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banagan

Any drop in prices from this time last year? I'm in CM

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On 5/21/2020 at 11:39 PM, banagan said:

I'm in Chiang Mai. I bought 2 units in my building around this time last year. There's some more for sale, same condition, same seller. They're asking for the same price. 

I would guess that a person who owns multiple properties is less likely to be desperately effected by the current situation. The fact that he sold some units a year ago suggests he probably has something else he would like to invest in, or maybe just want to cash the profits on those units

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The Chiangmai Real Estate market . whether condo.s  or houses for sale or rental

have been heading south

 for at least 5 yrs and Covid 19  factor has not even kicked  in .

Over Supply in all areas and Very Few Genuine buyers around. and the Real Estate  Agents are asking for   Kings Ransom price tags on their propertys placed on their books

Perhaps  a 50% discount may get a buyer.( if lucky)  

Chiangmai Real Estate is a

Busted Flush Full Stop

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20 hours ago, bkk6060 said:

Pick 10 properties offer 30 to 50% less then asking.

I'm thinking of buying next year if I can find a great deal and am in the process of trying to educate myself about buying condos.

 

The information that's lacking is the actual sales price of units that were sold.  It's difficult to determine the correlation between the asking price and the actual selling price.  It's difficult to tell if the lowest asking price of comparable units is really priced to sell.  

 

OTOH if real estate agents have let's say 10 one bedrooms for rent in a large condo complex then the asking rent for the lowest priced rental is probably a pretty good indication of where the market is.   Sure the view, floor, condition all will have impact on the rental price but the lowest priced unit is probably priced to rent.   If there are many units available it probably doesn't make sense to ask for a much higher price than other similar rental units.   

 

Then one could apply a Gross Rent Multiplier.  A gross rent multiplier of 10 would mean that an unit renting for 10K a month would be valued at 1.2 million baht.  So I'm wondering if 10 is a reasonable gross rent multiplier?

 

I'm also thinking that those buying multiple units as an investment would be very cautious buying in the current environment where many units won't be rented out.  So probably the few buyers out there are people who just want to buy one unit to live in.   I would also think that there won't be too many sellers at the bargain basement price that  buyers are looking for but the few people who must sell will be foreigners so perhaps the price of foreign owned units and Thai owned units will converge somewhat.

 

Perhaps the CM market is far different than the Pattaya market but I am staying on the sidelines for the time being thinking that if there is no high season this year that selling prices might fully adjust by February.  It appears to me that rental prices are already adjusting.

 

Anyway these are just ideas and putting this out there to find the flaws in my thinking.   

 

 

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I bought in my building a year ago and am interested in another, same owner. 

 

They're asking the same price last year. Which, was a 7% increase from 2017, a realistic price should be at least 2017 prices or less, but understand wishful thinking.

 

Another option I'd be interested in would be purchasing it with monthly instalments, paid over 12 - 24 months, as there is practically no loan or mortgage options here for foreigners.

 

 

 

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