Rent or Buy in Pattaya?

[Guest]

Just curious, for the LOS expats...do you prefer to rent or own in Pattaya? And why? I almost bought a 2.5 Mil Baht condo in Pattaya 2 yrs ago, but was hesitant on the high risks of a purchase on foreign soil. Since I only stay in Thailand 4-5 months out of the year, I only rent out the nice condos for about 35K Baht per month. No obligations and low risk...also have that free-cash (not tied up in property) to have unregulated fun in Pattaya.
How do the rest of you do it?

Love it, then leave it--easy and sleazy!!!

PATTAYALOVER

[Bravo]

prices have risen over the last few years and it is not helped by the expat real estate agents happy to push the prices up. I am sure the other guys who live here long term get as pissed off as me when people arrive here go on about how much cheaper it is than at home. it is not home, it is a developing, Asian country where many locals earn les than 100 US$ per month.

Rent, until you really know the market. And dont' touch the expat real estate market, get into the real, local market where the prices are better

[stogie bear]

If you do want to buy then that's sound advice, but I'd rent. Safety, security and peace of mind are big factors for me. Plus - it really is a renters market and it's likely to stay that way for some time.

Hopefully Mardhi will come up with something on this topic...

[Guest]

After around 14 years in renting hotel rooms and condo's, five years ago I purchased a place in View Talay 2 however, having spent a good few thousand Baht on fitting the place out, it soon became apparent soon that the location and neighbourhood was not for me, so I sold it on at a modest profit.
And to me (especially In Pattaya) that is the problem when you buy a condo. Currently I much prefer the freedom to move around and try different locations. Most recently my home for six months was LK Pavilion on South Pattaya Rd, loved it there but when I head back in a couple of weeks I shall be trying something & somewhere different.

[mardhi]

(Bravo @ Jun. 03 2007,11:35) prices have risen over the last few years and it is not helped by the expat real estate agents happy to push the prices up. I am sure the other guys who live here long term get as pissed off as me when people arrive here go on about how much cheaper it is than at home. it is not home, it is a developing, Asian country where many locals earn les than 100 US$ per month.

Rent, until you really know the market. And dont' touch the expat real estate market, get into the real, local market where the prices are better

Not sure I would agree with the sentiment of your post 100% - as an example take the following:

I looked at some land about 5 years ago. At that time, it cost 1,000,000b a rai. Its a nine Rai piece of land so 9,000,000 baht. 3 years ago the price had gone up to 14,000,000 baht and just 6 months ago, the owner said it was now 18,000,000 baht. Funny thing is that has not sold in those 5 years. The land I bought 5 years ago cost 500,000b a rai and is all of twenty meters away from his and with an arguably better position. The Thai owner and seller, say, well its easily worth that - I ust nod and smile and walk away. With the latest changes in zoning and planning law, this land is actually worthless as you can only build one house on it, where 5 years ago you would have gotten permission to build 9 houses. Unfortunately the owner cant see that.

At the end of the day, property is worth what someone is prepared to pay for it. Some may see this piece of land as being just perfect for them and pay the 2,000,000b a rai. Another neighbour of mine, approached me a couple of months ago needing to raise cash and was prepared to sell me land at 500,000b a rai - as it is I declined to go ahead with it - I am already carrying too much property exposure in Thailand - so I am not buying anymore and if circumstances are right, I will reduce my holdings however its not a panic situation.

One thing I am quite interested in doing is acquiring a piece of land - putting it in a Thai name and then building a huge house to use at weekends with a 30 year lease on the property.

Condo's are a different situation altogether however I believe that values are so high now in Pattaya, that renting is a much better option.

For the people that dont like any risk, renting remains the most common sense approach.

Cheers
Mardhi

[Guest]

Thanks, appreciate the info and my sentiments exactly on renting versus buying.

[PigDogg]

(pentire @ Jun. 03 2007,04:47) Currently I much prefer the freedom to move around and try different locations.

So most condos are rented furnished, right?

[stogie bear]

Actually, I've dabbled in this just a little bit so I might be off the mark, but I'd say that in my findings most condos that are for sale are furnished if the are sold pre-owned and most new condos are not.

As for condo rental - almost all are furnished, old or new...

Not a fact - just my informal observations.  

Mardhi? Anyone?

[stogie bear]

By the way... what is the difference between a condo and an apartment. please?

[mardhi]

(stogie bear @ Jun. 04 2007,12:40) Actually, I've dabbled in this just a little bit so I might be off the mark, but I'd say that in my findings most condos that are for sale are furnished if the are sold pre-owned and most new condos are not.

As for condo rental - almost all are furnished, old or new...

Not a fact - just my informal observations.  

Mardhi? Anyone?

In Thailand (considering the change in language into English), they use the following loose description:

Condo = where individual units within the building are sold to private owners.

Apartment = where the whole building is owned by one person or company and then rented out to individual renters.

And my expereince follows Stogie's in that invariably new condos are sold as unfinished shells, where the owner brings in another team to fit-out the interior. However recently more 'super deluxe' places or at least places with pretensions of being super deluxe, actually fit them out to include ceilings, lights, bathrooms, kitchen units, wardrobes etc. Soft furnishings then get added by the buyer.

Secondhand condo's are inariably sold 'furnished' as the original furnishings are often made to measure and fitted into that unit. Other than sofas, beds etc - pretty much everything is 'fitted' for that unit, hence they just sell the whole lot.

It is also difficult to rent an un-furnished place in Thailand for tax reasons. Basically most owners minimise the tax on property rental by loading the 'furniture rental' element of the contract which does not attract any taxation. So you often see a rental agreement say totalling 60k month, being split 3 ways. This would mean 20k for the property (for which they pay tax), 20k for furniture and 20k for 'misc services' - the last 2 do not attract property tax where the first one does. An unfurnished property does not give them much scope to minimise tax hence that approach.

Cheers
Mardhi

[Guest]

I bought a studio in view taley 5 last year,just a shell.It was 2 million baht and its the building nearest the beach. Because of the drop in the dollar it would cost more to buy it now. If I retire there in 6 years I want a place to live and not waste money on rent,even though its so cheap to rent now. Im a bit worried though because vt is holding my title to the place and I was in the first 49% when I paid for it .I hope they have the chanote or whatever its called when I get a chance to get out there.I really didnt know anyone living in Thailand so they said they would hold it for me.Ill see.