Hua Hin property picking up

[chopsticks]

Speculative conditions existed 2-3 years ago and the bubble has burst.
Those involved in property will always try and talk up the market regardless.

[Khundon1975]

Speculative conditions existed 2-3 years ago and the bubble has burst.
Those involved in property will always try and talk up the market regardless.

That may be the case chopsticks but there are still some good deals to be had in Thailand, as there are here in the UK.

If you are in the property business, you have to be prepared to take the long view and only invest money that is surplus to immediate requirements.

Personally, that is what I have always done with any house purchased for renting out, with a view of selling on at a later date. Take a decent rent and wait for the market to pick up. It nearly always does.

If you purchase a property as a "home" then that is different and any rise (or fall) in value is just good or bad luck but too many people treat a "home" as a major asset and are shocked if the value falls, just when they want to cash it in for their retirement, or when they want to move on.
If you throw in the fall in Ex rates, then it gets even worse.
Sadly, many people have fallen foul of that scenario.

SJ is right, renting a property (except short term) is a waste of money, though many will disagree with that statement.

To those wishing to sell in Thailand, hang in there, it will get better but it may take a while.

[Nereus]

I would be interested to know roughly how much building material costs have increased over the last 4 / 5 years? How much have land values increased over the same period? I doubt very much that you can build a house today for the same relative cost as four years ago.

The lower exchange rate of the GBP is not the only factor that comes into the cost of building a house. There are many properties in Hua Hin that are bought by people from other parts of the world, with a range of different currencies.

[Super Joe]

Speculative conditions existed 2-3 years ago and the bubble has burst.
Those involved in property will always try and talk up the market regardless.

I wasn't at all trying to talk today's market up, but looking back 3-4 years, with hindsight re: the X-rates, on how well it turned out for those who followed their convictions, instead of listening to all the negativity being preached from barstools.

I've been talking & posting negatively in the area that directly affects us, that being weak currencies and new builds under the 5M Baht range, where there's just not enough scope to offer anything substantial. Ofcourse land, materials, contractors and local bodies costs never budged an inch, and even increased because they saw the end of a gravy train, instead of seeing long term.

Totally agree with Khundon though about now being a great time to find some real bargains, particularly forced resales (and this does nothing for me) if you have the right currency. A resale can sell for 1M less than they paid, and still be 1M up on the exchange rate.

SJ

[poosmate]

Cement has increased by around 100% in the last five years. Steel (has gone up and down like a yo-yo) but if my memory serves me right is around 20% more expensive.These along with wood (which has at the very least risen in price by 50% ) are the main materials used in house construction.
Land price varies - some areas in Hua Hin huge increases others maybe have stayed the same. Maybe they were too expensive 5 years ago and are still waiting buyers.Build costs ( contractor) have in my experience risen by around 2000 Baht per metre.

[Khundon1975]

We were lucky and moved money when Ex was 76 to the GBP and the wife is still buying property and land from that fund. She will continue to buy but we will not send any more funds from UK at present rates. Her parents continue to buy in Hua Hin, mainly land and fire sale/bank snatch backs.

SJ is correct, fire sales are excellent value for money and there are loads to choose from.
However sometimes the banks don't make it easy to buy from them.
In 2002 there was a large 4 story town house at the North end of Naebkehardt that we wanted to buy. The bank messed us around, 3 times we arranged to meet their rep and 3 times he came without the keys (but loads of excuses) so we could not look inside. We later learned that the property had been "auctioned" in Pattaya!!! Bought by a bank employee.

As to building costs, I would hazard a guess that cement has risen by approx 80% and steel costs have gone up approx 25% maybe more, blame China for some of that. Labour costs, maybe 10% but as I'm not in LOS I can't be sure. I'll have to ask the wife when she gets in.

[chopsticks]

Are there any new developments remaining close to HH (within 5 km) where a small house on say 250 sq.m can be built for under 3 million? - or are those days long gone due to the rapid increase in land costs that happened a few years ago ?
Just asking by the way, not in the market to buy !!

[Nereus]

Here is another point of view:

http://www.bangkokpost.com/life/propert ... ency-rates

[m_right]

I must be missing something. House prices in Hua Hin seem exceptionally high. I was looking at houses for sale in the U.S. and they are far less and the construction quality isn't even comparable. I looked at properties on the net advertised in the Tampa Florida area.
Hua Hin is nice but even with a some what higher cost of living in the Tampa area that can't be the reason.

Why are prices so high?

[chopsticks]

Here is another point of view:

http://www.bangkokpost.com/life/propert ... ency-rates

Interesting article - shoe is on the other foot you could say with Thais now buying up London property bargains.

[Super Joe]

Here is another point of view:
http://www.bangkokpost.com/life/propert ... ency-rates

Thought this extract was particularly relevant, and funny:
Chris Heath, MD of Soho Properties Company said ......
"This is particularly true for prospective British buyers, who are finding that the pound doesn't buy nearly as much as it used to. Sterling today is trading about 48 baht, compared with more than 70 baht two years ago and 65 as recently as last year"

Think he's about right that the x-rate is holding Brits back
Think he's about 18 months out with his dates though

SJ

[STEVE G]

Here is another point of view:

http://www.bangkokpost.com/life/propert ... ency-rates

Interesting article - shoe is on the other foot you could say with Thais now buying up London property bargains.

Yes, it says something when it's easier to sell Docklands apartments to Thais than Thai property to Westerners.

[TypicallyTropical]

...was very happy with the response from various agents who we dealt with; in fact, they were very much more helpful that any Estate Agent we have used in the UK...

Step up to the plate London Boy and have your wonderful agent(s) contact me! I e-mailed every single real estate company I found on the web and only two replied. One said "Come by our office and we will show you properties!" Buying property is not like buying bread and it's unfortunate this company doesn't understand that. The other that replied said "We are looking forward working with another professional!" but have not sent me any info for more than a week now. Welcome to customer service!

[hhfarang]

TT, You stated in one of your previous posts that you are thinking of coming here in three years and renting for a year while you buy pre-construction. If that's what you are telling the agencies, how can you expect them to take you seriously.

Most of them are looking for serious buyers, not someone who is thinking about it three years down the road...

[TypicallyTropical]

TT, You stated in one of your previous posts that you are thinking of coming here in three years and renting for a year while you buy pre-construction. If that's what you are telling the agencies, how can you expect them to take you seriously.
Most of them are looking for serious buyers, not someone who is thinking about it three years down the road...

You might want to read my posting again. I will retire in three years and I will be in HH in October to buy something pre-construction that will be built by the time I retire. I have no intention of renting anything, I never had. I will split my retirement time between Taiwan and Hua Hin, and I already bought a condo in Taiwan.
I'm very serious and I'm a planner, I plan everything ahead.