Condo Rip Off

[afalang]

I visited the home and condo expo which is now on at Carrefour.

The stand operated by the Thai company Ratanakorn really interested

me... especially the last line on their price list.

" Foreigners must pay 200,000 baht more to transfer into their name "

how can they get away with this blatent racial discrimination ?

The girls on the stand at carrefour could not explain it.

I have sent an email to the company at Ratanakorn

so far no response.

[bkkjames]

I visited the home and condo expo which is now on at Carrefour.

The stand operated by the Thai company Ratanakorn really interested

me... especially the last line on their price list.

" Foreigners must pay 200,000 baht more to transfer into their name "

how can they get away with this blatent racial discrimination ?

The girls on the stand at carrefour could not explain it.

I have sent an email to the company at Ratanakorn

so far no response.

Have you called the police? If you don't like their policy, then don't buy from them. But I am willing to bet that if you check with other developers (even one's that are more farang centric), you may find that there is a similiar fee although worded in a way that may be more easier for you to digest.

[farangene]

I would never consider buying a condo from a company that used a "Hotmail" email address for their company correspondence.

You did the right thing by letting them know that it is wrong. Not that it will change anything.

[HowardJohnson]

I think what they mean is that condos registered under foreign ownership command a premium price and are therefore more expensive.

You will see other projects offering a discount for a unit registered in company or Thai name.

Not racist just badly worded.

Cheers

[Basil B]

Personally I would never buy new, you do not no what kind of committee will end up running the place when the developer has sold his last unit, you only have to read VT2 website to see the sort of problems that may arise.

If you are buying "Off Plan" be exceptionally cautious, I know of one project that was launched early 2006 selling "Off plan" with the promise of move in 2010 still has not even started the first floor of 92.

As for the premium to register in "Foreign name", you have to realize that they can only sell 49% to foreigners.

If you really want to buy make them an offer, I bet things are really slow and you could be surprised at what they may accept.

BB

[Phil Conners]

TiT, Welcome!

[sotsira]

Condo Rip Off, somebody call the police ?

And what would you expect the police to do?

That is after you would have to pay them too, before they would offer to help you.

You must be oblivious to what reality is in your surroundings or you havn't been here that long, if you think farangs are treated on an equal footing to Thais.

[NanLaew]

Bugger me sotsira! You have only been on TV for a little over a month and you have all the insight and cynicism of a... a... a farang resident tourist!

Edited July 22, 2008 by NanLaew

[sotsira]

I've only been on TV a while, but i've lived here long enough to know the reality of what goes on.

[NanLaew]

If you are buying "Off Plan" be exceptionally cautious, I know of one project that was launched early 2006 selling "Off plan" with the promise of move in 2010 still has not even started the first floor of 92.

BB

There was a reference last week to the collapse of the Spanish condo market, mentioning as many as 100,000 UK investors could be left without a pot to piss in, especially those that committed to 'off-plan' purchases. Eventually the same will prevail here so nobody can claim they are unaware of what is going to happen.

[mikethevigoman]

Its almost laughable isnt it,this is nothing more than dual pricing,. the thais have obviously realised a good percentage of buyers are foreigners and want more,..To set up a company costs nothing like this and there is no excuse, but i doubt you will be offered reason, only " you farang , you have big money " ,.why patronise these theives,.come on then you thai lovers, whats the ( justifiable ) reason ? ,. and as for asking the sales robots for a reason, i doubt they have been programmed with an answer !

[mikethevigoman]

I think what they mean is that condos registered under foreign ownership command a premium price and are therefore more expensive.

You will see other projects offering a discount for a unit registered in company or Thai name.

Not racist just badly worded.

Cheers

Dual pricing whichever way you look at though isnt it ?

[Naam]

I think what they mean is that condos registered under foreign ownership command a premium price and are therefore more expensive.

You will see other projects offering a discount for a unit registered in company or Thai name.

Not racist just badly worded.

Cheers

Dual pricing whichever way you look at though isnt it ?

let's be realistic and conclude that the dual pricing is justified. the number of condos which can be owned by farangs is limited. anything with limited availability commands a premium. as simple as that. if farangs could legally own land the prices of homes which were built "semi-legally" or perhaps (according to prevailing law illegally) on land owned by companies but controlled by farangs would double over night.

[PattayaParent]

I think what they mean is that condos registered under foreign ownership command a premium price and are therefore more expensive.

You will see other projects offering a discount for a unit registered in company or Thai name.

Not racist just badly worded.

Cheers

Sounds like an estate agent with a vested interest in commissions to me.

[TheWalkingMan]

Yep. I saw some off plan condos with 2 sets of prices. One for locals and one for the "rich" foreigners. I think that it is a rip-off, but people will buy at the price so everyone is happy.

TheWalkingMan

[PattayaParent]

I think what they mean is that condos registered under foreign ownership command a premium price and are therefore more expensive.

You will see other projects offering a discount for a unit registered in company or Thai name.

Not racist just badly worded.

Cheers

Dual pricing whichever way you look at though isnt it ?

let's be realistic and conclude that the dual pricing is justified. the number of condos which can be owned by farangs is limited. anything with limited availability commands a premium. as simple as that. if farangs could legally own land the prices of homes which were built "semi-legally" or perhaps (according to prevailing law illegally) on land owned by companies but controlled by farangs would double over night.

But ask yourself this, if you were to do the same thing in your home country (Germany?) or any other Western country would you be brought up under the racial discrimination acts?

[HowardJohnson]

As Naam says, it really is nothing more than supply and demand. Sorry to disappoint all those conspiracy theorists...

Buying a condo under foreign name is restricted to 49% of the building and therefore makes it premium property.

That's good news for anyone (Thai or foreign) who owns one of these condos.

The other good news for all those guys here who cry racism and dual pricing is that there are many projects in Pattaya that do not have this discount/premium price structure and you can buy at the same price a Thai person would.

Just drop me a PM when you want to make an appointment to see them...

[Basil B]

As Naam says, it really is nothing more than supply and demand. Sorry to disappoint all those conspiracy theorists...

Buying a condo under foreign name is restricted to 49% of the building and therefore makes it premium property.

That's good news for anyone (Thai or foreign) who owns one of these condos.

The other good news for all those guys here who cry racism and dual pricing is that there are many projects in Pattaya that do not have this discount/premium price structure and you can buy at the same price a Thai person would.

Just drop me a PM when you want to make an appointment to see them...

I suppose the correct way is to sell at a price that takes account that after the 49% quota is reached the price will have to be reduced to sell the remaining units.

BB

[PattayaParent]

As Naam says, it really is nothing more than supply and demand. Sorry to disappoint all those conspiracy theorists...

Buying a condo under foreign name is restricted to 49% of the building and therefore makes it premium property.

That's good news for anyone (Thai or foreign) who owns one of these condos.

The other good news for all those guys here who cry racism and dual pricing is that there are many projects in Pattaya that do not have this discount/premium price structure and you can buy at the same price a Thai person would.

Just drop me a PM when you want to make an appointment to see them...

I suppose the correct way is to sell at a price that takes account that after the 49% quota is reached the price will have to be reduced to sell the remaining units.

BB

It's nothing to do with supply and demand (free market economics) as the market is not free, it's restricted (to 49%). As I said before I think the acid test would be to ask 'would it be discrimination if a developer did this practice in your own country?'

I'd say the answer would undoubtedly be YES (unless you're Swiss).

BB I think it would be more accurate to say that once the 49% Farang percentage has sold the developer has recovered his costs and anything else he's laughing all the way to the bank.

[thaihome]

People here are much more interested in complaining about being victimized by perceived racially based dual pricing then learning basic Adam Smith economics. I think is due to the fact so many farangs come from protected economies and have never experienced the free market as practiced in Asia.

tH

[zorro1]

I would never consider buying a condo from a company that used a "Hotmail" email address for their company correspondence.

You did the right thing by letting them know that it is wrong. Not that it will change anything.

They are forced to use hotmail not through choice and I convert sometimes myself when sending large attachments. There was a one page article on it a few months back in Bkk post and had to do with the Thai govt and security issues so rather than moderate they simply deleted whole emails and this went on for a few months and caused me major grief.

[Phil Conners]

Nonsense, nobody is forced to use Hotmail. On the contrary, government agencies were asked NOT to use Hotmail and similar free accounts because it was seen as a security risk.

[zorro1]

Nonsense, nobody is forced to use Hotmail. On the contrary, government agencies were asked NOT to use Hotmail and similar free accounts because it was seen as a security risk.

http://www.bangkokpost.com/040608_Database/04Jun2008_data003.php

I wasn't going to bother replying only because you scanned my post. Put the effort in buddy and READ, who said govt agencies were forced to use hotmail? it was there monitoring of Tot that caused ME to use hotmail . Check out the link to Bkk post and pay attention next time

[Phil Conners]

The article you linked to just speculates on the possibility that the Thai government may be trying to listen in on traffic, not just email. Nowhere does it suggest Hotmail should be used by government or businesses here, in fact it is never mentioned once. You don't need to use a free mail service to encrypt your mail traffic.

[eljeque]

People here are much more interested in complaining about being victimized by perceived racially based dual pricing then learning basic Adam Smith economics. I think is due to the fact so many farangs come from protected economies and have never experienced the free market as practiced in Asia.

tH

"The markets in Asia are not free."

[sotsira]

Buying a condo under foreign name is restricted to 49% of the building and therefore makes it premium property.

That's good news for anyone (Thai or foreign) who owns one of these condos.

How can that be good news for anyone who owns a foreign name condo?

If a Thai owns a condo it would represent within the 51%, hence can only sell on to another Thai at usually a cheaper price.

The foreign owned condos are higher priced as they are usually sold on to farangs that have to buy higher therefore sell higher.

So what this does is it makes a two tier market, one for Thais and one for farangs, but the farangs are limited to the smaller number of potential buyers and they have to pay more.

So how can this be good news?

[Binkie]

Buying a condo under foreign name is restricted to 49% of the building and therefore makes it premium property.

That's good news for anyone (Thai or foreign) who owns one of these condos.

How can that be good news for anyone who owns a foreign name condo?

If a Thai owns a condo it would represent within the 51%, hence can only sell on to another Thai at usually a cheaper price.

The foreign owned condos are higher priced as they are usually sold on to farangs that have to buy higher therefore sell higher.

So what this does is it makes a two tier market, one for Thais and one for farangs, but the farangs are limited to the smaller number of potential buyers and they have to pay more.

So how can this be good news?

If you look at it this way you may get the bigger picture. Just about every developer has this 2 tier pricing in place. However to make it feel more comfortable they word their advertising a little better than that of Rattanakorn.

The phrase "Discounts for foreigners buying in the Thai ownership quota" is one that is commonly used.

What they are really saying is that with the demand for condominiums (ownable in a foreigners' name) being high and the Thai ownership quota remaining unsold in many buildings (not good for the owners of the sold units, maintenance etc,) let's offer the Thai ownership quota at a discounted rate to get the building filled and get the maintenance fees paid.

Not double pricing but a 2 tier system that allows the building to be sold out and allows people to pick up a bargain too and makes sure that there are sufficient funds for the upkeep of the building. You will do well to remember that despite popular belief the company route for condominium ownership is still a possibility for foreigners.

Couple this with the distinct possibility that the foreign ownership quota may be opened up to 75% sometime soon. The wise investor may be inclined to buy in the Thai quota and have a clever clause inserted in their contract by the developer.

I do not know what makes people complain about this, it is really the same as seats at a football match, some are more expensive than others because they are mare attractive, offer a better view. In the case of the foreign ownership quota then it is the fact that they are more sellable.

Look at this in a purely business way and you may see that this makes sense especially for the buyer for investment who merely wants a money making vehicle then buying in the Thai Quota not only boosts your R.O.I. but also gives a good potential for capital growth in the medium to long term.

I do not have a vested interest in any condominium project so please do not think that I am justifying something for my personal gain, I am merely trying to explain a different way to look at this and understand why this could be favourable for you as a buyer and investor.

Edited July 24, 2008 by Binkie

[sotsira]

Some of your points don't really make much sense to me,

How can a farang buy in the Thai quota when they're a farang?

Why would it be cheaper even if they could buy, when they're a farang?

Whether buying in the company rule owned condos still applies, is it not still considered illegal? and if push came to shove you could end up losing the whole investement. Especially with the political instability who knows what new government or legislation will be introduced in the near future which could put company owned condos in a risky position, unless it is a legitimate company that is actually trading. Problem is though most that are set up are not actively trading and all the accounts are just made up every year to disguise this, very dodgy business to be involved in when you pay in a few million baht as an investement.

[thaiman]

" Foreigners must pay 200,000 baht more to transfer into their name "

how can they get away with this blatent racial discrimination ?

They are thai and you are not! They hold the power and you don't. This is third world and very few things make sense here in the land of smiles

If you're not used to the craziness here yet, then you've got some more surprises ahead of you.