Condo or house? Buy or rent?

There is an indelible misunderstanding among Thais: renting leads to a loss of capital and buying to great wealth. In their eyes, the rent disappears into the owner's pocket every month, while a home of their own increases in value every year. The pre-calculation does not provide the desired understanding either, because an increase in value does not occur everywhere and always.

For starters, foreigners are not allowed to own Thai land. I do know that there are more or less legal ways around that, such as the 30-year lease (with an option for another 30 years that may not make sense) or setting up a company. This last option has become extremely risky due to recent developments if the company does nothing more than own house and land. Moreover, you always have a maximum of 49 percent of the shares and the accountant costs the necessary money for the annual accounts every year. My advice: don't.

There is then another possibility to have children and even adult grandchildren co-sign for a lease on the surviving spouse (usufruct). Remarkably, few foreigners use it. Usually, house and land are paid for by wife or girlfriend, often with disastrous consequences if the relationship breaks down. Yours may be different right now, but often it's only a matter of time before family pressures mount. Buying also offers the disadvantage that a foreigner can hardly get a mortgage. The purchase price may seem attractive, but must be paid in cash. Buying a house is a piece of cake; selling it again is an ordeal.

I recommend people who are in Thailand want to settle to rent. There is so much vacant space in this country that the rent is disproportionate to the purchase price. The advantage of building a house yourself is that you can do it according to your wishes. But remember the adage that you build the first house for your enemies (because of all the mistakes), the second for your friends, and only the third house for yourself. This applies even more so in Thailand, because the standards in terms of commitment and quality are slightly different there.

Another advantage of renting is that you can quickly pack up and leave if the neighbor suddenly starts a karaoke bar in his front yard or a workshop. Thais don't care about noise. You're the only nag who gets worked up about the dogs that keep you awake at night. The number of examples is too large to mention here.

And then you have the choice between a house or an apartment, in its smallest appearance that is called a 'condominium'. I generally advise against renting a terraced house. It's called a 'townhouse' here. This is due to the limited space at the front, the usually noisy neighbours, the lack of privacy and the lack of a back entrance. I lived in a townhouse for a year, but when the pest controller came by I was left with about thirty overgrown cockroaches running around. This is because of the neighbors, who also consider these beasts creatures that need protection from Buddha.

Remarkably, the rent of a detached house is usually lower than that of an apartment. The latter offers the advantage of relative safety. Both types are available in all sizes and prices, depending on location and facilities. I now pay 15.000 THB for a detached villa with 4 bedrooms, 2 bathrooms, covered terrace, carport, nice garden, etc. The house is located outside the center of Bangkok, in a moobaan of approximately 100 detached houses with a few guards at the entrance. More towards the city, prices rise quickly.

www.bahtsold.com regularly lists villas and apartments in the city center that cost more than 100.000 THB per month. In the rest of Thailand, rental and purchase prices are usually much lower than in Bangkok, depending on supply and urbanization. Especially in Pattaya, Phuket and Hua Hin, the supply is large enough to keep prices within limits. First-time buyers on the Thai housing market would therefore do well to orient themselves intensively before risking part of their assets.