Jump to content

Buyers Market?


Recommended Posts

18 hours ago, onebir said:

Sounds like they're keeping them on the books without provisions/writedowns. If they sell them they need to take the loss. Which hits their capital (& capital adequacy ratios). If this is widespread Thai banks could be considerably less solvent than they look.

I am thinking just as important in Thailand is, if the bank reduces the loan value then someone made a bad loan.No one would want to lose face in having made a bad or non profitable loan ... Much the same with all the cars on the lots.

Link to comment
Share on other sites

26 minutes ago, wwest5829 said:

I am thinking just as important in Thailand is, if the bank reduces the loan value then someone made a bad loan.No one would want to lose face in having made a bad or non profitable loan ... Much the same with all the cars on the lots.

Possibly in the case of individual loans and/at the beginning of a property market downturn... But if the whole market is getting marked down, would it make sense that loan officers, bank managers & whoever was involved in lending decisions ALL lose face??

Link to comment
Share on other sites

44 minutes ago, newnative said:

      Some of the new Bangkok condo projects in prime locations are going for around 200,000 baht a sqm or over--in some cases, well over.  Ashton Asoke Rama 9, for example, runs around 249,000 baht a sqm.  Laviq Condo, 262,000.  Beatniq Condo, 308,000.  Noble Ploenchit, 288,000.   As my father used to say, too rich for my blood.  

Maybe at some stage they will make a big sale promotion. 20% off! Now only 246,400 instead of 308,000. I am sure some people will buy it with those special prices.

I wonder how much of those buildings the developers have to sell to break even. Maybe if 30% of the building is sold they have their money back. From then on it's pure profit.

  • Like 1
Link to comment
Share on other sites

1 hour ago, wwest5829 said:

Just in time subject. We (Thai partner - we have been together 4 1/2 years and plan to marry in 2021). Currently renting at 15,000 per month, but wish to buy. House in her name ... with usufruct for me, not an issue. Found a house here in Chiang Mai (I have lived here for over 9 years). Fair price. The issue is financing ... I have resources but ... majority monthly income of the required 65,000 baht. So, I can handle a down payment and then need financing of about 1.5 million for remaining debt (cost about 2.2 million baht). Any latest possibilities for getting mortgage? She, currently has no income, in part due to Covid.

I'd say doing the rounds of the banks, and negotiating. I should imagine someone with a stable income of 65,000 baht/month would have them falling over themselves to sign you up, but I could be wrong. After all, this is Thailand.

  • Haha 1
Link to comment
Share on other sites

My guess is all talking about property refer to people who already in Thailand.

As I am stuck in US probably for another year and getting older rent is best option.

In any case losing 1000$ a month for rent better than investing in Thailand with very unclear future.

  • Like 2
Link to comment
Share on other sites

4 hours ago, olfu said:

My guess is all talking about property refer to people who already in Thailand.

As I am stuck in US probably for another year and getting older rent is best option.

In any case losing 1000$ a month for rent better than investing in Thailand with very unclear future.

I agree, over a certain age it's best to rent, having said that a guy I know wants to get on the housing ladder in the UK he's 82, but losing the plot

Link to comment
Share on other sites

On 12/31/2020 at 12:39 AM, onebir said:

Sounds like they're keeping them on the books without provisions/writedowns. If they sell them they need to take the loss. Which hits their capital (& capital adequacy ratios). If this is widespread Thai banks could be considerably less solvent than they look.

I believe Thai banks are legally prohibited from selling repossessions at below the amount of the outstanding loan.

A move made by the government to stop banks giving out unrealistic loans.

 

20% of my village of 250x 3 bedroom houses in Chiang Mai now appear to be repossessed and vacant.

Hardly any are ever resold, all will have 90-95% outstanding, loans of around 1M9Bht each, 7 years old.

No price reductions, ever, that I have seen.

Edited by BritManToo
Link to comment
Share on other sites

It's fascinating, the rent boys have praying for  a real estate market crash and a total collapse of the baht for decades and it NEVER happenes even through regular coups and a tsunami but this time it's different right ????

 

In fact Bangkok property especially lower Sukhumvit have gone up in multiples. The pandemic has little effect on property prices world wide including Thailand HOWEVER I have noticed the rental market especially in Pattaya which is heavily depended on air bnb has softened. 

  • Like 1
  • Haha 1
Link to comment
Share on other sites

1 hour ago, Destiny1990 said:

Bargains more likely obtained from distressed resellers.. Owners with empty units will be eager to sell. There are no tenants and no buyers so where u think the market prices are going.

Most Thais I know would rather their home was repossessed by the bank than sell for less than they paid for it.

From this information I can predict market prices for property will either remain static or increase.

(My prediction doesn't include rental prices)

Edited by BritManToo
Link to comment
Share on other sites

On 12/30/2020 at 9:30 PM, digibum said:

We’re looking to buy but I can assure you I won’t be looking on any of the major property sites.  

 

Why not? Unless you are buying <deleted> properties. 

 

There are few developers offering discounts, but I found on the major sites you are avoiding that there are always 1 or 2 desparate to get rid of property. Right now I'm looking at a condo being sold by developer for 3.8 mil after all the discounts and another one resale fully furnished for 3 mil higher floor and much better view. 

 

 

Link to comment
Share on other sites

6 hours ago, BritManToo said:

Most Thais I know would rather their home was repossessed by the bank than sell for less than they paid for it.

From this information I can predict market prices for property will either remain static or increase.

(My prediction doesn't include rental prices)

So if banks will repossess properties and sell them on a auctions without much buyers then why will market prices remain static or even increase? Obviously atm its a buyers and rental market  just only need to select  desperate owners that have empty units that are a burden. They will give lower rents and sales prices than before this corona.

Link to comment
Share on other sites

My impression is Thailand real estate market is different from other countries. Main point you dont pay real estate taxes every year which gives you time to drag troubles to future. But in case of condos you have to pay monthly maintenance anyway plus like anything property depreciate with time. 

  • Like 1
Link to comment
Share on other sites

On 12/30/2020 at 6:05 PM, Thomas J said:

I agree with worgeordie,  there are a glut of properties but there seems to be a strong resistance to fire sale pricing.  Rental prices have definitely fallen, I guess some feel if they can stem the bleeding cash flow a bit, they are going to hang on.  Also, very peculiar here in Thailand that foreclosed properties don't' get auctioned off at good pricing.  In my village there are two properties that were foreclosed several years ago.  As a former banker in the USA I know it was a practice to liquidate non earning assets as quickly as possible to turn them into earning assets and to stem the costs of holding them.  Here, these banks have held on for years and of course the properties without maintenance are in disrepair but the pricing remains the same.  I suspect at some point with the number of Thai's hurt from the lack of income from Covid that it will result in even more foreclosures unless the government imposes a moratorium.  While good for the homeowner it will hurt the banks. 

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

  • Thanks 1
  • Haha 1
Link to comment
Share on other sites

4 hours ago, Pilotman said:

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

 

4 hours ago, Pilotman said:

A repossessed property not too far from my house was taken over by the bank over 8 years ago,  Its derelict and falling to bits, with a jungle for the garden, but they apparently still want 12 million for it.  Dream on bank. 

seems nuts they act in that way .. must be a special finance school they went to ...

  • Like 1
Link to comment
Share on other sites

14 hours ago, bwpage3 said:

I certainly dont remember it being bad in the 80's or 90's?

 

I got here in '98 and it seemed worse to me back then. Seems like it got much better when so many of the busses went from diesel to LPG/CNG.

  • Like 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.





×
×
  • Create New...