Oh and I recently signed a one-year lease on a beautiful one-bedroom condo in Chiang Mai. We snatched up this pad after I came back to Thailand from my five-week nightmare in Kuala Lumpur.
The condo’s location is absolutely perfect. It’s in the prime spot in the Nimman neighborhood.
Within one square kilometer, we have hundreds of restaurants, a major mall, dozens of coffee shops, shopping plazas, night markets, a movie theater, live music venues, three gyms, etc.
Everything I use on a daily basis is less than five minutes away by foot. My gym, for instance, is 100 meters away from the condo. The coffee shop I create and consume content from every day is less than 200 meters away.
As someone who loves to walk everywhere, it’s phenomenal. I’m able to live a vibrant, urban, walkable lifestyle here in Thailand for pennies on the dollar.
In the United States, dense, urban, walkable environments tend to be extremely expensive. Not so in Thailand, however. It’s one of the things that attracted me to Thailand in the first place.
Most of the savings, of course, comes in the form of housing.
Accommodation is usually one’s largest expense. Housing disproportionately affects your entire monthly budget, especially in the US. If you can figure out a way to cut this single expenditure by a large amount, you’re well on your way to lowering your entire monthly outlay by a significant percentage.
The furnished one-bedroom condo we have now runs 13,000 baht per month. Based on the current exchange rate, that translates to $410/month for our 35-square-meter place.
$410/month won’t even get you a room in any of the desirable US cities.
But it buys a pretty swanky pad in Chiang Mai.
This is one of the benefits of geographic arbitrage, which is a powerful concept I discuss at length in 5 Steps To Retire In 5 Years.
A furnished, well-located condo of similar size and quality in a nice US city would run at least four times as much as I’m paying.
Let’s check the condo out.
This is the view when you walk up to the condo from the driveway and pass the guarded gate:
Before you head upstairs, feel free to check out the small fitness center:
The fitness center looks out at a nice pool:
Then take the elevator upstairs:
The front door to the condo doesn’t require a key. Just a pin or a wave of a card:
Upon entering, there’s a small kitchen to the right:
Then you look straight ahead into the main living area:
The living room is small but cozy, which has a nice desk for me to work from:
The bedroom is probably a bit too large for us:
Oh’s happy about the large wardrobe:
Then we have the ensuite bathroom, which offers a rain shower:
We have a balcony attached to the bedroom, which is where the washer is. It overlooks a nice courtyard:
We’re super happy with the new unit. It gives both of us exactly what we want.
I think it’s quite an improvement over the one-bedroom apartment we were renting before.
The condo is cheaper on the order of 1,000 baht per month. It doesn’t include wi-fi, unlike the apartment. However, a blazing fast plan costs us less than 500 baht per month. Plus, the electricity rate is cheaper at the condo. It’s 4 baht/unit, compared to 7 baht/unit. Overall, it’ll run at least 1,000 baht less per month total. And I’ll personally end up spending much less than before, as Oh volunteered to cover the basic utilities. She wants to contribute something to the household, which I’m perfectly fine with. As such, my expense reports will be mostly recognizing just the 13,000 baht per month for the Rent & Utilities budget line (other than the occasional cleaning). Score!
I actually looked at this same condo building when I first moved to Chiang Mai in 2017. But the units were running 18,000 baht and up back then. A unit just like I’m now renting was going for 20,000 baht back in late 2017. Due to the unique Thai real estate dynamics that I’ve discussed before, rent tends to go down here (instead of up, like in the US). This is a perfect example of why I don’t worry about inflation anymore.
The dividend income from my FIRE Fund is organically growing and outpacing US inflation, but my local expenses aren’t really rising on a like-for-like basis. Life continues to get economically easier here. It’s a wonderful situation.
I think the condo also offers a superior standard in terms of the build and furnishings compared to the apartment. Everything feels higher quality, from the shower to the counters. It has sturdy feel that we were lacking before. We feel even more at home.
In addition, the location is better. The condo is about 500 meters closer to everything we both use every day. 500 meters might not sound like much. But it adds up, day in and day out. Plus, I do like spending less time in the direct sun in the early part of the day. My walk is shorter and offers more shade now, and I don’t have to cross a major street anymore. It’s just more pleasant across the board.
However, the condo does have a couple key drawbacks.
Chiefly, we had to sign a lease. The old apartment was a month-to-month rental. I like that flexibility. But Oh and I plan to remain here in Chiang Mai for a long time to come, so it’s not a big deal.
The bigger drawback, in my view, is that small repairs are now our responsibility. The contract stipulates that anything under 1,000 baht is up to us to take care of. This would include stuff like replacing light bulbs. It’s not the end of the world, but I do prefer having someone else handle everything.
Overall, Oh and I couldn’t be more pleased with the condo.
We’re in probably the best location in the entire city. As soon as we step outside our door, we’re immersed in all of the vibrancy that Chiang Mai has to offer.
Life is good!
What do you think? Like the new condo? Does this kind of value on housing shock you?
Thanks for reading.
P.S. If you’d like to achieve financial independence, retire early, and live anywhere in the world, check out some fantastic resources I personally used on my way to becoming financially free at 33!
Wow! Looks amazing! Geo arbitraging at it’s finest. Looks a great deal even for Thailand.
Enjoy!
BF,
Thanks a lot. We couldn’t be happier. 🙂
Best regards.
Your new place looks great. You signed a year lease? Did you get the visa issues that forced you to go to Malaysia sorted out?
Anonymous,
Yeah. We went back to the drawing board after Oh couldn’t sell her house and came up with a long-term solution that we’re both very excited about. I’ll be talking about that soon. 🙂
Cheers.
Great news! Glad you were able to identify a long term solution. I look forward to reading the details.
Wedding bells will soon be ringing!
Matt,
Maybe… 🙂
Cheers.
Outstanding! Walkability is something that could benefit a LOT of us here in the US. My GF and I went to Europe for the holidays and in one afternoon/evening doing a citywalk with a relative, we ended up having fun conversation, learn something new, see different parts of the city…and we walked almost 6.5 miles doing it, and didn’t even know it.
Anyway, I really enjoy these posts where we see pictures of the amenities and a cost of them. That’s a direct comparison of dollars and what you get. Not the sort of prettied up lies that “influencers” tout.
I’m glad to see things improve and look forward to reading about this “plan B” you’ve implemented.
Rob,
Thanks a lot. Glad it provided some insight! 🙂
We love walking everywhere. I’d say I’m a bigger fan of that, but Oh is right there with me. She regularly comments on how nice it is to take a long walk back home after dinner. Gives us a chance to hold hands, have a conversation, take in our surroundings, and digest our food. I find it to be an eminently more enjoyable way of life versus the car/house/bubble lifestyle that’s prevalent in the States.
You can have urban, vibrant, and walkable in the US. It’s just that it’s rarer and more expensive. That said, if I were to ever move back to the States, I’d carefully pick where I move so that I could maintain this same lifestyle. You have to be mindful and purposeful if this is what you want, just like with anything else.
Best regards.
Congrats. Your new condo looks great. It’s pretty small for us, but it sounds like the right size for you.
Having a pool is great too. You can cool off.
It’s pretty amazing the price is dropping like that. Is it also due to the coronovirus? The economy must be really slow now without all the Chinese tourists.
Joe,
It’s a swanky pad. We like the small size. But we also don’t have kids or anything. Like I’ve said a number of times before, though, it’s impossible to compare to similarly sized apartments in the States because of the design efficiency over here. They know how to maximize small space. It feels much larger than its size.
As for the price, it’s due to the real estate dynamics I discussed before. That’s why my rent never went up at the last place (all of that happened way before the virus). Also, Chinese people aren’t usually leasing these places in CM. They tend to be tourists. It’s wealthier Thais and expats that do the leases.
Best wishes!
Hey Jason! That place is amazing. Love the fact that you signed on for a year… it says that you have dropped anchor and aren’t going anywhere any time soon. You have found your home in many ways, and that makes me happy beyond words. That said, with so much space and so few possessions, couldn’t you put the frying pan away? Ha ha… had to mother you a little bit there. Or perhaps big brother you. As said when we spoke about it a while back, congrats to you AND THE FAMILY! I can’t wait to see your hood for myself one of these days. It is definitely going to happen.
Andrew,
Thanks, man. We’re super pleased with the new pad. 🙂
Definitely plan on sticking around for a while. I do see us eventually transitioning into some kind of part-time arrangement in terms of living in Thailand, but we’re in a very nice groove over here. Life is good. I’m blessed.
Hope all is well over on your side of the pond!
Best regards.
I almost can’t believe it’s true. So much living value for this little money. Amazing. Well done!
100million,
The value for money in Chiang Mai is pretty hard to beat. I combed the world. This is the best I can find. 🙂
Cheers.
No dishwasher?
DL,
No. Not that we’d want or need one. We never cook at home or use any dishes.
Cheers.
Nice place! Can’t get that in Houston for anywhere near the price.
FV,
Thanks!
Yeah, you’re not gonna get anything like this anywhere in the States at a similar price. Certainly not on a like-for-like basis. I’m very fortunate over here.
Best regards.
Jason –
Bravo sir! I love it. It has EVERYTHING you would need. Such a clean, minimalistic place, that is perfectly laid out. PLUS you have all of the amenities, including a pool.
However, as you know, the walking to where you want to be is the best part, for sure.
Lastly – US is so crazy with how much the cost of something like this would be. You pay $400 in one month, this is a $400/night hotel in US!
Just Bravo and Cheers Jason!
-Lanny
Lanny,
It’s an incredible deal. Not only compared to the States, but also compared to just about everywhere else in the world. I’ve looked all over, but Chiang Mai offers a unique value proposition across the board. It’s a pleasure to live here and get a good value on what I value. 🙂
Best wishes.
The new condo looks great. I love the minimalist approach. Plus, you have the pool and the gym in the building. What more can you ask for?
German,
I can’t ask for any more. I’m very, very pleased. 🙂
Cheers!
Dang, I really need to take a trip to Chiang Mai and see what it’s like there. $410/mo is cheaper than my very first apartment from 20 years ago! I started at $435/mo when I first rented there in 2000, which is equivalent to $651.67/mo in today’s dollars.
I’ve been traveling full-time for the past year and have mostly been staying in Airbnb rentals in the US. Last month I was in a nice 700 sq.ft. apartment on the west side of Austin and it was costing me about $600 per WEEK.
I prepared for that level of spending when determining my FI number, but still…it’s tough to wrap my mind around $2k+/mo in rent for an apartment after owning my house free-and-clear for 10 years.
Travis,
Yeah, the value for money here is outrageous. This is less than the rent on my one-bedroom place when I was in college. And that was a worn-out apartment near Flint.
Best regards.
Congratulations! Looks like a great deal! How did you get around the visa issues? Or did Thai laws change for the better?
Tony,
Thank you!
We’re super happy with it. It’s a beautiful space. And you can’t do any better in regard to location. I can access everything I’d ever want within a five-minute walk. It’s a very vibrant area.
The increasing visa restrictiveness in Thailand hasn’t changed. However, as I recently wrote about, we circled back around to our other two long-term options after Oh couldn’t sell her house. I’ll soon reveal which of those two options we settled on.
Cheers.
I really need to give Thailand a serious look. Right now, I’m in Manila (Phillipines) and the 1 bedroom apartments here are too expensive. Around $800+ for a similar neighborhood. A good 1 br on AirBNB in an upscale place like Makati or BGC is well over $1,000.
I’m leaving Manila next month and really need to settle in a much better country for my next extended vacation. Manila is crowded, dirty, noisy and surprisingly expensive. Never want to experience this type of nonsense again.
Chiang Mai looks like the perfect solution and that’s probably why so many FIRE expats end up living there. It’s got everything you need for a bargain price. I love the modern 1 br setup!
That’s all you need to be happy. No need for a huge Mcmansion that needs to be filled with stuff.
I’m extremely bullish on Chiang Mai. Bearish on Manila. lol. Great setup, Jason!
IT,
When I first started seriously researching moving abroad, I was actually surprised at how expensive the Philippines is. I think the QOL in Thailand is significantly higher, yet it’s also much cheaper. Thus, the Philippines became a non-starter pretty quickly for me. I can see how others would want to stay there, though. The visa situation in the Philippines is obviously much better for living there full time. Thailand has become basically unworkable for a lot of people in this regard, which is why so many have left.
“…and that’s probably why so many FIRE expats end up living there.”
That’s interesting. I haven’t found any FIRE expats living here. Care to share any examples? I’ve run into a lot of people in the FIRE community as they’ve passed through temporarily on a short stay (like Joe from RB40 or Eric from Nomad On Fire), but I haven’t found anyone else here who’s in their 30s or 40s and living off passive income full time in Chiang Mai as an early retiree expat.
Best regards.