House Depreciation?
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- udonmap.com
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House Depreciation?
House Depreciation? I'm struggling with this. In Thailand, whilst land generally appreciates in value, houses "appear" to do the opposite.
According to my research, if you built a wooden 2 storey house it depreciates at 5% pa until it's worthless (i understand, the termites move in). A typical English construction (2 storey concrete) depreciates at 2% pa to a max of 60% depreciation. So if you spent £100k building one out here it would be worth £60k after 25 years and would continue to depreciate until it was worth £40k. Please see table below from thaiappraisal.org which details the rates of depreciation.
I haven't checked this further but would like to hear from anybody with experience.
According to my research, if you built a wooden 2 storey house it depreciates at 5% pa until it's worthless (i understand, the termites move in). A typical English construction (2 storey concrete) depreciates at 2% pa to a max of 60% depreciation. So if you spent £100k building one out here it would be worth £60k after 25 years and would continue to depreciate until it was worth £40k. Please see table below from thaiappraisal.org which details the rates of depreciation.
I haven't checked this further but would like to hear from anybody with experience.
House Depreciation?
As you say......I Value mine after 20 Years as worth about the SAME as I paid for it.....( Not Telling ) But Land has gone up,House even with a Few ADDED Extras ie: Car Port, Patio & Swimming Pool ( About the same value ) But What makes the difference is The EXCHANGE Rate THB to The GBP ( I Paid for mine @40 THB to 1 GBP ) But at the moment its @54 THB to GBP...So Thats the unfortunate thing if the THB Is Weaker against Your Currency.....Well thats IMO ....
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- udonmap.com
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House Depreciation?
Wow 20 years and no uplift - better than depreciation I suppose. I see many guys pumping lots of money into their construction whilst my wife just tells me to buy land and don't go crazy on the house. For once I'm starting to understand what she's talking about! Yeah THB:£ only relevant if you move out I guess.
House Depreciation?
Yeah THB:£ only relevant if you move out I guess.......Yeah Got it one,My Wife has been GIVEN A Very Big plot of land from Her Mother,When we tried to sell OUR House here to build on that land,Could'nt get what we wanted for THIS One,So decided to STAY Put for NOW at least....
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- udonmap.com
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House Depreciation?
Interesting. We bought 11 rai from someone desperate to sell, looks like a pretty good investment to me now. Think I'll get the three little pigs round and build me a straw hut!!!
House Depreciation?
Hmm........my experience differs. First house sold for 100 % profit, first weekend it was listed, and lived there 7 years, Second house I wouldn't sell for less than 100 % profit (land/house, now shy of 5 yrs old), and from what others are asking and getting, when it's listed and sells, it will be a bargain.
Thai RE has been very good to me, though a shame ROI for rentals isn't what I would want, 5 - 10 years ROI.
Thai RE has been very good to me, though a shame ROI for rentals isn't what I would want, 5 - 10 years ROI.
- papafarang
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House Depreciation?
simple houses get outdated, run down. land is land. in twenty years of your house is not triple glazed , insulated with solar panels and smart wired then it will need work, as for profits you still have to look at what the house has cost. ie mortgage payments, repairs . depending on interest rates , which are good at the moment, but you could end up buying it for 100,000 , selling it for 200,000 only to realize you spent 300,000 on interest and maintenance
Hansa village clubhouse . Tel 0981657001 https://www.google.co.th/maps/place/Han ... 5851?hl=en
House Depreciation?
So a wooden thai house is worthless after 20 years? Plenty in our village up to 50 years old and still liveable. As long as you can rent it their will be a value; and some wooden houses were built using teak or similar wood - if demolished the wood can often sell for quite a sum. Our 50 year old house currently undergoing extensive renovation to evict the termites - hopefully it will cost less than a new one (400 sq metres living space, about 400,000 to repair).
I have never heard of a house price going down in Thailand - they just stay the same until the land beneath it is worth more .... There is a house next door to us built 18 months ago, guess cost about 4 million, on sale for 10 million ...... but not worth more than 5 million at the most. Guess they will be able to sell it in 20 years!
I have never heard of a house price going down in Thailand - they just stay the same until the land beneath it is worth more .... There is a house next door to us built 18 months ago, guess cost about 4 million, on sale for 10 million ...... but not worth more than 5 million at the most. Guess they will be able to sell it in 20 years!
House Depreciation?
of course, that values in the chart are for the Bangkok Metropolitan area plus they appear to be for base construction only with cost by square meter.. Anything about baseline value added to the house would also increase its value (A/C, trim, appliances, custom counters etc)..
Dave
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- udonmap.com
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House Depreciation?
Appreciate all your responses and experience. I'm about to have a valuation carried out on a property. I've estimated the value of the construction which, in this case is as close to perfect as I've seen out here. The land value has been easy to assess. Through a friend of a friend, I'm aware how much the property was built for in 2008 and how much the land was, so I'm really interested to see what the valuer comes up with.
I'll post when I know
Cheers
I'll post when I know
Cheers
- wazza
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House Depreciation?
Don't reply on the land tittle which shows the transfer sale etc, Many , inc developers will decrease the price to avoid paying the transfer taxes.
I wasn't able to do that, with my circumstances and had over 400,000 Baht to pay - 50% by developer.
I wasn't able to do that, with my circumstances and had over 400,000 Baht to pay - 50% by developer.
House Depreciation?
I've heard the Land Office often doesn't go along with folks claiming a lower land price to avoid additional transfer taxes. The Land Office knows full well what land in every area is selling for and questions prices not close to other properties nearby..
Dave
- lassebasse
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House Depreciation?
To the best of my knowledge the value of property follow the the rules of Supply and Demand and nothing else!
- wazza
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House Depreciation?
Ah Re Zoning ?
House Depreciation?
My house depreciated in value as soon as my neighbour moved in
- Barney
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House Depreciation?
grievous wrote:My house depreciated in value as soon as my neighbour moved in
Gees mate where are you going to throw the empties now people have moved in?
House Depreciation?
Have to be careful throwing the empties over his fence Barney. Last time he caught me he did an Adam Goodes spear throwing dance at me in his Swans footy jumper.