Property in Hua Hin

[Whaler]

Personally I find it a bit strange using the word investment when it comes to property in HH and many other popular expat locations worldwide.

We all come here many different reasons but I think very few and far between are speculating on the housing/rental market as part of a managed portfolio, there are better and easier opportunities elsewhere.

Of course we all like to think we are buying something that increases in value or we got a bargain and the kid’s inheritance etc. According to some there is no better time to buy in a depressed market. You can even increase the odds by buying a new build where it has possibly slightly more potential if all goes well as there are new and existing buyers who only want a finished property and not prepared to wait or expose themselves to some risk.

I think if you consider your time in HH as short term (< 5years) then possibly renting is a far better option or if you are overly cautious and of course personal circumstances.

For longer termers, retirees and those who just want their place in the sun many other personal factors come in to play which override the risk of devaluation.

I guess under the umbrella of contingency planning of should you wish to sell up you hope to get your money back plus a bit is the same risk anywhere in the world and depends on what part of the housing cost cycle you buy in and sell out on.

Factoring in fluctuation in exchange rates is just a crystal ball exercise these days on trying to guess what it will be in 3, 5 10, 15 years later should you decide to sell and ship out.

If we sat and analysed everything in terms of cost/depreciation/investment we would never buy cars, laptops etc etc let alone houses

[hhfarang]

If we sat and analysed everything in terms of cost/depreciation/investment we would never buy cars, laptops etc etc let alone houses

I do, that's why I'm still typing this on the same keyboard I bought eleven years ago along with the same desktop, scanner, printer and sound system... and I'm still driving the same vehicle I bought in 2004 when I showed up here and expect it to last the rest of my life. I play with golf clubs that I bought in the late '80s and I have furniture (and probably clothing) here right now that is older than my wife.

I analyze every purchase I make and buy what I think is made well and will last but the property market here as well as the world economic situation over the last few years took me by surprise even though I thought I had done my due diligence.

[GLCQuantum]

At the moment I would think anyone to be incredibly stupid to buy rather than rent a property here (please remember that this is simply an opinion based on experience before you reply) when there are so many decent places to rent for cheap. No hassle, No rip offs, No scams, No building problems, No '99 year lease' bullshit... ( I still love this sales approach just for the comedy value 'Come and buy a house outright and we'll make you a deal to make you feel like your renting it' ) ...to negotiate , No wives trying to take it away from you, No problems to deal with when they find out your work permit is based on a phoney company and the phoney company is the name on the land, No living in a crappy little farang village estate with all the rumour spreading, moaning and everything else that happens in the farang estates, No paperwork hoops to jump through which you may just have to jump through again next year when they change the rules, No guys breaking in to your place because it's not located in a little farang community village and that's where the money is, No maintenance hassles to deal with as most rental properties will accomodate you for no charge if you are paying the rent every month for a long contract, No having to deal with real estate guys (though some are sound - guys on this forum seem to be)..... no worries really!

[Pleng]

Amen that bro

[Super Joe]

No '99 year lease' bullshit... ( I still love this sales approach just for the comedy value 'Come and buy a house outright and we'll make you a deal to make you feel like your renting it' )

Buying leasehold (Usufruct etc) in full up front is nothing lik a rental deal would be, renting is far more costly, typically your rental payments would use up the initial capital investment sum that us average Joes stick in a building society after around 12-16 years. For instance a 5m Baht 3 bed villa (Western-'style') with pool works out 10,000 Baht/month if you lived 40 years, you'd be paying approx. 25k/month rent for that now. What will the rent be in 10 years time, 35k-40k/month... what figures etc are you basing your opinions on then??

Where I have a big problem is how to invest any initial capital not spent on property, (the 5m Baht purchase price), to protect it not only against 'property inflation' which is often high, but against just basic inflation as I know my money would actually be losing value each year and going backwards when I see 2% saving rates and 4.2% inflation. I'd be interested to hear how you feel an average person can plan against inflation GLC, in other words how are your savings not devaluing each year cos I've only ever lost money this way. Property has always increased in value long term over and above inflation for me and everyone I know, what exactly is this formula you believe exists where investing cash and renting will prove to be a better financial investment than buying property. I have a suspicion your reply could involve burglaries and farangs who give all the rights to their wives though.

No wives trying to take it away from you, No problems to deal with when they find out your work permit is based on a phoney company and the phoney company is the name on the land, No paperwork hoops to jump through which you may just have to jump through again next year when they change the rules

This is 5-6 year old information, no-one uses this route any longer.

No maintenance hassles to deal with as most rental properties will accomodate you for no charge if you are paying the rent every month for a long contract, No having to deal with real estate guys (though some are sound - guys on this forum seem to be)..... no worries really!

There's two side to everything I guess, I have rented here and know many that do or that lease shop units and my view is... No maintenance unless you're very lucky with your landlord, No say over how long you get to stay there if they want you out to sell or whatever, No guarantess your rent won't be hugely increased once you're all settled in, No return of deposit on many occassions. No protection from inflation/exchange rates so no guaranteed roof over your head for the rest of your days (Usufruct), No hedge against Hua Hin developing into a real first-class resort and the inflation that goes with that, No asset to re-mortgage when you have a financial/health crisis. And for those who do not have significant other finances, and/or who's income will end upon death etc... No way for many farang's wives and kids to remain in the home should you pass away and your income stops, No way for your children to be provided for as you would have liked, No nest egg to leave the wife and kids, Nothing to show at the end decades of paying rent.



Your comment that people would be 'stupid' to buy at the moment (when prices are very low ) indicates you are unable to consider that in a lot of cases buying suits people's individual circumstances better, and renting suits others' circumstances better, I'm sure you don't really believe it is black & white. Why are you unable to just accept that some people prefer buying to renting without all the immature comments about intelligence levels, 'crappy villages' with 'gossiping'... do you believe there are no sub-standard properties outside developments... do you really believe Thais do not gossip and spread rumours I get the impression you are not too ofay with this in general if you believe people still buy via companies and can only buy houses in farang style projects. Are all them houses outside the walls of a development, like ours, only available to rent!?

SJ

[GLCQuantum]

Yeah went off on a bit of a rant with that one....

I suppose most of my feelings stem from being unable to afford a house

Still would rent given the choice though.

[johnnyk]

Yeah went off on a bit of a rant with that one....

I suppose most of my feelings stem from being unable to afford a house

Still would rent given the choice though.

Kind of like hating women because you can't get laid.

[GLCQuantum]

[Pleng]

..and so they all moved to Thailand??

[TypicallyTropical]

At the moment I would think anyone to be incredibly stupid to buy rather than rent a property here.

I know lots of people you call "stupid" and they all became rich with their real estate investments. Renting is not an investment. Sorry, let me rephrase that, renting is an investment to the landlord but not to the the tenant.

[Pleng]

There's a golden rule when it comes to investing money in Thailand. And it's not one that will sit happy with any of the sponsors of this site; do not invest what you can't afford to loose.

Luckily or not, I can't afford to loose Jack. So that's exactly what I shall be investing.

[johnnyk]

If you do want to buy now is a good time. Low-ball offers can be successful in a buyer's market.

[Super Joe]

There's a golden rule when it comes to investing money in Thailand. And it's not one that will sit happy with any of the sponsors of this site; do not invest what you can't afford to loose.

Sure farangs who can not afford to lose a property and then proceed to register all the property rights in someone else's name, and not their own, should probably not be buying it in the first place. Common sense I guess.

I doubt many do this in their own country so baffling why they choose to do it here.

SJ

[TypicallyTropical]

There's a golden rule when it comes to investing money in Thailand. And it's not one that will sit happy with any of the sponsors of this site; do not invest what you can't afford to loose.

That is applicable everywhere and for any ivestments. Don't buy any property you can't afford and don't invest any money in anything that you can't afford to lose!

[TypicallyTropical]

Sure farangs who can not afford to lose a property and then proceed to register all the property rights in someone else's name, and not their own, should probably not be buying it in the first place. Common sense I guess.

I happen to agree with you SJ, I married three times and I didn't go into any of them with thinking "I will get divoced!" Protecting the wealth that you accumulated during your lifetime is important IMHO, and signing over a big chunk of it to anyone 20-40 years younger just because she is cute, and loves you for your receeding hairline, and increasing weight, is not a very smart idea in my book. (No offense to anyone.)