Pennies to invest!!

[Islandboy]

Hiya

I was wondering if any of the old timers who have done well in business in the LOS could spare some advice for a young farang who would one day like to live the life they are living in the LOS.. Here in the UK I have approximatley £150 per month that I would like to invest in the LOS. I was thinking about a little piece of land or buying a condo or something.. You know somewhere to go in about twenty years or so that I could possibly rent out while not there. I'm not evevn sure what I could get for such a paltry sum.. However at the mo it's all I can afford on my dreary office job salary here in the UK.. Any ideas much appreciated..

Thanks in adavnce

Islandboy

[JayBee]

Originally Posted by Islandboy

Hiya

I was wondering if any of the old timers who have done well in business in the LOS could spare some advice for a young farang who would one day like to live the life they are living in the LOS.. Here in the UK I have approximatley £150 per month that I would like to invest in the LOS. I was thinking about a little piece of land or buying a condo or something.. You know somewhere to go in about twenty years or so that I could possibly rent out while not there. I'm not evevn sure what I could get for such a paltry sum.. However at the mo it's all I can afford on my dreary office job salary here in the UK.. Any ideas much appreciated..

Thanks in adavnce

Islandboy

My advice is that the best way to invest your extra cash is to put it into plane tickets, "looms", beer money, and BGs!! You will definitely appreciate the return.

[Islandboy]

jaybee

thnaks!! i can already do that stuff but i also realise that i should be trying to invest a bit for my early retirement in paradise. i'm learning thai at the moment spent nearly 18 months in the country in the last four years and i know it's where i'm happiest.. although i like, beer, bg and the whole thai experience i would not be happier if i could have my own little piece of thailand for myself.. you know a nice little wooden bungalow, with a bed, space for my guitar and books and somewhere to say it's my own..

i'm not too arsed about big house, flashy car, pool etc.. just somewhere safe i can lay my head to sleep and wake up with enough energy to challenge the new day..

[JayBee]

Sounds like you've got your head on straight!

So, OK, here you go. Borrow 40,000 USD at 7% interest. The payments will be approx. $266.40 USD monthly(30 yr. amortization), which is less than 150 lbs. Buy a little one-bedroom condo in a development that is approved for foreign ownership, and is within a few blocks of the beach in Phuket, Pattaya , or Hua Hin. Get a realtor there to rent it out for you. Use the income to pay down the balance. Before too many years have passed, you will own a little piece of paradise for yourself! Then when you move to LOS, you can A)live there, B)collect rent and use the income to pay rent on a cheap bungalow somewhere, or C)if you have improved your lot in life, sell it and use the income on a down payment for something a bit more grand!

40,000 USD = 21,464 lbs.

266.40 USD = 142.95 lbs.

If you can get an interest-only line of credit, then the payments will be a little less. Obviously, you need ot have good credit. You could also borow the money on credit cards. it your credit history is A+, you should be able to get that rate. Although it may be subject to future rate fluctuations, the rental income your get should more than make up any difference. It would just take a little longer to pay off the debt. It is important that the condo is reasonably well located within walking distance of the beach, so that your income flow will be steady, at least during high season, if not all year around. Actually, it might work even better for you, if you lease the place out at at a low monthly rate on an annual basis.

[Islandboy]

jaybee

thanks for the advice.. i'm over in LOS in five weeks time, i will research the properties like you suggest and go and have a chat with my bank manager here in the UK to see what they can offer me..

much appreciated, next time i'm over i will get you a drink of your choice for that advice..

cheers

islandboy

[JayBee]

Originally Posted by Islandboy

jaybee

thanks for the advice.. i'm over in LOS in five weeks time, i will research the properties like you suggest and go and have a chat with my bank manager here in the UK to see what they can offer me..

much appreciated, next time i'm over i will get you a drink of your choice for that advice..

cheers

islandboy

No pobpem!!

[Sirgezza]

Originally Posted by Islandboy

Hiya

I was wondering if any of the old timers who have done well in business in the LOS could spare some advice for a young farang who would one day like to live the life they are living in the LOS.. Here in the UK I have approximatley £150 per month that I would like to invest in the LOS. I was thinking about a little piece of land or buying a condo or something.. You know somewhere to go in about twenty years or so that I could possibly rent out while not there. I'm not evevn sure what I could get for such a paltry sum.. However at the mo it's all I can afford on my dreary office job salary here in the UK.. Any ideas much appreciated..

Thanks in adavnce

Islandboy

Are you aware of the laws regarding Farangs owning property in LOS?

If you are not going to be in LOS very much in the foreseeable future, then maybe you should reconsider the idea.

Good idea to start saving as early as possible. Invest in an ISA in the UK and let the fund build up, then when you are ready to retire you will have a lump sum of cash.

Do you own your own property in the UK? I'd make this more of a priority than owning one in LOS

good luck

[cybernator_uk]

Originally Posted by gez

Are you aware of the laws regarding Farangs owning property in LOS?

If you are not going to be in LOS very much in the foreseeable future, then maybe you should reconsider the idea.

Good idea to start saving as early as possible. Invest in an ISA in the UK and let the fund build up, then when you are ready to retire you will have a lump sum of cash.

Do you own your own property in the UK? I'd make this more of a priority than owning one in LOS

good luck

This is very good advice. If you own your own home in Uk then you can have some other options open to you. If you want to rent the uk property out that will at least give you some money while you are over there and also will allow you somewhere to comeback to should everything go wrong. I heard a saying once and it went something like "Sometimes Paradise isnt always what it has cracked up to be". Actually it was probably more of a quote but there you go. An ISA is a really good idea aswell. Just something else for you to think about.

[Dodger]

Buy a property in the UK for £30,000 to £40,000 ? Where abouts?

JB recommended a condo which of course he can take leasehold but wants to make sure about the company offering the lease and any guarantees of renewal after 30 years, some condo projects allow you to become a director in the lease holding company, much talk about the full legality of these schemes though.

ISA is good advice, feels boring to a young un' but sound advice for tax free growth, talking 20 years or whatever period he said should build a nice nest egg and always got the option to get at some of the cash as desires or circumstances alter.

[ToTheBeach]

Originally Posted by Dodger

....and any guarantees of renewal after 30 years,...

There are none. All contracts with extensions beyond 30 years can be cancelled without problems. Basically they are illigal.

[JayBee]

Are there not condo developments in which a certain number of units are approved for outright foreign ownership?


2. Condominium Act (No. 2) of 1990 (as amended April 27, 1999)

Sec. 19 of the amended Condominium Act authorizes qualified foreigners to own individual condominium units provided that the total area of foreign-owned units within the condominium project does not exceed 49 percent of the total area of all units within the project. In Bangkok and other municipalities to be designated in ministerial regulations, the 49% limitation does not apply. The following foreigners qualify for condominium unit ownership:

a. Individuals having permanent residence status in Thailand.

b. Individuals who have been permitted to enter Thailand under BOI privileges.

c. Juristic entities registered in Thailand but being classified as "foreign" under the Land Act.

d. Juristic entities, which have been granted investment privileges by the BOI.

e. Individuals or juristic entities, which have brought foreign currency into Thailand for the purpose of purchasing the condominium unit.

[K2]

Originally Posted by Dodger

Buy a property in the UK for £30,000 to £40,000 ? Where abouts?

Newcastle !!

http://www.fish4.co.uk/ls/triicnwcst...&areaId=213728

But low end property gets lousy rent - if any. Gez's advice is good - steady investing into an ISA and if this builds up into enough to buy property to let you will keep your options open.

Buying property here while you are not resident has potential problems - collecting rent, maintainence etc - and of course over that period of time have to consider currency risk - who knows where GBP (or EUR)/THB will be in 20 years time.

[JayBee]

Additional info on foreign freehold ownership of condo units is Thailand:

1) How is a Condominium defined by Thai law?
According to the Condominium Act B.E. 2522 (A.D. 1979), a condominium is defined as a building that can be have its separate portions sold to individuals or groups for personal property ownership.

2) What classes of foreigners may purchase condominiums in Thailand?
Foreign investors as well as other foreigners may own condominiums in the Kingdom of Thailand under certain circumstances.

3) What types of Condominiums are available for foreigners to purchase?
Certain condominium buildings allow for foreigners to purchase condos in free hold (fee simple). The condominium buildings are located in specified metropolitan areas and may have limits on the amount of units available for sale to foreigners.

4) What are the requirements for a foreign individual or organization to purchase a condominium in Thailand?
In order to purchase a condominium certain requirements must be met, for example: 1: A foreigner has permanent residence in Thailand in accordance with Thai Immigration Law, or 2: A foreigner is allowed into or resides in Thailand in accordance with Thai Investment Promotion Law, or 3: A foreign legal entity is in accordance with the Announcement of the Foreign Business Act BE 2542 (AD 1999), and has been granted an Investment Promotion Certificate in accordance with the Investment Promotion law, or 4: A foreigner or foreign legal entity who brings foreign currency into Thailand, or brings in Baht currency from the account of a person residing abroad, or uses foreign currency from their deposit account. This requirement is normally met by the presentation of a Dor Tor 3 form which is provided by the bank receiving an incoming remittance from abroad.

5) Are there any restrictions to this ownership?
In many areas of Thailand a foreigner or foreign legal entity can acquire up to, but not exceeding, 49% of the total floor area of the combined condominium units. However, more that 49% of ownership may be allowable in certain condominium buildings in Greater Bangkok and various other municipalities and districts according to Ministerial Regulations.

6) What is the most typical way for a foreigner to purchase a condominium in Thailand?
Most Foreigners purchase a condominium by showing evidence of an incoming remittance of foreign currency into their bank account from abroad as demonstrated by a valid Dor Tor 3 form from a Thai Bank.

[JayBee]

Originally Posted by K2

Newcastle !! But low end property gets lousy rent - if any. Gez's advice is good - steady investing into an ISA and if this builds up into enough to buy property to let you will keep your options open.

Buying property here while you are not resident has potential problems - collecting rent, maintainence etc - and of course over that period of time have to consider currency risk - who knows where GBP (or EUR)/THB will be in 20 years time.

If you look at growth rates in Asia, and compare them to growth rates in the Western countires, as well as other factors such as balance of payments deficits, and Asian ownership of Western debt, this leads me to belives that over a long period such as 20 years, the Asian currencies, in particular, the yuan, the won, and the baht should do reasonably well, I suspect. Plus over a term that long, unless you have very keen investment sense, real estate is almost always your best protection against inflation.

Moreover, in this case, all the profits for rental of the property could be sheltered from UK taxes by banking the money in LOS, and not reporting the gains to the UK tax man.

[K2]

JayBee - would agree that if you HAVE to invest in Thailand then real estate (particularly land or landed property) is probably likely to be a good hedge against inflation risk. (Yes - I know foriegners cannot own land outright). If looking for investment vehicle to gain exposure to asian growth then would rather have investment in a asian growth fund rather then be a domsetic investor in stocks here - I've been down that road and it can get VERY illiquid.

[Sirgezza]

Originally Posted by Dodger

Buy a property in the UK for £30,000 to £40,000 ? Where abouts?

I did not suggest they were available for that amount.

My advice is to a young person that purchase of a property in your homeland makes more sense than buying one abroad. He will be living in the UK, so if renting this will be dead money. Better to buy a property (with a mortgage) and pay this off over the years. Get a 2/3 bed place and rent the spare rooms out.

In the original post he asks about ''buying a bit of land''. With the possible clampdown on foreign ownership through companies, this idea is getting even more iffy.

[Islandboy]

Guys

Thanks for the advice!! It is much appreciated. (:

Island boy

[JayBee]

Originally Posted by K2

JayBee - would agree that if you HAVE to invest in Thailand then real estate (particularly land or landed property) is probably likely to be a good hedge against inflation risk. (Yes - I know foriegners cannot own land outright). If looking for investment vehicle to gain exposure to asian growth then would rather have investment in a asian growth fund rather then be a domsetic investor in stocks here - I've been down that road and it can get VERY illiquid.

I'm in agreement. Altho, the situation with getting title to land is a bit dicey now, can you imagine if you had invested 40,000 USD (or even half that), in choice Phuket land 20 years ago!!

Buying individual stocks in a market like LOS seems a very risky proposition. There is some risk in any stock investment, and it just becomes greater when you are dealing with a market with lowere voulmes, and the possibility for a lot of unpredictability due to factors which may be difficult to foresee or comprehend for a person without a good deal of experience in that market. There are a lot of good Asian stock funds that are run by people with experience. I've got a few peas in one of those pods.

I do like going small cap with some portion of my investments, but generally stick to US stocks which are easier for me to follow and understand.

[JayBee]

Originally Posted by gez

My advice is to a young person that purchase of a property in your homeland makes more sense than buying one abroad. He will be living in the UK, so if renting this will be dead money. Better to buy a property (with a mortgage) and pay this off over the years. Get a 2/3 bed place and rent the spare rooms out.

In general, this is good advice. But they typicaly don't allow you to borrow the down payment money. And what with the price of property these days, home ownership is not within the reach of everyone, particularly young people just getting started.

[shark1963]

Originally Posted by Islandboy

jaybee

thanks for the advice.. i'm over in LOS in five weeks time, i will research the properties like you suggest and go and have a chat with my bank manager here in the UK to see what they can offer me..

much appreciated, next time i'm over i will get you a drink of your choice for that advice..

cheers

islandboy

JUst had a discussion about buying a property in LOS last week with my thai friends. It should be not difficult to get also good credit conditions from a thai bank, if you can finance about 30% of the Condo/house by yourself. Dont if this true, but as he is in LOS soon, could be proofed.

[Sirgezza]

Originally Posted by shark1963

JUst had a discussion about buying a property in LOS last week with my thai friends. It should be not difficult to get also good credit conditions from a thai bank, if you can finance about 30% of the Condo/house by yourself. Dont if this true, but as your he is in LOS soon, could be proofed.

A Thai bank will lend money to a farang living in the UK???

I am surprised

[K2]

Originally Posted by JayBee

I do like going small cap with some portion of my investments, but generally stick to US stocks which are easier for me to follow and understand.

Oh so true and transparency to a greater degree (wont harp on about Enron etc) - but greatest attaction for investing in the US is liquidity and diversity.

Maybe should be a new thread as quite important to some no doubt - but from Aug 15th - the rules on nominee ownership will be strengthened ... details here....

http://www.bangkokpost.com/Business/01Aug2006_biz03.php