Should you buy a condo or rent?

[jimbbc 5]

This is a follow-up to "condo for sale by owner"

 

It is now sold and here are the results:

I bought a 26 SQM unit at Nirun condo 10 years ago for 350,000 baht and remodeled it at a cost of about 60,000 baht, then lived in it for two years, at which time I bought a double unit at Nirun.

I then rented the 26 SQM to mostly Thais at 5000 per month. A Thai manager handled it for 10%. The only other cost was 300 baht homeowners fee and I had to replace one toilet and had very few vacencies until the last 6 months because it's now dated and needed remodeling again but I decided to sell it 'as is' instead.

The sale price was 500,000 baht which I consider I got my money back, however the rent money was always welcome on my annual visit of usually 4 to 6 months and paid a good portion of my expenses.

Note; the Thai manager deposited my money into my Bankok Bank account and I was able to check it on line.

 

Compare that to renting. Renting is better for flexibility but on most other levels, I believe buying is better if you plan to spend much time here. I'm still living in my double unit, don't rent it in my absence, and really enjoy having my own stuff the way I like it, ready for me whenever I arrive. The only holding cost is the 300 baht HO dues.

 

One of the keys to a successful rental is the manager and the only one I would recommend at this point is Michael at Dancewatchers.com, of course he only handles high end units which is why he did not handle mine. My Thai manager was good but there were a few communication problems especially when I called him on Skype.

 

 

[eyes4thais 0]

Personally i would always buy, but in Thailand I would question if this is the correct policy.

If you rent and have a problem you can always walk and worse scenario is you lose one month rent.

If you buy a condo and, fall out with the neighbours or the maintenance charges rocket you have a problem and can not just walk away.

[jacko 8,577]

Nice to hear of somebody doing well... but perhaps the currency fluctuation helped out too.

2004 would have made been a good time to exchange those USD.

And the Pattaya condo market (it's rapid expansion in the last 5) no doubt very positive.

 

Personally the Nirun would not suit me.... a one bedroom unit with a sea-view on Jomtiem might have.

As to buy or rent, depends on a person's age and financial status.

I see it as a renter's market at the moment, and a 65 yo retired single man whose finances are limited should not consider buying a 2mil condo he could rent for 10k a month and restrict his spending.

Do you have any personal opinions on how the 'condo market' may go in the next year. Can the prices hold up, or go even further up?

[BigDUSA 71]

Given the ongoing political instabilty. I'd be extremely hesitant in investing a considerable amount of money in Thailand.

[Fatboyfat 361]

As Jacko sort of alluded too, it is a bit pointless buying anything if you are beyond say 60 ish, and have no dependants requiring cash or a place to live when you kick the bucket. "Extreme" LDOPs and people with just too much dosh excepted of course. LOL

Due to huge over-supply, rentals are good value in Pattaya, as long as you avoid the very obvious con-merchants.

[Gary 4,066]

I bought my condo when the exchange rate was 41 baht to a dollar. I was kind of a niche buyer. I didn't want to be too close to the beach. The breeze is great but the salt air causes exposed metal and electronics a lot of problems. My unit is less than a kilometer from the beach, so it is within walking distance with several bars along the way. I also don't like the narrow hallways that the high rises have. There is always the risk of a fire. My unit is on the third floor of five story buildings. I very seldom used the elevator. The rectangular buildings are open in the center and when you step out your door you are basically outside.

 

I lived in an apartment for a year or so when I made the move to Jomtien. I resented the landlord jacking up my electric bill to nearly double what the power company charged. I wasn't permitted to change any colors, furniture or even hang a clock on the wall. I can change anything or do anything I like with my condo. Maybe the most important thing is that a separate bedroom was a must. That means a shoe-box size unit definitely wouldn't do. Living with a Thai lady in a studio size unit would drive me crazy. She has her TV in the living room and mine is in the bedroom.along with my computer set up. I now live upcountry and the condo sits empty. I like having a nice place to stay when I want to get away from the house. I rented it for a while but decided that when the renter moved out, I would keep it just for myself. It still has everything I would need to move right back in.

 

My Thai wife would have no claim on it if she would decide to throw me out of HER house. The condo is in my name. That's a big reason to buy your condo BEFORE you get married. I could move back in tomorrow. I will always have a roof over my head and I wouldn't miss any meals. I feel good having a security blanket. In my case, I could easily double my money. But why sell it? I'm certainly not a wealthy man but I do live comfortably.

[Sweden 5]

Not sure I agree when you say renting gives you flexibility. For me flexibility is to be able to come and go when you want, without the hassle of trying to find a place at reasonable price.Be able to travel with just a small suitcase. Have all your things when you get there. Have a place to park your car/bike. Be able to have decent size tv with a decent programs. To have personal stuff wich is difficult to take back and forth etc. A second home

[Gary 4,066]

Sweden said it much better than I did. After a nine hour drive from upcountry, it would be a pain in the ass to be looking for a place to stay. About two weeks ago I made the trip and went directly to my condo, made myself something to eat and had a couple beers from MY refrigerator. On the other hand a friend of mine came down from Chiang Rai. He had a difficult time even finding a room. He ended up in a tiny 800 baht per night shit hole of a room. He could have slept on my sofa but that didn't fit his plans very well, LOL.

 

The 12,000 baht per month rent I could get would be nice to have but you only live once and you can't take it with you.

[jacko 8,577]

If you are going to live in Pattaya most or all of the time, that is somewhat different from turning up occasionally and trying to find somewhere to stay.

 

I suggest few would want to own a condo and leave it empty for 48 weeks of the year for their 2x2week visits.......

A slight extravagance for many.

 

Even then, a long term rental may be better than an ownership.

The weeks you can't find any-place to stay in Pattaya are but a few.

 

Everyone is different, and buying a condo is a serious spend. Despite my being anti-buying, I suspect some-time in the future I may go to live elsewhere in Thailand and hope to come back to Pattaya for 2-3+ months of the year. For that situation I would of course prefer a place I owned. I may regret not buying sooner than later, I think I do already. The spend on my current house put that idea to bed.

[Gabor 296]

I'm on the buy side.... and I warn everybody: only buy if you are ready to lose this money...I bought my very first condo 11 years ago for 860.000 baht... sold it a few years later for 1.2 mill ( way under the going prices ) ... bought my recent one for 1.5 mill... The asking prices nowadays for the same is 1.7-1.8 mill.... despite i bought two other condos for 1.55 mill at the same times... so IF... I'm ready to sell it for 1.5 mill if it is urgent... BUT I lived in it more, than 10 years...no any losses...And the comfortable lifestyle as Gary mentioned....all of my comfort details I designed in my own condo... my home... not a run down rental... ( I witness many of my ST in Pattaya mates receive... )

[Gonzo 419]

If you are going to live in Pattaya most or all of the time, that is somewhat different from turning up occasionally and trying to find somewhere to stay.

 

I suggest few would want to own a condo and leave it empty for 48 weeks of the year for their 2x2week visits.......

A slight extravagance for many.

 

Even then, a long term rental may be better than an ownership.

The weeks you can't find any-place to stay in Pattaya are but a few.

 

Everyone is different, and buying a condo is a serious spend. Despite my being anti-buying, I suspect some-time in the future I may go to live elsewhere in Thailand and hope to come back to Pattaya for 2-3+ months of the year. For that situation I would of course prefer a place I owned. I may regret not buying sooner than later, I think I do already. The spend on my current house put that idea to bed.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

I am happy I bought my little 45 square metre corner unit in Jomtien at a very fair price from a Scot seven years ago. You would remember him from the expat club, where he used to be a regular member. I only paid 1.5 million baht for the condo and had it totally refurbished for less than 50000 baht by a very good Thai builder and his electrician mate, who rewired the place perfectly. The little money I paid I would have paid in rent in the last seven years. The condo has a very nice kitchen as well and the missus loves cooking good Thai and our favourite Farang meals, Unlike other Thais she developed a liking for Farang food when we went to Australia on our three last trips there.

 

Our place is nice and quite on a high floor on the other end away from the noisy Second Jomtien Beach road. There is good undercover 6 level car park as well. I would never sell the place, even if I decided to move back to Australia on a permanent basis. I would then just keep the condo as a holiday home.

 

Having your own place also allows you to travel with only cabin luggage, as everything we possess here is also over there in our place in Australia.

 

Cheers mate,

 

W.S

Edited January 25, 2014 by MM
Moved reply outside of quote

[tuba 0]

I'm all in favour of renting a 'run down condo' as a new expat this year. I've stayed in military accommodation so I'm ready for the luxury!

[globaljonesey 6]

Its risky business buying property in Thailand as there are few laws that cant be broken. karaoke bars opening up next door and making your life unbearable is something I would worry about. also noisy neighbours and of course the potential flyover being built in front of you beach view .............

 

Having said that, the exchange rate right now looks good and there is money to be saved with no rents if you own

 

I'm happy to rent knowing I can move should I need to.

[mrlasvegas 124]

Anybody know about financing a condo? I have seen a few different versions. Thai sales person told me I could finance through a Thai bank if I had a residency visa or formed a business in Thailand. I have seen ads for Singapore banks that will finance up to 90% if you have a suitable income level. What do most people do?

[Gary 4,066]

Cash is king. I don't personally know any farang who has been able to finance a condo through a bank. Once in a while you will find a farang who is willing to finance his condo by himself. But, be prepared to pay a very high interest rate.

[9cisco999 107]

I bought my condo when the exchange rate was 41 baht to a dollar. I was kind of a niche buyer. I didn't want to be too close to the beach. The breeze is great but the salt air causes exposed metal and electronics a lot of problems. My unit is less than a kilometer from the beach, so it is within walking distance with several bars along the way. I also don't like the narrow hallways that the high rises have. There is always the risk of a fire. My unit is on the third floor of five story buildings. I very seldom used the elevator. The rectangular buildings are open in the center and when you step out your door you are basically outside.

 

I lived in an apartment for a year or so when I made the move to Jomtien. I resented the landlord jacking up my electric bill to nearly double what the power company charged. I wasn't permitted to change any colors, furniture or even hang a clock on the wall. I can change anything or do anything I like with my condo. Maybe the most important thing is that a separate bedroom was a must. That means a shoe-box size unit definitely wouldn't do. Living with a Thai lady in a studio size unit would drive me crazy. She has her TV in the living room and mine is in the bedroom.along with my computer set up. I now live upcountry and the condo sits empty. I like having a nice place to stay when I want to get away from the house. I rented it for a while but decided that when the renter moved out, I would keep it just for myself. It still has everything I would need to move right back in.

 

My Thai wife would have no claim on it if she would decide to throw me out of HER house. The condo is in my name. That's a big reason to buy your condo BEFORE you get married. I could move back in tomorrow. I will always have a roof over my head and I wouldn't miss any meals. I feel good having a security blanket. In my case, I could easily double my money. But why sell it? I'm certainly not a wealthy man but I do live comfortably.

.

 

 

 

When you're not living in your condo, Gary, don'y you still have basic utility costs as well as the maintenance costs paid to the association? And what about internet? Don't you have a 12 month contract on that as I found I needed to have.

 

Nice to have a place to get away to I think but it seems it'd have some expenses attached to it as well.

 

 

Yeah, I didn't think too much of the double electricity rate in a rented condo.

[Gary 4,066]

.

 

 

 

When you're not living in your condo, Gary, don'y you still have basic utility costs as well as the maintenance costs paid to the association? And what about internet? Don't you have a 12 month contract on that as I found I needed to have.

 

Nice to have a place to get away to I think but it seems it'd have some expenses attached to it as well.

 

 

Yeah, I didn't think too much of the double electricity rate in a rented condo.

 

Maintenance and insurance cost 600 baht per month based on 10 baht per square meter per month.. Utilities are very little when it is empty. I use Mama WiFi when I am there, that cost 250 baht per week or 500 baht per month. It's not great but it's not too bad.

[Obsession 571]

The wifi dongles are stable and fast nowadays. Stable enough for guys to play poker online. So you wouldn't need an internet contract.

[jacko 8,577]

The wifi dongles are stable and fast nowadays. Stable enough for guys to play poker online. So you wouldn't need an internet contract.

A lot of smart-phones can supply you with an internet Wi-Fi hotspot in your condo for the weeks you are there can't they?

Likely an easier option than having hard wired connection that costs you every month with or without usage.

[Obsession 571]

A lot of smart-phones can supply you with an internet Wi-Fi hotspot in your condo for the weeks you are there can't they?

Likely an easier option than having hard wired connection that costs you every month with or without usage.

 

Yes, you can use a smartphone as a wifi hotspot. Dongles are just really simcard holders, but without the phone gear. You could just use the sim in the phone and use wifi. I was trying to find the bookmark I have for the one poker players use. I will post it if I find it.

[papillon 695]

Obsession, on 02 Mar 2014 - 11:36 PM, said:

The wifi dongles are stable and fast nowadays. Stable enough for guys to play poker online. So you wouldn't need an internet contract.

 

WIFI Dongles

 

Are they a new gadget?

[Severn 109]

I use a 3g dongle on 12call 3g Pay as you go bundle which works quite well on my netbook using a usb port.

 

I am interested to know how I could benefit from having a WiFi dongle instead. Where do you buy them and how much do they cost?

 

The wifi dongles are stable and fast nowadays. Stable enough for guys to play poker online. So you wouldn't need an internet contract.  

 

posted from my Samsung using Tapatalk 2.

 

Edited March 3, 2014 by Severn

[jacko 8,577]

I am thinking Obsession meant a 3G Dongle (SIM card inside) which uses the telephone network to connect a computer to the internet.

That is what I use when I am in the UK.

No 'Wireless network' involved...which these days seems to be called WI-FI!

I believe if you have the software that matches your phone (Nokia Suite for example) you can just connect the phone via USB to the computer and get internet connection that way.You should have some package/bolt-on with your phone network supplier.

 

There might be an unsecured Wireless network in range too!

[Huggybearman 3]

I have been living in Jomtien since 2009.

 

When I retired here my intention was to buy a condo unit and looked at many with a view to purchase. In fact there was so many, both new and second hand, it seemed to me that resale might well be problem in the future.

Although I first came here in 2008 I wasn't sure exactly where I wanted to buy, and thought it sensible to rent for a few months first.

Over the following weeks it became very clear to me that there was a huge number of units for sale and it also became clear that maybe buying wasn't such a sensible option after all. (to get an idea have a look at the vast number of condo units which are empty/unoccupied at night!)

I have been an amateur investor on the stock market for a few years now so, whilst looking for a suitable condo I continued to trade with the money I had earmarked for the purchase. My aim was to be able to make on stocks what the rent was costing me. In reality, over the intervening years, not only did my trading pay for my rent, but has in general paid ALL my living expenses in Thailand. So my UK pension has remained largely untouched.

Another aspect, which I hadn't really considered at the time, but has become really important to me, is that my trading has given me a hobby which I have found very satisfying.

Another advantage of renting is flexibility. My first unit was a 48sq mt. studio. 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. I could, if I so desired, change condos every year. Something that would be very difficult if I owned rather than rented. Another aspect is I don't pay maintenance charges or repairs. Water and electric are standard rates paid direct to the utility company.

 

Of course, I understand that investing is not for everybody, and carries inherent risks. But I do a lot of research and usually invest in 'blue chip' type companies, and make sure I have fairly tight stop losses in place to minimise such risks.

 

And if in the future, should I wish to leave Thailand, my capital is intact and I haven't got the worry of trying to sell my property.

Edited March 10, 2014 by Huggybearman

[globaljonesey 6]

Over the following weeks it became very clear to me that there was a huge number of units for sale and it also became clear that maybe buying wasn't such a sensible option after all. (to get an idea have a look at the vast number of condo units which are empty/unoccupied at night!)

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

 

Think about it