2Nd Hand Condo Purchase For Thai

[bangkokburning]

My girlfriend (33) has been renting all her life due to a 'travel addiction'. She makes fair money but has talked about acquiring a small 2nd hand condo. Max she has to spend I think is 800K-1m although some stuff at 1.5m looks far better (and far more pricey). I am OK with this smallish investment. I will help w/ payments to allow her to pay it off more quickly. I think in years to come we will travel 8 months and stay in BKK a few months.

I would like her to look at a 10yr mortgage or 15max.

What is MLC? Variable interest rate?

Minimum down payment in Thailand (10%)?

Looking at BKK and K the terms one can borrow are confusing, this rate for this long and such and such for three months blah blah - IS there a straight up mortgage anywhere?

Penalty to pay the mortgage of early?

Fancy schemes Banks try to drag you into when borrowing?

What is the current interest rate that she can use to calculate a mortgage? Do you see rates up or down in next 18mos?

Peril of a variable mortgage and are all mortgages in Thailand variable (MLC)?

She works near Asoke (<1km) but flats in this area obviously no in range. Can anyone recommend a nice living area a 3-4km away? Thong Lor flat for 1m - possible? Quiet, green spaces, less air pollution, good open markets, shopping center, MRT/BTS access. can be Thai neighborhood 100%.

Current market conditions for a Thai buying a condo in said price range.

Perils of buying a 2nd hand condo?

Benefits of buying 2nd hand?

Management fees

Thank you

Edited June 20, 2010 by bangkokburning

[trogers]

My girlfriend (33) has been renting all her life due to a 'travel addiction'. She makes fair money but has talked about acquiring a small 2nd hand condo. Max she has to spend I think is 800K-1m although some stuff at 1.5m looks far better (and far more pricey). I am OK with this smallish investment. I will help w/ payments to allow her to pay it off more quickly. I think in years to come we will travel 8 months and stay in BKK a few months.

I would like her to look at a 10yr mortgage or 15max.

What is MLC? Variable interest rate?

Minimum down payment in Thailand (10%)?

Looking at BKK and K the terms one can borrow are confusing, this rate for this long and such and such for three months blah blah - IS there a straight up mortgage anywhere?

Penalty to pay the mortgage of early?

Fancy schemes Banks try to drag you into when borrowing?

What is the current interest rate that she can use to calculate a mortgage? Do you see rates up or down in next 18mos?

Peril of a variable mortgage and are all mortgages in Thailand variable (MLC)?

She works near Asoke (<1km) but flats in this area obviously no in range. Can anyone recommend a nice living area a 3-4km away? Thong Lor flat for 1m - possible? Quiet, green spaces, less air pollution, good open markets, shopping center, MRT/BTS access. can be Thai neighborhood 100%.

Current market conditions for a Thai buying a condo in said price range.

Perils of buying a 2nd hand condo?

Benefits of buying 2nd hand?

Management fees

Thank you

Regarding price, there are no 2nd hand condo within 3-4km from Asoke for 1m, even for a small studio of 30+m2. Do not confuse a flat for a condo.

Nearest 2nd condo (within walking distance to a BTS station) suited for your gf would be Waterford Park Rama 4. But this development has no studio units. Smallest will be a one-bedroom 45m2 unit, prices range from 1.6-1.8m depending on the state of the interior.

[bangkokburning]

Hi trogers - always most helpful. Yes, condo not flat. She only works there and under no illusion she (we) can live there. Thanks for the tip, but that's out of her range. I think she (we) are looking to spend about a year saving and educating ourselves. She a first time buyer, me never a notion about buying in (BKK) Thailand. It will be her place, I'll help with payments in addition to our travel and incidentals. She has to want it.

Can I ask you one more question aside from those already posed? 30sqm Tiny. What is the resale opty on a new/used condo that small in a very average area but near-ish a btts/mrt stop??

[trogers]

Hi trogers - always most helpful. Yes, condo not flat. She only works there and under no illusion she (we) can live there. Thanks for the tip, but that's out of her range. I think she (we) are looking to spend about a year saving and educating ourselves. She a first time buyer, me never a notion about buying in (BKK) Thailand. It will be her place, I'll help with payments in addition to our travel and incidentals. She has to want it.

Can I ask you one more question aside from those already posed? 30sqm Tiny. What is the resale opty on a new/used condo that small in a very average area but near-ish a btts/mrt stop??

Resale opportunity at a higher price will depend much on the location of the development and class of occupants. And also, on the condition of the neighbourhood. If you are looking at a budget of Bt25k+/m2 and a studio, there is an older development occupied by Thais about 200m inside Udomsuk (Sukhumvit 103), left hand side if approaching from Sukhumvit road. It's a twin-block of about 18 floors.

On application of bank mortgage, the amount she can get will depend much on her tax declared income. Monthly payment as a rule of thumb would be about 40% of disposable income, provided she does not have other liabilities like paying back a car loan. The total a bank will lend on a 2nd hand condo will likely be 70% of assessed value, which may be as low as 60% of purchase price.

[bangkokburning]

I can't thank you enough, its always a pleasure to read your posts - you really have a through grasp of paroperty and the BKK market.

That Suk address is to far out for her sure.

i wish her to look at something about 800-1m with 15% down. So that is good to know, she will need to put thirty.

This is tough because I want her to take a 15yr mortgage. So she has some thinking - holidays or condo. :-)

[trogers]

I can't thank you enough, its always a pleasure to read your posts - you really have a through grasp of paroperty and the BKK market.

That Suk address is to far out for her sure.

i wish her to look at something about 800-1m with 15% down. So that is good to know, she will need to put thirty.

This is tough because I want her to take a 15yr mortgage. So she has some thinking - holidays or condo. :-)

Udomsuk may seems far today, but as the development is within walking distance to the BTS station there, the unit would likely appreciate in value once the BTS line is operational, probably by the end of next year.