Buying Condi Vs. Selling Condo

[freetibet]

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know.

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Sample

Bought condo for 3. mil THB

Selling condo at 5. mil THB

Any tax ?

Problem sending the money out from Thailand ?

How to handle a sale from outside Thailand

WHAT TO DO ?

Edited January 30, 2008 by freetibet

[sweetchariot]

Definitely don't buy a Condi

[ace]

The increase in value must stay in Thailand. The value the condo was registered at (with land office) on purchase is the amount that can be transferred out of the country on sale. How well this law is enforced is a different matter....

Sales tax dependent on agreement with buyer. Someone's got to pay it.

To sell without being here you can find a Thai lawyer and grant them power of attorney to sell condo as per your instruction. Or do it all through an agent for 2 or 3% + lawyer fees.

[Jingthing]

Couldn't you just slowly transfer out the money in dribs and drabs with ATM withdrawals?

It is important to obtain the currency import document from your bank when importing the purchase money.

[cclub75]

Personal Income Tax

Taxpayer shall not include income from sales of immovable property acquired by bequest or by way of gift to the assessable income when calculating PIT. However, if the sale is made for a commercial purpose, it is essential that such income must be included as the assessable income.

Nevertheless, from January 2003, gains from sales of residential buildings shall not be included as income if such gains are spent on purchasing a new home within 1 year before or after selling his primary residence.

(source Revenue Department)

Where an individual sells land, buildings or a condominium (but not in the course of a business) they must pay income tax on the capital gain at a rate from 0 to 20 percent, at the time the transfer is made. The tax is assessed on the assessed price, less a standard deduction based on the length of time that the seller has owned the property.

The usual personal tax rates of 10 to 37 percent are applied to the deemed profit, but in any event the tax may not exceed 20 percent of the gross sale price. When a natural person files their annual income tax return, they can declare the actual profit or loss, or ignore the matter, and the tax paid at the registration office will be deemed to be the actual tax.

(source AngloInfo Bangkok)

So it seems that there is definitely a kind of "capital gain" tax (through regular personal income tax)

Is someone could confirm this 100 % ?

I mean even when I read something on a government website in Thailand... I've learned to remain cautious.

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know.

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Sample

Bought condo for 3. mil THB

Selling condo at 5. mil THB

Any tax ?

Problem sending the money out from Thailand ?

How to handle a sale from outside Thailand

WHAT TO DO ?

Edited January 31, 2008 by cclub75

[think_too_mut]

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know.

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Sample

Bought condo for 3. mil THB

Selling condo at 5. mil THB

Any tax ?

Problem sending the money out from Thailand ?

How to handle a sale from outside Thailand

WHAT TO DO ?

Don't worry, that problem has fixed itself. Condos are near to unsellable.

Rather, think how you can abandon it without any consequences.

[mikethevigoman]

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know.

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Sample

Bought condo for 3. mil THB

Selling condo at 5. mil THB

Any tax ?

Problem sending the money out from Thailand ?

How to handle a sale from outside Thailand

WHAT TO DO ?

I did hear of a story whereby a seller got the excess over what he paid in cash and and sold on paper for what he originaly paid, of course its only hearsay

[mikethevigoman]

Definitely don't buy a Condi

If you sell at a loss will the thais make up the difference ?

[PattayaParent]

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Problem sending the money out from Thailand ?

WHAT TO DO ?

My bank (TMB) told me that you can transfer out the amount that you brought in with no problem provided you have a copy of the TT3 for the original transfer and it states that the money was brought in to purchase a condo.

If you don't have a copy of the original TT3 (which can be easily obtained from the land office) then they will transfer out the amount that you have declared to the land office and paid the transfer tax on with no problem.

The increase in the I suspect would be more difficult but would I guess depend on your bank's attitude on the day. If you have a work permit (which I guess YOU don't if you're not here) you can transfer the excess money money out easily, which is the way I did it.

Or use your Thai ATM card in your home country to obtain the money. Or come here on holiday and spend it having a great time!

[xyborg]

<br />

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know. <br /><br />What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?<br /><br />Sample<br />Bought condo for 3. mil THB<br />Selling condo at 5. mil THB<br /><br />Any tax ?<br />Problem sending the money out from Thailand ?<br />How to handle a sale from outside Thailand<br /><br />WHAT TO DO ?

<br /><br />Don't worry, that problem has fixed itself. Condos are near to unsellable.<br /><br />Rather, think how you can abandon it without any consequences.<br />

<br /><br /><br />

Thank goodness many people think like you (thinknotenuff) which leaves it wide open for people who think like me to clean up in the condo market. Condos near unsellable eh ha ha ha ha just bought another and the guy selling held out for months but finally got my hands on it . new price 18 months ago (if you could get one) 1.2 million for studio now selling at 1.6-1.8 million but found a guy gpoing to America and he sold for 1.4 million. Choose your development and price range well and it will make money .

[Irene]

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know.

What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?

Sample

Bought condo for 3. mil THB

Selling condo at 5. mil THB

Any tax ?

Problem sending the money out from Thailand ?

How to handle a sale from outside Thailand

WHAT TO DO ?

I have arranged for sale proceeds to be remitted out for a friend of ours with evidences of Exchange Control Form when he first brought in the fund to buy in earliers years and receipts of the taxes and duty paid. His tax on the proceeds (including his capital gain) was taxed as follow:

Transfer fees at 2% (but agreed with the buyer to bear one half),

Stamp duty at 0.5% of the proceeds (borne by him),

Specific Business Tax at 3.3% (but exempted since he has held the property for five years and over),

Withholding income tax is calculated on an assumed gain. The assumed gain is calculated by having the proceeds being reduced by a percentage of deductions (depending on the number of years ownership). The percentages range from 50% to 92%. The net sum will then be divided by the number of years of holding, i.e. annualised the sum. The annualised sum will then be computed based on tax rates of 5% to 37%. The result shall then be multiplied by the number of years. That sum shall then be payable. Because of annualising method, the amount is normally not prohibitive.

I had no problem in having the fund remitted out.

To handle a sale from outside Thailand can be carried out through a reliable estate agent in Thailand but do stick to an international agent like CBRichard Ellis.

[think_too_mut]

To handle a sale from outside Thailand can be carried out through a reliable estate agent in Thailand but do stick to an international agent like CBRichard Ellis.

If you can't trust a stranger on the Internet, who can you trust?

Somebody had that great tagline.

[bingobongo]

<br />

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know. <br /><br />What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?<br /><br />Sample<br />Bought condo for 3. mil THB<br />Selling condo at 5. mil THB<br /><br />Any tax ?<br />Problem sending the money out from Thailand ?<br />How to handle a sale from outside Thailand<br /><br />WHAT TO DO ?

<br /><br />Don't worry, that problem has fixed itself. Condos are near to unsellable.<br /><br />Rather, think how you can abandon it without any consequences.<br />

<br /><br /><br />

Thank goodness many people think like you (thinknotenuff) which leaves it wide open for people who think like me to clean up in the condo market. Condos near unsellable eh ha ha ha ha just bought another and the guy selling held out for months but finally got my hands on it . new price 18 months ago (if you could get one) 1.2 million for studio now selling at 1.6-1.8 million but found a guy gpoing to America and he sold for 1.4 million. Choose your development and price range well and it will make money .

wow, it took you 18 months to make 200,000 baht (purchase price 1.4 and if you sell for 1.6) which amounts to a whopping $6250 or $347 per month (over 18 months)? (assume exchange rate is 32 baht to $)

so basically after inflation, aggrivation, transaction costs you have made nothing, there are much more effective and less labor intensive ways to make that kind of "big" money

Edited February 6, 2008 by bingobongo

[kdbkk]

I had bought 5 condo in Thailand in the past 5 years and sold 3 of them in the past 12-24 months. I made 2 mill. baht profit on 2 of them (paid 6 mill each and sold for 8+) and made 9 mill+ on one penthouse last year. I lived in all of them and never had any intention for investment purposes but they turned out quite well for me.

[Irene]

Thanks for sharing your experience. It is nice to hear some good sides for a change.

[think_too_mut]

Thanks for sharing your experience. It is nice to hear some good sides for a change.

Sure, I can do that too...let me open another handle and i will be selling 10 condos at 3 mill profit each in my very first post.

Just to entertain the board.

[bendix]

Thank goodness many people think like you (thinknotenuff) which leaves it wide open for people who think like me to clean up in the condo market. Condos near unsellable eh ha ha ha ha just bought another and the guy selling held out for months but finally got my hands on it . new price 18 months ago (if you could get one) 1.2 million for studio now selling at 1.6-1.8 million but found a guy gpoing to America and he sold for 1.4 million. Choose your development and price range well and it will make money .

Huh? What a strange argument. You have tried to prove that it's easy to sell your condo at a profit by - ummmmmm - buying one?

What business school did you go to?

Now tell us a story of condos you bought and sold for a profit to yourself . . . .

[bendix]

Thanks for sharing your experience. It is nice to hear some good sides for a change.

Sure, I can do that too...let me open another handle and i will be selling 10 condos at 3 mill profit each in my very first post.

Just to entertain the board.

Hahahahahahahahaha. Priceless.

Reminds me of all the new members who joined when the thaivisainsurance forum started, all asking for advice on insurance issues.

[think_too_mut]

<br />

It is easy to buy a condo - all I have to do is bring the full amount in from overseas - that I know. <br /><br />What about selling the condo again ? Once sold, how to get the money back out of Thailand again? what about any increase in the value?<br /><br />Sample<br />Bought condo for 3. mil THB<br />Selling condo at 5. mil THB<br /><br />Any tax ?<br />Problem sending the money out from Thailand ?<br />How to handle a sale from outside Thailand<br /><br />WHAT TO DO ?

<br /><br />Don't worry, that problem has fixed itself. Condos are near to unsellable.<br /><br />Rather, think how you can abandon it without any consequences.<br />

<br /><br /><br />

Thank goodness many people think like you (thinknotenuff) which leaves it wide open for people who think like me to clean up in the condo market. Condos near unsellable eh ha ha ha ha just bought another and the guy selling held out for months but finally got my hands on it . new price 18 months ago (if you could get one) 1.2 million for studio now selling at 1.6-1.8 million but found a guy gpoing to America and he sold for 1.4 million. Choose your development and price range well and it will make money .

So, does it not confirm what I am saying? The guy wanted to sell and had to shit himself with the price. Look from his perspective, he had to sell bellow the price others are asking. With 25% discount, everything becomes more sellable. Wait until it's your turn to sell. If the building will not have turned into a slum by then (that price range invites that fate).

Those "asking prices" and illusion that something has risen in value are rubbish, try to sell and you end up like your vendor if not worse.

And you are talking peanuts condos that have a much broader base of potential buyers - Thais or even alcoholic sheet metal worker from Stutgart can easilly scrap 1.4 mil baht.

Go further up, 4 mil and above or well above, 8-10 mil and more, that's where the resale horror lives.

It's kind of Asian thing - the land and construction built on it are distant terms in Asian minds. As time goes, real estate in Japan only deteriorates in value (as the place is aging). If that is not exactly the case in Thailand, some of it may explain that there is no property market in Western terms. Little bit of foreigners in Thailand won't change that regardless of how loud they are on forums and on the ground.

Edited February 9, 2008 by think_too_mut

[sfokevin]

A question along a similar vein... If I would like to sell my present condo (and have a gain of 4-5 million) and buy a nicer (more expensive one) would I have to sell, go through the trouble of transferring the funds out of the country and then transfer it back? Would I be liable for tax on the gain even though I am just buying a higher priced unit?

Edited May 11, 2008 by sfokevin

[Scott123]

I had bought 5 condo in Thailand in the past 5 years and sold 3 of them in the past 12-24 months. I made 2 mill. baht profit on 2 of them (paid 6 mill each and sold for 8+) and made 9 mill+ on one penthouse last year. I lived in all of them and never had any intention for investment purposes but they turned out quite well for me.

On a internet forum, anybody can claim however good they are with condo investment. It is up to the readers to believe it or not.

If your condo investment story is true, consider yourself very luck. Real estate investment is certainly very profitable in the past 5 years anywhere in the world. Your timing was good and it lead to such success. Now let me ask, are you going to buy more condos NOW?....LOL.

[BEENTHEREDONETHAT]

Condos don't sell? I purchased a condo in August, at that time there were 13 additional for sale. Now 8 months later there are none available for sale. If they are not selling I wonder what it would be like when they are?

My impression on moving the money out of the country once you sold is that as long as you have the paperwork and pay taxes on the profit (taxes based on how long you have owned it.) you can move the $ out of the country.

I think most of the guys on here complaining about how hard it is to sell a condo don't have the $ to buy a car let alone a condo.

[think_too_mut]

Condos don't sell? I purchased a condo in August, at that time there were 13 additional for sale. Now 8 months later there are none available for sale. If they are not selling I wonder what it would be like when they are?

My impression on moving the money out of the country once you sold is that as long as you have the paperwork and pay taxes on the profit (taxes based on how long you have owned it.) you can move the $ out of the country.

I think most of the guys on here complaining about how hard it is to sell a condo don't have the $ to buy a car let alone a condo.

When I moved into the building where I am now, 200 out of 400 condos were for sale. In fact, re-sale, by speculators. Now, there are maybe 15-20 left, 2 years later.

That was for 1st sale (even resale here is 1st sale), while brand new. Live in there or rent it out and then come to sell it. That's what goes hard.

[BEENTHEREDONETHAT]

think-too-mut

The unit I purchased was a 10 year old resale. The 13 others in the same building were also resale so I'm not sure your argument holds up in this case. Just a observation but 2 buildings down from us was just completed last month and no units are available now. Went by Las Tortugas south of Hua Hin yesterday, their project was just completed last month and they have 3 units out of 124 for sale 20 were purchased by foreigners and the rest by Thais.

I should mention that I bought our condo to live in and don't plan to sell anytime in the near future as we both really like it here.

[think_too_mut]

think-too-mut

The unit I purchased was a 10 year old resale. The 13 others in the same building were also resale so I'm not sure your argument holds up in this case.

The difference could be - it's not overbuilt with even more projects in progress, like in BKK.

[lardy]

think-too-mut

The unit I purchased was a 10 year old resale. The 13 others in the same building were also resale so I'm not sure your argument holds up in this case.

The difference could be - it's not overbuilt with even more projects in progress, like in BKK.

Oh so now condos "are" resellable??? make your mind up? it was 10 years old, according to many here it should be a derelict dump full of alcoholic wife beating degenerate drug taking Thais.

Many of the folks here no bugger all about the "real" situation and I couldnt give a sh*t what they "think" they know, just so long as they can keep chanting "dont buy condos".

[think_too_mut]

think-too-mut

The unit I purchased was a 10 year old resale. The 13 others in the same building were also resale so I'm not sure your argument holds up in this case.

The difference could be - it's not overbuilt with even more projects in progress, like in BKK.

Oh so now condos "are" resellable??? make your mind up? it was 10 years old, according to many here it should be a derelict dump full of alcoholic wife beating degenerate drug taking Thais.

Many of the folks here no bugger all about the "real" situation and I couldnt give a sh*t what they "think" they know, just so long as they can keep chanting "dont buy condos".

Yes, sir! Please, don't give up on me!

In the meantime, have a look around, views from many pictured condos for sale do not include buildings erected 7-8 years ago, many still say "near the entry to higway to Don Muang, Bangkok international airport".

Just several of Thong Lor condos for sale do not have landmark buildings (Ekkamai cineplex 10 years, Nusasiri almost 5 years in the view).

How long will they sit unsold? Approaching a decade already...and counting.

[johnnyk]

Definitely don't buy a Condi

Already bought and sold. Very poor value for money.

[lardy]

think-too-mut

The unit I purchased was a 10 year old resale. The 13 others in the same building were also resale so I'm not sure your argument holds up in this case.

The difference could be - it's not overbuilt with even more projects in progress, like in BKK.

Oh so now condos "are" resellable??? make your mind up? it was 10 years old, according to many here it should be a derelict dump full of alcoholic wife beating degenerate drug taking Thais.

Many of the folks here no bugger all about the "real" situation and I couldnt give a sh*t what they "think" they know, just so long as they can keep chanting "dont buy condos".

Yes, sir! Please, don't give up on me!

In the meantime, have a look around, views from many pictured condos for sale do not include buildings erected 7-8 years ago, many still say "near the entry to higway to Don Muang, Bangkok international airport".

Just several of Thong Lor condos for sale do not have landmark buildings (Ekkamai cineplex 10 years, Nusasiri almost 5 years in the view).

How long will they sit unsold? Approaching a decade already...and counting.

Ive no idea maybe they are crap??

A lot has changed in the last few years, opposite my condos is a slightly older development and it is extremely dated, the developers now are actually building to a reasonable standard with modern fittings with downlighters and fully earthed electrics its not the crap some here think. My wife is on the committee to keep a close eye on everything that goes on there and many other Thais also dont want a dump in a few years, the service charge from day one has just gone up by 10% its not staying static. They actively chase non payers and it goes to the lawyers where necessary, water is cut off if needs be. There are only a very few who owe more than 6000 baht many of whom have gone abroad. If anything gets broken it gets fixed quickly, the motorcycyle taxis instead of just squatting outside have now been built a shelter to stop them looking scruffy and keep them all in one place. You cannot leave anything outside in the corridors OR leave your doors open "Thai Syte"

A lot of the Thais there DO want it maintained, most have new cars, no pets are allowed, no clothes hanging over balconies allowed , no smoking allowed and they even say now no smoking on the balconies and enforce it. Recently the water there has been approved as drinkable and tested. Things are changing. Ive bought 4 in the last 2 years in all Ive spent about £75000 UK I get rent every month of 55000 baht for all 4 the tenant pays the service charge and all other bills on top, I have never been empty for more than 3 days and thats becasue we need time to clean them. 2 have been rented to 1 customer for 2 years each. So I have had over 1 million baht rent from the 3 in just under 2 years and now got the fourth plus any increase in re sale (even if you dont think 200000 is BIg money BING BONG) and I HAVE been asked to sell at least 3 times but I dont want to. Maybe in 5-6 years.

You can believe what you want, maybe this is a rarity I dont care Im not complaining. Its no hassle at all to maintain them Ive had no bad tenants nobody not paying and most work for BIG western companies who pay direct to my wifes bank.

No theyr'e not 5-8 million baht each I have paid 1.17 each new for 3 and now 1.4 for the last one , my wife dealt with it they did not know her husband was farang just incase you want to say thats why the price went up. We looked at about 6 for sale out of 1100 units (not much for sale) we wanted a particular block and a certain height floor. starting prices were between 1.5 to 1.8 million this man wanted a qucik sale to finance his sister's education in America where she has now gone he did not advertise it.

yes its probably got nothing to do with the OP but being as "irene" has been shouted off the forum for telling "lies" or "quicksilva" when he has already stated any interest he has, I thought id say my bit.

Im sure many condos will end up sh*tholes but not all even if they are lower end units.

Time will tell if i can sell them i dont see why not as long as the upkeep is done and theres no signs of any problems yet.

re painting due in2-3 years of the exterior.

I make it about 13-14% return. I do ALL the miantenance.

Thats my own personal experience of condos in BKK.

[pkrv]

Definitely don't buy a Condi

Already bought and sold. Very poor value for money.

Your post(s) make interesting reading - OK a question - Very poor value for money, what about great value for life? Why are you in Thailand (I think Bangkok)?