Introduction
Why Do People Live in Thailand? (2020)
Thailand is a beautiful exotic location where many choose to come and live out a life of freedom from western ways and (particularly) weather patterns. The friendly people, ancient cultures, bountiful fresh markets, southern beaches, islands, northern mountains, advanced infrastructure, and bustling mega-city Bangkok to explore all combines in an intoxicating and addictive mix. Thailand stands at the very hub of Southeast Asia and all its fascination. Which makes it, to para-phrase an oft-quoted saying about London a place where provided you stay active, will never get bored. Life can be good. Good infrastructure, roads, malls, hospitals, schools etc are further modern reasons folk decide to live long-term or even retire in Thailand. Which of course means many wish invest in property, for income or living. The property industry in Thailand is now decades old and perhaps stories of scams, unfinished developments, bungled management, build quality et al are 'meh' to some of the jaded out there. One thing this article is certain to highlight is it's alive and well in 2020 as ever, and especially worsened by what is perceived as a shrinking market in recent years/post-coup. Should you believe times have moved on then check again, because the saying 'Caveat emptor' isn't going out of fashion anytime soon.
Starting with the positives
Not just a horror show (which you can skip to below). Let's make one thing clear that this article is in not meant to throw mud at the Thai property industry, which so many reputable firms and people have worked hard over the decades to build. It is meant to focus on one 'bad egg', and of value educating general public/potential investors in the future. So let us start at the very beginning, of why the investors in this story - Pure Sunset Beach Condo - placed large sums toward the project good faith.
Living the dream
The affluent enough coming to stay in Thailand, can take on a typical property for a few smart financial reasons:
- Properties are comparably bargain priced to begin with.
- Can easily pay for itself in 7-9 years equivalent of living rent free, with capital gains and inflation combined.
- Make it completely your own, your lifestyle your home - no need to go out and spend ฿000's living like a perpetual tourist
- Low management fees, government rate utility meters, shared ownership/gated community privileges which would cost 5x more in (insert desirable worldwide retirement/expat destination).
Koh Chang - image by anon photographers permission
How do dream property investments go wrong?
Funds mismanagement and fraud, driven by greed and/or disreputable developers, or crudely put, 'theft' - is the 'Occam's razor' of explanations in many cases. The biggest hiccup / trap people fall into is placing their investment with the wrong developers. Setting the ideal scenario above, it is hoped that this article isn't one of sensationalism however it serves the following purposes:
- It was written on behalf of people who ended up investing in some project and are impacted not only financially, also stress and emotion for something they planned to call a home.
- It provides some publicity by way of warning and a public display of actual facts and evidence to assist those involved.
- To more easily share background into this ongoing case.
- It provides wisdom to future investors wanting to own property in Thailand. This serves to avoid pitfalls, there are still many excellent and long established property development organizations in the Kingdom.
Reputation and record of past projects is top of the list when it comes to property due diligence.
PURE Sunset Beach Condo, Na-Jomtien, Thailand
So we come to this part. Or possibly you just skipped straight here ... Good for you as it is time for all the gory details.
Introducing Condo Nightmares Episode 1 ...
Coming in next article!
An article by Winston Edwards