House prices in Issan

[KHONDAHM]

I just noticed a house in the classifieds for 15 million baht. That is a half a million US dollars!! Houses in a crappy sub division I'm renting in now are asking 2.5-4 million baht. Is it just me or are the prices here getting crazy? Will they get higher? Are they just just inflated prices?

I lived through the housing boom in the USA. Made some money and lossed some money. I see the Thailand housing on the same route as USA 5 years ago. Any thoughts?

I posted about the same observations back in 2009. It is almost exactly what happened in the States: The rise of the Thai middle class and conspicuous consumption. Nicer housing, SUVs, and higher quality of life financed by easy credit. That is one of the reasons I bought some land to build houses on while the getting is good. Already appreciated 40%+.

I think Udon will EXPLODE if/when the train from China rolls through by 2015. Schools have dumped English for Chinese classes already. Expanded immigration offices. New shopping centers popping up all over. New bus station being built. New hotels and condos being built. I could go on.

Yep, Udon will see explosive growth like Pattaya experienced, but without the decadence or infrastructure problems. Exploit it!

As for that 15mill house: It's been on the market for years at that price. I seriously doubt it will ever sell. Location is horrible IMHO.

[nkstan]

I don't think there is any correlation between the boom&bust of the West and housing prices here!Financing was the reason for the problems in the West!

Supply and demand causes the prices to rise here, combined with commodity inflation.That type of financing is not available in Thailand anymore!

Sometimes,falangs overpay for properties,causing immediate inflation in that area,with an immediate slowdown effect happening,because Thais don't often lower prices ,once they have a new mindset value!There is no urgency to sell because they can live/exist so cheaply and face has more value!
The fact that seemingly rediculous prices are being asked,doesn't mean that the true value is being represented!Same with used cars!

I'll take your ''buck bet'' randerson79,there will be no 30-40% drop in the prices of homes sold here,although there might be periods of slow sales.!

For falangs that bought while their home currency was much higher,they have locked in a profit,if they can find another falang buyer,as Thais rarely buy second hand homes,other than repossessed properties from the banks!

KD,Chinese has been introduced in the schools because of the rise in China's economic expansion into the area,but English is still the International language and has not been ''dumped'' from the Thai education system,although the teaching of it within that system has been a giant failure!Chinese language is extremely difficult and will have the same results of English learning!
Although China is a growing economic giant,IMO,they face massive problems in the distant future because their per capita income is so low, versus the inflationary costs to the people.If someone is looking to a bust,I would say it will definitely happen there,although they may see war as their solution to their future problems!

[Laan Yaa Mo]

My retirement will come in 3-5 years. A friend and myself are looking to build a Thai-style home just outside of Sukhothai for 300,000 baht. There are a few farangs in the area, one is Canadian and one is Australian, and they have gone for the 2,000,000 baht route.

Khon Dahm might be on to something about the Chinese railway. A friend's nephew has decided to study Mandarin rather than English. The Chinese are establishing a number of Mandarin-language schools throughout the Kingdom.

[jimboLV]

Good decision,LMY, if you stick with it. 300,000 baht might be a little light, depending on land costs and what you mean by a "Thai house".

We just finished construction on our house on a two rai property my wife already owned. Total cost was 320,000 baht, about 1,000 sf under roof. It is a basic Thai style house, post and lintel construction, large rooms with an outside kitchen, not all cut up into small rooms, closets and cubicles like a western house. Cement block construction with cement/asbestos roof panels, tile floors, aluminum windows and doors. We did incorporate some technological advances from the western world, like flush toilets, heated shower, grounded (earth) electrical outlets and plenty of them, even an electrical outlet in the bathroom, apparently a rarity here in LOS. The cost was somewhat higher as the entire front of the house is glass as we plan to eventually open a convenience store in the front. Doors and windows alone cost 45,000 baht.

I just couldn't see spending 2 million on a "cracker box", complete with mortgage. Or even more, as some farangs are wont to do. I went through that stage in the US, owning a few luxury type homes that were very impressive. Now I'm not interested in impressing anybody except the family, and they are impressed that my wife and daughter have a very nice house to live in rent free for as long as they care, long after I have departed this vale of tears.

I agree with a previous poster, you can build a house to your liking for a LOT less than what these estates are charging, as long as you get a good contractor and watch him closely, keeping control over the materials, especially the quality. And you end up with exactly what you want.

As far as China goes, I spent some time in China about 15 years ago and predicted then that China would eventually lead the world, as far as the economy goes. Haven't seen anything to change that prediction.

[Laan Yaa Mo]

That sounds great, and just about right.

It would be a small house for two in an area that does not experience flooding, and a short distance from the mother-in-law, sister and assorted relatives. There would be an indoors shower and toilet, but no air-conditioning. When I lived in a rice-farming village many years ago, I found a fan was enough to provide cool air with the wind at night. So, there would be no air-conditioning. Muang Sukhothai would be a 20-minute motorcycle ride away.

[jimboLV]

The jury is still out on aircon. We did have the electrician install hookups in case we need it. The inlaws house right next door with similar construction doesn't need air. We've spent a few nights there in the hottest weather and it was quite comfortable. I designed this house for natural cooling, lots of shade, vented roof, etc. We did bring along a little portable AC unit that I used in Udon when we lived in the "cracker barrel brick oven", and I'm thinking that will suffice if it gets really hot.

[douglas]

hi,
Electric outlet in bathroom. You quote, not many have them in LOS. I say thank god. Water and electric should be kept far apart. Even in the U.K. it is not correct to install a 230V socket in the bathroom. Been in the regs. for years. Myself I would not install it, but up to you. What are you going to use it for. Also make sure you have a easy way of switching the power off, outside the bathroom, in case anything did happen, don't want another person going into B/R and dieing.
As for earths, there are two divided views on the safety of grounding every thing like in the U.K.. Their they also send the earth back to the power station. This can be fatal, i personally have known one person where this caused his death.
A farmhouse about a mile from his house had a fault which sent 230V down the earth line and when he picked up his portable electric fire he got electrocuted.

[red67]

interesting post jimbo any pictures available?

[papaguido]

hi,
Electric outlet in bathroom. You quote, not many have them in LOS. I say thank god. Water and electric should be kept far apart. Even in the U.K. it is not correct to install a 230V socket in the bathroom. Been in the regs. for years. Myself I would not install it, but up to you. What are you going to use it for. Also make sure you have a easy way of switching the power off, outside the bathroom, in case anything did happen, don't want another person going into B/R and dieing.
As for earths, there are two divided views on the safety of grounding every thing like in the U.K.. Their they also send the earth back to the power station. This can be fatal, i personally have known one person where this caused his death.
A farmhouse about a mile from his house had a fault which sent 230V down the earth line and when he picked up his portable electric fire he got electrocuted.

In the US, houses come standard with GFCI outlets in bathrooms & kitchens. They function much like an ELCB or RCD.



Jimbo,

You won't find GFCI outlets here. But you can install a whole house ELCB (5000+ bt) that connects between the main power source & breaker box or you can get an individual inline ELCB/RCD wherever your installing outlets near moister.

http://www.crossy.co.uk/wiring/elcb.html

[trubrit]

My retirement will come in 3-5 years. A friend and myself are looking to build a Thai-style home just outside of Sukhothai for 300,000 baht. There are a few farangs in the area, one is Canadian and one is Australian, and they have gone for the 2,000,000 baht route.

Wish you good luck in getting a house built for that price LYM. The way prices of raw materials have gone through the roof. Two years ago I had a metal canopy erected over the garage, cost me 25k. Now I am getting quotes for another similar structure. The labour cost has escalated from 6 to 10k but the big difference is in the cost of the metal needed , putting the material costs up from 19k to 40k .Making the total price double in two years . Yes I do shop around.

[thrilled]

I believe people realize that the udon area is A good place to live.I wouldn't doubt in the next few years realestate around udon will keep going up.

[jimboLV]

Water and electric should be kept far apart. Even in the U.K. it is not correct to install a 230V socket in the bathroom. Been in the regs. for years. Myself I would not install it, but up to you. What are you going to use it for.

Yes I've head that bathroom outlets are prohibited in the UK. Nanny state gone wild,on my opinion.

In the US and I believe the rest of the Western world, they're common. I would say that nearly every home, apartment and hotel in the US has at least one outlet in the bathroom. I had three in mine but it was a big bathroom. I haven't heard of a rash of electrocutions, except on the TV crime shows where a preferred method of offing an unwanted spouse is to toss a space heater into the tub with them. But the clever investigators always find DNA evidence or something to figure out that it was a murder. As PG has pointed out they are covered by code in the US and I believe a GFCI (ELCB) is required if they are within a certain distance of a water source.

I use mine for my electric shaver which is rechargeable, but the charge always seems to run out in mid-shave, which in our rental house meant I had to run into the dining room to finish shaving, an annoyance. They are also typically used for hair dryers, electric tooth brushes, lighted makeup mirrors, etc. The other day I had to drill holes to install a shelf in the bathroom and it was sure handy to plug the drill in right there and not have to trail extension cords all through the house. Of course I was not standing under the shower while doing this!

As far as your other concern, I've never head of an argument that grounded outlets are dangerous. I'm not following when you say they "send the earth back to the power station". I have two copper ground rods sunk two meters deep in the ground on either side of the house, one for the bathroom circuit and the other for the rest of the house. I don't see how the charge could get two feet away, let alone a mile, unless I'm reading you wrong.

As requested here are a couple of photos. I have hundreds of progress photos that I will soon get around to putting into an online album. I will post here if there's any interest, but it may be a while.

[jimboLV]

By the way, when I do get around to posting photos of the house I will open another thread, as this one is straying a bit. To get back on topic, It's not just Udon that's booming. Driving back and forth between Udon and Amnat Charoen, you see quite a few nice homes being built in the villages, also some commercial buildings going up. In our sleepy little town there is new construction all over the place. We just had a Big C open up, slightly smaller than the one in Udon, and it is always packed, employs 150 people I'm told. Chatting with the manager, he says they expect a Tesco to go up soon. When we went to the land office to put my daughter's name on the Chanot, the place was packed, 13 clerks all busy with people buying selling and subdividing land. It took us 4 hours.

I don't know what's fueling all this. I like to think that people from other parts of Thailand (and the world) are recognizing that this is a pretty good place to live. My wife knows a few people who have moved back from Bangkok, Pattaya, et al and taken lower paying jobs here, just to get out of the rat race. As far as I'm concerned, this is paradise. Bottom line, I don't think you can go wrong picking up some nice land or even a house just about anywhere in Issan

[kopkei]

in my home i also have electric outlet in the bad room ,but the room is 10 by 13 ft , not small bad room as they usually put in the homes here , where you can sit on toilet and take a shower all at once ...even all bad room in my home country have outlets,no problem, only depends where they are located........
btw nice home for his price, jim..

[red67]

Thanks for the photos jimbo =D>

[maaka]

nice wee house jimbo,

same width and length, but only one storey would be enough for me, and my future lovely..I am living in a two car garage, but my island house is 12m x 7m , so I could easily live on the left hand side of your wee house..I think I will go for a flat sloping roof myself, none of this high pitched stuff, seems to be alot of wasted space in some of these modern mansions they build these days in thailand, and a waste of natural resources, so is good to see a smaller version like yours..

my guess is alot of development in Isaan is chinese money.. we have just had a chinese consortium try and buy 17 large farms in NZ, so with china now becoming more modern and open , the middle class there have the dollars now to splash out. I guess they see thailand as a paradise close by, and if that train goes thru , well look out..however I also thought I have heard rumblings on the tube that china is having finanical problems debt wise,,seems we are all in the poo..perhaps thailand will go like the rest of us did, Ireland, Iceland, USA, etc etc, and the wheels will fall off eventually..who knows......it can just take a flood or and earthquake like we have in NZ now, and the governments coffers all of a sudden look empty.....anyway, nice house matey..

[Laan Yaa Mo]

Wish you good luck in getting a house built for that price LYM. The way prices of raw materials have gone through the roof. Two years ago I had a metal canopy erected over the garage, cost me 25k. Now I am getting quotes for another similar structure. The labour cost has escalated from 6 to 10k but the big difference is in the cost of the metal needed , putting the material costs up from 19k to 40k .Making the total price double in two years . Yes I do shop around.

Thanks for the heads up. It may be as you say. This will truly be a Thai style house with stilts and all. It will sit on just one rai of land, but in a very scenic location.

[Bandung_Dero]

Just been doing some research myself. A friend currently building quoted 12,000 Baht per sq meter. That correlates perfectly with some books I've seen where ALL 200 odd plans were costed at that within a few Baht. NOW for the bad news, his initial quote was 4.2 million but he has spent 7.1 million to date, admittedly he made a few structural changes but not increased the floor area.

They only allow 300 Baht per sq meter for floor tiling, 15,000 Baht for a complete bathroom fit out etc. which is bullshlt.

[B52]

For a finished house to a European/USA standard you will be looking more at 3-4 times more than 12,000 baht per M^2 (In the UK for a modest house). So in Thailand you would guess that it could be done for approx half this amount, now this would include a very high finish and the pricing is based on many European finishing materials. This is based purely on information that I have gathered while doing research for a future build I am interested in. However, this number can be greatly reduced by using a Architect prior to the construction company getting involved and making sure that what is on Paper is exactly what you want. You can then purchase the materials yourself thus cutting the price. You will also reduce your cost by having much fewer re works on the project.

Just my two cents. (I have never built a house in Thailand and this is purely an educated guess based on some research)

I think you could do it for between 25-30K baht per M^2 if you helped out significantly in the the whole building process from design all the way to completion. You would have a dream house that you would never want to leave at these prices I would imagine.

B52

[KHONDAHM]

@B52

Are we assuming they do everything correctly (*giggle*) and there are no do-overs (*snicker*)? TIT

It's the do-overs that kill the budget..