Life in Thailand - Test Results

[Dodger]

The majority (not all) of the expats I know reside in either studio's or one bedroom suites. Studios in Thailand typically average around 32 Sqm - with suites being twice the size.

Once I found the place I wanted I made several visits where I'd lodge for a few nights in a local hotel. This gave me the opportunity to see for myself what the environment was like during the evenings. During those visits I talked to several co-owners in the property I was interested in to obtain first-hand facts, as well as hear about any potential pitfalls.

Finding out what they charge for the annual maintenance fee allowed me to check off one box - but the most important aspect of this was to tour the facilities myself to see if the place was actually being maintained. Like everything else in Thailand $$money$$ which is planned for preventive maintenance has a way of disappearing.

You don't have to be an expert to do this. Just walk the grounds...see if the glass doors and windows glisten, or are they filthy and covered in dust. Walk the hallways. Ride the elevator. And most importantly check out the swimming pool - as swimming pool maintenance seems to be the first thing that slips by the wayside if the money isn't being spent the way it should be. If you see green water - talk a pass.

All said, and to emphasize a good point GB made earlier, any farang considering retiring in Thailand should first spend enough time here to explore the different options and see if they'd really be happy living here on a full-time basis. As nice as it is in Thailand - living abroad isn't for everyone. Frankly, there are some farang who would be much better off back in their home countries because, for whatever reason, they seem to lack the ability to take care of themselves without a support system. Renting is by far the option with the least risk for the newcomer - and not a bad long-term option either.

[Jun]

The majority (not all) of the expats I know reside in either studio's or one bedroom suites. Studios in Thailand typically average around 32 Sqm - with suites being twice the size.

Thanks. I just measured my current holiday accommodation. It's 50 sq m, with an additional 5 sq m balcony. Admittedly, it's rather basic.
This has a bedroom, living area and en-suite bathroom. If living here, I reckon I'd also like a small office/storage room to help keep the main living area uncluttered and it could be locked when young guests visit.

I note some of the small places have 2 bathrooms. I don't quite see the point of that for 1 person, plus the occasional guest.

I'm not looking seriously at present.

As for the maintenance costs. In addition to deteriorating maintenance, what about the risk of fees increasing ahead of the rate of inflation? That would mount up if continuing for years.

[Dodger]

In addition to deteriorating maintenance, what about the risk of fees increasing ahead of the rate of inflation? That would mount up if continuing for years.

Good question.

Any/all increases in condo maintenance fees have to be approved by majority co-owner vote which would happen at the annual general co-owner meeting. Thai law mandates this process. No one can arbitrarily increase the rates.

Great safeguard.

[Gaybutton]

what about the risk of fees increasing ahead of the rate of inflation? That would mount up if continuing for years.

All anyone can do is plan as best as possible with the available information. No one can accurately anticipate expenses and how much things are likely to cost years in advance. And, of course, exchange rates play an important role and you never know what to expect. Right now exchange rates are relatively quite favorable compared to the last several years, but nobody can predict how long that will last, whether the rates will become more favorable, or if we can look forward to lousy exchange rates again - and when.

People planning to retire in Thailand need to take all possibilities into consideration and decide if they are financially prepared to handle it if things take a serious turn for the worse.

I've seen and experienced exchange rates vary from 45 baht to the US dollar to below 30 baht to the US dollar. If a potential retiree can handle it, especially if miserable exchange rates last a long time, that's fine. But if that is too risky and could result in financial ruin, then my advice would be not to take the risk. Unfortunately we have even seen a few farang expats go to the extreme of committing suicide when they ran out of money.

[Jun]

All anyone can do is plan as best as possible with the available information. No one can accurately anticipate expenses and how much things are likely to cost years in advance. And, of course, exchange rates play an important role and you never know what to expect.

I was hoping at least one other board member might advise on how maintenance expenses have increased with time. Extrapolating that seems better than having no clue, which is where I'm at currently.

As for exchange rates, I'm well aware of that. I reckon you're lucky to get away with fluctuation between 30 and 45. Also, since both our home countries run horrific balance of trade deficits, it's difficult to argue that our economies are competitive at current rates.

I would look to mitigate that risk by investing globally and making sure I can live on less than half my income.

I just can't comprehend reports of some farang having extravagant habits for years, then suddenly running out of money. In one example, at about 82 years old. What happens if they live to 90 or more?

[Gaybutton]

What happens if they live to 90 or more?

Good question. If they haven't done so already and can come up with between 45,000 to 60,000 baht per month, there are some excellent assisted living facilities available. Other than that, if they are not close enough with a Thai family willing to take care of them, I have no idea. And, of course, if they run out of money, they've also ran out of eligibility to extend their retirement visa.

[Dodger]

.......I was hoping at least one other board member might advise on how maintenance expenses have increased with time.

If you estimate annual cost-of-living increases - and include those estimates in your retirement plan than any increases in annual condo maintenance fees would be covered. Most increases that I'm aware of in Thailand equate to a few baht per SQM over time (like mine) which is reasonable and affordable to most. If someone isn't smart enough to consider cost-of-living increases in whatever country they're planning to retire in they should probably just keep working.

Note: I applied formal risk management techniques to my Retirement Plan...a bit anal I admit...but I worked with these tools in my line-of-work and found them extremely helpful. Not considering risk over the long haul when retiring and/or not having defined mitigation plans is probably the number one reason why some retired expats get into trouble when "variation" throws them a curve.

[Gaybutton]

probably the number one reason why some retired expats get into trouble when "variation" throws them a curve.

Unfortunately that has happened to too many farang. For whatever reasons they ran out of money and had nowhere to turn. Over the years enough of them jumped off tall buildings that we used to refer to them as "flying farang". I haven't heard about any similar incidents lately, but I don't use that term anymore because some people objected to it.

[Jun]

Most increases that I'm aware of in Thailand equate to a few baht per SQM over time (like mine) which is reasonable and affordable to most. If someone isn't smart enough to consider cost-of-living increases in whatever country they're planning to retire in they should probably just keep working.

I was specifically interested in unreasonable increases in maintenance costs. If such things merely go up in line with inflation, it's easy enough to deal with. If the management of the building can cream off a percentage or get kickbacks, this might attract dishonest people.

There are unknowns like future exchange rates, inflation rates, investment performance and changes in visa policy.
I see the objective as being to understand as much as possible, mitigate the risks and build in a big financial safety margin. Plus keeping open the option of returning home, at least for a while.

[Dodger]

Unfortunately that has happened to too many farang. For whatever reasons they ran out of money and had nowhere to turn. Over the years enough of them jumped off tall buildings that we used to refer to them as "flying farang".

I know. It was quite the fad for a while - with "Obsession" being the most probable root cause.