Should you buy a condo or rent?

[Huggybearman 3]

Not really a good indication as most condo owners dont live there permanentlyu - at least 51% will have bought it as a weekend retreatThink about it

Yes of course, I take your point. I wasn't suggesting that all these units remain unsold, or even unoccupied. In my own own condo block, which has about 70 apartments, I know that at least 10 are completely empty. The studio unit I used to rent is still empty after 18 months. It is owned by an Australian, who has several properties so it does, I suppose, fit your definition as owned. He hasn't earned anything from it for a long time, and he certainly doesn't occupy it. But he still has to pay the maintenance charges on it.

 

I have a couple of properties in the UK which I rent out and regularly keep my eye on the property market here to keep myself appraised of the market. Whilst I appreciate that everyone's circumstances are different, I have seen very little to alter my view that buying property here is not a particularly smart financial move in my case.

 

There was an article about six months ago in the property section of one of the Pattaya newspapers saying that there are about 75 large condo projects in the area with over 50,000 units either under construction or in the pipeline. That is in addition to the condos currently on the market!

In January there was a 'Giant Property Extravaganza' sales exhibition featuring more than 50 exhibitors held over at 4 days the Pattaya Hilton hotel. On the day I visited there seemed more exhibitors than visitors. And admission was free! A subsequent article in the local paper featured the organiser who said that the show had 'over 2000' visitors.

I don't think think that's a great attendance figure for such a heavily advertised show in such a prominent location.

 

Not that one should infer anything directly from that regarding the state of the local property market, but it is indicative that the market is not as buoyant as they would lead us to believe!

 

I remain very happy to rent!

Edited March 10, 2014 by Huggybearman

[nkped 1,208]

Once I had realised that renting was my preferred option I moved in to a 110sq mt one bedroom condo and have to say I have no regrets.

If I might ask, what kind of rent are you paying?

[Huggybearman 3]

If I might ask, what kind of rent are you paying?

I pay 20k per month.

[Gonzo 419]

had to

I pay 20k per month.

Four years rent would buy you a condo in Jomtien. I had to pay that much for a second carport in my apartment building in Australia. A friend bought a small condo in Jomtien for 450K a while ago for storage.

 

[atlas2 4,329]

I bought at 68 baht to the GBP

I fitted it out in an all white minimalist style that suits me.

I recouped my initial outlay on a 'rent saved' calculation a few years back.

My total outgoings are under 2,000 bt a month and a yearly maintenance payment of 5000 bt.

Plus if I ever sell I should make a profit.

 

A friend from UK is looking to move out and spend 6 months a year here. @53 baht to the pound and considering he's 70 years old, in this set of circumstances I've advised him to rent. However, he sees that the advantage to him of buying as being, (again) that he can fit it out how he wants and also that he has somewhere to store his golf clubs and personal things for when he returns.

 

Personal choice.

 

The freedom of the renter against the bespoke comforts of the owner.

 

Outlay of the owner against the throwaway of the renter.

 

Personal circumstances and choice apply.

Edited March 19, 2014 by atlas2

[MM 6,562]

Four years rent would buy you a condo in Jomtien. I had to pay that much for a second carport in my apartment building in Australia. A friend bought a small condo in Jomtien for 450K a while ago for storage.

 

CHEAP CONDO.JPG

Gonzo, I think the comparison of rent vs own would be how many years would he have to rent at 20K/month to get an equivalent unit to what he has now.

 

I think the breakeven point would be a lot longer in that case.

[Gary 4,118]

I didn't buy my condo for an investment. I bought it because I liked it and wanted a nice place to live. I can also decorate it however I want. It also serves as a security blanket for me. I don't live there and after about 10 years, I don't expect my wife to throw me out of her house but one never knows. I use it as an occasional getaway from the small village life in Issan. It is fully furnished complete with a computer, two TV's, a washing machine and some of my clothes. I'll always have a roof over my head and no rent to pay. I could move back in tomorrow and only need a backpack full of more clothes.

[nkped 1,208]

I pay 20k per month.

Thanks.

[js007 795]

Nio matter where you are, there's some security in owning a place vs. renting. Once you buy a place, you're shielded from rent increases. To me, that's would be the primary attraction. To be sure, rents in Thailand are cheap, for the most part. At present, renting seems to be the way to go. But who much longer will that be the case? No one knows for sure.

 

Anyway, I'm still thinking about buying something in the under 2 million baht range. Once that's a done deal, I'll always have a place to go.

[jacko 8,813]

Four years rent would buy you a condo in Jomtien. I had to pay that much for a second carport in my apartment building in Australia. A friend bought a small condo in Jomtien for 450K a while ago for storage.

 

CHEAP CONDO.JPG

No point comparing prices to Darwin.... try buying a carport in London!

The picture is a condo in Bang Saray isn't it?

There will be A LOT of condos coming on-line in the next 12 months, what do you think that will do to rents and the resale market.

I did a quick search and the only condo under a mil I saw was a studio of 28 sq metres.

It is a rabbit hutch.

Edited March 19, 2014 by jacko

[Gonzo 419]

No point comparing prices to Darwin.... try buying a carport in London!

The picture is a condo in Bang Saray isn't it?

There will be A LOT of condos coming on-line in the next 12 months, what do you think that will do to rents and the resale market.

I did a quick search and the only condo under a mil I saw was a studio of 28 sq metres.

It is a rabbit hutch.

Hi Jacko, I was trying to point out how easy it is to afford to buy one’s own condominium in Thailand compared to other countries. True enough, the same can be said about renting a place here.

 

Since you mentioned London, I have been watching a series on Deutsche Welle TV lately, where couples working abroad are looking to buy or rent accommodation in several cities, like London, Vancouver, New York and Shanghai, just to name a few.

 

Last week it showed a young German couple checking out a very ordinary 64sqm flat in Brixton for 350 quid per week. That gives me a good idea how much it would cost to buy or rent in one of the better areas of London.

 

Since you mentioned Darwin, the real estate prices have gone through the roof there, since it was decided to move a large part of Australia’s defence capability to the North of Australia a few years ago and after the NT Government managed to get the 10 Billion Impex gas project for Darwin harbour.

 

In my opinion there is no right or wrong answer whether one should buy or rent in Pattaya, without considering one’s own circumstances and preferences. I would not completely dismiss buying a shoebox-sized 28sqm condo for a million baht, if I had little saving and had to rely on a pension. That little shoebox-sized condo would cost 10 times as much in Brixton or in Darwin.

 

[Gabor 296]

Buying a condo for yourself IF you spend some major times in Pattaya isn't an investment, but an expensive choice to buy your comfort... Of course only if you are attentive to choose the right condo.... ( considering the neighbours, the maintainance fee, the condo comittee, the location etc...etc... ) I simple love to come back home to my own designed condo... I left my things here, not living like a homeless...Also consider the airlines 20 -23 kilo baggage restrictions... I want my own coffee maker machine, my things I love for my comfort I brought here in the years I live / spent long term holidays here... In a rented condo you will have only the basic comfort, not your owns... And I repeat... IF you spend some major times in Pattaya... months...

[guyinthai 3]

I looked at condos in 2006/7. The prices were far lower than what I see now despite all those 'great' (?) offers. The first big headache where those real estate people. I behaved very friendly and listened and also nodded a lot. One sick person, a lady, was offering me a condo with a one year rental deal (she claimed to have a tenant) for just 1.1 Mill. Too bad that I had seen the place offered for 1 Mill online. She just tried to make 100K more. The redeeming part was that she told me of her investment in the Ocean Tower, the tallest condo in the world. :)) Seems she had made another mistake.

 

I did not buy. Not sure if it was the right decision in the end but so far I am comfy with it. It is not alone all the trouble with bad managements, corrupt committees, the ktv around the corner, neighbors etc. A large part is the rapid built up in the city. The air is more and more polluted and it is getting ever more hot in the city. The concrete is turning the place into an oven. Plus I m waiting for the last trees cut down. Did I mention trafic?

 

Not having a condo and profiting from comparably cheap hotel or rental prices allows me to move to places I like and check those out. This flexibility is not good for everyone but it suits me. I can manage Pattaya for some time or a while but ultimately I want to be closer to a beach (one that deserves the name) or some nice countryside or a place like Chiang Rai, Chiangmai etc. Pattaya is a bit like BKK now but without the river and the urban spaces.

 

The building boom plus the strong baht make almost any balance sheet of a condo purchase look ok. I dont think, however, that it reflects quality of life.

 

I also used my funds for something else and it turned out nicely. Taking this aspect and the flexibility together it was the right decision for me.