Retire in Style in Thailand for Singaporeans- Bangkok n etc

After our previous article on retiring in Johor Bahru for Singaporeans, we now bring to you the idea of retiring in Thailand for Singaporeans in style.

It has been a choice weekend getaway to Bangkok for some retail, massage and food therapy. Or we could laze around on the pristine beaches of Phuket or Krabi. Not forgetting the charm and rustle of Chiang Mai and Hua Hin.

I guess the usual mirage of chilling by the cafe and having a laid-back retirement in a paradise setting is just such a nice picture of how we want to retire.

If we are still on to some online gigs or even trading and investing in the markets, it would be a good source of additional income while retiring.

Not forgetting the cost of living would be much lower than Singapore, which this article will be looking to unravel through the subsequent sections of this article.

Thailand is just a short air flight but in terms of distance, it would not beat JB which is a short MRT ride. Therefore, to have a full-time job in Singapore while staying in Thailand would likely not be a viable choice for those under employment.

 

Retirement Visas for Thailand

Before we can apply for a retirement visa, you have to be 50 years of age. So for those who have FIRE in their 30s, you might have to explore other options to have a long stay in Thailand (30 days for a normal trip based on Singapore’s visa exemption).

The applicant has to meet one of the following financial requirements:

• Hold a deposit of no less than THB 800,000 in a Thai bank account for at least 3 months.
• Receive a monthly income (including pension) of at least THB 65,000. As proof of monthly income, an affidavit must be obtained from the applicant’s embassy or consulate in Thailand.
• A combination of bank deposit and a yearly income of no less than THB 800,000. As supporting evidence, an updated bank book or letter from both the applicant’s bank and embassy must be submitted

Other documents that may be required to be presented:

• • Police Clearance
  • Medical Certificate
  • Health Insurance

The visa is valid for 1 year and is renewable after that. There is also a report to be made to the immigration office every 90 days to update them on your residence in Thailand. To apply for the retirement visa, you must first apply for a 90-day visa and stay in Thailand for 60 days before you can submit your application.

Not too sure about yourself, but I certainly feel this process could be smoothen out as there seem lots of administrative matters. Moreover, it is just a 1-year visa unlike Malaysia which is granting a 10-year visa.

 

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Thailand Property

For the property prices, we are looking at renting and for a 2 bedder, we should be able to get it at below 1k SGD in Bangkok. It will be less in places like Chiang Mai or Hua Hin.

Source: DD Property

This unit is in Asoke, Bangkok, and it is a small 2-bedroom unit of less than 50 sqm but the rental is less than SGD 900.

At one point, there was a serious contemplation of getting a unit in Bangkok for retirement stay. The resale unit we are looking at is close to 40sqm and it is 300m from Thong Lor BTS. The asking price was around 250k SGD. A brand new development launch would likely cost you above 300k SGD.

Source: DD Property

This is the gem unit that we have zeroed in. Fast forward 5 years later, the price stays stagnant. As compared to Singapore’s property market which has seen huge strides in price appreciation.

We remember we had to open a Thai bank account to process the sales if the negotiation went through. To open the bank account, we have to go to the Singapore embassy to get our passport certified true copy.  We also have an address in Thailand.

In terms of pricing and rental, it sure beats Singapore for sure and the lifestyle arbitrage will come into play. For 250k SGD, we doubt we can get anything decent in Singapore but we can get a full facilities condo in Bangkok. 

Similarly, for a rental of under 1k SGD, you likely could just get yourself a room in Singapore. In Thailand, you can get a 2 bedder condo unit with a great pool and gym thrown in.

 

Cost of Living- Retiring in Thailand

Given the inflationary effects where we could feel it in Singapore. My favourite Sunday to go to chicken rice stall has increased their most basic meal from $3.50 to $4 just recently to usher in the Year of the Dragon.

So how much would it cost to retire in Thailand and is the lifestyle arbitrage worth it?

The cost of living in Singapore based on a study by the Lee Kuan Yew School of Public Policy in 2019 shows that a retiree would need SGD 1379 for their basic needs. It would assume that the house that they are staying in is free of mortgage.

Here is a compilation by MoneyOwl on the items that they have taken into consideration:

Source: MoneyOwl

Given the recent escalating prices, I would put $2,000 as a reasonable amount and that is not considering any rental and you own your property.

So doing the sums, from the numbeo website, the average cost of living for a single person in Thailand will be around 1k SGD (Chiangmai) to 1.3k SGD to 1.5k SGD (Bangkok). The living expenses will be in the range of SGD 650 to SGD 850. This is sort of in sync with the research we have done viewing the content from YouTubers and articles. This is inclusive of rental.

 

Lifestyle Arbitrage

As for the cost of living in Singapore, we have estimated it to be around 2k SGD not inclusive of rental. If we add in rental, we could easily be looking at 3k SGD and you are just renting a room as compared to a whole nice condo unit in Thailand.

Let us see how the sums will work out if we are living in Thailand as compared to if we are living in Singapore. If we rent out our 3-room flat for SGD $2,000, renting a nice 2 bedder in Thailand for SGD $900. Our net inflow from the property arbitrage will be SGD $1,100. We will deduct this from our living expenses in Bangkok of SGD $850, it will give us a surplus of SGD $250.

So instead of an outlay of $2k, if we stay in Singapore, we will have no outlay but surprisingly an income from the lifestyle arbitrage of SGD $250 which can be used to upgrade our lifestyle. Alternatively, it will stretch our retirement funds to handle unforeseen expenses.

 

Other Factors to Consider Retiring in Thailand

In Thailand, it is a tourist haven for a reason. The creative vibes in the F&B scene would keep us spoiled for choice for cafe hopping. The food will be a definite plus for foodies. Also, the culture is easy to blend in as it is after all the Land of Smiles.

As for the crime rates, the level of crime is considered low. So it fared better than Johor Bahru which was ranked as moderate.

Source: Numbeo

A point to note is that gun ownership is allowed in Thailand. We have heard of the shooting in Siam Paragon and also in a nursery. They even have a gun district which is near Chinatown in Bangkok where there are shops selling shotguns, rifles and ammunition.

I believe this is a concern but it is not to the stage of it being a common sight. 

The administration of the Retirement Visa could also be a pain point but it is a reporting to be done every 3 months, so it should be bearable.

 

Summing Up

For this article, we looked at the attractiveness of retiring in Thailand which is a choice holiday destination for most Singaporeans.

Coupled with the escalating inflation which has led to a loss of purchasing power, the idea of retiring to a less expensive city might be a mode of survival to stretch their retirement funds for those less well off. 

The ability to leverage the good rental market in Singapore and having a lifestyle arbitrage is looking doable and attractive.

From our number crunching, instead of an outflow monthly during your retirement years, it could even result in an income from embarking on this initiative.

In terms of crime rate, Thailand also fares better than Johor Bahru.

Thailand would be a choice for serious consideration for those looking into retirement through a lifestyle arbitrage. 

 

Also Read: Retire in Style for Singaporeans in Malaysia- Johor Bahru

 

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Disclaimer:

The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. The content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Do note that this is not financial advice. If you are in doubt as to the action you should take, please consult your stockbroker or financial advisor.