Retirement Life in Thailand

[Dodger]

I also recommend do not buy. Only rent so as you are not tied to a property should you want to leave!

Are you referring to Boys or Real Estate?

We're all so different. There's simply no "one shoe fits all" plan that would work for everyone regardless if we're talking about our lifestyles or real estate investments.

I bounced between the decision to buy or rent for years and always leaned more heavily towards renting. I changed my mind over time. I guess this change-of-mind had to do with my commitment to leave my country and live in Thailand for the rest of my life. After I finally made that commitment, having my own place to live was definitely in the cards.

I agree with what GB and others have said about newbies to Thailand. They should definitely spend a significant amount of time here before making any major decisions. For them, renting (everything) is the only way to go.

[Dodger]

I bought property and do not regret it at all.The exchange rate was about 52 baht/pound when I did so and now it is around 40. If I had been renting, that would have increased costs by about 25%. I have been protected against that, at least as far as housing costs go.

ceejay,

This is definitively one of the key advantages of owning...being able to control your own costs.

I have lived in 3 long-term rental apartments in Jomtien and Pattaya over the years which were great at the beginning but then turned to shit:

The first one in Pattaya was great but the rental charges kept increasing year-after-year to the point that it was just too much over-the-top. Ironically, only the farang residents were receiving these increases.

The second one in Jomtien Complex was also a nice place but the building was sold and the new owner decided that he wanted my apartment for his own residence which forced me to move.

The last apartment I had was back in Pattaya and I lived there happily for 6 years. A new building manager came on board and the place went down the tubes almost overnight. It went from a clean, well-managed, peaceful and secure building to a place filled with yaba addicts, large dogs barking in the night and covered in filth.

A rather trivial point all-things-considered, but the fact that these building owners routinely overcharge their tenants for electricity is a thorn that's always been sticking in my side. Most building owners (thieves) charge their tenants double, if not triple, the actual cost of the electricity they are using and stuff the balance in their pockets which always pissed me off. Now, having my own place, I get a bill directly from the electric company for exactly the correct amount which is the way it's supposed to be. I save at least 1,000 baht per month by not being scammed by these idiots.

[Jun]

I completely get the issue over exchange rate movements.
The GBP bought something near 70 baht when I first went to Thailand and today it gets less than 40. That could get much worse if we have a Corbyn government.
Having your income 100% in GBP/USD or any other indebted country currency & having expenditure in THB is risky, unless there is a very large safety margin. Buying an apartment would be one way to hedge this, however for now, I prefer ensuring stock market investments are spread around global markets. Almost 90% outside the UK in my case & it has been like that for years.

As for the apartment option, owning helps to avoid dodgy landlords, however, how do you reduce the risk of management of the entire block deteriorating ? Or increasing fees unreasonably ? One only has to look out of the window on the BKK skytrain to see many neglected apartment blocks.

[Dodger]

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As for the apartment option, owning helps to avoid dodgy landlords, however, how do you reduce the risk of management of the entire block deteriorating ? Or increasing fees unreasonably ? One only has to look out of the window on the BKK skytrain to see many neglected apartment blocks.

The only way I could figure out how to manage this risk was by dedicating a lot of time looking at different locations and properties, the demographics, assessing the surrounding area, talking to current residents, reviewing trends associated with property values in the area, etc. There is always going to be some risk, such is life, but I felt I was doing a lot to mitigate this risk by doing my homework first.

[fountainhall]

how do you reduce the risk of management of the entire block deteriorating ? Or increasing fees unreasonably ? One only has to look out of the window on the BKK skytrain to see many neglected apartment blocks.

The only way I could figure out how to manage this risk was by dedicating a lot of time looking at different locations and properties, the demographics, assessing the surrounding area, talking to current residents, reviewing trends associated with property values in the area, etc. There is always going to be some risk, such is life, but I felt I was doing a lot to mitigate this risk by doing my homework first.

I agree completely with Dodger. A decision to own depends not just on a desire to be in control of your own future accommodation needs. Anyone thinking of owning should do even more research than they would do in their own country and go through all the items listed by Dodger.

Also, whilst ceejay and I obviously bought at a good time for exchange rates, I would never go into purchase on the basis of a possible exchange rate gain. Had I bought a couple of years earlier when the Baht was fixed to the US$ at US$1 = Bt. 25, I would now be looking at an exchange loss. On the other hand, a condo which is well looked after in a desirable part of the city is almost certainly going to rise in value over time. Rent will always go down the drain!

As for management, many developers have their own management companies - as with my condo in Bangkok. Each condo has a committee of owners and the management company contract should be up for renewal virtually every year. I have been a many of the AGMs. At the last one, a new owner said she had decided on our block partly because of its location and partly because of the reputation of the management company. So we seem to be in good hands. Unless you can converse in basic Thai, it's important that the receptionist or someone on the management in the building can speak some English. I have relied a lot of the various receptionists we have here, all of whom have helped me no end.

Friends who have a condo about the same age as mine on lower Sathorn had a very poor management company. The owners committee got rid of them after checking around and finding another one that has proved infinitely better.

[Dodger]

The biggest challenge I faced when deciding where to live had more to do with the future rather than the present, i.e. what type of environment will fit my needs 10 or 15 or 20 years from now.

[werner99]

This discussion is very interesting, and raises many issues to think about.

Thanks to all of you for your suggestions!