Sure Glad I Retired in Thailand

[Dodger]

I was reading the other day that the cost of living in the U.S. is still ridiculously high even with the recession tapering off. When my daughter tells me how much her family is spending on basic necessities alone the prices are staggering. I'm sure this is pretty much the same in all of our home countries.

Here is a rough comparison between U.S. and Thailand:

In America, based on the average persons annual net income this is the percentage they spend on the following basic needs:

Housing = 36%
Transportation = 16%
Health Care = 13%
Food = 18%

As compared to my spending in Thailand:

Housing = 3% (annual condo maintenance fees)
Transportation = 1%
Health Care = 11% (just went up significantly last year when I turned the big 70).
Food = 12%

I'm 5 years into my retirement in Thailand (which I commonly refer to as the "Freedom Chapter") and I live a good quality life...never worry about paying bills...and save nearly 40% of my monthly income. Not to mention the ocean that's right outside my door or the cute Thai boy that's sitting next to me, both of which would just be pipe-dreams if I had retired in the U.S..

If you're getting close to retirement and not sure what to do...just stop thinking...sell the farm...say goodbye to that miserable city you call home...and give yourself the life of pure bliss that you deserve.

[Jun]

Thank you for the recommendation.

As compared to my spending in Thailand:
Housing = 3% (annual condo maintenance fees)
Transportation = 1%
Health Care = 11% (just went up significantly last year when I turned the big 70).
Food = 12%

Obviously, the more your income resembles that of Jeff Bezos, the better those percentages get !

If you're getting close to retirement and not sure what to do...just stop thinking...sell the farm...say goodbye to that miserable city you call home...and give yourself the life of pure bliss that you deserve.

I've taken early retirement & so far have been stretching my annual Thai holiday slightly longer each year. I'm certainly intending to increase the percentage of time spent in Thailand, as long as other issues do not intervene.

[Gaybutton]

If you're getting close to retirement and not sure what to do...just stop thinking...sell the farm...say goodbye to that miserable city you call home...and give yourself the life of pure bliss that you deserve.

Many years ago that is exactly what I did and I have never regretted it. If I had it to do over again I would do the same thing.

One thing I did was to have my home in Thailand fully paid before retiring. I didn't want that hanging over my head. Doing that depends on how mobile you want to be. If you know you want to settle in to one place, I think it's a good idea. If you think you might want to move around, you're probably better off renting.

I have lived in my Thailand home much longer than I have ever lived in any one place when I lived in the USA.

[Undaunted]

I was reading the other day that the cost of living in the U.S. is still ridiculously high even with the recession tapering off.

Just for the sake of clarity there is no recession tapering off I believe you meant inflation.

BTW in the 19 years I’ve lived in Thailand witnessing the many changes in the gay scene and acknowledging the reason I retired here was what it was like before. Now the main reason is the low cost of living.

[Jun]

Health Care = 11% (just went up significantly last year when I turned the big 70).

What does health care insurance cost when (if) you get to about 85 ?
Or develop something that requires continuing on going treatment ?

As an analogy, if I crashed my car about 3 times a year, I'd expect car insurance to be almost unaffordable.

One thing I did was to have my home in Thailand fully paid before retiring. I didn't want that hanging over my head. Doing that depends on how mobile you want to be. If you know you want to settle in to one place, I think it's a good idea. If you think you might want to move around, you're probably better off renting.

I read somewhere that foreigners can only get leases for a maximum of 30 years.
Is that true ? So what happens if you outlive the lease ?

Some might scoff at the idea, but if someone retires to Thailand early, at (say), 56 years of age, the probability of living to 86 is above 50%.
Even at 60, the probability is over 30%.

Sorry for asking awkward questions, but whilst I very much see the attraction of living in Thailand, I still like to understand the pitfalls.

[Gaybutton]

I read somewhere that foreigners can only get leases for a maximum of 30 years.
Is that true ?

It is true about the 30 years limit.

[billyhouston]

I read somewhere that foreigners can only get leases for a maximum of 30 years.
Is that true ?

I would imagine that most foreigners living in Thailand would have purchased a condo, which can be owned outright. Foreigners can only own less than 50% of the condo.

Subject to a very small number of exceptions, a foreigner cannot own land in the Kingdom and that is where the lease comes in. While it's not possible to own the land, it is possible to own the house which is situated on the land. In theory the 30-year lease can be renewable but, at age 76, I haven't gone into that in much detail.

[Dodger]

I read somewhere that foreigners can only get leases for a maximum of 30 years. Is that true ? So what happens if you outlive the lease.

No one knows because it's never happened before...

As far as your question regarding the cost of health insurance at age 85...every person's situation is different.

My policy in Thailand will increase incrementally by another 12% or so over the next 15 years. It covers extended care, with 600,000 out-patient per year/per medical incident, and 5 million baht in-patient per year/per medical incident with a deductible of 40,000 THB. It's world-wide coverage, and as long as you continue to maintain the policy they cover you until death regardless of age.

Regardless of how much a person is paying for health insurance - their total cost-of-living expenses in Thailand would be less than half of what they're faced with in the West...and that's without the bouncing-brown-boys making it a no-brainer!!!

[2lz2p]

I read somewhere that foreigners can only get leases for a maximum of 30 years.
Is that true ?

I would imagine that most foreigners living in Thailand would have purchased a condo, which can be owned outright. Foreigners can only own less than 50% of the condo.

Subject to a very small number of exceptions, a foreigner cannot own land in the Kingdom and that is where the lease comes in. While it's not possible to own the land, it is possible to own the house which is situated on the land. In theory the 30-year lease can be renewable but, at age 76, I haven't gone into that in much detail.

As mentioned, for most foreigners, they cannot own land. Although technically they can own a house on the land, but they would still need to lease the land on which the house is located. For condos, a foreigner can own the unit, but the number of foreign owned units cannot exceed 49%. For off plan purchase (under or to be constructed), you would need to contract for one while they were still under the 49% threshold. For existing condominiums, if you want it in your name, you will most likely need to purchase it from a foreigner that already has it in his/her name.

The usual work around for obtaining a house or condo if it doesn't qualify for foreign ownership, is to form a Company limited to own the property with the foreigner owning 49% of the shares and Thai nominees owning 51% - with the foreigner being the managing director and having complete control over the running of the company. Others have a Thai (spouse, partner, friend) purchase the property and they lease it from them - as mentioned, the longest lease period permitted is 30 years. Although the lease can contain a clause that it is renewable for another 30 years, I have seen the question asked many times, but never seen a definitive answer, as to whether such a clause is legally binding in Thailand.

Although I have always leased a house during my 20 plus years living here, I have a friend from the UK that uses a scheme recommended by their lawyer - a bit involved on the paperwork, but appears to protect the foreigner's interest. That scheme involves the following, and as I understand it, the paperwork is all filed at the land office at the same time:

1. A Thai (spouse, partner, friend, etc) purchases the property with money provided by the foreigner.

2. The foreigner loans the money to the Thai and takes a mortgage on the property (this is recorded on the Chanote and requires the mortgage be paid in full so the Thai owner can't transfer/sell the property unless the mortgage is paid)

3. The Thai leases the property to the foreigner for 30 years - the lease payment equates to the amount due on the mortgage interest, thus zeroing out any income to be taxed to the Thai and basically leaving the mortgage principal still to be paid. This being the inducement for the Thai owner to renew the lease after the initial lease.

As to the being glad for retiring in Thailand, I have been quite happy in having made that decision. I initially visited here on holiday in 1986 and continued annually for the next 5 years, then I met my Thai partner and started coming here on holiday twice a year for the next 10 years until I retired.

So, my initial reason for retiring here was primarily to be with my Thai partner as well as the lower cost of living and the availability adequate medical care for my existing heart problem.

Although the dollar has eroded in value since then (it was 44 to the dollar back then) and costs have increased, but much less then they have in the USA, I get an annual cost of living increase in my pension which is based on the rate of inflation in the US. Needless to say, that has resulted in an increase in my purchasing power in Thailand.

As to the cost of medical care, I am very fortunate that my employer based health insurance, which carried over into retirement, covers me in Thailand. It pays 100% for inpatient care and 85% for outpatient and drugs that require a prescription if purchased in USA. My portion of the premium is deducted from my pension before I receive it.

Being 26 years older than my Thai partner, I fully expected him to outlive me. Although that didn't happen and he passed away a couple of years ago, I am still glad to remain retired in Thailand with the cost of living being less and the medical care being very good and much more convenient to use (quick appointments, no waiting for results on diagnostic tests, etc.).

[Dodger]

My Top "LIKES" about Life in Thailand:

1) HIM
2) Weather (no more freezing my balls off in Chicago)
3) Ocean - I feel like I'm on vacation every day.
4) Low Cost-of-living
5) Health: Every time I leave our fitness park in the morning I feel like I'm adding years on my life. I'm probably not, but just believing it seems to have some residual benefits???
6) Temple music in the morning - A subtle reminder that I'm living the dream...in Buddha Land... where it's OK to be gay.
7) Side-adventures: the assortment of everything from islands to jungles to explore at the drop of a dime.

Ironically, Not a single one of these "Likes" would be possible if I had remained in the U.S. after retirement.