Forums / Property Investing / General Property / Anyone purchased in Thailand?

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  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    I would never have considered purchasing in Thailand before, but am now looking at a ‘condo’ (apartment) that is returning a 11% rental yield – which seems to be fairly common?.

    Does anyone know what the capital growth has been like in Bangkok over teh last few years? Rental demand seems to be strong. Interest rates are around 6%, and prices are still cheap.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Terry,

    I lived in SEAsia for some years.

    Corruption is endemic in the region. This means that building inspectors are paid off. Building work is very shoddy and there are widespread stories of concrete being mostly sand, steel reinforcing being replaced by bamboo etc etc.

    I would also be very concerned about management there. I just know that the rich farang from Australia would be fair game to most anyone you dealt with.

    I really don’t mean to sound racist – I love the region and I really enjoyed meeting Thai people – but I would not even consider investing in Real Estate there nor doing business in the region unless I had Thai family to represent my interests.

    Sorry to be such a downer [blush2]

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker

    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    Hi Terryw,

    Sounds like a cool trip that you are on at the moment. I don’t have and direct experience investing in the region but it must be fun checking out deals in asia and other regions.

    Maybe you could spread the risk around by putting a small group together or invest directly into a trust with significant holdings in the region.

    I have still been finding properties with similar yields for ourselves and others in NZ. I have found the regulatory and banking environment very inviting.It is generally a very easy place to do business.

    Having said that I am now at the stage where I am willing to take a few more risks (NZ being a very low risk enviroment) and move into a few different areas.

    So keep us posted on your tour.

    Cheers

    [email protected] – Experienced investors living in NZ who can find properties to meet your needs!

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    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
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    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of SonjaSonja
    Member
    @sonja
    Join Date: 2004
    Post Count: 338

    Hi Terry,

    I’ve never lived there but when I was at uni I shared a flat with an exchange student from Thailand. She became a good friend and introduced me to some other Thai students. They are lovely people with an interesting culture.

    I have since visited Thailand and can tell you that if you are with a Thai national you will soon see that there are two sets of rules that apply. Those for Thai people (and their friends – helps if you can speak even a bit of the language as your Thai friend will have to negotiate hard on your behalf!) and those for the farang (round eyed tourists – not a derogatory term, just a description).

    I fully agree with Simon on this one. Although I don’t know much about the building trade there, swapping bamboo for steel sounds like a fair thing (given some of the other things I saw there). What we would call corruption in Australia seems to be standard practice and simply a way of life. You would be considered fair game but quite often with no malice intended so long as you went about your business the right way.

    Even with a friend there I wouldn’t buy an investment unless she was going to look after all dealings and transactions and get some profit out of the deal herself.

    Kind Regards,
    Sonja

    Profile photo of hmackayhmackay
    Participant
    @hmackay
    Join Date: 2004
    Post Count: 197

    Hi Terry,

    Thanks find your travel reports…. interesting.

    I spent a bit of time in Thailand when I was young and in the RAAf stationed at Butterworth, Malaysia in the late 70’s. Thailand was a great escape for young sinle guys.I guess it still is.

    I understand that xpats own quite a bit of property at the sea side resorts, Phukett, Pattyai etc.not to mention some bars.

    Maybe u could make contact with some xpats and gain some inside property kbnowledge at the bars in Patpong, if not i’m sure you’ll find some friendly Thai ladies.

    Enjoy, and I look forward to more SE Asia property updates.

    hrm

    Profile photo of MRK25TMRK25T
    Member
    @mrk25t
    Join Date: 2005
    Post Count: 15

    My fiance is Thai and her mother is buying a lot of land over there and has been for a year or two.

    I’m not sure if she is buying to make profits or if she buys to help her family and friends have a place to live.

    She is purchasing near Laos.

    Profile photo of elyseanelysean
    Member
    @elysean
    Join Date: 2005
    Post Count: 13

    I have a mate just moved over there to run an office selling in Pattaya and Phuket. The returns are guaranteed. The investment is from $70,000AUD and the returns are from 6% nett. If you buy in the letting pool you can get your returns we11 over 11%
    Regards

    Property Acquisitions for developers and investor from; Kevin

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Hi Everyone

    Thanks for the replies, I am still in Bangkok and have been looking around, and talking to people. I have heard a few bad stories such as this one:

    Western man meets Thai girl, he decides to retire and buys a house for 23,000,000B (nearly $700,000) and a mercedes benz. Since he is not a resident, he buys it is his girlfriend’s name. He then goes back to his country to get his superannuation money. He is away a month. When he comes back, the car is not in the driveway, but the lights are on. He tries to open the door, but the keys won’t fit. Then a strange man opens the door, and they ask each other, “who the hell are you?” The guy in the house tell him that he just purchased the house from a thai lady. It seems the woman sold the house, the car, and just took off.

    There are supposedly many stories like that floating around.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    I have been looking at Condo units, starting prices seem to be from about 600,000B (A$20,000) up. They are not too bad, I have rented one, and it would go for about 900,000B (A$30K). I would be content to live in this one for a long time.

    Rental yields are not all high, they would be around 8% or so. Interest rates are around 6-7%, but I have haivng trouble finding someone to borrow from as I am not working here, nor a resident.

    I have also checked out building in the countryside. Constuction of a nice and large home would be around A$20,000 with a nice large price of land at around $10,000 +. There are much higher rental yields in the country, but the capital growth is smaller.

    One problem is the ‘system’ here. The legal process is not like Australia, and if things goes wrong, the law doesn’t always help. eg. you can register caveats on land, but these are generally ignored.

    It is fun looking anyway.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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