Auction For Houses In Jomtien

[expatgaz]

Where exactly is the location of these houses ?

[eljeque]

Location: Drive down Threprasit Road from Soi 17 Pattaya or Soi Korphai, there is a 7 -11 on the corner. Drive towards the Taphaya (Pattaya-Jomtien) Road. About 500 meters before you get there, you will find Soi 17 Threprasit on the left. Turn left and follow the signs for about 600 meters. On the right is a trailer or two and on the left is the development.

I just received a phone call from the lady who showed me the homes a couple of weeks ago. She told me the prices for the the unsold-unbuilt properties: 7.75 million for the 2 bedroom with a basement; 7.25 million for the 2 bedroom without the basement. If my prices are off by a few 10,000 please forgive me.

I noted the total sales value from yesterday; she was unaware of the figure. No one in this coutry, foreigner or Thai, informs the other workers what is going on. This lady, a lovely-and-a-half Indonesian, was as pleasant as they come, and eager to have the last 7 units sold as quickly as possible.

[TizMe]

Only time will tell if this particular auction is declared a success by the organizers.

Only time will tell if this particular auction is declared a success by the buyers, or if the nightmare has just begun.

[expatgaz]

Somehow i get the feeling that this is not the last we shall hear abt this " development"

[Crazy Dave]

the land value, now thats a good question, my friend bought 2 rai next to the project for 5,500baht per farang wah a couple of years ago, 3 months ago he bought another 1.5 rai next to it adjoining there land and his land, guess how much?5,500baht per farang wah, now i feel sure that he will rip your arm off if you offer to buy like 1 rai for 12,000baht per farang wah, he purely bought it on speculation as he has a big house here but works in hong kong, so thats your land value, how much do those houses cost to build???

[bartender100]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

[Crazy Dave]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

aaahhhhh, but is it built yet? and if you had to build a 25 million baht house for 4.5 million, would you??? or would you walk away from the 20 plus million baht loss you have just agreed to do, or was it the first house that went up for auction that maybe the developer bought for himself just to liven things up a bit...

[Digger]

Having seen a large ad in the BKK Post last week, I'd reckon they have spent the best part of 4,000,000 baht just on marketing and advertising, possibly way more. Those ads in the BKK Post do not come cheap and I am not sure how many they ran. Also hoardings everywhere around Pattaya are also quite expensive. The brochure alone would have been very expensive. Seems like they are doing more advertising than Northshore which is selling about 250 apartments even though they have only 20 odd to sell. How do they re-coup that kind of cost on such few units? Then we see Dave's note about the price of the land:-

Wow that land was cheap though Dave for what is actually a pretty good location.

[Crazy Dave]

i think there is still more land there at the same price, 1 to 3 rai plots, the same guy bought land in soi kow talo for the same price about 5 years ago, so he is trying to buy as much of this land as possible in thepasitt as it is a much better location, although i should add that in the last 2 years i believe its the real estate agents that have been upping the price so high, if you actually goto the thai owners there is a more realistic price, a perfect example of this was a couple of weeks back, some guy wanted to sell his 3 bed bungalow in jomtian nivate for 3 mill baht, the estate agents sold it for 4.2 million and kept the balance, he was ok about it cos all he wanted was the 3 million, but hel.l thats one h.ell of a commision...

[Crazy Dave]

digger i have to admit he got a good deaL, but there is still plenty more land round there at the same price...

[expatgaz]

Seems pretty straight forward to me.How can a house worth 25 mil be sold for 4.5 ?? It is just not possible, the 20 mil loss is just to much, its an utter con and for sure the people running the show are not going to lose, that only leaves the punters ??

If i bought a plot of land and said to you, right i'll build you a 25 mil house and sell you it for 4.5 the first thing you would say is how, and then..wheres the catch. Wisen up folks.

[lemel]

Has anybody else heard anymore about the sub-dividing and building permission as 1st quoted by digger? Is that why not all of them were sold? Are they awaiting the Chanote at a later stage? There is an interesting article in the Pattaya Today on why bother with an auction to sell only a third of the units. A friend of mine has put a deposit down and is now starting to panic after seeing this website. I would appreciate any constructive info.

[wcr]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

Don't believe everything you read or hear in the media. Does that sound right to you? And 25M is a large chunk of money for a house, who valued it?

Hype, hype and yet more hype!

Edited December 29, 2004 by wcr

[Digger]

Has anybody else heard anymore about the sub-dividing and building permission as 1st quoted by digger? Is that why not all of them were sold? Are they awaiting the Chanote at a later stage? There is an interesting article in the Pattaya Today on why bother with an auction to sell only a third of the units. A friend of mine has put a deposit down and is now starting to panic after seeing this website. I would appreciate any constructive info.

<{POST_SNAPBACK}>

Perhaps we should be looking to your friend for the answers. Presume he did not do any dilligence first? Has he asked the developers? Planning permission is on a white slip of paper showing the exact sq m of the house and the blueprints that correspond will have a stamp on the back of each page (12 pages from memory) with signatures approving the design. From that planning approval will come the house book (blue in colour).

Hope this helps and that things turn out ok for him.

[Digger]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

Don't believe everything you read or hear in the media. Does that sound right to you? And 25M is a large chunk of money for a house, who valued it?

Hype, hype and yet more hype!

<{POST_SNAPBACK}>

Considering the biggest piece of land was something like 200TW (800 SQ M), there is no way that anybody would value those houses at 25,000,000 baht. Pure hype.

Incidentally, talking with another guy who went and looked at the houses who is a builder and he highlighted something pretty amazing if its true. Seemingly the terrace leading out to the pool sits on the same level as the pool and the floor of the house. No drains between the pool and the terrace leading to house patio windows. Guess what happens when it will rain and the pool floods (as they all do in heavy rain during the rainy season) - where does the water go? He was of the opinion it will go straight along the nicely tiled terrace under the wooden doors and straight into your house. He was convinced of it and said there is nothing you can do to stop that amount of water flowing into the house. Makes you wonder which architechts they used !!!!!!

[lemel]

cheer's digger I will ask him to get an explanation from the developer.

[Crazy Dave]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

Don't believe everything you read or hear in the media. Does that sound right to you? And 25M is a large chunk of money for a house, who valued it?

Hype, hype and yet more hype!

<{POST_SNAPBACK}>

Considering the biggest piece of land was something like 200TW (800 SQ M), there is no way that anybody would value those houses at 25,000,000 baht. Pure hype.

Incidentally, talking with another guy who went and looked at the houses who is a builder and he highlighted something pretty amazing if its true. Seemingly the terrace leading out to the pool sits on the same level as the pool and the floor of the house. No drains between the pool and the terrace leading to house patio windows. Guess what happens when it will rain and the pool floods (as they all do in heavy rain during the rainy season) - where does the water go? He was of the opinion it will go straight along the nicely tiled terrace under the wooden doors and straight into your house. He was convinced of it and said there is nothing you can do to stop that amount of water flowing into the house. Makes you wonder which architechts they used !!!!!!

<{POST_SNAPBACK}>

your making a mountain out of a mole hill, half a dozen bags of sand up against the door during the rainy season will stop most off the flooding, also the occasional flooding will keep the maid on her toes...

[dr_Pat_Pong]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

Don't believe everything you read or hear in the media. Does that sound right to you? And 25M is a large chunk of money for a house, who valued it?

Hype, hype and yet more hype!

<{POST_SNAPBACK}>

Considering the biggest piece of land was something like 200TW (800 SQ M), there is no way that anybody would value those houses at 25,000,000 baht. Pure hype.

Incidentally, talking with another guy who went and looked at the houses who is a builder and he highlighted something pretty amazing if its true. Seemingly the terrace leading out to the pool sits on the same level as the pool and the floor of the house. No drains between the pool and the terrace leading to house patio windows. Guess what happens when it will rain and the pool floods (as they all do in heavy rain during the rainy season) - where does the water go? He was of the opinion it will go straight along the nicely tiled terrace under the wooden doors and straight into your house. He was convinced of it and said there is nothing you can do to stop that amount of water flowing into the house. Makes you wonder which architechts they used !!!!!!

<{POST_SNAPBACK}>

your making a mountain out of a mole hill, half a dozen bags of sand up against the door during the rainy season will stop most off the flooding, also the occasional flooding will keep the maid on her toes...

<{POST_SNAPBACK}>

[Digger]

Just caught a bit on Sophon,one of the house's worth 25m on a large plot went for 4.5m

<{POST_SNAPBACK}>

Don't believe everything you read or hear in the media. Does that sound right to you? And 25M is a large chunk of money for a house, who valued it?

Hype, hype and yet more hype!

<{POST_SNAPBACK}>

Considering the biggest piece of land was something like 200TW (800 SQ M), there is no way that anybody would value those houses at 25,000,000 baht. Pure hype.

Incidentally, talking with another guy who went and looked at the houses who is a builder and he highlighted something pretty amazing if its true. Seemingly the terrace leading out to the pool sits on the same level as the pool and the floor of the house. No drains between the pool and the terrace leading to house patio windows. Guess what happens when it will rain and the pool floods (as they all do in heavy rain during the rainy season) - where does the water go? He was of the opinion it will go straight along the nicely tiled terrace under the wooden doors and straight into your house. He was convinced of it and said there is nothing you can do to stop that amount of water flowing into the house. Makes you wonder which architechts they used !!!!!!

<{POST_SNAPBACK}>

your making a mountain out of a mole hill, half a dozen bags of sand up against the door during the rainy season will stop most off the flooding, also the occasional flooding will keep the maid on her toes...

<{POST_SNAPBACK}>

Your right Dave - silly me, I had not thought of it as a selling point:-

"Environmently friendly house designs mean you save water by not needing to extract it from the city water supply (which is in short supply) when the maid wants to wash the floor." Perhaps the sand bags could be considered as part of the 'occassional seating' when not raining just in case any unexpected visitors come around

[astral]

Sand bags at the door do not help in real flood.

The water comes up the floor drains in the bathroom and kitchen!!!

[Crazy Dave]

Sand bags at the door do not help in real flood.

The water comes up the floor drains in the bathroom and kitchen!!!

<{POST_SNAPBACK}>

h.ell, thats an easy one, 1 bag of sand down each drain hole should solve that problem

anyway, if anybody else needs household advice please feel free to post it here and i shall do my best to help

ps, sand in a bag only costs 35baht so dont be stingy when u get that 25 million baht house, buy loads of bags of sand.....

[thaiflyer1]

h.ell, thats an easy one, 1 bag of sand down each drain hole should solve that problem

LMAO..........

[eljeque]

I looked at the houses with a friend as well. We, being Los Angeles people thought that the houses would have been great out there, but not right for Thailand for a couple of reasons.

1. The giant doors from pillar to pillar in the living room and the window that took up the entire wall in the bedroom would let in a lot of heat. Also, the front "door" when open would allow in many mosquitoes. During the winter season..... NOW!!! it was wonderful, but come March, it will be very different.

2. The tiles leading to the pool from the doorway will become slippery when.

This is not what you want near the pool.

[turbo]

I was at the auction. The houses went from 5.8 million to 12.1 m. The first 13 were auctioned off with no reserve the last 7 had reserves. The seller ended up selling the last 7 at the same prices as the first 13, ie. he said that he would sell the remaining houses at the market determined rate. I got a call two days after and there were still a few left. The largest house plan was 418 sq. meters, mamoth house on 271 sq wah - went for 12m.

I figure the land over near there would have a market price of about 6m per rai (15000 per wah). I would love to find some right next door for 5,500 per wah, anyone can point me in that direction with specifics please post (so I can go buy some). Once subdivided the land would have a value of about 20000 per wah I think.

The way the thing was presented was that the houses would be sold at about 1/2 market price since they hadn't been built yet. That being said, I think the houses went for about the market price. The prices on the largest units seemed reasonable with construction at about 17k per m2. I didn't notice anything selling at fire sale prices.

I posted some other notes on the auction here:

auction notes

I also noticed a lot of farang couples bidding. I wonder how they indend to take title of the land.

[Digger]

I also noticed a lot of farang couples bidding.  I wonder how they indend to take title of the land.

<{POST_SNAPBACK}>

Thats what everybody wants to know - was it mentioned at the auction that people were buying land that had not been split or without a valid chanot?

Edited January 1, 2005 by Digger

[turbo]

Thats what everybody wants to know - was it mentioned at the auction that people were buying land that had not been split or without a valid chanot?

<{POST_SNAPBACK}>

On the back of the sales brocure in Thai only (as was stated by previous poster) developer is in the process of applying for 'jatsan' (pre-allocated village) - implication, the land will be split in to separate chanotes when this occurs on or before 31-August-05.

The sales note sheet has a payment schedule date: for payments of 30% by Jan 05, then 10% per month -- then 10% on the Transfer date of August 31st which is when you would get the chanote.

Nothing was said at the auction about not being able to do an immeadiate transfer - so this is a great point. If one didn't inquire they would assume the deed is ready for transfer.

The only thing that the auctioneer did say is that he had someone who 'wanted to know this and what about that and what about this?'. As if the person asking didn't trust (oh shame) the developer. The auctioneers advice to the 'doubting thomas' -- don't come (and bid)!

One of the worst ways to buy a property in Thailand (IMHO) is time payment scheme like this (for obvious reasons). If it was me actually buying one, I would insist on paying the 100% on the date when the chanote is actually ready (minus the 250,000 deposit to hold the land) so I can pay the money at the land office and get the deed. Unfortunately I don't think this would have been accepted as the term of payment is set forth in the Auction Day notes.

[thaiflyer1]

On the back of the sales brocure in Thai only (as was stated by previous poster) developer is in the process of applying for 'jatsan' (pre-allocated village) - implication, the land will be split in to separate chanotes when this occurs on or before 31-August-05.

The sales note sheet has a payment schedule date: for payments of 30% by Jan 05, then 10% per month -- then 10% on the Transfer date of August 31st which is when you would get the chanote.

Interesting ,so by the time it comes for the chanot to be split the developer will of already received 90% of the purchase price......methinks there will be some people in for a nasty shock come 31st August.

[Digger]

Thats what everybody wants to know - was it mentioned at the auction that people were buying land that had not been split or without a valid chanot?

<{POST_SNAPBACK}>

On the back of the sales brocure in Thai only (as was stated by previous poster) developer is in the process of applying for 'jatsan' (pre-allocated village) - implication, the land will be split in to separate chanotes when this occurs on or before 31-August-05.

The sales note sheet has a payment schedule date: for payments of 30% by Jan 05, then 10% per month -- then 10% on the Transfer date of August 31st which is when you would get the chanote.

Nothing was said at the auction about not being able to do an immeadiate transfer - so this is a great point. If one didn't inquire they would assume the deed is ready for transfer.

The only thing that the auctioneer did say is that he had someone who 'wanted to know this and what about that and what about this?'. As if the person asking didn't trust (oh shame) the developer. The auctioneers advice to the 'doubting thomas' -- don't come (and bid)!

One of the worst ways to buy a property in Thailand (IMHO) is time payment scheme like this (for obvious reasons). If it was me actually buying one, I would insist on paying the 100% on the date when the chanote is actually ready (minus the 250,000 deposit to hold the land) so I can pay the money at the land office and get the deed. Unfortunately I don't think this would have been accepted as the term of payment is set forth in the Auction Day notes.

<{POST_SNAPBACK}>

So assuming you have bought one of the finished properties, you surely need to pay 100% now as its finished but you dont get any ownership papers until August 2005.

That kind of approach by the auctioneer is unprofessional. The auctioneers are OWNED by the developer and they just bought in this retired guy to do the actual event from what I understand. Plus the buyer pays a 3% fee to the auctioneer, not by the developer which is what would typically happen in a house sale.

Also if I am not mistaken, any village of more than 9 houses, the developer must have a Thai permit which protects the buyer and lays down certain laws that must be followed such as common area juristic persons etc. These developer licences are not available to Farangs. Also if they are doing it this way, are they going to be paying VAT on the selling price to the tax office. They should be. Again now its a high profile project, I would hazzard a guess that the VAT office will be watching this very closely as a way of getting incremental revenue, not least of all because work permits are not available to farang developers unless the company is VERY large such as a Raimon Land. Therefore developer company must be VAT registered and include VAT on every house sale price at 7%. As the owner of the land currently is a company, and they split out the land, then that company also has to pay corporation tax on the entire profit of the project. Should get interesting.

One thing that has not been considered yet is the cost of the tea money for splitting the land. Now this project is common knowledge, you can bet that the land office have just increased by 500% the costs for 'smoothly' splitting the land into seperate chanots, given the fact that they know they are all sold and that the developer is caught between a rock and a hard place.

I really think the problems are just beginning for this project.

Edited January 3, 2005 by Digger

[aughie]

One thing that has not been considered yet is the cost of the tea money for splitting the land. Now this project is common knowledge, you can bet that the land office have just increased by 500% the costs for 'smoothly' splitting the land into seperate chanots, given the fact that they know they are all sold and that the developer is caught between a rock and a hard place.

I don't know thai real estate development but perhaps the developer already has an inside man at the land office so there won't be a rate increase.

[turbo]

Another interesting point I don't think anyone has pointed out.... the guy has until 31 August to build out the rest of the complex. That is 17 more units. Sure if you put 15 people on each unit and just multiply you can get in 255 people and try to do it that way, but I just don't see it happening. Not only that these are complex units, basements, glass view to bottom of swimming pool. Just the sheer number makes me think it won't all come together.

Drove by there today and nothing is happening. Time will tell.....