Is it reliable to invest in buying a house in Thailand?

Investment depends on the timing. For example, if you buy a house in Beijing, you just bought it ten years ago, and now it's 20 17. If you don't just need it, you don't recommend buying it.

Investment depends on financial strength. People who have the ability to invest millions to see hundreds of thousands of projects, their investment starting point and risk tolerance are different from those who only have hundreds of thousands or hundreds of thousands. After all, the former is called asset allocation and the latter is called all in.

Investment depends on personal circumstances. Especially buying a house is not a simple number game. There is a house that needs your regular maintenance and care, and how to deal with the subsequent house is a problem.

So when I said "I don't recommend buying a house in Thailand", I just shared my thoughts, but everyone's situation is different, for reference only.

1

Thailand real estate introduction

Buying a house abroad is for further asset allocation and risk diversification. Second, I feel that the domestic real estate market has passed golden decade (don't go against the general environment), but there may be similar opportunities in Southeast Asia, which can earn rent and appreciate, and see if there are any cheap ones to pick up.

Thailand is the second largest economy in Southeast Asia and the center of ASEAN, with a relatively stable political environment and frequent political and economic exchanges with China. It is a country suitable for in-depth understanding in Southeast Asia.

In Thailand, foreigners can buy less than 49% of the total apartments in Thailand, and they can't buy houses with land like villas. But the apartment is also a permanent property right, so don't worry. Moreover, there is another advantage. Houses in Thailand are calculated according to the actual use area. That is to say, suppose an apartment with 100 square meter in Thailand, and the actual usable area in the room adds up to 100 square meter, instead of saying to you like domestic developers, "Ah, the occupancy rate of this house is about 80%, and 20 square meters is the shared area of elevators and corridors ..."

Thailand's algorithm is more realistic.

As for the choice of housing cities, I mainly studied three places: Bangkok, Chiang Mai and Pattaya.

Map of Thailand

Pattaya is a tourist area with high popularity, but real estate development is also very prosperous. From the perspective of supply and demand, supply is far greater than demand, which affects the appreciation of real estate on the one hand and the rental income on the other. In addition, many good properties are almost developed, and the properties that can be bought now are already very biased.

Of course, the whole Pattaya is not big, and it is not far away. However, if you want to go abroad to play, most people still choose to live in the most lively and complete service center, don't they? After all, it is only a few days, and convenient transportation and perfect facilities are the most important.

Generally speaking, the consumption value of houses in Pattaya is greater than the investment value.

The night view of Pattaya is still beautiful.

The situation in Chiang Mai is similar to that in Pattaya. The industry of the whole city is only tourism, and the off-season is very obvious. In the off-season, houses are easily vacant. There are intermediaries in Bangkok and Pattaya to handle charter flights for hosting services, but there is no intermediary in Chiang Mai, which shows how difficult it is to ensure this rental income.

Rental income is difficult to guarantee, and there is no obvious expectation of rising house prices, which is obviously not a good thing for investment.

However, Chiang Mai does have a livable climate and a pleasant environment. There are many very good international schools and the housing prices are not expensive. The appearance of1~ 20,000 square meters can be deeply studied from the perspective of immigration.

Street view of Chiang Mai. Another meaning of the old city is underdeveloped economy, lack of infrastructure and old real estate in the city center.

Finally, let me talk about Bangkok that I know in detail.

After all, Bangkok is the capital, and its economy accounts for 44% of Thailand. Bangkok Port undertakes 90% of Thailand's foreign trade, and its urban construction and infrastructure are the best in Thailand, with a high degree of internationalization. There are also many real estate investors in Europe, America, Japan and South Korea. Of course, most people in China also choose to buy a house in Bangkok.

In terms of investment, Bangkok has clearly defeated Pattaya and Chiang Mai.

Bangkok is a beautiful city.

2

But it is not recommended to shoot.

However, after studying the real estate market in Bangkok, I think … is really not suitable for sale.

1) The return on investment is declining.

Now the average house price in Bangkok is 30,000-40,000 RMB/square meter. But a closer look shows that the area worth investing has risen to 40,000-60,000, among which luxury apartments have soared to more than 6,543,800.

Downtown Bangkok

This is a city map of Bangkok. Most people in China buy houses mainly in three areas:

Among them, the core is the central Lumpini District, where the core business district, luxury houses and Bangkok landmarks are all located. At present, the house price is already very high, and the highest house price has reached 1.2 million RMB/square meter.

Shilong/Shatun District is both a financial center and an embassy district. It is an old business district in Bangkok, and the current house price is 40,000-50,000 RMB/square meter.

Sukunyi District is the largest commercial CBD and residential area in Bangkok at present, and it is also a very concentrated area for China people to buy houses, and the house prices are similar.

In addition, because the housing prices in the above three districts have also gone up, and the overall housing prices in the outer district of Sukun are not so expensive, many China people have started to buy houses here, but it should be noted that this district is the only one where the housing prices have dropped in 20 16. ...

If the house price in Bangkok is1~ 30,000, I think this matter can be discussed. However, in recent two years, the domestic real estate policy has been tightened, and a large amount of funds have fled to the overseas real estate market, which has led to a rapid rise in housing prices in Thailand (you know, we are not the first foreigners to buy houses in Thailand, and Japanese and Hong Kong people run faster than us). The price is already very high now. If you want a big appreciation in house prices, you'd better come later. ..

The apartment I saw some time ago, IKEA style, is amazing.

Of course, compared with rising house prices, the more practical benefits of overseas home ownership actually come from rent. Unfortunately, the rental-to-sale ratio in Bangkok is declining. On the one hand, house prices are rising too fast, on the other hand, the development speed of real estate is too fast, but the change of supply and demand has not changed much, and natural rents will be affected.

In the picture, my favorite apartment is a little farther north than the first district of Sukun (along the rail transit), 70 square meters is about 2.7 million (about 38 thousand per square meter). Referring to the current average rent, I rent it at 6,000 yuan a month (all in RMB), so the rent-to-sale ratio is about 1:450, which means that the house price cost can be recovered in 450 months, and it is almost spent.

Of course, if you hang the apartment on airbnb, you will get more rent than entrusting it out, but it is illegal to use the apartment for airbnb and short rent in Thailand. Although it is true that China people buy houses in Thailand, it is easy to be reported.

Although many real estate advertisements say that the rental income in Bangkok is around 8%, according to the latest statistics, the average rental income in Bangkok in the first half of 20 17 is 5. 15%, which is the level of bank financing.

2) It is difficult to get a loan, and the funds take up too much.

Of course, some people may think that it is good to recover the cost after 38 years and leave a house for future generations. Then let me ask another question: Now I need you to buy a house in full, are you still willing?

When buying a house in Thailand last year, several banks such as Bank of China and Industrial and Commercial Bank of China can still provide loans for up to 20 years. However, due to the strict foreign exchange policy this year, Chinese banks stopped providing mortgage loans to mainland residents from June this year (it is ok for mainland residents to work in Thailand). In order to control Xia Feng, the Bank of Thailand has always prohibited local banks from providing mortgage loans to foreign customers.

At present, you can also apply for a loan through uob, but you need proof that the customer has an annual income of 500,000 RMB or a deposit of 500,000 RMB in uob.

At present, uob has three outlets in Beijing, which is quite convenient.

Even though houses in Bangkok are cheaper than those in Beijing, Guangzhou and Shenzhen, buying a house without leverage will take up too much liquidity. If you want a loan, you must first pass the threshold of 500,000.

But it is said that many people buy houses in Thailand in full, without loans.

So I still lack financial strength.

3) It's a bit difficult to muddle through.

Well, even if the financial strength is sufficient, we should also consider the liquidity of this house.

Thais buy their own houses, with a down payment of 0 and a loan of 50 years. This is not easy ... why do you have to buy your second-hand house? In fact, Thai people are used to buying new houses, just like most non-first-tier cities in China. The last two practical ways to sell this apartment we bought are to resell it to foreigners who can't live locally and simply invest in buying a house; Second, it is recycled by local developers in Thailand.

The first operation is risky, and the second operation is limited to individual buildings newly operated at present, with some additional conditions.

In fact, many online posts that recommend buying a house in Thailand don't say how to sell it after buying it ... it's really hard to sell.

4) Too many routines

There are too many people from China who buy houses in Thailand and too many people from China who work as real estate agents in Thailand. The gameplay and routines in this market are gradually enriched.

Not much to say, everyone knows what I mean.

5) Not the best choice

The total price of the apartment seen above is almost 2.7 million RMB, including all kinds of housing expenses, and it is necessary to prepare 3 million RMB. If you have 3 million investable funds, simply and rudely, buy P2P directly, with an annualized rate of 10%, which saves trouble and is more mobile than a house; Or if you want to allocate to real estate, this price can fully consider the United States and Europe.

three

Of course, you can continue to buy in this case.

1) Immigration preparation

Thailand's medical and educational resources are much more cost-effective than domestic first-tier cities. I have seen several cases of buying a house because I want to take my children to an international school.

2) Go to Thailand frequently.

There are also some family backgrounds related to Thailand, or they have their own businesses in Thailand, or they just like to stay in Thailand for a few months every year, so they can continue to consider buying a house in Thailand. For you, buying a house in Thailand can't be just the income of the property itself, but the comprehensive income brought about by close ties with Thailand.

3) Consumption and self-occupation

The last situation is:

"Investment can earn better, but I am also willing to buy pure consumption."

After all, Thailand has a good climate, beautiful scenery and strong tourist reception capacity, and the house is really beautiful. Even at the same price, you can buy an old house in Beijing and a real mansion in Thailand. ...

Houses in Thailand are good choices, whether you are on vacation by yourself or taking your parents to escape the cold and relax.

If that's what you think, then buy it ~ ~

(After all, there are houses by the sea in my dream list, not for investment, but for pure consumption. )

four

conclusion and suggestion

To sum up:

From the perspective of investment, Thailand's real estate is already at a high point, and the expected rate of return is reduced, making it difficult to increase leverage. There is no guarantee for selling a house in the later period, and the uncontrollable situation in the local area is not a particularly good investment choice for me.

Of course, Thailand's housing prices are indeed cheaper than domestic first-tier cities, the economic trend has been rising, and tourism is developed. These advantages are undeniable. Let's brainstorm and make a decision according to our financial needs.

According to the information we have learned so far, I want to give you three suggestions:

1) If you really want to buy it, you must go to Thailand to learn about the situation on the spot and look after the surrounding area, property and supporting facilities. Don't just listen to the intermediary's side of the story; Actually, I'm not worried about buying a house in Thailand. I may find an opportunity to go to Thailand for a field trip. Although the overall environment has been like this, some real estate projects may be ignored, or I may know more about other cities.

2) Thailand is not the only choice for overseas home buyers. If you really want to buy a house overseas, you can have a look at it more. Don't worry.

3) Make more money and save more money. If you have hundreds of millions of liquidity, don't listen to my nonsense. You can buy anything if you are in a good mood:)