Property in Hua Hin

[traveller2]

Hi Whaler, I hope you have a wonderful time in your new property.

Im already in touch with John at Hot Property, thanks.

I will definately keep Jane in mind as she sounds like an invaluable source of information.

Thankyou again.

[sateeb]

Ken P
Thanks for the update on Emerald resort....I will be the one walking my Pug puppy............Don't worry she is not a Soi dog and is quiet as a mouse......

Trav2.....likewise, good luck with your search.....I guess I was lucky as the house at Emerald was the first I viewed and loved it straight away....right price,far enough outta town but close enough too,if you know what I mean,

[traveller2]

Thanks Sateeb,

Thats pretty much what we are looking for too.

We like the country, but also want to be within striking distance of town and the amenities it offers and also not too far from the beach. So I know exactly what you mean.

[TakeitToTheMax]

Why buy, consider renting. I bought a new place a year ago and we want to move elseshere however it is all but impossible to sell a "Used" house when there are so many new ones on the market. Rentals are incredibly cheap. I paid 7m for my place and a guy round the corner from me is renting the same for 18,000 per month which equates to 32 years to get the initial investment back. Just rent long term that is my plan if I ever sell this place.

[splitlid]

^ i think that rent prices will increase over the years so i think your calculations may be a bit wrong, however, the theory is correct.
some people want to buy their own house, as you probably did when you first moved here.
so why do you want to move?
and how much are you selling for?

[traveller2]

Thanks guys. We are looking at rental vs buying, but to be honest we are moving toward the idea of buying due to issues with my work and when I could get out there.

We arent looking to live out there for some years, just using it as a holiday home and maybe rent it out when we arent there. Although, long term, living out there is the plan.

Also the idea of a property that may go up in price appeals as well.

We have many questions to ask and things to look into when we visit soon, to see if its do'able.

We love the HH area and the people and would like to get out there more often.

[Super Joe]

Why buy, consider renting. I bought a new place a year ago and we want to move elseshere however it is all but impossible to sell a "Used" house when there are so many new ones on the market. Rentals are incredibly cheap. I paid 7m for my place and a guy round the corner from me is renting the same for 18,000 per month which equates to 32 years to get the initial investment back. Just rent long term that is my plan if I ever sell this place.

IMO there's several reasons people choose buying over renting, leaving it to wife and kids being an important one for some, but probably the main one is that it's generally far more cost effective over the long term, I can't really see how property investment can be viewed over a one year period in the worst recession for 80 years or whatever it is, it's an extreme low point along a long term trend line. Thailand is a harder one to judge based on historical data because the properties we are talking about is a new'ish market so data is harder to come by, but generally if you invest the initial capital amount of a property in a savings account, then it will be all used up in rental payments in 14-16 years because property prices (rental prices) usually outstrip the growth of your savings.

The figure of 18,000/month rent on a 7m Baht house seems an extreme case, that's a 3% yield whereas historical yields in Thailand are around 5% (29,000/m), but realistically if you're in a recession and have to accept far lower rents, and it's impossible to sell at 7m as you mention then it's not worth 7m in today's market. And rental values in 30 years time based on property out stripping the growth of savings by 2%, (UK average last 50 years is 3.5% above inflation), then 18k/m will be 33k/m in today's money, and the 29k/m will be 53k/m.

If you invested the 7m Baht in a Thai savings account it would be devaluing as inflation is at 4.1% and savings rates are minimal, so in 32 years time it would only be worth 3.5m, whereas a 7m Baht property growing 2% above inflation would be worth 13m then. So your money's no good in Thailand and you keep it in the UK where it's still devaluing because of interest rates, but you're now exposed to volatile exchange rates, anyone deciding a few years ago to keep their 7m in the UK and rent, now finds it worth only 4.6m Baht, or 2.4m in 32 years time, just enough to pay the rent in years 29-32. They can go in your favour ofcourse but why take on this additional risk factor.

Ofcourse all the above will be wrong if land/property prices totally stagnate in Hua Hin over the next few decades, but it's more likely to go the other way imho what with all the investment/development that's been on going on these major projects throughout the recession, it's only really the small outfits without financial resources that have stalled.


SJ

[TypicallyTropical]

Joe, while your math is correct, you forgot to include the devaluation of the value of the real estate. That X million doesn't have the same value after those years either. Regardless, I agree with you, real estate is the best investment you can make as long as you invest wisely.

[Arcadian]

Buying property for investment is a bit of a dead duck in any country at the moment. Buy a house to live in, you will be much happier.

[TypicallyTropical]

Buying property for investment is a bit of a dead duck in any country at the moment. Buy a house to live in, you will be much happier.

It's a "dead duck" if you don't buy right. There are good deals in every market in every area of every country. Of course you can't do it alone, you have to have a real estate agent who is not driven by his own pocket. All you have to do is to find a distressed seller. I just bough a piece of land for 50% of what the seller was asking for. I checked the public records, he has not paid his property tax for three years, he has not paid his home owner association dues for five years, so I knew he was distressed. One person's misfortune is another person's fortune.

[London Boy]

"so I knew he was distressed. One person's misfortune is another person's fortune"
So Hua Hin agents are unscrupulous are they??
Nice that you put a smile on your comment after shitting on someoone while they were down.

[Winkie]

"so I knew he was distressed. One person's misfortune is another person's fortune"
So Hua Hin agents are unscrupulous are they??
Nice that you put a smile on your comment after shitting on someoone while they were down.

Think you missed the point a little London Boy

One wanted to sell, another wanted to buy, they reached a mutually acceptable price, and the transaction was completed. I would say that was a win/win

Often asking prices here, are far from realistic, you can see land and property for sale that remains on the market forever, in hope that someone with insufficient knowledge or too much money eventually buys. In this case the seller accepted a realistic offer and the deal was done.

You should try to look at things with a smile on your face. I'm guessing the guy that sold the land has one now

[London Boy]

I dont think I missed any point but the choice of words of finding out he was distressed are, in my mind, not nice.

I am not looking at the deal itself just the wording

[Super Joe]

Buying property for investment is a bit of a dead duck in any country at the moment. Buy a house to live in, you will be much happier.

I've never got why people believe this to be the case, when is there ever a better time to buy property than when it is temporarily (in the context of a few years) at a low point and a buyers market with desperate sellers!? After these types of property slumps it usually rebounds with a venegeance. That's regards to any country, but regards Hua Hin I can understand this philosophy a bit because some people will have doubts as to whether the property market will 'ever' pick up again. A bit beyond me too when I look around at what's happening here in general, not just in investment to large projects.


SJ

[TypicallyTropical]

I dont think I missed any point but the choice of words of finding out he was distressed are, in my mind, not nice. I am not looking at the deal itself just the wording

It's called "due diligence" and if you don't do your full research in a business transaction than you will be doomed. In my case, I didn't have to buy but he had to sell. As far as I'm concerned, I helped him out of his tough situation.