Buying Some Condos To Invest...

[thailanddreamer]

I just wanted to ask you guys a few questions

first of all is it true that a falang can not own a land in thailand 100% but he can own a condo?

if that is the case maybe in the future i would be interested in buying 1 or 2 condos and maybe rent one of them.

do you think this is doable?

And if yes, what are my monthly or yearly expenses? i mean in taxes, general charges etc.

I am also thinking of moving to thailand permanent in about a year, and i am a looking for ''safe'' ways to invest....

thanks a lot

Edited July 26, 2009 by kerastes

[neverdie]

If you are looking for 'safe' way to invest in Thailand I would strongly suggest you do so by looking elsewhere, keep ur cash and property purchases well away from Thailand.

If you go towards the top of the screen and use the thai visa search box (god help us Chiang Mai Bruce) you will find many posts on all the property disasters and traps.

Remember a fool and his money are easily parted and theres no better place to be stripped of ur money than here in Thailand. Remember you heard it here first!

[scorecard]

I wouldn't totally discard the idea of buying a condo and renting it out, however here's a few things to consider:

1. Where? - Purchase cost is different in different parts of Thailand, and what's the rental opportunity (how many potential tenants, and whats' the likley monthly rent amount).

In Bangkok right now you can rent serviced apartments pretty cheaply and most of these buildings are owned totally by one operator. The point being that if the condo is bigger (1, 2, 3, 4 bedrooms etc) potential renters can often get better value for their rental outlay (more services) in a fully serviced building.

2. Buy new condo - Right now prices are down somewhat in just finished buildings. Perhaps be very wary of investing in a condo where building has not actuallu started.

3. Buy second hand condo - You should be aware that many second hand condos have engineering problems (mine does, the building is 12 years old, a professional assessment has just been completed and we need to spend about 20million Baht to fix the problems.

Additionaly, the concept of joint ownership and internal owners committees etc., is fairly new and in many buildings nobody wants to be serious about repairs. Perhaps more to the point, nobody wants to pay out for the repairs, and there is a fairly poor track record of 'owners joint funds' / sinking fund money being mishandled (read disappearing). In some buildings there is no sinkinf fund and it would be pretty difficult to get one started.

Thais (most of the owners in any condo are Thai) have a different attitude to maintenance. 'Why would you spend money on something old?'

[Denim]

Good time to buy in Pattaya. Lots of falangs wanting to sell up and leave but no buyers. Might be able to pick up a bargain.

[gmac]

Good time to buy in Pattaya. Lots of falangs wanting to sell up and leave but no buyers. Might be able to pick up a bargain.

But bear in mind that in the future you may be one of those sellers wanting to leave in the same situation!

[jlelouer]

I would be careful about investing in Thailand considering the fluctuation of the currency. What will be the exchange rate vs. usd or eur in 5 or 10 years?

[vediovis]

Ask http://www.sk-houseandcondos.com for Pattaya and around. They know their market and they will advice you.

Tell them you come from me

Stef

Edited August 4, 2009 by vediovis

[Serpico]

I just wanted to ask you guys a few questions

first of all is it true that a falang can not own a land in thailand 100% but he can own a condo?

if that is the case maybe in the future i would be interested in buying 1 or 2 condos and maybe rent one of them.

do you think this is doable?

And if yes, what are my monthly or yearly expenses? i mean in taxes, general charges etc.

I am also thinking of moving to thailand permanent in about a year, and i am a looking for ''safe'' ways to invest....

thanks a lot

Occasionally you can find a nice condo that has been built well and maintained. Very rarely, but possible.

Our building goes thru manager after manager and they sleep, steal, lie, trash the place in general.

Life and safety systems ignored. Vital repairs and maintenance neglected. Corruption at every level from GM to the Maids.

Security Guards taking bribes..

Reception cutting deals with real estate agents.

You get the idea...

[hhgz]

"first of all is it true that a falang can not own a land in thailand 100% but he can own a condo?"

Yes. Women can also buy a condo.

"i would be interested in buying 1 or 2 condos and maybe rent one of them. do you think this is doable?"

Yes. There are several threads related to this specific question.

"what are my monthly or yearly expenses? i mean in taxes, general charges etc."

You'll be charged a monthly maintenance fee, and the exact cost is specific to the developer. This fee can be expected to be 20-40THB/sqm/month. You will also be liable for water and electricity, and there are lots of discussions related to those charges on this website. There is an electric meter deposit of about 12,000 THB. If you buy a "new" condo, as compared to a "resale", you will be responsible for paying a sinking fund charge, 400-600 THB/sqm, that depends upon the specific development. You will be responsible for sales and transfer costs - generally split with the seller - and, again, there are lots of discussions related to those specific charges. If you are serious about buying a condo, I suggest that you speak with a large real estate company (for example, Property Plus or CBRE), and they can give you more information.

"I am also thinking of moving to thailand permanent in about a year, and i am a looking for 'safe' ways to invest...."

Don't buy a bar, and don't send your GF to a "hairdressing" school. Every investment that you make (cash, precious gems or metals, oil, real estate, mutual funds - either debt or equity) has risk, and only you can assess the level of risk with which you are comfortable. We can't make that decision for you.

[Chunkton]

Yes it is do-able, listen to the nay sayers as well but then make up your own mind as to what is right for you. Sometimes the "do it" mob have an angle for you as a customer, and sometimes the "don't" mob couldn't afford to anyway or have been burnt by some BG.

In this lousy market I am averaging 13.5% on my condo rentals, not such a bad return.