Any rent to buy condos in Pattaya?

[simon43]

So here is my situation:

Having lived in Thailand from 2002, I am now working in Myanmar since about 2012. I'm just working to save money in the bank for my retirement (back in Thailand) in a few years from now.

I can't buy a property in Myanmar (property ownership laws), and to be honest, I would much prefer to live in Pattaya (good jogging promenade, wide range of shops etc). I'm not into drinking, bar-girls or boys...

So I'm thinking to buy a small condo in Pattaya. But I don't expect to rent it out (only a small rental income, agent fees to be paid etc etc).

Here is an added twist - I have some goods in store in Phuket (some of my radio amateur equipment). I don't want to import these temporarily to Myanmar, and I'm stuck paying about 2,000 baht each month in storage fees. Now the storage company is closing down and I need to move my things.

So how about this idea:

Are there 'rent-to-buy' condos available in Pattaya? That's where I pay an initial deposit, then rent the condo each month, with a legal contract to purchase the condo at a future date, with my rental fees offsetting the purchase price of the condo. I could store my goods in this condo, use it during my biannual breaks in Thailand, and then finally move in when I decide to retire.

Suggestions welcome!

[tolsti]

Interesting question Simon.... how much are you looking at paying each month, what size appt  and for how long?

[thaitero]

I have a very small condo 22 sgm at popular new unixx building. Unfurnished, Never lived and rented. I may be interested to let it go with deal like this.. Send PM if interested..

[simon43]

Interesting question Simon.... how much are you looking at paying each month, what size appt and for how long?

I would imagine paying no more than 30,000 baht per month in the rental stage of a rent-to-buy agreement.

The apartment need not be huge - I live alone. I'm also aware that the condo market in Pattaya is dead - I would never be able to resell the condo at a profit. So I wouldn't want to sink all my savings into buying a condo - it is just a small place for holiday breaks and storage. A studio or 1 bedroom would be fine.

How long for the rent-to-buy stage? That can be calculated from the overall price of the condo. If a studio condo costs 1 million baht and I pay 250,000 baht deposit, then that leaves 750,000 baht to pay (interest rate not taken into account). At 30,000 per month, that means just 25 months to pay everything.

Right now, I save around 60,000 THB each month from my salary. So paying a rent-to-buy with these financials is well within my means.

[HLover]

I've had good luck with this agent, I'm sure you can find something to fit your needs.

http://thaicondodesign.com

[The manic]

Yes plenty Pratumnak Soi 3 but load of deals around. 15 year payment plan. 

[inThailand]

I am familiar with the rent to own method in the states, as the owner.

As the renter/future owner in Thailand you are taking a big risk. You pay a deposit, you pay monthly and what happens when the owner does not transfer the condo to you?  The owner defaults on the contract. God luck in a Thai court room if you ever get there!

 

[Basil B]

To do it formally may be a mine field, but could always do it informally, just look for something you like and suggest you rent it for six months with an option to buy at the end, if the property has been on the market for a long time the seller may well agree.

 

better still would be just to rent where you think you would like to live and if you do not like it just move on somewhere else, then when you are decided just ask around, prices are so buoyant if you are prepared to wait I am sure you could pick a better bargain from a desperate seller.    

[Jingthing]

4 minutes ago, Basil B said:

To do it formally may be a mine field, but could always do it informally, just look for something you like and suggest you rent it for six months with an option to buy at the end, if the property has been on the market for a long time the seller may well agree.

It's really a question for a Thai lawyer experienced in real estate contracts. Rent to own isn't a thing here, but the question might be is if such an arrangement would be legal to formalize in a contract. A good contract would legally compel the owner to actually sell later,  and to apply the paid rent to the sale price. The owner also needs protections. In the U.S. such contracts are usually heavily in favor of the seller. 

[LaoPo]

18 minutes ago, Basil B said:

To do it formally may be a mine field, but could always do it informally, just look for something you like and suggest you rent it for six months with an option to buy at the end, if the property has been on the market for a long time the seller may well agree.

 

better still would be just to rent where you think you would like to live and if you do not like it just move on somewhere else, then when you are decided just ask around, prices are so buoyant if you are prepared to wait I am sure you could pick a better bargain from a desperate seller.    

@Simon43:

 

I agree with Basil B and suggest also to rent for the first year only and look around during that year for a good opportunity and talk to many agents; I can recommend a good and trustworthy (farang/Canadian) agent office for you if you want, next to another Farang chap, investing in condos who has businesses in Jomtien also.

.

The first year store your equipment in your rented condo.

There are some good and cheap -one year- studio/1 bedroom deals around Pattaya Pratumnak and Jomtien area.

The newer apartment buildings are more expensive most of the time and small vs the rental price. I wouldn't buy/rent in Pattaya itself but that's a personal opinion.

 

Good luck Simon!

 

 

[inThailand]

2 hours ago, Jingthing said:

It's really a question for a Thai lawyer experienced in real estate contracts. Rent to own isn't a thing here, but the question might be is if such an arrangement would be legal to formalize in a contract. A good contract would legally compel the owner to actually sell later,  and to apply the paid rent to the sale price. The owner also needs protections. In the U.S. such contracts are usually heavily in favor of the seller. 

Yes, by all means there should be a proper agreement between the two parties. And at home, if either party defaults it would be sorted by a judge. But in LOS, we all know it's the one holding the money that's in the driver's seat. Deposit money lost, rent money towards ownership lost and then when he stops paying no more place to live. This could easily end up very bad for the rent to buy guy. 

[simon43]

This could easily end up very bad for the rent to buy guy.

Yep - that's my main concern... :)

[inThailand]

1 hour ago, simon43 said:

 

 

Yep - that's my main concern... :)

 

Maybe more acceptable terms are; no deposit and a portion of the rent gets applied if you buy. In essence you lose no money over rent paid. 

[elgenon]

On 2/18/2018 at 7:51 AM, simon43 said:

 

 

I would imagine paying no more than 30,000 baht per month in the rental stage of a rent-to-buy agreement.

The apartment need not be huge - I live alone. I'm also aware that the condo market in Pattaya is dead - I would never be able to resell the condo at a profit. So I wouldn't want to sink all my savings into buying a condo - it is just a small place for holiday breaks and storage. A studio or 1 bedroom would be fine.

How long for the rent-to-buy stage? That can be calculated from the overall price of the condo. If a studio condo costs 1 million baht and I pay 250,000 baht deposit, then that leaves 750,000 baht to pay (interest rate not taken into account). At 30,000 per month, that means just 25 months to pay everything.

Right now, I save around 60,000 THB each month from my salary. So paying a rent-to-buy with these financials is well within my means.

 

But you did say you plan to live there? So not "just a small place for holiday breaks and storage."

 

What area do you prefer?

[mrfaroukh]

For the time beings the market is very slow, to sell or to rent. But it is a buyer market as there are tons of apartments on sale. It is not very easy to rent out unless it is cheap and in demanded area.

[asean]

we do many rent to own contracts. Simply the condo is transferred to the buyers name on the contract and the seller takes a mortgage or better a khaifak on the condo which still give him control on the asset. Once the buyer/renter has completed payments he just goes to the land office with copies of payment receipts and has the Lien taken off the condo. No lawyers, courts, bank judges nothing required.

 

If the buyer renter stops paying the seller goes to the land office and has the title transferred back to him.

 

There is a 2% fee. But safe secure simple for both sides.

 

 

[MrJ]

1 hour ago, asean said:

we do many rent to own contracts. Simply the condo is transferred to the buyers name on the contract and the seller takes a mortgage or better a khaifak on the condo which still give him control on the asset. Once the buyer/renter has completed payments he just goes to the land office with copies of payment receipts and has the Lien taken off the condo. No lawyers, courts, bank judges nothing required.

 

If the buyer renter stops paying the seller goes to the land office and has the title transferred back to him.

 

There is a 2% fee. But safe secure simple for both sides.

 

 

my lawyer told me only works for Thai not for Farang

[glasswort]

Simon, I have a 48sm condo in PKCP (10th floor), Central Pattaya and would be interested in selling it on this type of arrangement. If interested please PM me (whatever this means!).

[dotpoom]

Why not just ask the owner when you come across a condo you like,maybe can come to some arrangement.

  As my old Gran used to say...."You'll never know  if you don't ask ???

  

[HLover]

3 hours ago, MrJ said:

my lawyer told me only works for Thai not for Farang

He should work for both nationalities, unless he has too many clients already.  It seems only fair.

[stevemal]

I have a new 24 sq m fully furnished condo at city center residence pattaya  just off third road accross 5-10 minutes walk to soi buckow which maybe i could do you a deal on.

[norrska]

Why not rent one of the many 5000 baht/month rooms on an ongoing basis to store your stuff, and stay there when you visit.(may even be able to haggle down the price further if you rent for a few years)  You can then move into a nicer monthly rental once you settle in Pattaya.  Going to save alot this way and totally eliminate any risk.

[geisha]

I would do as norrska above says.

[watcharacters]

On 2/18/2018 at 3:13 PM, inThailand said:

I am familiar with the rent to own method in the states, as the owner.

As the renter/future owner in Thailand you are taking a big risk. You pay a deposit, you pay monthly and what happens when the owner does not transfer the condo to you?  The owner defaults on the contract. God luck in a Thai court room if you ever get there!

 

 

 

Good Point!   

 

I think that kills that idea.

 

 

[watcharacters]

9 hours ago, MrJ said:

my lawyer told me only works for Thai not for Farang

 

 

 

I'd be inclined to believe that lawyer.

 

It would be a disaster to find out after the fact that a well thought plan was untenable.

 

Good luck and tread softly..

 

 

[asean]

2 hours ago, watcharacters said:

 

 

 

I'd be inclined to believe that lawyer.

 

It would be a disaster to find out after the fact that a well thought plan was untenable.

 

Good luck and tread softly..

 

 

You know there are some law firms out there with an undefeated record of say over 340 cases mostly farang clients? And since when did we all a sudden decide to believe everything every thai lawyer says? You not heard the stories ?

[Peterw42]

A couple of the large western run real estate agents in pattaya advertise rent/buy options on the local cable TV.

[Rimmer]

Several posts have been removed, can we talk about the subject please, not other posters.

[inThailand]

20 hours ago, Peterw42 said:

A couple of the large western run real estate agents in pattaya advertise rent/buy options on the local cable TV.

Aren't these the same ones who say you can get a 90 year lease?

[simon43]

Thanks for all the good advice.

Clearly, I would want to minimise any financial risk, (and no doubt the condo owner likewise). I'm aware that it is a buyer's market (and has been for yonks).

I'm not totally sure when I will stop working, and where I will settle permanently. But I know that I'll visit Pattaya regularly (as I do now in my school breaks), and I'll possibly settle there as well.

My current storage problems in Phuket mean that I really need to sort out at least some initial rental unit, and it makes sense to try to offset that rent against a future purchase.

I'll be in Pattaya in a few weeks and intend to investigate this further.

Of particular interest are units that are on the top floor of condo buildings (not the floor below or a lower floor). This is because one of my hobbies is amateur radio (I have a Thai ham licence). I'm not allowed to pursue my hobby in Myanmar (illegal!). Hence, the attraction of a top floor condo in a high building appeals to me (good radio signal...)

If I buy a unit on the top floor, then I'll invest in a parachute (I'm serious, think of 9/11, Grenville etc).