60m2 condo near the beach in Jomtien for just over 1.5mil baht...maintenance is around 1200/month...other similar size properties in the building are listed at 2.3mil+ - maintenance is generally good... I still live in Aus and stay/work from there 3+ times a year for 1-2 months at a time... I figured for the price I could sell for the same or more, but I have a place set up as my own home and office with all my own stuff and only need a small backpack for travel inbetween... If wanting to biy property new, or fix up and flip its a bad idea, but an older place to make your own and use as storage, its cheap enough if you do the research..
I read on another You Tube channel how a guy made buying work. He pointed out that renting is "dead money" which it is, so he put down something like £10,000 deposit (400,000 baht approx) then just paid what he would have in rent (about 25,000 baht a month) with a view to having paid the whole thing in 6 or 7 years. All he could really lose was that first £10,000 because he'd never see the rent money again anyway. The maintenance charges are a caution and as you say it paralyses your choices of moving.
Hi Peter, as you are already aware, we are moving to Thailand next year, even though the missus is Thai, we have no intention of buying, just rent. To start with we'll probably live with my sister in law in Bangkhunthian then try other places by moving around, Khon Kaen, Chiang Mai, Southern Thai maybe Ao Lak etc.
Hi Wez, the other thing is you might fall in love with a place and think it's the only place you want to be and get bored with it a year later if you're renting you can just up sticks
Just to top this Up. Had three properties in Pattaya,2/apartments 1 House,lost money,also spent too much money doing alterations,and all the agrow that goes with it,seriously. Wish I'd have rented,in hindsight now.🙄
Sure, it's cheap to rent now in Thailand. It used to be cheap to rent in places like New York and San Francisco. Buying gives you protection against long term rent increases if nothing else. Add to the mix exchange rate risk: what happens if or when the pound, dollar, Euro, depreciates significantly against the Thai Baht? Look what's happened to the Japanese Yen over the past 15 years. It's not so far fetched. If you're retiring now you may be living in Thailand for the next 15-25 years or more. Do you really want to expose yourself to these long term risks on a fixed income? You bring up some very good points to consider and every buyer should do their due diligence. And we can infer some advice in buying, such as buy a used condo, if possible one where someone died in it so you can get it dirt cheap! (Just be sure to invite a monk over to do the blessing - lol).
Renting is easier, I do it in China. Flexible to change location and elevate your experience. We owned in China, didn't make any profit in a saturated market but wasn't a negative experience. Good luck 🤞
Australian living in Bangkok 20 years bought here PhayaThai 2004 ฿2.2m (auction) repossession 200k was unpaid rates. Current rates ฿3300 / month. Just completed renovation (industrial style) all ceiling out and built-ins removed. 1 condo in building same size currently selling 6.5m looks same as day I moved in 2004. Look for older buildings, mine 1992.
@ThailandBound yes I'm lucky in that respect. Management yesterday (only 1 lady btw who's been manager beginning of my ownership) detailed documentation of increase in rates ฿1200/month for the next 60 months to pay for upgrades. 2nd upgrade in building since living here. Security gates, lifts maintenance/ upgrade, painting, car park etc. Older buildings do need work but I wake up with alot of concrete around me and on the plus side sound proofing is excellent plus I have a marble floor that didn't need replacing and will last a long time.
Very good video…I have rented condos in Silom since 2004 and am glad I did not buy…especially during COVID when I was away for 2 years. One point though- while the tax on worldwide income is still up in the air, income brought into Thailand this year may be taxable unless it was already in cash accounts as of 12/31/23. This change was announced a year ago so buyers bringing in money from abroad need to look at their possible tax exposure closely before a large remittance to buy condo is sent to Thailand.
The Thai government knows what it’s doing. The policies and the rapidity of new construction significantly reduces the risk of foreigners gentrifying Thailand.
Finally, someone said it! Maintenance fees are the real bottleneck. Most real estate agents try to hide these costs for as long as possible. Make sure you insist on seeing them upfront, with clear details and exact numbers.
That’s a very important point! You’re absolutely right to push for the facts.
When going to see the condo you are thinking of buying, just ask the juristic office in the condo.
Or you could live in a Florida condo where there has been little or no maintenance for years.
Slipperest race on the planet
@@northernbohemianrealistno comparison.
A Exelent vidio,
I have lived in Bangkok for 18 years,
Rented the same condo.
Very cheap rent.
No maintenance fees,
Anything goes wrong,
Repaired no charge.
No rates, no insurance.
Swimming pool, gym etc.
All well maintained,
Good security,
Never had a problem in 18 years,
A good friend who i met in Bangkok,
Gave me good advise,
If it flys, drives, floats, or Fks,
Rent it and you cant go wrong.😂😂
@@DavidBangk - love the “sticks like Fakk” advice 😂😂🤷🏻♂️
Thailand especially Pattaya is changing fast, it's not the cheap care free holiday resort of old.
A lot of xpats now regret buying property in like Pattaya that they'll never resell ,too many new builds, also since COVID Pattaya as been taken over by the Indians, walking st is more like down town Bombay, I'm not racist but, the Thais are losing their country very quick 😢😢😢
@@terryb4547 absolutly. Little India like in Singapore. It is risky to go upstairs without ending up on antibiotics...haha I stay clear.
three reasons to rent 1 - if it goes wrong with Thai GF you can move somewhere else fast 2 - Noisy neighbours 3 - Changing locations for variety
Those are some good points!
Its an good idea
Agree same. But you forgot few more reasons.
- if you go sell your most likely gonna take a loss and be on market for a while
- Brand new condo they sell for 5 million, used one 3.5 million and you can rent for 15,000-20,000 baht.
- you have to pay cash, banks won’t finance farangs
- if condo is $130k but only rents $450. Instead I can make 10% in the market which would cover that rent and then some
After 10 years lot building in Thailand go shit they don’t maintain en
- a new building is being built left and right. You’re stuck if you bought. Meanwhile I’m in a brand new crib
- so many condos sit empty in Bangkok.
Thanks for the video….I was planning to buy a property in Thailand, but after watching several videos, including yours, I’ve decided against it. You’ve saved me a host of problems.
Glad it was helpful!
I can't argue with any of that... in fact I've been saying exactly the same thing for over 20 years now! Buying in Thailand is bonkers! I've seen lovely places with a sea or beautiful country view for very reasonable money and within 6 months a huge condo had been built right in front of it. The rate of development and construction is insane, and as you say, renting is so cheap. The moment a nightclub/karaoke/condo appears immediately next to you, or some Thai moves in next door with a load of chickens and a cockerel that's crowing at 5AM every morning, you just pack up and move somewhere else!
In Hua Hin lately and at night all the Condos are in darkness ,empty rooms all over Thailand . Bad neighbours rooting bar girls all night , rude arrogant digital nomads filling the social areas/ pool , ongoing maintenance ,poor construction , hideous infrastructure , high Service charges ,over priced over developed in nearly all areas, potential market correction looming as Thailands property market has been booming for years now , there's much more, Paradise wont always be paradise. Great video realistic video .
Thanks, the simple life is often the good life.
I purchased a 2 bed 75sqm condo in the city in 2015, under the auspices of foreign ownership. The complex is equipped with a cafe, two pools, a gym, steam, and a sauna room. I originally lived in the condo for 6 mths after I rented the property via a local agent. I pay 36k in fees to the management a yr. Maintenance for the yr has averaged 30k. The agent charges one months rent. So, about 3/12 of gross income is consumed in costs.
On the positive side, nine years later, the property has increased 40% in value, and I have received 75% in gross income when compared to the original purchase price.
Over the nine years, I have had no issue with employing contractors or problems with troublesome tenants.
Further, I own two houses in T and rent both. The yearly cost of these represents 2/12. The upside of rental income is you side step any currency fluctuation.
As pointed out in the video, many downsides exist. Condos are easy to buy, and in the most instances, are difficult to sell. My advice is to rent or at least rent in the first instance in the complex you intend to buy. Get a good feel for the area, the building culture, management, your neighbors, and such like.
That's a great overview of your experience!
His point for fussy peoples who argue over $0.10
I bought a 30 sq m condo 17 years ago in Jomtien for 965,000baht ($27k usd exchange rate at the time). In 2007 there were not many condo choices in the area like there is now. I would be lucky to get my money back if anyone would even buy it today, because there are so many
newer choices.
The pros-
1. My condo has good management and maintenance
2. Low maintenance fees compared to new condos (only $7,000baht per year)
3. Good location as close to the beach and markets
4. Gives me a home base to leave my belongings (surfboard, clothes, motorbike, etc) while travel around SE Asia
5. Saved on rent and hotel cost for last 18 years while in Thailand. I stayed in Thailand anywhere from 2 weeks to 3 months a years over the last 17 years.
The cons-
1. Bad investments as could of made more if invested that money elsewhere
2. Although my condo is in an okay location I would now prefer to live in another area of Thailand
Overall from my personal experience I would rent instead of buy to give you more flexibility in changing location and use those funds for a better investment.
@@bambooworks3919 you can just through the key in the sea...you got your payback.
Totally agree.
Much better to keep your options open
Better own property in your own country where you understand the rules.
My friend owned a condo in pattaya and all the maintenance money was stolen.
😂
If you are an older guy, and most are, just rent.
Being tied to a property, when your circumstances, wants and needs may change, is a mistake.
@@eleveneleven572 circumstances like death where it doesn’t matter where your money goes at the end of the day? Can’t take it with you.
@@DeeKay68 I think he means health, just moving when you like , etc.
I bought a condo in Bangkok a few years ago, I bought it off plan from a decent developer and it's an awesome building in the Asoke Area. I work a month on and a month off so it's an excellent for my time off work. I also didn't want the hassle of landlords and I can do whatever I want with the place. Im only 42 so fingers cross retire at 55 and Bangkok will be a great base for retirement.
Very cool!
I bought a condo in Pattaya 19 years ago.
I still live in it today.
If l had rented l would have paid more then l paid for the condo so all.l have to pay is the maintenance of 8500 baht a year. Less then one monrhs rent.
But if you are not planning on living in it for at least 10 years or more then rent. If you do buy only buy in your name only. And make sure you hire s good lawyer to make sure everything is proper. I wouldn't buy to rent out to many condos available. Make sure if you buy new you get maintenance costs and all fees up front and sinking fund witch can be crazy cost.
Good for you but as I said in the upload I was just making people aware of how complicated it could be. They're not built as good as they were 19 years ago plasterboard walls and very small units
@ThailandBound yes l agree new condos much less cement and lighter buildings materials and huge maintenance costs .
Likes said if you see not going to live in it for at minimum of ten years you sould rent.
Have you been living there all these 19 years? How much did it cost if you don't mind me asking?
@spirittravels. the price is private.
I also have a house in Pattaya so l have lived in condo on a off over 19 years the.last 6 years in condo as it is 350 meters from beach and house is 8 kl from beach
@@spirittravels. price of condo is private. It is 350 meter from beach ⛱️
People only look at the immediate situation. New country, new lover, new lifestyle, everything is exotic and they want to live there forever. But they don't look beyond their exhilaration of today. Tomorrow, things may change. Political uncertainty, or your lovelife, health, currency rate, geopolitics, government takes a change. Then with your heavy investment you're stuck. You're most likely at retirement age and accept it, you're not going to live forever. Perhaps a few more years, then upon your demise, who inherits your property? What are the laws, are your rights protected, or you're about to be scammed out of your property and bank account balances? Different land. Don't expect the same kind of certainty as you have back in your first world country.
As a Thai condo owner, been there, done that. Poor yields for owner. It is a renter's market. Rent only.
If a neighbour from hell moves in next door and starts to blast the stereo at all hours your in trouble. The laws here are not in your favour. New builds walls are not noise insulated to western standards either.
Had a house built in Phuket 24 years ago. Total investment at that was 1$million. It was just sold for $ 12.2 million. Over the last few years it was rented at a 3.9% net yield. Real estate as an investment requires the right location, the right timing, and patience.
I thought you'd get such a good result these days
Same as a Thai lady why buy one when you can rent one much less maintenance cost😂😂😂😂😂😂
The biggest issue with condos in Thailand is that they simply don’t age well. The materials used are often poor quality, and in general, things break down more frequently and are rarely fixed or properly maintained. It can be a real nightmare.
If you've ever got into a situation where a Thai girl is hanging around your home and being a pain in the arse then just tell her casually that you think you saw a ghost when you were in the kitchen or bathroom etc.
She'll be packing her bags immediately.
Great tip - thanks. 👍
Very well presented. I decided against a condo and my wife and I purchased a house with the land in here name and property in mine with a yellow book. You are right condos are better to be rented than purchased.
Glad to hear you made the right decision for you!
100% with you, I am here for over 25 years and seen a lot of misery with people buying properties.
I always suggest, buy a property in your home country, find a good tenant and take the rental income to rent a place in Thailand. No issues when you sell, no limitation of funds transfer (look into late 90th), in case of dispute a solid legal system etc.
And not to forget, assume you move into your own place and you experience that you have a "difficult" neighbour etc..... you are fu....d. With a rented place you just move out as you been smart and signed initial a 6month only with option to extend. Or, you learn 70% of the building is used by airbnb, great having party people all over the building and facilities (particularly mid Sukhumvit to On Nut area).... you rented... just move, been an owner too bad.
I’ve watched some “construction “ workers on site pouring piers for a cottage development. The workers were all from Myanmar and had no training from what I could tell. There was a cement mixing truck but the concrete coming out was still dry and lumpy. Then they didn’t use the funnel instead they put it into a vat and used buckets to scoop it out and pour into the piers.
I looked at a few of the 100s of dried piers. I could see the layers where the concrete was lumpy dry rocks in between. Each 30sm cottage had 6 piers holding it up about 2m above ground. It was so weak looking that a few strong men could have probably pushed the piers down. Mind you the piers did have rebar but the unmixed concrete layers didn’t inspire confidence. I can’t believe an inspector would approve of such a build.
A 4-year old condo I rented had tile floors buckling and were crunchy underfoot. The front door frame had gaps that you could see right through into my bed (it was a studio). They did a poor job with the finish plaster.
Thai construction standards are so poor that I don’t think the building will last very long. The maintenance fees will surely go up. Then if owners sell or don’t pay the maintenance funds are depleted and maintenance gets neglected. It’ll be a downward spiral.
Are you sure you want to buy a condo?!
I have had 2 condos in Bangkok bought from off plan and sold them both after 6 or 7 years of ownership and both buyers were Thai,. Also, the new prices were the same for Thais also, I checked before buying. So, I got lucky then?
As I said in the upload I'm not telling anybody not to buy a property I'm just advising of things to look out for but they might not be aware of
@@ThailandBound Yes I know you were, Wasn't having a pop. I am sure in some tourist areas there are many pitfalls. Maybe easier if you buy in the suburbs where there aren't as many scams.
There are always exceptions to the norm; that does not make the exceptions, the norm. That is very obvious.
@@michaelbond4239 and in your expert opinion the norm is?
I’d rather invest the money & use the dividends to pay rent…..diversification & flexibility
100%!!!
And the laws of ownership can change any time, so a good deal now can become a bum deal later.
You had me at reason #1, Peter. I don’t know of any other country on earth that has dual real estate pricing. It’s called interfering with free markets and price gouging. People buy 7m baht apartments to rent them out for 25,000 when it doesn’t make sense financially to rent them for less than 70,000/month and good luck getting that. But just like with the bar girl situation, idiots will still buy or get involved because “this time is different.” Thailand keeps building malls in an increasingly virtual era where you can find much better deals online (and avoid people) and new buildings even though the current occupancy rate is suuuper low. Something will eventually break. Great video!
I rented an apartment in Patong for six months and got to know a little about foreigners and residential buildings. What happens is that foreigners come out to Thailand to retire and eventually pass on. Often, their relatives have no idea about this property and the apartment ends up vacant with no one to sell it. This results in a condominium complex having a low occupancy rate and consequentially less condo fees coming in to maintain the building. I spoke with management, and they had no idea how to contact the owners of the apartments which were vacant.
Condos and women, same thing...renting is better.
Don't get marry just have girl friends
@@willieG333 Spot on🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
absolutely right
Another problem is no maintenance being done. I rented a condo and the complex had 3 elevator banks but only one of them worked and sometimes only 1 of elevators worked. I asked my landlord and he said the Thais who own 51% would not vote to put in new elevators.
And if you had rented you could have just moved on
Don't buy anything in Thailand, enjoy Thailand don't let Thailand enjoy YOU
Bottom line its too hard and most of all risky, I'd rather keep my property at home, rent it out and surplus funds invest in cash or stocks. Investing in Thailand is not favorable at all unless you have been there a long time and really know what you are doing. Rent is better also, imagine you bought a new condo and a 24/7 idiot Karaoke bar opens with noise all day and night!! Nothing you can do about it but if you rent, you can just move very easily.
You make some great points!
I live in Thailand. I live in an older condo in Pattaya (a 5-minute scooter ride to the beach). It is all concrete, so the rooms are quiet (I have a video of the condo). I am on the ninth floor, so the sunsets are great, and I do not have much trouble with mosquitoes or road noise. We have a large pool with a slide. There is a restaurant by the pool; most meals are 3-7 dollars. My rent is $207/month. I have a new wall unit A/C, that I run 24/7 and my electric bill is $30/month. My room is 270 square feet or 30 square meters. It has plenty of room for a single guy. I have no plans to move back to the States.
what is the name of your condo?
@@AlexSiman 9 karat
nice...but do you still have to check in every 60-90 to immigration office for your PAROLE CHECK IN?
Quite a lot of good information in this video. I've noticed there are quite a few unoccupied units in the condo block where I live in Jomtien. Now I understand why ... I don't mind, though, as that keeps it quiet around here! 🙂 Personally, I'd prefer to buy a pool villa here in Thailand but as you point out, foreigners cannot own land. I think there are options to lease the land, and own the house/villa, but I think that's too complicated/risky. I think better for us expats to rent here.
You can lease the land and own the villa, but that comes with its own problems.
There are no "new" tax laws. You won't be paying any tax on your money coming into Thailand unless you are here in Thailand over 180 days in a year. Thailand is looking into worldwide tax whether you bring that money into Thailand or not, this is years away if it ever gets introduced. BTW some of your points were very good.
That may be so, but you can’t say how many years away until the tax laws change, nobody can now. It could kick in next year, or the year after or who knows…so the point is still relevant.
They wont tax the pension from my understanding.
Never buy property where you don't own the land ! Full stop.
It true, a fool brings a Thai woman back to his homeland and brings his money to Thailand. The perfect storm, what could possibly go wrong?
Having lived and worked in Asia for 20 years I would only buy property as foreigner in Singapore. I know many people who got burnt in Malaysia, Thailand, Cambodia etc. You cannot foresee political changes, currency fluctuations, taxes, health costs, environmental issues and all the other things that impact your investment. As a foreigner you will have little or no rights compared to locals. Even Singapore is now too expensive for foreigners.
Great video. I have aways thought point 9 is a major issue. I have seen loads of you tube videos on appartment blocks, they look wonderful when new, after a few years they look rundown. At last someone who tells the truth.
Land is what thais value. Buildings are just a placeholder. Land prices are often astronomical compared to the price of building materials. They will never let foreigners own land, but letting us buy small concrete apartments in buildings of poor workmanship and quality that can be torn down and replaced by even larger buildings after 30-50 years because of concrete cancer or general lack of maintanence? Sure.
Its mostly worthless anyway and getting worse every year!So let them hold their worthless Land!
Thanks Peter, I really enjoy watching your videos from Thailand.
Thank you Sir! Your Video opened my eyes due to this topic. Very helpful, Best regards
Glad it was helpful!
Your best argument is that one never know if or when they change the playing field.. 🇹🇭 has so much soft power that they can do pretty much what they want. Letting the currency run amok is another thing. Cheers🙂.
All are excellent and valid points! One of the best videos on the topic out there. Do not buy in Thailand, rent. And that includes women.
Thanks for sharing!
@@Sick_Buffalo Exaaaaaaactly best advice ever and especially rent the women.
No, I think what the comment meant is that women should also not buy but rent.
Absolutely the best information on the topic and it’s greatly appreciated!
Thanks! I'm glad you found it helpful.
A very well thought out video...subbed :)
Awesome, thank you!
Thanks for your advice about buying a condo! I rather rent it's cheaper more freedom easy to move when need to....and less thing's to worry about !
I think that's a smart decision.
Having first come to BKK in late 80’s and a regular visitor since then and worked in BKK for 5 years in early 2000’s, I do agree it is better to rent than buy. But there are instances when buying a condo can be justified - 1) wish to have a permanent based and wish to accumulate better furniture like more comfortable bed, better kitchen appliances that better meet your needs than the cheap stuff provided by landlords, 2) have found a spacious condo that is well located (mine is only 50 meters from a MRT station, 3 bedroom 134 SQM), 3) maintenance fee is reasonable (I pay only THB 25 per SQM), and 4) reasonable price (I paid less than THB 40,000 per SQM when I purchased in early 2000). If I wish to move I would not take a loss.
Peter a truly interesting and comprehensive guide.Thank you as always.
My pleasure!
hi Peter i did buy a condo in jomtien beach 15 years ago and so far i got back 30 percent of my money by not paying rent after deducting managements fees , one thing i have been told i had to bring money as currency not Thai bath and keep the exchange paper in order to be able to return money back to your country after selling your condo. cheers
Rent...if things go south, just move out...
Great video. You've definitely done your research. You will likely have saved alot of farang from getting screwed over. Good job
Thank you! 🙏
Very good rules not to oversell the whole country to foreigners. I would wish some Eu countries would implement such rules too. Especially point 1-3.
Peter - excellent vlog and topic, it certainly shows in the number of comments & views after your posting - you listed all good points to consider (well done). For me, I own my condo and I am happy with my purchase. I had previously worked & lived in Singapore, Jakarta, Bangkok, and other cities in SE Asia starting in the 90’s and was provided free condo accommodations in each location, also I was in the property industry for local property companies building condos, so I had an idea of the in’s & out’s of property investing.
I knew I wanted to retire in Thailand so I purchased a completed high-rise condo unit in the early 2000’s - a larger 3-bedroom 2-bathroom penthouse unit at 134 SQM for less than THB 40,000 per SQM. The location is not “down the Soi” but rather it fronts the main road. I had used my unit as a vacation home and now live in the unit full time as a retiree. I do not intend to sell but rather will live in the unit until my dying days and will give the unit to my Thai wife. If I had rented my unit, I would have paid more then the purchase cost.
Since buying my unit - 1) a new MTR station was built 50 meters from my unit, 2) newer condos have been build nearby at much higher price (at least THB 150,000 per SQM), and 3) a new shopping mall is being built next door. My maintenance cost has increased only 2 times and now is about THB 25 per SQM. And I had a law firm review the sale / purchase documents.
The unit has 3 large windows / sliding glass doors that stretch floor-to-ceiling and wall-to-wall. Moreover, the rooms have traditional 90-degree corners that provides nil unusable space, as opposed to newer units with angular corners that do no enable easy furnishing.
Though I am not in the trading game of selling & buying property, if I needed to sell and move to another location (in Thailand or outside), I am quite sure I would make a profit. Nowadays, units are getting smaller and smaller with newer properties having maintenance cost 3-4-5 times higher. I am not in the city center, but major schools & universities, shopping malls, and BTS / MRT stations are nearby with some within walking distance.
Amenities are a “double edge sword” - the more elaborate the higher the maintenance fee will be charged. I often see YT’ers showing new properties with 5-star amenities but tiny units - sure it looks impressive to friends back home “look where I live”, but after a few months living in a tiny unit with no storage space or room to grow, it gets depressing. Moreover, the maintenance fee will be much higher to the owner.
The points you raised are definitely SPOT ON for an “investor” who might be in the trading game. In my case, my unit is my home. And I lived in my complex as a renter for a short period, then decided to buy a unit as a long-term situation.
I think I'm one of the lucky condo buyers.
Take your money, buy stocks, take the dividends and rent. It is a lot safer.
Super good advice. Thank you so much for your useful information. Am glad to have bump on to your video
I'm glad you found it useful.
Spot on ….also Be aware that the new condos are badly built - a Japanese friend said that no Japanese will ever buy the new Thai condos because the local Developers construction is compromised in several foundational areas…
This will also explain that condos are defective n become dilapidated very fast…
Worse unless you have middle class Thai who actually stay in the condo, the maintenance will be very bad because the Thai investors do not want or refuse to contribute to maintenance fees.
Great video Peter as an American i was always taught to buy, but everything you said makes sense for Thailand . Best of all i know i can trust what you are telling me because of your experiences and honesty thanks again.
I’m glad you found it helpful.
I have entertained the idea of purchasing a modest condo because I visit Thailand at least 2 times a year and it can be difficult to rent an apartment during high season. I have never bought because of many of the reasons you outlined so well. I would just add that the people selling real estate in Thailand are not well regulated and can be very unscrupulous, buyer be warned.
You’re right, there are a lot of shady developers out there.
Yeah thinking much the same buying property in Thailand is never about the financial reason. Also I am thinking about buying but already I know I need to keep it for many many years. For friends staying, girlfriend(s), mistress, myself, man shed, own office studio type space, any other reason except for making money. You might make a little bit from rent/appreciation, but it's not really a good investment, more a life style choice if you have cash to spare.
It's all about what you want out of it
Treatment of expatriates remind me of South Africa during apartheid But they demand equal treatment when they are residents of western countries
@@paulshay4854 I actually admire the Thais for putting Thai people first, even though it can be annoying. However, they do shoot themselves in the foot by having all these racist property laws. It means property prices stay low, and have no real value to anyone who is not Thai.
Agreed. Renting is the best way here in Thailand. Not worth dealing with the headache of property ownership when renting is so cheap.
I arrived here 18 years ago. Over the years I’ve purchased 17 condos never have I regretted it. If you don’t have dough so be it. You can still rent in Chiang Mai for 3,000 a month with a hot plate a squat toilet and a shared bathroom. Maintenance fees are not the bottleneck the bottleneck is your inability to have vision
Agreed
It's all about perspective.
Declaring income and offsetting income tax on maintenance on 17 units must be quite challenging. We need an accountant just to manage my wife's business
Good video. You should also bring up that these properties usually depreciate on average vs buying in western countries where they tend to appreciate greatly. (Note: I just saw you mentioned this around 18:34, great video!)
After 16 years of visiting Thailand, I have come to the same conclusion and see no reason to risk my capital buying when renting makes better financial sense and virtually no risk. Most of my opinion has come after knowing and talking to actual expat owners of real estate in Thailand telling me to either not do it because it's not worth the hassle or that you better think about it ten times over before you buy.
@@sizkovacs2216 yes, as a Thai, I completely agree with you. Why buy when rent is so cheap. You can me more flexible.
Great advice. I've spent many years in Thailand. If you're super rich and can afford to just drop a few million without worrying about it, go for it. Otherwise, just rent. Peter's last point was the one for me. You can just up and leave and have a change of scenery so easily. The last condo I rented, from viewing it to moving in took 2 hours!! No credit checks, no bullshit like that, just pay your deposit and month in advance and you're in!! 👍😊
# 15. You get tired of the place, noisy or bad neighbours etc. You can move on quickly, with minor losses, when you rent.
@@joeandersen9038 oversupply so rents will stay low. Need a 50% correction
all very true good points you’ve made .Renting is better for Farangs for all the reasons outlined here.
Rent everything here in Thailand. You can 'walk away' far easier when the time comes!
It's the best decision for most foreigners.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investment.
In summary: don’t buy. Too many headaches.
Very good video... Thank you
You forgot 2 very important reasons for not buying a condo :
1) You will be taxed by Thai government if you need to import funds in Thailand to buy a condo. And it is a big amount !
2) If the owner of a condo pass away, the foreign inheritants will have to sell the condo very quickly and of course, at a very low price (see Condominium act)
The best solution is to rent... Don't invest 1 euro in TH
Listen to the video again Your point number one was one of the points I stated in the video.
@@professorwheezy8330 LOL Good luck to the pigeons who will listen to you.
You should read carefully the Condominium ACT
And the ForEx has to happen in Thailand too, at poor rates. You must bring the foreign currency into the country and have it converted (at crap rates) by a Thai bank. You can't use Wise to convert to THB and bring it over.
Thai people's mentality is different to ours in Europe. I live in a gate community with my wife (she is owning the house). There are at least 3 houses in our direct neighbourhood which are empty for some years already. In Europe no one would do that. I personally would never buy, only rent.
You looking very slim and healthier Peter 👍👏 I think your home cooking meals are doing great on yourself. Very interesting and informative Topic. Cheers Mate 👍🙏👏
Thanks! I'm feeling good these days.
Very useful video!
Many of those things you mentioned I didn't considered..
Thanks a lot.
Tony
Glad it was helpful!
Good advice mate 👍
Thanks!
This is a super video. I have watched a lot, as I have considered moving there and buying a house, however 95% of videos avoid the downfalls and traps of buying a house/condo. Important things I learned were the 2 tier pricing and that Thai's also share the Asian mindset of buying new rather than 2nd hand. Thanks to you, I'm more likely to rent for 6 months and enjoy the experience while also researching buying in Vietnam or elsewhere. 😃
I'm glad you found the video useful!
Could a foreigner just make a low offer on the condo. Let's say at natives price. Why not offer a low bid, take it, or leave it.
@@kengaroo5170 True enough. Still, I do not like the idea that foreigners do not have much for full legal ownership of their property.
Early this year i was on my way to Thailand with a stop in Qatar,i met two old Men from north europe, both retired, they was also going to Thailand, both of them was married to thai ladies, both of them did invest to build house in Thailand , in the name of their ex wifes ofc, and this trip they was going to meeet new futur wifes,both of them 😅, i just said goodluck
Very nice informative video, Peter. Keep up the good work. You are a good guy
Thank you kindly 🙏
buying a condo in bangkok is not an investment because rent is cheap and it will not go up in value.
Very true. Many people think too highly of Thailand in term of the politeness of the people when they only go for a holiday of around 10 days. I have friends who have worked in Thailand for more than 10 years and they can tell u otherwise. Even my Thai colleagues( very close ones) said that don’t just see the surface.
Invest in High Yield Dividend paying stocks or ETFS in your respective countries and enjoy SE asia with no tension .Going forward we should be more concerned about tax planning also as tax rules are being changed pretty enthusiastically by governments these days .
Thanks to these real state policy in THAILAND, foreigners and locals can pay a low rental cost, cause if THAI Government let speculators from OUTSIDE buy CONDOS easily the prices will be higher and inflation will come up together. รัฐบาลไทยจงเจริญ!!
@@mkaizen1756 Good point!
Same in Philippines, maybe we need these laws in Canada, NZ or Oz.
You are so right, great advice Peter. Making sense
The two-tier pricing system is outrageous. To enter Khao Yai National Park, locals pay 40 THB, while foreigners are charged 400 THB-ten times the price. It’s beyond unfair; ‘ripoff’ doesn’t even begin to cover it.
I agree, it's definitely a big issue.
@@VidNibs 400 Bath, imagine that wauw 🙄
Great video Peter. Renting is the way to go and location is important.
You can rent long term for a good price in a prime location.
Good video. I think that people just need to make an informed decision.
Cons include:
1. Rent is reasonably cheap (at the moment)
2. Less flexibility to move elsewhere
3. Difficult to sell and may not make a profit, may sell for less than you paid
Pros:
1. If bought outright you rent proof yourself for the future (rent increases every few years so you’ll be paying gradually more for rent over time. Also, if your currency depreciates against the baht over time, your rent will in effect cost you more of your income each month, add long term inflation and rent may not be as cheap in 10 years time compared to your income, as it seems now.
2. You can sell it (difficult) and get a lump sum back in the end (may not be the full amount you paid but you won’t have been paying rent for 10 years or more)
3. Some older well maintained established condo blocks provide quite a bit of space at fairly cheap purchase prices.
4. Can purchase with a rental agreement for 12 months to 3 years to recoup some of your purchase cost before moving in to it yourself
5. You have an asset that can be passed on, placed in trust to offspring etc
Opinion:
Purchasing may be worth while if you have the cash lump sum upfront and are sure you want to stay where you are long term (more than 10 years) and still have a reasonable monthly income or savings you can live on.
Like life, it’s all a gamble… just don’t gamble more than you can afford to lose.
Good points. Just thinking about it though, Thailand has historically been an unpredictable country politically. Its all sweetness and light right now for tourists and ex-pats but what if there’s a major revolution or coup, could they kick foreigners out? I realise that doesnt seem likely today but who knows 5 years from now.
great mind opener Peter . I was gonna buy a condo at 3 mil baht at Pattaya but decided to go for rent after this video thanks.
Good decision, rent is definitely the way to go.
@@9tarko Just out of curiosity, do you know how much the property taxes, and maintenance fees are for the condo? With that information and the rental fees you are paying I could do an analysis on the investment and share that with everyone here
No because I'm never inquired about buying
I bought a 60m2 condo near the beach in Jomtien for just over 1.5mil baht...maintenance is around 1200/month...other similar size properties in the building are listed at 2.3mil+ - maintenance is generally good... I still live in Aus and stay/work from there 3+ times a year for 1-2 months at a time... I figured for the price I could sell for the same or more, but I have a place set up as my own home and office with all my own stuff and only need a small backpack for travel inbetween... If wanting to biy property new, or fix up and flip its a bad idea, but an older place to make your own and use as storage, its cheap enough if you do the research..
As I said in the upload I'm not advising people not to buy I'm simply letting people be aware of the rules
I read on another You Tube channel how a guy made buying work. He pointed out that renting is "dead money" which it is, so he put down something like £10,000 deposit (400,000 baht approx) then just paid what he would have in rent (about 25,000 baht a month) with a view to having paid the whole thing in 6 or 7 years. All he could really lose was that first £10,000 because he'd never see the rent money again anyway. The maintenance charges are a caution and as you say it paralyses your choices of moving.
Excellent
In the west I would agree with that but not in Thailand
Lots of excellent points, thanks.
Absolutely correct mate! 🙏🦘
Cheers 👍
Hi Peter, as you are already aware, we are moving to Thailand next year, even though the missus is Thai, we have no intention of buying, just rent. To start with we'll probably live with my sister in law in Bangkhunthian then try other places by moving around, Khon Kaen, Chiang Mai, Southern Thai maybe Ao Lak etc.
Hi Wez, the other thing is you might fall in love with a place and think it's the only place you want to be and get bored with it a year later if you're renting you can just up sticks
Just to top this Up.
Had three properties in Pattaya,2/apartments 1 House,lost money,also spent too much money doing alterations,and all the agrow that goes with it,seriously.
Wish I'd have rented,in hindsight now.🙄
Fantastic video by a real Thailand blogger.
Glad you enjoyed it
Sure, it's cheap to rent now in Thailand. It used to be cheap to rent in places like New York and San Francisco. Buying gives you protection against long term rent increases if nothing else. Add to the mix exchange rate risk: what happens if or when the pound, dollar, Euro, depreciates significantly against the Thai Baht? Look what's happened to the Japanese Yen over the past 15 years. It's not so far fetched. If you're retiring now you may be living in Thailand for the next 15-25 years or more. Do you really want to expose yourself to these long term risks on a fixed income? You bring up some very good points to consider and every buyer should do their due diligence. And we can infer some advice in buying, such as buy a used condo, if possible one where someone died in it so you can get it dirt cheap! (Just be sure to invite a monk over to do the blessing - lol).
It’s all about weighing the risks and benefits.
Renting is easier, I do it in China. Flexible to change location and elevate your experience. We owned in China, didn't make any profit in a saturated market but wasn't a negative experience. Good luck 🤞
Thanks for sharing!
Australian living in Bangkok 20 years bought here PhayaThai 2004 ฿2.2m (auction) repossession 200k was unpaid rates. Current rates ฿3300 / month. Just completed renovation (industrial style) all ceiling out and built-ins removed. 1 condo in building same size currently selling 6.5m looks same as day I moved in 2004. Look for older buildings, mine 1992.
As I pointed out in the upload, modern buildings are not as well built as the older buildings.
@ThailandBound yes I'm lucky in that respect. Management yesterday (only 1 lady btw who's been manager beginning of my ownership) detailed documentation of increase in rates ฿1200/month for the next 60 months to pay for upgrades. 2nd upgrade in building since living here. Security gates, lifts maintenance/ upgrade, painting, car park etc. Older buildings do need work but I wake up with alot of concrete around me and on the plus side sound proofing is excellent plus I have a marble floor that didn't need replacing and will last a long time.
Very good video…I have rented condos in Silom since 2004 and am glad I did not buy…especially during COVID when I was away for 2 years. One point though- while the tax on worldwide income is still up in the air, income brought into Thailand this year may be taxable unless it was already in cash accounts as of 12/31/23. This change was announced a year ago so buyers bringing in money from abroad need to look at their possible tax exposure closely before a large remittance to buy condo is sent to Thailand.
The Thai government knows what it’s doing. The policies and the rapidity of new construction significantly reduces the risk of foreigners gentrifying Thailand.
There is zero risk of gentrification in Thailand. Condo ownership by retired working class blokes is not gentrification.
Thank you for sharing the truthful information on this. Sometimes things seem perfect until you dig deeper.
It can be a real rollercoaster sometimes!