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  1. #1
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    Now is the time to invest in Phuket and Thailand Real Estate

    So, when is the best time to buy real estate? Now? Funny you should mention it. Naturally as property agents we are biased but at this time we have even more of a reason to say "now". Furthermore, this is being reinforced by what some of Customers have said to us as well. There may be some method in this time of financial madness.

    The safe haven for those with cash is clearly not in the equity markets - just yet. No-one wants to catch a falling knife. Remarkably there is even some degree of caution being voiced about leaving large amounts of cash with a single bank and under low interest rates. Not many understand the complexity of other investment vehicles and most want to invest and leave it over time and not have to watch it every five minutes. More than a few people have come to us and commented that they may be better off at this time by investing in property.

    Sometimes, the simple ideas are the best. "What's the use of cash to me?" commented one client. "I am much better off in property and at least I know it's there and can't disappear".

    Well that is one way to look at it. Then look a bit deeper and you will find that property in Thailand, principally in the resort markets such as Samui and Phuket are mostly not financed through mortgages or secured loans. Given the nature of the market, it is a cash purchase. No loans means no bubble and far less defaults on any property that is financed.

    The only contributor to price shifts are the fundamental market movement of supply and demand. In other words, there is a degree of stability in resort market property in Thailand as there is less debt. It has survived economic crisis, tsunami's and SARS. The great majority of property has been purchased by cash as the local banks do not lend lightly to foreigners. Thailand banks have been conservative lenders, spending time since the last financial crisis to clean up the balance sheets and avoid risk. None are exposed to sub-prime.

    Transactions may be down as the middle market has been hard hit by foreign executives concerned with job security and saving for a raining day but there is a segment of astute and savvy investors with cash and they would prefer to employ this in the property sector rather than equities or idly in the bank.

    Now for another one of Phuket´s or Samui´s best kept investment secrets. Not only are the markets relatively stable but there are opportunities to purchase properties with a guaranteed yield.

    Not only is the market not exposed to the same pressures as caused by the sub-prime debacle but there are superb investment propeties
    available with guaranteed yields of up to 8% for periods of up to 5 years. If you are not looking at the yield, then look at the effective discount this brings to the purchase price of the property.

    With some Asian markets off of their peaks by 40%, a drop in the Dow of 7% in a single day and interest rates at less than 2%, a property investment
    with a guaranteed return of up to 8% begins to sound attractive. And you can use it for your family holidays as well.

    This is perhaps the time when resort marketing will come into its own and the property market which has been sidelined by ongoing political factors may now seem more attractive to investors looking for guaranteed yields, a higher degree of price stability and a place in the sun in which to escape and relax with the family.

    Reproduced courtesy of Martin Phillips, Managing Partner of Engel & Volkers (Thailand) Ltd.


    Now is the time to invest in Phuket and Thailand Real Estate.

  2. #2
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    Anytime is a good time to invest in real estate...DOH!

  3. #3
    jhc
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    Holding the cash would improve it's purchasing power when price of all assets goes down at the same time money supply contracts due to debt defaults.

    As for USA market, it looks like it is a long long way from the bottom, talking about several years.

  4. #4
    Guest Member S Landreth's Avatar
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    I’d say wait till the real-estate market is really depressed here before investing into property. Wait until most of the rest of the world is into the recession/depression and tourism is way down here then consider real-estate in Thailand. Maybe another 6 to 12 months before buying.
    But watch prices in the area you are interested in buying, for at least a year before purchasing a piece of property here.
    Be wary of people (real-estate people and or developers) telling you this is the best time to buy. They might be sales people and will only make money off of you buying into their BS.
    I have also seen the construction practices here in Thailand for the past several years,…… Look into how your “new” purchase was built (if you can), The developer might still be building other homes in the development,……go and watch. More than likely, your home (or what might be) was built the same way (same construction method/s).
    One more thing,…………….Condo’s! Careful if you buy one. I know a woman here in BKK who owns a Condo. It was a pretty new development when she bought her unit. All the units have been sold out for years where her Condo is located and they are having trouble getting other Condo owners paying their yearly assessment fees. Now there is a lack of security at the building and maintenance (of the building) is going down hill. Look at the Condo’s assessment agreement closely before you buy. Look into how and when they can raise your fees/dues and look at the penalties if you don’t pay them. If there are not any real penalties in paying fees, why would people pay in the future?
    Property prices are coming down around the world (most of it). These developers and property speculators will get desperate,….buy then. Make them sweat,……………the developers are loosing money every day they hold on to the property trying to pay the bank back for their loan to build.
    Keep your friends close and your enemies closer.

  5. #5
    Rhubarb, rhubarb, rhubarb
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    Buying into the Phuket property market would be a terrible decision.
    There is a surplus of developements, a massive surplus.
    Prices do not go down in a recession, they just stop going up.
    Tourism is going to suffer big time here over the next two years, so, who is going to rent your property?

    The only reason to buy property here now, is if you intend to live in it.
    Phuket - Veni Vidi Veni

  6. #6
    jhc
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    It would make sense to wait until you finally start steady increase in property prices over time (maybe a year or so) before buying. Hard to pick top or bottom of any markets.

    If one pay cash just to live, then so be it. Being on debt is another thing.

  7. #7
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    lest trustworthy people are real estate agents

    In this country the least rustworthy people are real estate agents...OZ.

    In unregulated Thailand I am sure they can be trusted NOT. I's NEVER a good time to buy real estate in Thailand unless you are Thai. There are literally HUNDREDS of nightmarish stories on the net about some of the pitfalls......It may be lucerative being a realestate agent in Thailand - but I couldn't live with myself and sell real estate in Thailand.

    Let the fun begin

    Gateway

  8. #8
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    Begbie's Avatar
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    Prices never drop in Thailand. The property just stays unsold and rots away. God forbid that a Thai would ever lose face by dropping the asking price.

  9. #9
    សុខសប្បាយ
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    Buy real estate in Thailand at the moment? Not a word of it!

    It might not be safe for us to be here in 6 months and the country could be at war with itself.

    Worst possible time to consider moving to Thailand or investing here IMHO.

  10. #10
    I am in Jail
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    Turd

    You have obviously not taken an interest in recent Thai history, say from 1932 onwards

    You are either just incredible naïve, or just thick …………you really need to go home

  11. #11
    I am in Jail

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    is this Martin Phillips, Managing Partner of Engel & Volkers on prozac?

  12. #12
    I am in Jail

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    Jojo333 are you related to Paul Smithson by any chance?


    18 or 19 coups a stable economy

  13. #13
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by Begbie
    Prices never drop in Thailand. The property just stays unsold and rots away.
    Yep. Don't be fooled, no matter how you do the math to decide if you should buy real estate in Thailand now the answer always = 1997.

  14. #14
    សុខសប្បាយ
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    Quote Originally Posted by jojo333
    You have obviously not taken an interest in recent Thai history, say from 1932 onwards
    WTF does my knowledge of Thai history have to do with what may or may not happen in the near future?

    Thailand is in a major crisis at the moment; there are tens of thousands of pro-Thaksin supporters gathered in Rajamangala waiting to hear him speak tonight.

    You'd have to be a complete fool to invest anything in Thailand at the present time given the tenuous political situation, the strength of the Baht, the slowing global economy, etc, etc, etc.

    But let me guess, you're a complete fool. Am I right?
    Mortals you defy the Gods, I sentence you to travel among unknown stars, until you find the Kingdom of Hades, your bodies will stay as lifeless as stone.

  15. #15
    Thailand Expat
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    fools and their money are easily parted

  16. #16
    សុខសប្បាយ
    EmperorTud's Avatar
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    Quote Originally Posted by jojo333
    You are either just incredible naïve, or just thick
    Spot the irony.

  17. #17
    Thailand Expat terry57's Avatar
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    The most risky time to buy real estate in Thailand must be :

    Any time a punter decides to buy land and property in a Thai wifes name. Now thats got to be the most risky investment a fella could ever make.

    At least if you buy a condo you can own it freehold and not sweat about your money going down the shit shoot after you have a falling out with your one true love.
    Stroller is a Yerman faggot.

  18. #18
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    Quote Originally Posted by phunphin View Post
    Anytime is a good time to invest in real estate...DOH!
    Better to put that wad into business. Purchasing property in Thailand is not a secure venture for Farang, unless it is the old homestead.
    Last edited by Rural Surin; 01-11-2008 at 04:50 PM.

  19. #19
    សុខសប្បាយ
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    Quote Originally Posted by Rural Surin
    Good time to purchase as the market is down right now. It will be bound to get better.
    Couldn't be a worse time to purchase IMO, especially if you are transferring money into Baht. Market levels are nowhere near reflective of Thai real estate's actual value either.

    There will possibly be a crash in the Baht and a real slump in the market soon.

    But these things are immaterial in comparison to what may happen politically to Thailand in the coming months, making any investments at the moment ultimately a very risky proposition.

  20. #20
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    When there is blood on the streets...buy real estate.

    I bought.

    But I have a wife with a nice arse.

  21. #21
    Thailand Expat Texpat's Avatar
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    I would never buy real estate in (rural) Thailand for investment.

    For a roof over your head and a place to keep your shit, and a place to shag without the neighbors watching -- OK. To ever believe it'll someday be worth more than the day you bought it is mere fantasy.

    Houses start declining in value and just keep going. Paint it, repair it, keep it looking good, but the perceived value is based on how old it is -- like cars.

    I don't know how much of this dynamic is at work in Puke-et, but I'd imagine it applies to a smaller degree.

  22. #22
    Thailand Expat terry57's Avatar
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    The most sensible way to buy property in Thailand is to always realize that you could loose the lot in a milli_second.

    In other words be prepared to let it all go down the shitter , loose the lot and its not a problem especially up north where you can buy a place for piss all.

    Consider it a 50-50 gamble, much like going to the races.

  23. #23
    I am in Jail
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    Went to Hua Hin, this week, saw some interesting properties,

    Sheraton just built those beautiful beach house in a very posch mooban,

    quite tempted to buy, but a bit steep despite the quality of the construction, too small for that price. Maybe when prices crash next year, I might go for it, maybe 6 or 7m they could be an "interesting" investment, but at 14m as they are currently, they are definitely overpriced, and yet almost everything was sold to some rich Thais

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