How to Value Land

separate topics on:- measurement, puchasing, registration - Land filling, compacting and levelling - drainage and
anything else related to raw land!

Moderators: Sometimewoodworker, MGV12, BKKBILL

How to Value Land

Postby BKKBILL » Thu Sep 02, 2010 11:39 am

Valuing Land

There are many factors used to help value plots of land unfortunately land is often valued in isolation, rather than by comparison to other plots . With houses, you can compare the value of a house you are considering buying to that of other houses in the vicinity.

Many often ask whether the price of plots of land for sale are reasonable. I think a farang normally is put in the difficult situation of having to rely on his wife to do the negotiations and all the talking.

So just what do we look for.

Area: The value of land for sale is directly related to the local housing market. Sounds clear enough unfortunately here there is no central clearing house is the first hurdle.

Transport Links: If you are it BKK important. The rest of the country not so much.

Planning Permission: TIT so no worries here. Of course the flip side is a disco setting up next door.

The Plot Itself: Finally something that matters.

What can be built on the land?

Again out of the city the sky is the limit or at least your pocket book.

What are the costs of building a house?

Will the house require expensive foundations on an “infill” site or if it is on a hill. If the house is remote, will the services be expensive to connect? Now we are getting to the meat.

What value will the finished home hold?

Another one of those questions the farang doesn’t have to consider. This will be forever and the last trip out of here will be a one way journey to the Wat.

Now Robertkc’s wife got me thinking and that’s not a good thing :( :D :lol: so a little help on how you arrived at your land price would be beneficial to me and I’m sure others. Oh and robertkc are you still in the land of the brave or in LOS? :mrgreen: :mrgreen:
It's not who you know, it's whom you know.
User avatar
BKKBILL
 
Posts: 2947
Joined: Tue May 26, 2009 10:05 pm
Location: Mae Taeng, Chiang Mai

Re: How to Value Land

Postby fredlk » Thu Sep 02, 2010 12:00 pm

BKKBILL wrote:so a little help on how you arrived at your land price would be beneficial to me and I’m sure others.

I thought that building a (maximum at the time) 4 million Baht house on anything more than 1 million Baht land was ridiculous and so I looked at everything up to 1 million.
Another thing I noticed was that the plots being sold by Farang were generally twice the price of land sold by Thai and so I took the Thai price and halved it - taking off 100 % profit - to see what the real price should be.
Believe it or not that is exactly what I paid for my land which had been re-possessed and was being resold at its original price by the mortgage bank.
User avatar
fredlk
 
Posts: 5879
Joined: Tue Apr 07, 2009 3:11 pm

Re: How to Value Land

Postby BKKBILL » Thu Sep 02, 2010 12:05 pm

fredlk wrote: I took the Thai price and halved it - taking off 100 % profit - to see what the real price should be.


And here I’m considering paying full Thai asking price plus plus.
:oops: :oops:
Last edited by BKKBILL on Thu Sep 02, 2010 12:32 pm, edited 1 time in total.
It's not who you know, it's whom you know.
User avatar
BKKBILL
 
Posts: 2947
Joined: Tue May 26, 2009 10:05 pm
Location: Mae Taeng, Chiang Mai

Re: How to Value Land

Postby fredlk » Thu Sep 02, 2010 12:27 pm

BKKBILL wrote:And here I’m considering paying full Thai asking price plus plus. :oops: :oops:

But if that full Thai asking price was less than 1 million Baht then my other argument would come into play. :wink:
As we all know it is also important to know what it is worth to you and how much you are willing to spend or go over what you think it's worth.
To be held to ransom for some running water on the prospective land is unpleasant.
User avatar
fredlk
 
Posts: 5879
Joined: Tue Apr 07, 2009 3:11 pm

Re: How to Value Land

Postby BKKBILL » Thu Sep 02, 2010 12:50 pm

A clear running stream for me does have a value.

Although the feeling of being held for ransom even if just implied does leave an unpleasant taste. In my case more so with the 38 sq. m plot.
It's not who you know, it's whom you know.
User avatar
BKKBILL
 
Posts: 2947
Joined: Tue May 26, 2009 10:05 pm
Location: Mae Taeng, Chiang Mai

Re: How to Value Land

Postby MGV12 » Thu Sep 02, 2010 2:05 pm

BKKBILL wrote:A clear running stream for me does have a value.


A clear running stream all year round does have a value even here ... in South East England it has an immense value and if you are near a golf course the price rockets. In the UK there are many websites that will give you a good price indication on houses [little land is for sale these days] as many areas are 'cookie cutter' houses .... same, same all the way down a street. Here, apart from some Moo Bans, no two houses are alike in a Soi.

I have a stream [sadly not 24/7/365 as someone is diverting it] alongside my land and a golf course within a few hundred metres. This does affect the value according to the Farang who is building on one side of me and the Thai guy who will build on the other side when he retires. What is the affect? Nobody can quantify it. We also have three phase electrics outside the door and telephone, therefore Internet ... what is the price affect? Nobody knows. We also became a city about 6 months ago and are now attracting people from the Chiang Mai sprawl area .... what is the price affect? Nobody knows. We have a friend who is in the property sales business and she says that, here in the North at least, its all simply down to what someone is willing to pay; inner city areas, exclusive Moo Bans being the exception. Not too much beach front around CM. :) There are many pieces of land 'for sale' but they aren't really as they were owned before the 1997 crash and the owner is waiting to get the price it was worth before everything went belly up; the only thing that would change their mind is ill health and subsequent hospital bills ... as was the case when I bought mine. My Aussie neighbour tried to buy my piece of land but the price was [in his opinion] too high, so he bought the piece next door which needed 300+ trucks of landfill .... and, incidentally, he paid the irrigation department A$20,000 [mine was less than 50.000 THB] to build him a bridge over a 3 metre wide klong to get the landfill trucks in! What was the difference in land price? He hasn't told me yet, but I doubt it equated to his extra expenditure :) and as he can afford to build a two story 1000 Talang Metre 'mansion' with separate staff building and swimming pool it was probably only 'principle' that stopped him buying it anyway. Several months later the owner of 'my' land fell sick and needed the money ... so I got it at what I consider to be an excellent price; against the wishes of his children who wanted 300,000 THB more. I have 2+ Rai on Chanote and the total is 3+ Rai with adjacent 'no title' land. The Thai guy on the other side bought before me and paid more than me for about 1.5 Rai.

Of the three of us in the same immediate area. Who paid over? Who paid the 'right' price? Who paid under? Impossible to say, it was just the time and circumstances of the sale/purchase. TIT

All you can do is look at as many pieces of land in the area you like as you can ... whether you like the actual piece of dirt or not ... compare the price, the aesthetics, the amenities, the services and form your own conclusions as to whether the price you can get the one you are drawn to for equates to the tug on your heart ..... there should be a tug if it's the right piece. Do your own homework, you will form an idea of value but don't expect it to influence the owner of the price you want .... there is not one person who will be willing or able to tell you what it's actually worth ..... except maybe you :)



BKKBILL wrote:Although the feeling of being held for ransom even if just implied does leave an unpleasant taste. In my case more so with the 38 sq. m plot.


When it comes to gaining access to a 'locked' piece of land that's the same story the world over .... as geordie recently found out in the UK [where is he anyway? ...... sympathy's Bill :(

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5350
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: How to Value Land

Postby robertkc » Fri Sep 03, 2010 2:37 pm

BKKBILL wrote:[b]



Oh and robertkc are you still in the land of the brave or in LOS? :mrgreen: :mrgreen:
[/quote]

We are still in Canada... just back from a week at Long Beach on the Island funnily enough (a farewell to the west coast for me ? Our one way tickets to LOS are booked for December).
I think MGV12 made a good point about the stream having a value... just as mature trees will usually increase land value - I`d certainly have paid more for the presence of both on our land.
That astute wife of mine was happy when we checked the chanotes at the Land Office and found that their valuation of land in the area was 1500baht per talang wah, as we had agreed on 800baht. This Land Office price for the village had nothing much to do with our purchase - decided on a balance of the feeling we both had about the land after several visits, and how it checked against our ( by no means identical ) wish lists, and comparisons such as those you are making with available land & recent sales nearby.As far as I can tell these Land Office values are used only as a basis for transfer fees, but it seems Thais are aware of them as a general guide to the current price of land in an area . Sudden appearance of a smelly hotspring, or plans to construct another golf course nearby excepted - if you are paying over the Land Office valuation for the area something could be amiss.
It sounds like you have the time and constitution for waiting a year, BKKBill ( I would`nt, being a hasty type when I`ve made me mind up)...hope its all coming to a happy conclusion.
robertkc
 
Posts: 410
Joined: Sun Aug 23, 2009 6:28 am

Re: How to Value Land

Postby MGV12 » Fri Sep 03, 2010 3:26 pm

robertkc wrote:Our one way tickets to LOS are booked for December).


Good for you ... welcome :)

robertkc wrote:This Land Office price for the village had nothing much to do with our purchase - decided on a balance of the feeling we both had about the land after several visits, and how it checked against our ( by no means identical ) wish lists, and comparisons such as those you are making with available land & recent sales nearby.As far as I can tell these Land Office values are used only as a basis for transfer fees, but it seems Thais are aware of them as a general guide to the current price of land in an area .


I have limited personal experience but considerable feedback in the area of Land Office valuations ..... most certainly a Thai seller will take no notice of the land office valuation when setting a sale price. Everyone discloses the purchase/sale price as considerably lower than the actual figure in order to reduce the transfer tax .... a negotiation usually then ensues with the officer to reach a compromise that is acceptable level to both sides. As you say robertkc there are few or no direct valuations carried out by the Land Office themselves ... the figure is usually based upon the price that was accepted by them [for tax calculation purposes] on the last sale of a similar lot; therefore land office prices are usually significantly behind the 'going rate' .... most especially in 'up and coming areas' or where features in addition to the mere size and location come into play; for instance streams, lakes, golf courses, shops. schools etc etc ... the usual stuff ..... 'location, location, location' as we say in the West.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5350
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: How to Value Land

Postby BKKBILL » Sun Oct 03, 2010 2:11 pm

Guess in my quest for land I will have to past Siam, Chidlom, and Ploenchit. :lol: :lol:

This is from National News Thailand.

Land value around Bangkok increases by 4.4%

BANGKOK (NNT) -- The average land values in Bangkok and its vicinities have increased by 4.4 percent year-on-year, with the areas around Siam, Chidlom, and Ploenchit having the highest values.

According to a recent survey by Thailand’s Real Estate Information Centre, the land values around Siam, Chidlom, and Ploenchit have increased by 20 percent, compared to last year’s figure. The lands cost around 1.2 million baht per square wa.

Areas around Silom and Ratchadamri Roads are second most expensive, costing about 1 million baht per square wa. Last year, it was just 850,000 baht per square wa. The areas are suited for office buildings and shopping malls.

In the past year, the values of lands around Phahonyothin Road have increased the most by 25-29 percent. Land values around Aree BTS station, in particular, have moved up from 350,000 to 450,000 baht per square wa just in one year.

On the contrary, land prices in Nong Chok district have reduced from 11,000 to 10,000 baht per square wa year-on-year.


-- NNT 2010-10-03
It's not who you know, it's whom you know.
User avatar
BKKBILL
 
Posts: 2947
Joined: Tue May 26, 2009 10:05 pm
Location: Mae Taeng, Chiang Mai

Re: How to Value Land

Postby roymeboy » Tue Nov 09, 2010 1:54 pm

I recently paid 330,000 baht 20 mins away from Aranyapraphet in a small village 40mt x 70mt -2800 sq mt - I think it was a good price for a flat (no building ever on land) used for some kkind of low lying crop (Ambrosia?). Very nice land and all electric/water at road side.
roymeboy
 
Posts: 6
Joined: Sat Nov 06, 2010 5:42 pm

Re: How to Value Land

Postby roymeboy » Sat Nov 13, 2010 12:57 am

Further to my buy-land costs, I now have a quote for 1,400 cb mt of top soil/fill for my 2800 sq mt plot.
They say 90,000 baht (apprx 200 trckloads) which is 7 cb mt capacity trucks. My key contact in village is asking trucker/soil guy , does this include tractor to level soil as it should according to how these people quote.
The price is somewhere around where I thought it should b (550 bt per truck for 12 cb mt and 400-450bt for 7 cb mt truck). Price is very good for thailanThis is near Aranyapraphet- 3.5 hours North EASTERN Thailand from BKK.
roymeboy
 
Posts: 6
Joined: Sat Nov 06, 2010 5:42 pm

Re: How to Value Land

Postby kknaj » Sat Nov 13, 2010 12:43 pm

roymeboy wrote:I recently paid 330,000 baht 20 mins away from Aranyapraphet in a small village 40mt x 70mt -2800 sq mt - I think it was a good price for a flat (no building ever on land) used for some kkind of low lying crop (Ambrosia?). Very nice land and all electric/water at road side.


I think that price is quite reasonable for the size. Village land is often more expensive than remote farm land anyway and then central city land is more expensive again. My gf and I want to buy a small plot next door to her land. Its very narrow (10m x 16m long) it would make a nice addition to the 30x16m she already has but I dont think the owner will sell for less than 250,000 baht. Its 15mins from Khon Kaen city but still overpriced. When we get to the stage of building we will convince them somehow.
User avatar
kknaj
 
Posts: 557
Joined: Tue Jun 22, 2010 7:20 pm

Re: How to Value Land

Postby payebacs » Wed Feb 08, 2012 2:24 am

Is there any truth that land is worth for sale what it could bring in over a 30 year lease. or is it more that vice verca a 30 year lease will generally add up to the sale price. And if so can one work out a fair monthly rent rate by dividing a piece of land's sale price by 360 months (the 30 years) or does a 30 year lease generally afford a cheaper rate per month than leases of other shorter duration? As an example and so, as if according to this, land worth 360 000 could, forseeably under a 30 year lease, be rented out for 1 000 a month. Perhaps slightly more if on a short term lease?
Saving for my next holiday. And for my build.
User avatar
payebacs
 
Posts: 399
Joined: Wed Jan 25, 2012 10:51 am

Re: How to Value Land

Postby geordie » Wed Feb 08, 2012 9:25 am

payebacs wrote:Is there any truth that land is worth for sale what it could bring in over a 30 year lease. or is it more that vice verca a 30 year lease will generally add up to the sale price. And if so can one work out a fair monthly rent rate by dividing a piece of land's sale price by 360 months (the 30 years) or does a 30 year lease generally afford a cheaper rate per month than leases of other shorter duration? As an example and so, as if according to this, land worth 360 000 could, forseeably under a 30 year lease, be rented out for 1 000 a month. Perhaps slightly more if on a short term lease?


There is no rational when it come,s to buying land its as valuable as you see fit no two pieces of dirt are ever going to be the same i beleive somewhere i already mentioned you might look at a bit of land with a beautiful uninterupted veiw across a valley with a nice lake and mountains in the distance with no near neighbours ?? sounds great 8) 8) then the pratt across the road who has a sandpit surouded by rock strewn lumps unable to grow anything on it will sudenly decide that his bit of dirt is worth a fortune not considering at all you payed a premium for the fantastic veiws road access power and water
Even buying a bit of paddy some wise ass will divide it into BUILDING PLOTS ??? now it will cost you more than a farm go with what you think is fair and do not hesitate to walk off when a stupid lottery winning price is pulled out of the air if you need a laugh and kill some time go looking for land :roll: :roll: then try and figure out the percentage thats being added as comision for the person showing it to you for agreeing the inflated value is good for that area Try looking for a small peice of land for the gf to grow vegatables on :roll: :roll: as oposed to a plot for a house but make damm sure you have road access and papers for it
my comments may be wrong but never deliberately
If it aint broke, dont fix it
User avatar
geordie
 
Posts: 3867
Joined: Sun Oct 12, 2008 4:39 am

Re: How to Value Land

Postby payebacs » Wed Feb 08, 2012 3:14 pm

geordie wrote: comision for the person showing it to you for agreeing the inflated value is good for that area Try looking for a small peice of land for the gf to grow vegatables on :roll: :roll: as oposed to a plot for a house but make damm sure you have road access and papers for it

Okay, point/s taken but, Once, by whatever means, a price has been decided on, how to translate this into rent per month? Granted, the rent could be set at whatever someone is willing to pay so if I owned a piece of land I may just name my price but, over time, surely a figure as a proportion of a land's estimated value; does emerge which on average people are willing to pay...?
Saving for my next holiday. And for my build.
User avatar
payebacs
 
Posts: 399
Joined: Wed Jan 25, 2012 10:51 am

Next

Return to land

Who is online

Users browsing this forum: No registered users and 1 guest