Stronger Thai Baht...

[Lancelot]

According to the folks at http://www.oanda.com/convert/fxhistory on Dec 2, 2005 the USD was fetching B41.24 per USD. As of today Dec 2 2006, our banged up buck reels in a paltry B35.87 per USD, about 13% less than last year.

I've raised my budget by $100 to $1,100 / month or $13,200 / year. So factoring in the weaker $, I now need about 15% more $ (or $15,180) to buy the same basket of goods. (41.24 - 35.87) / 35.87.

Another way to look at it is as follows: on Dec 2005, Joe had $1 million USD and he could exchange that for 41,240,000 THB @ B41.24 / USD. However one year later Joe's million bucks bought 35.87 THB, a loss of 5.37 MILLION baht. That "lost" baht would have purchased a very nice condo here in Bangkok....

Anyway, Thailand is still affordable, but not quite the deal it's been in the past.

The Philippines anyone?!?

Lance

PS-According to the Bangkok Post, the stronger Thai baht is due to massive foreign direct investment in Thailand. On the other hand, Thai exporters (rice, rubber, shrimp, garmets...) are complaining about losing market share. They claim that their threshold of pain is THB 37.5 / USD.

[MasterBlaster]

It just isn't the Thai Bhat that is rising relative to the dollar. It is pretty much every currency rising against the dollar.

So, as a nation we are poorer when our currency devalues as you can directly attest to. Unfortuneately the trend is going to be more of the same. That's what the trade deficit does to you.

Some people believe that this trend will get much worse in the years to come. Stay tuned ...

[Sam]

Quote:

Originally Posted by Lancelot I've raised my budget by $100 to $1,100 / month or $13,200 / year

Having to pay more is always painful. 10% is not trivial, but the difference between 1K and 1.1K is very negligible, right?

A lot of people, myself included, would be very happy to pay such a small sum for that life. Cheer up. Who knows, may be this time next year your budget will only be $900/mth. Enjoy Thailand.

[claire]

I dont know why any sane person would think of ER in Thailand!

Its cheap because its DANGEROUS, most places (with exceptions) with low cost of living and quality of life are cheap - it is not worth the risk of living there anyway

WAKE UP they will rob you and murder you for a can of BEER. Lots of brits have been murdered there recently - unless of course you are planning to live on a five star gated golf complex

[Sam]

Claire, when was the last time you were in Thailand. How long did you stay there?

[justin]

Quote:

Originally Posted by claire WAKE UP they will rob you and murder you for a can of BEER. Lots of brits have been murdered there recently - unless of course you are planning to live on a five star gated golf complex

What are you saying? Why go all the way to Thailand to get killed when you can get robbed and murdered in the convenience of your own house back in your home country? I don't know about you, but every day on the local news channel's web site I see stories about rapes, murders, robberies, etc. Developing nations certainly don't hold a monopoly on violent crime...

[claire]

I am saying that the place is DANGEROUS

certainly there is an argument that if your number is up ......

I agree that you can get into big trouble in your own back yard (as you say)
BUT the cost of living is low, people are poor, crime is rife, any one who appears to be from the western "civilised" world is a target

These people are poor, mean and violent

I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.

[Sam]

Quote:

Originally Posted by claire These people are poor, mean and violent I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.

I am sure you're not a racist. But I'd still love to hear about your experience in Thailand. When were you there the last time, and for how long?

[wompo]

Quote:

Originally Posted by claire I am saying that the place is DANGEROUS certainly there is an argument that if your number is up ...... I agree that you can get into big trouble in your own back yard (as you say) BUT the cost of living is low, people are poor, crime is rife, any one who appears to be from the western "civilised" world is a target These people are poor, mean and violent I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.

You are one of the only people I have met with that attitude about Thailand. I lived there for three years and traveled all around Thailand. I felt safer in Thailand than most any other country I have been in (and I have been all over the world). I have heard of people (guys mainly) who get drunk and acting like fools who get robbed and worse, but if you do that you are taking a risk wherever you are.

[claire]

well i find it strange that you missed that british girl being raped and murdered in koi samui (this may not be the correct spelling) recently - by three thai fishermen that were drunk and bored

Also a couple were gunned downed near the bridge kwai lately

I still dont understand why you would think of retiring there, perhaps I am missing something

Again,I hear lots of nasty things, people being gunned down and raped - dont go there

[claire]

if you are looking for somewhere "cheap" to retire - try europe its safer than thailand, try italy, spain, france, inexpensive, yes, and safe

[justin]

Quote:

Originally Posted by claire if you are looking for somewhere "cheap" to retire - try europe its safer than thailand, try italy, spain, france, inexpensive, yes, and safe

Wow, Europe! I've never heard of anyone retiring to Europe (at least western Europe to the countries you listed) in order to live "on the cheap". What kind of a lifestyle would $1000-1100/month (825 Euros per month) get you in italy, france or spain? My take is that many things are rather expensive in many parts of Europe. Maybe it's the US dollar's recent weakening against the Euro which makes Europe particularly expensive for US-based ER's.

[claire]

yes - it can be done - but i need to go now because my DH has just come in grunting at me - i think he thinks i am having an affair

its the time difference (it id noe 1.19 am) -anyway - i will speak more tomorrow

sweet dreams

xx

[justin]

Quote:

Originally Posted by claire yes - it can be done...

Well, I'm sure it COULD be done, but one could probably also do Thailand (or elsewhere in SE Asia) for $300/month if one were willing to learn the language and live simply like the native folks do.

I've never been to Thailand, but it seems like the folks who live there or have lived there don't think there is much of a problem. Ben, Lance, and the Kaderli's are/have lived there for quite a while. I'm sure there is crime like everywhere else.

[Lancelot]

Quote:

Originally Posted by Sam Having to pay more is always painful. 10% is not trivial, but the difference between 1K and 1.1K is very negligible, right? A lot of people, myself included, would be very happy to pay such a small sum for that life. Cheer up. Who knows, may be this time next year your budget will only be $900/mth. Enjoy Thailand.

I increased my budget by $100 or 10% to cover inflation and increased spending on my part. Because of the stronger Baht, I now spend 15% more to compensate for currency changes. The total increase is 26.5% ($15,180 - $12,000) / $12,000.

The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.

Quote:

Originally Posted by justin I've never been to Thailand, but it seems like the folks who live there or have lived there don't think there is much of a problem. Ben, Lance, and the Kaderli's are/have lived there for quite a while. I'm sure there is crime like everywhere else.

Sorry Justin, but you're wrong. All the Thais I've met are blood thirsty thugs. Maybe it's that radical Buddhist religion they follow

If I ever move back to the USA, I'll probably settle in inner Detroit or East LA, totally safe man : My English buddies assure me that there's never ever been a murder in the UK as well

Seriously speaking, I am more worried about being involved in a simple traffic acident (anywhere in the world) than being a crime victim in about 99% of the countries on the planet.

Lance

[justin]

Quote:

Originally Posted by Lancelot Seriously speaking, I am more worried about being involved in a simple traffic acident (anywhere in the world) than being a crime victim in about 99% of the countries on the planet.

That's what I'm worried about too. Every year in the US we have ~40,000 motor vehicle related fatalities with millions of non-fatal injuries. And almost all of us drive, so it is definitely something significant to worry about.

Look at Thailand's coup a few months back. Completely peaceful w/ no bloodshed. Just more evidence of the bloodlust of the Thais!

[Sam]

Quote:

Originally Posted by Lancelot I increased my budget by $100 or 10% to cover inflation and increased spending on my part. Because of the stronger Baht, I now spend 15% more to compensate for currency changes. The total increase is 26.5% ($15,180 - $12,000) / $12,000. The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.

Thanks for the clarification. Yep, 26.5% is very significant. That 10% inflation, is that just this year? What was the inflation in 2005, and 2004?

Quote:

Originally Posted by Lancelot The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.

Crazy thought: The purchasing power of the USD is about 3 times as high in Thailand. So, how about keeping 1/3 of your net worth in Thai currency/investment? That way you can withdraw from whichever bucket that is advantageous at the time.

Quote:

Originally Posted by justin Look at Thailand's coup a few months back. Completely peaceful w/ no bloodshed. Just more evidence of the bloodlust of the Thais!

You're wrong Justin! I followed the news closely. There were several incidences in which a number of people were found arguing violently on whether the coup was a good idea. One person even went so far as spitting on the other person's foot. Savage!

[sendbaht]

My dauther is going to school in Thailand and I notice I am sending more and more greenbacks then I use to. Still I feel lucky that collage is much less in Thailand then if I had her here.

My wife is Thai and I can own land in Thailand so it makes it easy for me to live there.

I spend a few weeks in PI and having it only 3 hours away will be so nice.

I guess we will see 35 baht to the dollar soon. Oh well. Come on July 2009. Last month of work.)

[sendbaht]

and claire PLEASEEEEE......... what are you talking about?

[Sam]

Quote:

Originally Posted by sendbaht My dauther is going to school in Thailand and I notice I am sending more and more greenbacks then I use to. Still I feel lucky that collage is much less in Thailand then if I had her here.

Interesting. I'd like to know more about this if you're willing to share. Will your daughter be back in the US after college? Would her Thai degree helps or hurts (compared to a US degree) if she's to get a professional job in the US. What's the college cost in Thailand?