Grade A Condo Purchase Question.

[Lorin]

Friend of mine took me to see new project in very central location on lower Sukhumvit. They have small units availabe round 55-65 sqm and the price that I can get now is about 70K/sqm. The condo will be ready to move in in middle 2009. Now, me myself dont like small units and I didnt like the way its planned and decorated, however is it good investment? Could I sell that place for 90-100k/sqm after the project will be completed?

[backflip]

Buying a condo on spec, and selling at a profit is not a certainty. Be careful.

[teej]

Now, me myself dont like small units and I didnt like the way its planned and decorated, however is it good investment?

Based on that sentence alone, do not buy. Why invest in something you don't even like yourself!? Do you expect someone else to pay you more in the future for something you don't even like now? This is not the antique market.

[Lorin]

Now, me myself dont like small units and I didnt like the way its planned and decorated, however is it good investment?

Based on that sentence alone, do not buy. Why invest in something you don't even like yourself!? Do you expect someone else to pay you more in the future for something you don't even like now? This is not the antique market.

You know Japanese and Thai live comfortably in small units, but I cant. I believe is more about size than decoration, that makes me dislike the place.

[think_too_mut]

Friend of mine took me to see new project in very central location on lower Sukhumvit. They have small units availabe round 55-65 sqm and the price that I can get now is about 70K/sqm. The condo will be ready to move in in middle 2009. Now, me myself dont like small units and I didnt like the way its planned and decorated, however is it good investment? Could I sell that place for 90-100k/sqm after the project will be completed?

The price should be 500 US$ per sqaure meter. City center 10K, for nothing but traffic jams.

Edited March 20, 2007 by think_too_mut

[Lorin]

Friend of mine took me to see new project in very central location on lower Sukhumvit. They have small units availabe round 55-65 sqm and the price that I can get now is about 70K/sqm. The condo will be ready to move in in middle 2009. Now, me myself dont like small units and I didnt like the way its planned and decorated, however is it good investment? Could I sell that place for 90-100k/sqm after the project will be completed?

The price should be 500 US$ per sqaure meter. City center 10K, for nothing but traffic jams.

Traffic or not, the price on paper for that development is 85K/sqm.

[Casanundra]

Lorin, the general advice for these sort of things is "Don't bring into Thailand more than you can afford to lose"

Ask yourself are you happy to lose this money, are you happy to lose the compound interest on this money over the development period and finally, are you happy to take the risk of the Condo never getting completed or when it does having a poor Condo management who let the property go to rack and ruin because the other 51% thai owned side don't pay their maintenance.

[Lorin]

Lorin, the general advice for these sort of things is "Don't bring into Thailand more than you can afford to lose"

Ask yourself are you happy to lose this money, are you happy to lose the compound interest on this money over the development period and finally, are you happy to take the risk of the Condo never getting completed or when it does having a poor Condo management who let the property go to rack and ruin because the other 51% thai owned side don't pay their maintenance.

You see, moneywise i like the idea, first of all I have some discount, then i need to pay cash bout 300k, +30 instalments of 20-30k monthly that is not heavy. The rest of the money when I'm moving in. The contract does not state any discount or compensation in case of late delivery, but if I will sign on that condo I believe I can add this into the contract. The only question now, if I can sell the unit after the completion and make 20-30K/sqm profit. In that case is better for sure than keeping my money in bank or even invest in stock. Make sence?

[buddhafly]

i think the main point is that it is not a place that you would enjoy living in yourself. so most likely others wont either.

and by the time your ready to sell there will be countless new places available.

and the thai market prefer 'new'.

i think it'd only be worth buying a condo if it had some special or unique quality to it.

and its a better investment if you were going to live in it for a few years while you lived in bkk then if you only get a slight profit reselling ut, you at least saved on many years of rent.

[quiksilva]

Lorin, the general advice for these sort of things is "Don't bring into Thailand more than you can afford to lose"

The only question now, if I can sell the unit after the completion and make 20-30K/sqm profit. In that case is better for sure than keeping my money in bank or even invest in stock. Make sence?

It makes sense in a booming market when there's surplus demand.

[Lorin]

i think the main point is that it is not a place that you would enjoy living in yourself. so most likely others wont either.

and by the time your ready to sell there will be countless new places available.

and the thai market prefer 'new'.

i think it'd only be worth buying a condo if it had some special or unique quality to it.

and its a better investment if you were going to live in it for a few years while you lived in bkk then if you only get a slight profit reselling ut, you at least saved on many years of rent.

Unfortunatelly for myself, I like to live in big places, at leat 90 sqm(the one i'm renting now), but cant afford to buy one like that yet. The question was only if it sounds like good investment to make.

[bingobongo]

to answer your question, no. have you been paying attention to the economic and political situation in LOS, other developments are selling at below cost due to over supply and poor sentiment...

2009? you would be lucky to break even as prices will go grind lower this year

Monday March 12, 2007 REAL ESTATE MARKET OUTLOOK AND NEW DEVELOPMENTS

Supply glut starting to put pressure on prices

NINA SUEBSUKCHAROEN

Hamptons has sold a few good units so far this year but at least half have been sold at below cost, even in good projects.

''I think this is an indication that people who are speculating without any intention to take ownership, and they can't sell at profit, they are basically having to sell at cost or maybe below cost to be able to get out of the transaction.''

http://www.bangkokpost.com/Yourmoney/12Mar2007_money47.php

Edited March 20, 2007 by bingobongo

[Lorin]

So the idea I got from this article, is if I can buy now, I can get a good deal, under the real value of the property, but it should be completed unit, not on on the paper, right?

to answer your question, no. have you been paying attention to the economic and political situation in LOS, other developments are selling at below cost due to over supply and poor sentiment...

2009? you would be lucky to break even as prices will go grind lower this year

Monday March 12, 2007 REAL ESTATE MARKET OUTLOOK AND NEW DEVELOPMENTS

Supply glut starting to put pressure on prices

NINA SUEBSUKCHAROEN

Hamptons has sold a few good units so far this year but at least half have been sold at below cost, even in good projects.

''I think this is an indication that people who are speculating without any intention to take ownership, and they can't sell at profit, they are basically having to sell at cost or maybe below cost to be able to get out of the transaction.''

http://www.bangkokpost.com/Yourmoney/12Mar2007_money47.php

[bingobongo]

So the idea I got from this article, is if I can buy now, I can get a good deal, under the real value of the property, but it should be completed unit, not on on the paper, right?

to answer your question, no. have you been paying attention to the economic and political situation in LOS, other developments are selling at below cost due to over supply and poor sentiment...

2009? you would be lucky to break even as prices will go grind lower this year

Monday March 12, 2007 REAL ESTATE MARKET OUTLOOK AND NEW DEVELOPMENTS

Supply glut starting to put pressure on prices

NINA SUEBSUKCHAROEN

Hamptons has sold a few good units so far this year but at least half have been sold at below cost, even in good projects.

''I think this is an indication that people who are speculating without any intention to take ownership, and they can't sell at profit, they are basically having to sell at cost or maybe below cost to be able to get out of the transaction.''

http://www.bangkokpost.com/Yourmoney/12Mar2007_money47.php

the old investment adage....."don't catch a falling knife" comes to mind

[Lorin]

Ok guys, you convince me not to go for it. Will wait when I have enough for big place that I will buy and live in !

So the idea I got from this article, is if I can buy now, I can get a good deal, under the real value of the property, but it should be completed unit, not on on the paper, right?

to answer your question, no. have you been paying attention to the economic and political situation in LOS, other developments are selling at below cost due to over supply and poor sentiment...

2009? you would be lucky to break even as prices will go grind lower this year

Monday March 12, 2007 REAL ESTATE MARKET OUTLOOK AND NEW DEVELOPMENTS

Supply glut starting to put pressure on prices

NINA SUEBSUKCHAROEN

Hamptons has sold a few good units so far this year but at least half have been sold at below cost, even in good projects.

''I think this is an indication that people who are speculating without any intention to take ownership, and they can't sell at profit, they are basically having to sell at cost or maybe below cost to be able to get out of the transaction.''

http://www.bangkokpost.com/Yourmoney/12Mar2007_money47.php

the old investment adage....."don't catch a falling knife" comes to mind

[ThaiGoon]

Yeah, it might be a good idea to wait until after the next general election takes place and see which direction the country is going.