Better to buy or to rent?

[Olddaddy]

Last trip I looked at many condo's in Pattaya with a focus of renting it out should I not stay .

So I looked at the low class Flybird to the high class ones .

Flybird was cheap starting at 300,000 baht for a studio ,had stairs only and seemed to be a combination of thais and farangs 

I also took into consideration closeness to markets ,gyms , walking distance to most things as I don't drive a motorcycle.

I looked at a few in jomtien, unfortunately some had high strata fees and low maintenance.

One I looked at seemed to be very noisy ,a lot of family holiday screaming kids running around etc and that condo was right near the pool.

I couldn't imagine living there at Xmas time ,it was only a 26sqm one bedroom somehow thinking I couldn't live in a box .

Good price though at 1.2 million baht with a complex gym and pool ,strata fees were 15k a year .

But I can't see myself living in a box 

Owning and even buying now so I could tenant it was my idea until I move in to it myself in the future , unfortunately the agent told me there is a oversupply of rentals at this time .

But I decided to wait it out which may not be a good idea as I'm sure prices will go back up 

[Shonen]

It’s nice owning a place, because you can furnish it yourself and make it very comfortable. I have a two bedroom on a high floor, and I spent a lot of time furnishing it with large screen tv, a swinging chair, etc.

My fees are high, 39,000 baht a year, but we have a shuttle bus around beach road. I’m thinking of selling it though ,because prices have come back up  I’m thinking of selling it early next year though. It’s been a lousy investment. Compared to the stock market or real estate in the USA.

The realtor is correct, plenty of rentals for decent prices.

I’d rent a place for a while before buying there. Then you can make sure you like it. I bought off plan but got lucky it turned out nice. They’re still building, even with a lot of supply. Grand Solaire should be ready soon, it’s between Pattaya and jomtien on second road.

If you bought a 1.2 million baht place, you won’t get much for rent. I was getting 30,000 a month for a few years until Covid came and I had to drop it down to 20,000.But it’s 62 square meters.

My theory is Thais pay less in their 51% of the building, so they’re happy with low rents. Bringing down all rents with them.

[reader]

"Buy when others are fearful, sell when others are greedy." -- Warren Buffett.

[fedssocr]

I think that lays out the issues pretty well. Personally I would just rent. Furnished rentals seem to be in abundance in the main areas of the country (and probably most of the rest as well). I like the idea of showing up with my luggage and moving in without having to do anything more. No worries about the market. And if you decide you don't like the place anymore or want to move someplace else it's easy. But I also don't have any plans to retire there full time and own my own place in the US. So I think your own financial situation is probably a really big factor.

[Keithambrose]

9 minutes ago, fedssocr said:

I think that lays out the issues pretty well. Personally I would just rent. Furnished rentals seem to be in abundance in the main areas of the country (and probably most of the rest as well). I like the idea of showing up with my luggage and moving in without having to do anything more. No worries about the market. And if you decide you don't like the place anymore or want to move someplace else it's easy. But I also don't have any plans to retire there full time and own my own place in the US. So I think your own financial situation is probably a really big factor.

I agree, but a couple of my friends, who retired to BKK, had serious and ongoing  problems with their landlords, repair issues etc. Luckily, both are well enough off to buy an apartment, we will see!

[Shonen]

Most rentals I’ve seen in Pattaya have real cheap , uncomfortable furniture. Like a 4 or 5 million baht condo, and they have plastic chairs , ugly tables and depressing crap on the walls.

[Mavica]

For many of us, renting is better than buying.

[PeterRS]

I bought a 2 bed 2 bath unit in Bangkok in 1999. I had no other property and so it was primarily for longer term retirement while being rented in the meantime. Fortunately the market was low following the Asian Economic Crisis and I got a top floor 82 sq.m. apartment in a new condo in a very quiet residential district very close to the centre of the city for 2.8 million. It has a pool, sauna, gym and excellent mangement team. Having rented - usually, thankfully, with employers paying the rent - during the previous 20 or so years I wanted a place of my own with my own furniture and fittings. Being the top floor, I had the roof insulated which keeps the temperature no warmer than in floors below. As we sit on the balcony having drinks, we have a great mostly green view with almost no traffic noise.

I'm told it's now worth about 175% more than I paid. Not a great return but you have to factor in the dot.com bubble, the SARS downturn and the 2008 financial crisis. Plus I ended up living here far earlier in 2002. So I have not had to pay rent which for this area would have been at least 7 million over 20 years. Total management fees have totalled around 850,000. 

The flat took a long time to find, but I've been extremely happy living in this area and having my own property.

[vinapu]

4 hours ago, Shonen said:

....and depressing crap on the walls.

that's Picasso