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Thread: Thai finances.

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    Cadet Gold SheriffOfNothing's Avatar
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    Thai finances.

    In Thailand is 1000 baht the equivalent to $100 in our own countries?

    Or with lower wages is that 1000 baht even more valuable than our own highest denomination?

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    Lamai Beach Bum Thai Dreamer ผู้เพ้อฝัน bacwaan's Avatar
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    AUS$100 roughly equates to 3000 baht on the current exchange rate......

    But if you are talking about buying power its hard to equate...some things most notably Thai manufactured are way less to purchase here...but some things most notably imports and those with heavy taxes on them are much more

    Big items like rent/nousing can be cheaper here however cars, even those made in Thailand are generally more expensive here than their equivalent models made OS....yet motorbikes made here are generally less than those made or sold OS

    you would really need to look at your lifestyle/spend habits before you could say that an equivalent life in LOS is cheaper than one in your own country..however I would add that if you are prepared to modify your lifestyle here to be a more Thai styled one overall it is most likely to cost less
    Last edited by bacwaan; 7th February 2014 at 22:56.

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    Cadet Gold SheriffOfNothing's Avatar
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    Yes it is an interesting mix of somethings more, somethings less. For those on holiday there are also those 'tourist prices' compared to Thai prices.

    If I try to equate the 1000baht with $100 and therefore just move the decimal place I found some interesting results.

    That taxi ride that cost me 150baht, is definitely costing me more than $15 back home. Also items from the 711 such as an ice tea for 18baht is also costing me more than $1.80 back home. As soon as I starting having a meal and a few beers in a tourist orientated pub, then that equation definitely changes.

    When I went to buy a silk scarf for my mum and saw the price tag for 7000baht I knew it wasn't Thai prices anymore. Although I know there is a very wealthy Thai upper class that would have a very different level of buying power.

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    Cadet Gold SheriffOfNothing's Avatar
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    Definitely our currencies are much more powerful, though I could see that 'tourist prices' were soon negating this.

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    Uber Star Soi wanderer Uber Dreamer ผู้เพ้อฝัน Nomad's Avatar
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    Quote Originally Posted by SheriffOfNothing View Post
    In Thailand is 1000 baht the equivalent to $100 in our own countries?



    Or with lower wages is that 1000 baht even more valuable than our own highest denomination?

    In theory, minimum wage is 300 baht a day in Thailand, and $125 a day in Australia. On that basis you could say same same but different.
    "Don't wait around for your life to happen to you. Find something that makes you happy and do it. Everything else is just background noise." George Mason

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    Cadet Gold SheriffOfNothing's Avatar
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    I was looking at some real estate in Chiang Mai and found a few decent enough apartments for around 3,000,000. Now if I equate like for like and say that is $300,000 it is not a bad price for a modern apartment near the city, certainly can't get that price in Australian cities.

    Of course with the exchange rate the price becomes even sweeter, that apartment in reality is only $100,000. So in that sense it seems like a an excellent price. Even for renting something around 20,000baht a month, that is less than $700, there is no way I am getting that value here.

    I've also read a few blogs that have them saying that yes with the appropriate lifestyle modifications it can be much cheaper for them in Thailand.

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    Cadet Gold SheriffOfNothing's Avatar
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    Quote Originally Posted by Nomad View Post
    In theory, minimum wage is 300 baht a day in Thailand, and $125 a day in Australia. On that basis you could say same same but different.
    Those are interesting figures to illustrate the example. So in terms of the minimum wage 1000 thb is closer to $400! Wow.

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    ประเทศไทยเพื่อน Founding Member Thai Dreamer ผู้เพ้อฝัน Changone's Avatar
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    Its simple. Income Australia, lifestyle Thailand.
    And where the hell was Biggles.....?....when you needed him last Saturday....?

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    Uber Star Soi wanderer Thai Dreamer ผู้เพ้อฝัน RakThai's Avatar
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    Quote Originally Posted by SheriffOfNothing View Post
    Those are interesting figures to illustrate the example. So in terms of the minimum wage 1000 thb is closer to $400! Wow.
    House ad land is generally owned in Thailand.. No mortgages, no taxes on property..
    So the need to earn money is much lower than in the west..

    But the spending need is going up very fast in Thailand..
    Where 30 years ago there were no bills for electricity, water, and no need for steady costs like telephones and internet, now all that is a must, and a motorbike, smartphones, big screen TV, etc..

    So the minimum wage does not really do anymore, credit is normal, to huge amounts, and the land is left for low maintenance crops, because there is no real money to be made from labor intensive crops as compared to paid jobs..
    Growing pains of a country growing too fast..

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    Uber Star Soi wanderer Thai Dreamer ผู้เพ้อฝัน Stillearly's Avatar
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    The Big Mac index can give a good guide to purchasing power

    Interactive currency-comparison tool: The Big Mac index | The Economist

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    The artist formally known as Wabbits Thai Dreamer ผู้เพ้อฝัน wabbits's Avatar
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    Quote Originally Posted by Nomad View Post
    In theory, minimum wage is 300 baht a day in Thailand, and $125 a day in Australia. On that basis you could say same same but different.
    120bt buys 2 kow mun guy plus 2 drinks aprox we can go to the local shopping centre here and buy the same 20 to 25 oz.
    300bt a day 125 oz similar life style?
    .

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    Thai Dreamer ผู้เพ้อฝัน Hatari's Avatar
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    Quote Originally Posted by RakThai View Post
    House ad land is generally owned in Thailand.. No mortgages, no taxes on property..
    So the need to earn money is much lower than in the west..
    I would not go along with that; know plenty of young/middle age couples with mortgages just the same as we'd see in other countries. We are surrounded by them in the house we've leased since last month. Parents may own a house but that's it - a house with by a few metres round the sides. And more often, people have moved elsewhere for employment, starting new, hence the demand for the number of new subdivisions/house and land packages that are heavily advertised on Thai tv and magazines.

    The family may (and many do not, in cities) own a piece of land; but for their children, unless it is a farm that 1. can be subdivided and more relevant 2. is where they can live (in terms of their work)

    Ms H's family have 180 rai. One of the adult siblings lives there with her husband/son - the other four went through tertiary/uni education and moved for their careers and will never go back to live, instead leasing their share of the land out. Three to Bangkok, one to Chanthaburi. Two have 20-25 year mortgages in Bangkok, the third is saving for a deposit then mortgage. Ms H last year bought a section in a new subdivision here - price was based on 1.1 million per rai (40 x 40m). She will mortgage and build a house, as I expect will the other 30 or so buyers in that block.

    House buying isn't easy - often 50% cash deposit is the minimum and this is where the family can help, assisting in financing each other into property with no interest payable, but there's still money to be repaid.*

    House and land packages start at 1.49 million baht, up to 3.8 million locally. Convert to another currency, sure, then factor in the buyer may well be on 150,000 baht a year (one bank site had a minimum income of 12,000 per month to be considered for mortgage) - easy - 10 years gross salary for an entry-level house. The wage earner on 300 a day/7000 a month has little opportunity unless lucky enough to get into one of the government-sponsored low-earner housing areas - and then can never get out, ever, unless lottery/inheritance.

    _____________
    * just as an aside on that 'family-financing'
    a common argument for the (many) anti-Asians in NZ in mid-90s when I worked for a gov't agency working with long-term (5yr plus) unemployed, doing self-employment/business start-ups; the hatred, and it was hatred, of 'the Asians' with their 'empires' - commonly bought one one small business, worked at all hours by all the family, once enough equity would finance another relative into something similar and so on. Never claiming any gov't support (even though entitled to it) or welfare benefits. They were painted as some kind of 'mafia'. I like the way it can work in a close family (would never have worked in mine).

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    Thai Dreamer ผู้เพ้อฝัน Hatari's Avatar
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    Quote Originally Posted by SheriffOfNothing View Post
    In Thailand is 1000 baht the equivalent to $100 in our own countries?

    Or with lower wages is that 1000 baht even more valuable than our own highest denomination?
    For many - simple - it is three days wages plus 100 baht
    6-7000 in a month and many support/feed a family somehow

    Comparisons with other countries' currency - along the lines of that 'McDonalds index' look at whatever the minimum adult wage is in your country, after tax.
    What does it buy?

    eg here, about 40 baht per hour
    Work 3 hours and enough to see a movie (1 adult)
    Work another 2 hours and you can have Coke and popcorn too
    Work one hour for less than a litre of gasoline, or 800ml of milk - and one hour 15min for a bottle of beer from 7/11
    Work 2.5 hours for one KFC Zinger burger with coke and fries (99b)
    About six years total wages to buy a 1000 cc car (500k)

    and so on.

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    Cadet Gold SheriffOfNothing's Avatar
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    A minimum wage of 300 baht does seem low.

    I few years ago I read that Bangkok was considered one of the most expensive cities to live in the world. So they would have been equating cost of living with average wage. This was 5-6 years ago?

    It's like here in Aus in some ways. In certain areas people are paying 90% of their incomes on the mortgage. Meanwhile electricity prices have doubled in the last few years and most other goods and service cost are soaring. At the same time industry is shutting down and wages are now being attacked for being too high. It is such a game.

    Back to Thailand, how much effect have tourists had on inflating prices? This is the area that was behind me asking the original question. I realised that I was spending money by thinking in terms of AUD rather than in THB. In other words that 1000baht to my thinking was just $30, rather than fully appreciating the true value of it, that in fact it is 3x the minimum wage.

  15. #15
    Cadet Gold SheriffOfNothing's Avatar
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    Quote Originally Posted by Stillearly View Post
    The Big Mac index can give a good guide to purchasing power

    Interactive currency-comparison tool: The Big Mac index | The Economist
    Interesting stuff. Thanks for the link.

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    Thai Dreamer ผู้เพ้อฝัน Hatari's Avatar
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    In tourist areas I'd say you'd be right, earnings expectations (for many) would be higher - but their outgoings a lot higher too

    In Phuket an issue for the big hotel chains is that staff simply cannot afford to live there on wages paid - near where we used to live (base of Big Buddha hill, Chalong) there's now a big hostel being built - told 5-levels, as a venture from a hotel chain to house staff in single room accommodation.
    The house we rented there was (till 2010) 9500 per month incl water, cable tv and internet. Now rented at 16,000 and tenant has to pay water, cable tv and internet. Don't know how indicative this is of rents across the island - but for a Thai worker, wages haven't increased by that margin - almost double.

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    Cadet Gold SheriffOfNothing's Avatar
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    Quote Originally Posted by Hatari View Post
    For many - simple - it is three days wages plus 100 baht
    6-7000 in a month and many support/feed a family somehow

    Comparisons with other countries' currency - along the lines of that 'McDonalds index' look at whatever the minimum adult wage is in your country, after tax.
    What does it buy?

    eg here, about 40 baht per hour
    Work 3 hours and enough to see a movie (1 adult)
    Work another 2 hours and you can have Coke and popcorn too
    Work one hour for less than a litre of gasoline, or 800ml of milk - and one hour 15min for a bottle of beer from 7/11
    Work 2.5 hours for one KFC Zinger burger with coke and fries (99b)
    About six years total wages to buy a 1000 cc car (500k)

    and so on.
    So in other words the standard of living is much lower. The Thai has to work 3 hours to see that movie while the Aussie just 1 hour, even less on tuesdays 555.

    Imagine if people in Australia had to work for an 1hour 15 to buy a bottle of beer? There would be a revolution! It would also make binge drinking a little less affordable.

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    Quote Originally Posted by Hatari View Post
    * just as an aside on that 'family-financing'
    a common argument for the (many) anti-Asians in NZ in mid-90s when I worked for a gov't agency working with long-term (5yr plus) unemployed, doing self-employment/business start-ups; the hatred, and it was hatred, of 'the Asians' with their 'empires' - commonly bought one one small business, worked at all hours by all the family, once enough equity would finance another relative into something similar and so on. Never claiming any gov't support (even though entitled to it) or welfare benefits. They were painted as some kind of 'mafia'. I like the way it can work in a close family (would never have worked in mine).
    Seen it often and NZ is now a much better place for it. But true of most immigrants, they are seeking a better life, capable of getting off their arse and doing something which they have proved by leaving their familiar surroundings and own country.
    I've two minds about "boat people", should they be welcomed as at least they are trying to better themselves and family (generally)

  19. #19
    Thai Dreamer ผู้เพ้อฝัน Hatari's Avatar
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    Quote Originally Posted by TLandHim View Post
    Seen it often and NZ is now a much better place for it. But true of most immigrants, they are seeking a better life, capable of getting off their arse and doing something which they have proved by leaving their familiar surroundings and own country.
    I've two minds about "boat people", should they be welcomed as at least they are trying to better themselves and family (generally)
    getting off the original topic - but the redneck spirit is unfortunately alive and well in parts of provincial NZ.
    Including, embarrassingly, my former home town.
    3 February 2011 and an elected New Plymouth city councillor was in the news:


    New Plymouth District councillor Sherril George remonstrates with Waitara community board member Joe Rauner and his wife, Vicky, during Ms George's main street protest yesterday.

    Outspoken local body politician Sherril George is facing an investigation and calls to resign following her campaign urging people to boycott a Waitara food outlet.
    Ms George stood outside the shop in the town's main street yesterday next to a sign urging people to "support businesses that support your community".
    She handed out leaflets to shoppers berating the Cambodian-owned firm for, among other things, not being local, not employing locals, not investing in the local economy and for providing cheap and low quality products.
    Ms George: "I'm trying to make other small communities aware of what happens when these people move in"
    Town and Country Food's owner Hoyt Khuon considered himself a local already and would be happy to support future community projects, he said. He and his wife rented a home in Waitara. "If I'm going to live here I'm going to be a local too.

    It backfired though:
    A campaign urging Waitara people to boycott a new food outlet has backfired, with the business posting its busiest day yet.
    Town and Country Food owner Hoyt Khuon said yesterday was one of his busiest days since the shop opened one month ago.
    About 100 people had phoned him offering their support and apologising for Ms George’s behaviour, he said.
    “I say `don’t worry about it. I’m just loving what I’m doing here’.”
    I love it that this campaign backfired. It might make a more intelligent person reconsider the wisdom of what they are doing.
    Mr Khuon, 31, came to New Zealand as a refugee in 1998 and lived with his grandmother in Hamilton before he moved to Waitara six weeks ago.
    “I’m a Kiwi, I have a New Zealand passport".

  20. #20
    ประเทศไทยเพื่อน Founding Member Thai Dreamer ผู้เพ้อฝัน Changone's Avatar
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    New Zealand, where men are men...and the women are too..
    And where the hell was Biggles.....?....when you needed him last Saturday....?

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