Land Ownership In Thailand

[Takiap]

Having a Thai family, I of course opted for buying. If I was staying here as a single person, I think I would probably have opted to rent, as I did when I was in the UK. Saying that, I rented in the UK for 10 years at GBP500 per month. Looking back, I could have bought a cheap home instead.

Had I rented a 30,000 baht per month home in Thailand when I first arrived, I would have so far spent more than double of what our current property cost when we bought it, and that's assuming the rent remained static. Looking at it like that, buying is a far better option.

When we bought our half rai plot, we paid 465K, and a further 800K to have the house built. At the time, we were getting about 70 baht to the pound, so in total we spent about 18,000 GBP. I honestly don't think 18K British would last very long if we were having to pay rent here. I also like to know that even if I end up penniless here, I will still have a roof over my head.

I guess we all have our own take on things.





PS: the remaining two half rai plots opposite the one we bought have just sold for 3 million each, so I can't help thinking we did the right thing.

[heartofmidlothian]

Yes Takiap - you got your timing right there and there was lots of money to be made back then. I bought a 1 rai plot in Bofai, 9 years ago,for 500 000 baht. Now they are selling for 3 million.
Lots of really nice little houses going up everywhere for 2 million or under and plenty of condos around, that we can actually own. Not easy to sell 2nd hand houses, but really easy to rent them out if you keep them well maintained and don't get greedy for too much rent.
Always has been and always will be better to own property, than rent, in the long run. The best investments, in my life, has been buying and selling land here and many of my friends have made lots of money from land, here in Hua Hin, over the last 18 years. Hua Hin is going to be much bigger in 10 years.

[Takiap]

Yes, if I had money to spare I'd certainly buy and sell land here. Like I said, the two half rai plots opposite our place just sold for 3 million each, and it was a Thai businessman that bought them. The last remaining plot in our soi is on offer at 2.5 million, but I wouldn't be surprised if the owner has already put the price up.

As for renting out...........A local Thai man has about 8 or 9 low end (+/- 5,000 baht per month) rental homes and every one of them are occupied permanently, usually by Thais. I think if you keep the rent reasonable it's relatively easy to find tenants. Our condo in Bangkok for example, has only stood empty for two months since we purchased it. It's occupied at the moment with the tenant having signed a one year contract, and 6 months rent was paid in advance.

[MrPlum]

I could have bought a couple of houses with the rent I've paid since being here but seeing the property scum fleecing unaware buyers then bragging about it to their mates has put me off permanently. I wouldn't go near a Brit builder in Thailand if my life depended on it. Butter wouldn't melt in their mouths until they've got your money. Then watch them transform. Some Thais aren't any better falsifying signatures and selling land they don't own.

If you are lucky enough to get your house built at all, it's more than likely that you pay for quality fixtures and fittings and they install cheap crap and pocket the difference. Your electrics will more than likely kill you and the cost of making good on all the shoddy workmanship will be eating up your funds for years. Add in the cost of furnishings, pool maintenance and so on and it starts to look expensive.

Then you have the risk of property downturns. Illness, divorce, running out of funds and family problems can force you back to your home country and now you have to dispose of your property in a fire sale. Watch that paper profit vanish. If you can sell the house at all. And because you don't want to take a haircut on the house, you stay put in misery for years. Your Thai village girl has no concept of managing money and gambles your home away. Thais, it seems, don't like to buy second hand, so where are the buyers coming from?

If you can't afford rents then you probably can't afford to maintain a home. Move away from Hua Hin and pay 2-3k a month. Why invite the stress?

Is there a poll on satisfied buyers? I'd love to see it.

[poosmate]

I could have bought a couple of houses with the rent I've paid since being here

Says it all about your astuteness and blindness to the property boom that has been happening in Hua Hin for several years.
Many happy expats have bought and sold at a profit and others are happy living in a home built by a foreign developer.
I imagine this mornings rant may have something to do with your village girl not understanding that the coffee should be thrown away after use not reheated and served to you at breakfast.

[heartofmidlothian]

Well, that's not very nice poosmate but you are right for some people, but many horror stories out there too!
If you are interested in buying a house off a developer, then do your homework. Take your time thinking about it and do your research and don't believe their stories about if you don't buy today you will lose out. There are good developers out there and pretty easy to sus out if they are good or not. Find out what projects they have built and go and knock on some doors or ask around town. Any farang who has lived here for 10 years or more will know.
Mr Plum - you certainly have a very negative view. If you really don't want to deal with them, then buy some land and build your own. If you are looking for good value land, then just drive around and have a look. Talk to the locals and do your homework. There are some bargains to be had just outside of town. Areas that are outside of town just now will be in the town in 5 years and then the land prices will shoot up. Build your own house on a part of the land and keep the rest of the land to sell later. Make sure you use a good, reliable Thai builder (easy to do your homework on that too).
You will get a good house at a good price and then you just wait for your land to go up.
In 18 years, I have built 3 houses with Thai builders. They were great - not one single complaint! My first house, I have kept and rented it out for 12 years. My 2nd house, I sold for a small profit and my 3rd house, I still live in. The 1 rai I built it on 9 years ago, has gone up from 500 000 to 3 million
baht. I have 3 other land plots that I am holding on to and 1 other that I sold 4 years ago and quadrupled my money. 4 years ago, I bought a house off a developer, and it still isn't in my name. I will do more building in the future, but I will certainly do it with the Thai builders. Really good to be in control of it yourself. If you have a Thai wife and you fear that she might lose your land while gambling, then lease the land off her for 30 years and register the lease at the land office. Then you are safe for 30 years - Mr Plum!
Best rule of thumb for newcomers to Hua Hin - rent for the first year while you do your homework. You are vulnerable when you first arrive here and you believe everything. Don't listen to salesmen, just listen to your own common sense and people who have no financial interest in what you do. Once you have worked it out, decided what you really want, then buy a condo, buy a 2nd hand house, buy a developers house or buy land and build yourself. If you don't have the cash then just rent, but you will always be better off if you buy sensibly.

[JamesOB]

I think that's sensible advice from HoM. Rent for a year and look around to see the area and property you like. The rents are still very cheap and possibly a better short term option for a Retiree anyway (if you don't want to lease or risk putting the Title in your Thai wife's name).

There are plenty of bargains still in HH, some (sadly) for the very reasons that MrPlum has quoted. Many others because people 'impulse' bought holiday homes but rarely visit. Other than the professional developers and Thai landowners, I've not know many private individuals make large gains on property (other than throught the currency fluctuations). It can be difficult to resell a property here quickly. That said, HH is a growing town where people do want to live.

[MrPlum]

Says it all about your astuteness and blindness to the property boom that has been happening in Hua Hin for several years.

You may be small-minded and petty but God loves you.

Mr Plum - you certainly have a very negative view.

Sorry about that. One reason why I haven't commented on property before and will probably not comment again.

It wasn't negative when I arrived. A shooting over property, hhfarang's troubles, my 'wife' and I being seriously electrocuted and a friend being ripped off by a Thai seller, coupled with some anecdotes from others and a real estate agent here, alarmed me sufficiently to be put off. One friend, after building a very nice home, realized that he only owned 28% of his property, due to the way his purchase was structured. Property buying here is fraught with risk. Buyers don't have sufficient protection from the legal system, if things go wrong.

Some people obviously do well. The early birds especially. Why would they see anything negative?

If you really don't want to deal with them, then buy some land and build your own. If you are looking for good value land, then just drive around and have a look. Talk to the locals and do your homework. There are some bargains to be had just outside of town. Areas that are outside of town just now will be in the town in 5 years and then the land prices will shoot up. Build your own house on a part of the land and keep the rest of the land to sell later. Make sure you use a good, reliable Thai builder (easy to do your homework on that too).

This is the way I would go and have already considered it.

[heartofmidlothian]

Go for it Mr Plum, it will work very well. Will keep you busy, but well worth the effort.

[STEVE G]

Yes, we've recently had a house built by a Thai builder out to the west of town and I'm very pleased with it considering how much it cost. We rented for eight years first so it wasn't an impulse decision and a large factor was that having decided to stay based in the area, I wanted to have something that was suited to me rather than have to rely on what was available on the rental market.

[MrPlum]

I wanted to have something that was suited to me rather than have to rely on what was available on the rental market.

Carbon neutral?

[caller]

We rented for eight years first so it wasn't an impulse decision and a large factor was that having decided to stay based in the area

I think thats the key now for many, not what went on in the past re: cheaper land or how it may inflate in the future.

I wouldn't want to be in a position where I bought and then fell out of love with the area and had only hobsons choice options as a consequence.

[STEVE G]

I wanted to have something that was suited to me rather than have to rely on what was available on the rental market.

Carbon neutral?

Solar power is definitely on the cards for the future and a self contained water supply. I've also worked out that with an aquaponics installation in the garden, you could be virtually self-sufficient but I would need more time in Thailand to do all that. It's certainly the way I'm planning on heading for future retirement.