Tales of Woe effecting the Economy, Where will it End????

Post by **hogus** » Tue Mar 27, 2007 6:44 am

Consumers have money but are tightening belts
PHUSADEE ARUNMAS

Sales of big-ticket items including cars, houses and computers are expected to fall starting in the second quarter of this year as consumers are likely to tighten their belts. The current economic slowdown will prevail through the third quarter, when the expansion of the nation's gross domestic product (GDP) will reach the lowest point, according Thanavath Phonvichai, director of the Centre for Economic and Business Forecasting of the University of the Thai Chamber of Commerce.

The centre projects GDP for the first quarter would expand by 3.5% to 4% and the second-quarter growth would fall below 4%.

Taking the downtrend into consideration, the university will review its economic forecast for growth of 4.0% to 4.5% it projected earlier and to cope with falling economic figures released by other economic institutions, such as the industrial index and the consumer confidence index, he said.

Mr Thanavath said caution was in evidence in the latest report on consumption sentiment, from a survey of 1,200 respondents nationwide, most with less than 20,000 baht a month in salary. It found consumers prefer cutting expenses on luxury goods and clothes, while a few said they would buy new houses this year. Consumers see price as the main factor to determine purchasing decisions.

He noted that the survey results showed that consumers were not short of money but opted to tighten their belts, considering the huge liquidity of more than 600 billion baht in commercial banks.

''The current situation is different from the crisis ten years ago when the country had a lack of liquidity,'' he said. ''Therefore, the government must speed up state expenditures to assure people about the economy.''
http://www.bangkokpost.com/Business/27Mar2007_biz37.php
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Will be very interesting to see, how they want to assure people about the economy...especially in view of foreigners, which are willing to invest in TH...but as smart people, of course, not under the actual circumstances!

Post by **Burger** » Tue Mar 27, 2007 7:44 am

Hogus wrote:

Burger, you're great! It's wonderful to read your statements! You really make me laugh a lot!

Hogus,
I was only quoting the Government's finance minister when I posted

Thailand's friendliness to foreign businesses and foreign people in general is one of our main strengths,'' Chalongphob said. We don't want to throw away our main strength just because we had to deal with something that happened because of the last government.''

I know by now you do not believe me, but it's up to you if you want to put the blinkers on and not believe the Government.
The statement was regarding the softening of regulations for the FBA that the Government are currently implementing.

Speaking of funy statements, I remember a thread you posted in two years ago this May, with people warning about property being taken away by the Governenment and buyers are only purchasing illusion's etc etc.
2 years on that makes funny reading to me.

Burger

Post by **Wanderlust** » Tue Mar 27, 2007 9:23 am

I think what many people on here should remember is that not everyone who reads this forum has experienced life in Thailand in the way others have, and could easily be caught out by some Thai or farang charlatan in a number of ways, but most expensively with a land/house purchase. Equally, the picture that is painted by the more pessimistic among us should not be allowed to put people off. So, essentially what I am saying is tell the truth as you see it; from my perspective this is that any property purchase anywhere is a risk, especially if you buy as an investment. Any transaction carried out in any foriegn country also has an element of risk, whether it is due to legal, cultural or other differences. Consequently, buying property in Thailand has a larger element of risk about it, regardless of the country's economic or political situation. The fact that it is written into legislation here that foreigners are not permitted to own land, except under very special circumstances, adds to the risk. However, balanced against this risk is the joy of living here in this (still) wonderful country, the climate, food etc etc, and the (still) relatively cheap cost of a nice house. It is a gamble, which if it pays off is fantastic, but if it doesn't (which could be through legislation changes, visa problems or quite simply being fleeced by someone unreputable) leaves you out of pocket - just make sure your pockets are big enough and that you are prepared to lose what you put in. It is very simple really.

Post by **matthew80** » Tue Mar 27, 2007 9:51 am

Well said Wanderlust! I have shallow pockets and big dreams: a very high risk combo!

sargeant · Post by **sargeant** » Tue Mar 27, 2007 10:50 am

WL brilliant post and now allows me to say crystal clear what i have been trying to say diplomatically about property visa and finances over the last year

1. ..... There are a lot of bluddy conmen out there beware
2. ..... There are genuine dealers who are blowing warm air up lots of bums mainly their own.When present conditions do not warrant it.
3. ..... There are people talking/shouting up and grasping at any small good point and then refusing point blank to answer questions if they think it is not in their interests
4. .....The political and economic situation is fraught at the very least poised on bluddy dangerous at worst
5. .... The warnings are out there please do not ignore them because some conman with a sweet mouth (paag waan) wants his commission

It is a great place to live STRESS FREE but lawyers estate agents property developers politicions Just mean stress stress stress to me

and remember Land act sect 4 FOREIGNERS CANNOT OWN LAND

Post by **buksida** » Tue Mar 27, 2007 10:53 am

Nice post WL, echoes my sentiments, do not spend more than you can afford to lose!

Post by **Burger** » Tue Mar 27, 2007 1:04 pm

Agree, do not spend more than you can afford to lose and along the lines of what Wanderlust has wrote about experience of Thailand ..............

Most (not all) of the punters who walk through estate agents doors have never read stuff on sites like this, they just want to give you their money.

They are not even aware that you have to form a company or lease, they ask which is best, they get told what is best and they say "ok then, can I give you some money now please".
They get taken to a solicitor and ask the solicitor how long is the lease, they get told 30+30+30 and they say, "wow, that's a long time, can we give you our money now please".

They sign 4 page contracts without even reading them and give you their money.

They are not clued up, do not seek proper advice, they want their slice of paradise and they want it now.

There's nothing any of us can write on here that will change that.

PS: Re: Gamble etc, there are estates (the better ones) where houses were bought 3 years ago for 4m and now being sold for 7m. Those people have made 3m Baht, how much have the renters given to their rich landlords during that time ?

Burger

Post by **buksida** » Tue Mar 27, 2007 1:14 pm

Burger wrote:
There's nothing any of us can write on here that will change that.

For those types I don't think we want to change it, if they're that well off then good luck to them - they won't miss a few mil if it goes tits up.

For the rest of us mere mortals that are considering the investment but don't have bottomless pockets I reckon this forum is a gold mine of info, experience, knowledge and opinion - some good some bad but thats life eh!?

Post by **caller** » Tue Mar 27, 2007 1:17 pm

Burger wrote: As I've said this numerous times on here now, most (not all) of the punters who walk through estate agents doors have never read stuff on sites like this, they just want to give you their money.

They are not even aware that you have to form a company or lease, they ask which is best, they get told what is best and they say "ok then, can I give you some money now please".
They get taken to a solicitor and ask the solicitor how long is the lease, they get told 30+30+30 and they say, "wow, that's a long time, can we give you our money now please".

They sign 4 page contracts without even reading them and give you their money.

They are not clued up, do not seek proper advice, they want their slice of paradise and they want it now.

There's nothing any of us can write on here that will change that.

Burger

That, with respect, is untrue.

A reputable agent would point out the pitfalls. Would have it in their literature the do's and don'ts, might even put signs up?

Above all, I think most would expect a reputable agent to advise them correctly.

From what you have reported, that doesn't appear to be the case?

Whilst most who sek to buy may not be aware of the rules and don't read sites like this. It seems an increasing number who have bought and feel cheated are now reporting the same as evidenced by stories posted here and elsewhere.

But I suppose the maxim is that a fool and his money will be easily parted.

And if anyone today is paying 7m for what was a 4m house, then they are really are fools.

Post by **Burger** » Tue Mar 27, 2007 1:26 pm

Buksida wrote:

For those types I don't think we want to change it, if they're that well off then good luck to them - they won't miss a few mil if it goes tits up.

For the rest of us mere mortals that are considering the investment but don't have bottomless pockets I reckon this forum is a gold mine of info, experience, knowledge and opinion - some good some bad but thats life eh1?

Agree with you there, was just pointing out that most punters do not read the valuable info on these sites first, they do not even know about having to have a company or a lease, basic stuff.

Burger

Post by **Burger** » Tue Mar 27, 2007 1:33 pm

caller wrote:

That, with respect, is untrue.
A reputable agent would point out the pitfalls. Would have it in their literature the do's and don'ts, might even put signs up?
Above all, I think most would expect a reputable agent to advise them correctly.
From what you have reported, that doesn't appear to be the case?

It's not untrue, it's fact. I never said agents do not advise to the best of their ability, the agents and developers advise to the best of their knowledge of the situation at the time, it's more the advice from the solicitors (the experts) that worries me.

Whilst most who sek to buy may not be aware of the rules and don't read sites like this. It seems an increasing number who have bought and feel cheated are now reporting the same as evidenced by stories posted here and elsewhere.

The few reported cases of people feeling cheated has nothing to do with going the company or lease route, it's being cheated by unscrupulous developers. If they don't see proper solicitors or read the contracts they only have themselves to blame, they were naieve.

And if anyone today is paying 7m for what was a 4m house, then they are really are fools.

Nonsense, how can you make that judgement without even knowing the area I'm talking about, what if the area has a brand new golf course just been built next to it ??
property prices have risen over the past few years, same as they do in the UK or any other area. You should know that living around London, some property prices doubled in two years in the mid-90's.

Burger

ozuncle · Post by **ozuncle** » Tue Mar 27, 2007 1:45 pm

Caller,
Burger did not say that he did not advise his clients corrctly. He merely pointed out that some people are determined to follow their dream no matter what the cost.

You appear to not know much about property prices.
How can you say a property is not worth 7m?
Have you seen the property?
Have you researched sales of similar properties in the area?
Are you a property valuer?

ozuncle · Post by **ozuncle** » Tue Mar 27, 2007 1:47 pm

Burger you are quicker than me.

Check out property values in Perth over the last 3 years.
Irrelevant I know but gives you an idea of what can happen.

sargeant · Post by **sargeant** » Tue Mar 27, 2007 2:23 pm

Burgher i will now take up cudgels and staffs and even long pointy thingys with you
Quoting your post 1.04 today that punters dont read the 4 pages give money no problem go to soliciter give money no probem
I agree they are mugs and good luck to you and they deserve what they get
But the quote i will ram down your throat is most (not all) of the punters who walk through estate agents doors have never read stuff on sites like this they just want to give you their money

TRUE TRUE TRUE and good luck to you and the rest of the property industry here (its the ones that DO bother to read websites like ours that bothers me)

Because i am still waiting for a full answer to a simple question i asked you which you delierately ignored and only answered Buksidas Identical question half and left the chanote holder question hanging It took beguine to answer it eventually

To now imply you tell all of your customers everything but dont answer questions posted here on this forum beggars belief and speaks volumes

My problem as A PERSON WITH NO NIL ZERO BUGGERALL VESTED INTEREST is that the people that do come to our website should be able to get correct and truthfull answers and vested interests should be declared

Post by **Burger** » Tue Mar 27, 2007 3:04 pm

sargeant wrote:

Because i am still waiting for a full answer to a simple question i asked you which you delierately ignored and only answered Buksidas Identical question half and left the chanote holder question hanging It took beguine to answer it eventually

I usually ignore you because:
a) I can't understand what you write most of the time, and
b) I think you are a waste of space who spouts nonsense and I can not take you seriously for 1 second.

Having said that, what is the question I ignored that you're so concerned about ???

To now imply you tell all of your customers everything but dont answer questions posted here on this forum beggars belief and speaks volumes

Why do you think people are obliged to give information on here, the same as they would be obliged to give to their paying customers ? You're thick.

Burger