Buy Condo Paying Monthly

[TexasRanger]

Hi,

Just managed to pay off the house in the country and think I should buy a condo in Bangkok with the spare money as we currently rent quite a nice place for 17000pcm but think it may be better to buy than keep putting the money in the landladies pocket every month.. The Mrs has friends who have got condos where they make a down payment and pay every month with the option to pay more at any time and when the balance is paid it becomes theirs, now I don't mean to disbelieve what they tell me so I am wondering if anyone here has any comments on such a scheme good or bad. Cheers.

[richardt1808]

mmm, such a deal would have to come with a pretty hefty contract for you to be protected.

Given the enormous number of cases where people lose everything on even more solid deals than you propose, I would think that the risk is huge. Your wife should have no problem applying for a mortage, perhaps with you as a guarantor, and you would then be able to buy it outright; risk-free.

[TexasRanger]

mmm, such a deal would have to come with a pretty hefty contract for you to be protected.

Given the enormous number of cases where people lose everything on even more solid deals than you propose, I would think that the risk is huge. Your wife should have no problem applying for a mortage, perhaps with you as a guarantor, and you would then be able to buy it outright; risk-free.

Good point, although the mortgage idea isn't too good an option, despite me paying a large sum into the wifes account every month for the last 4 years she is a housewife and has no pay slips.

[liveinlos]

A Condo is the worst possible investment you can make in Thailand

You are much better off to move just to the outskirts of Bangkok and buy a 3 bedroom house where you own the land.

I can be to downtown Bangkok in 30 minutes.

3 bedroom house in my Moo Ban with gated security if you want to rent are only 10,000 to 12,000 a month

This is a home with a garden yard, trees, driveway etc.

The problem with the condo is when the owners of the building decide to do a less than stellar job taking care of the building your investment becomes worthless

That and a glutton of condo's on the market and the fact that Thais rarely ever buy used housing

[TexasRanger]

A Condo is the worst possible investment you can make in Thailand

You are much better off to move just to the outskirts of Bangkok and buy a 3 bedroom house where you own the land.

I can be to downtown Bangkok in 30 minutes.

3 bedroom house in my Moo Ban with gated security if you want to rent are only 10,000 to 12,000 a month

This is a home with a garden yard, trees, driveway etc.

The problem with the condo is when the owners of the building decide to do a less than stellar job taking care of the building your investment becomes worthless

That and a glutton of condo's on the market and the fact that Thais rarely ever buy used housing

I have to say that it is not really an investment I am looking for but a convenient place to stay when in Bangkok, the thing is that we spend a lot of our time in our house in the country and have always liked the fact that no one in our condo building knows the place is unoccupied when we are away, I would worry that a house would be more likely to be robed when it becomes aparent that we are away most of the time. I do agree about the owners though as our present place is quite a nice place, only about 6 years old and is already developing problems so glad we don't own this one.

[scorecard]

mmm, such a deal would have to come with a pretty hefty contract for you to be protected.

Given the enormous number of cases where people lose everything on even more solid deals than you propose, I would think that the risk is huge. Your wife should have no problem applying for a mortage, perhaps with you as a guarantor, and you would then be able to buy it outright; risk-free.

Good point, although the mortgage idea isn't too good an option, despite me paying a large sum into the wifes account every month for the last 4 years she is a housewife and has no pay slips.

I wouldn't automatically rule out the possibility of getting a mortgage.

My adult Thai son who is still at university (perpetual student, married with one small child, no income) got a mortgage, with a Thai bank, a few years back with me as guarantor. I must admit that we knew the local branch manager very well (bigger branch) but it still had to be approved by the bank HO in Bkk.

[scorecard]

A Condo is the worst possible investment you can make in Thailand

You are much better off to move just to the outskirts of Bangkok and buy a 3 bedroom house where you own the land.

I can be to downtown Bangkok in 30 minutes.

3 bedroom house in my Moo Ban with gated security if you want to rent are only 10,000 to 12,000 a month

This is a home with a garden yard, trees, driveway etc.

The problem with the condo is when the owners of the building decide to do a less than stellar job taking care of the building your investment becomes worthless

That and a glutton of condo's on the market and the fact that Thais rarely ever buy used housing

I have to say that it is not really an investment I am looking for but a convenient place to stay when in Bangkok, the thing is that we spend a lot of our time in our house in the country and have always liked the fact that no one in our condo building knows the place is unoccupied when we are away, I would worry that a house would be more likely to be robed when it becomes aparent that we are away most of the time. I do agree about the owners though as our present place is quite a nice place, only about 6 years old and is already developing problems so glad we don't own this one.

Lots of intereseting points here:

- I would be very concerned about the risk of your monthly payments becoming 'lost'. This industry has a very bad name, many developers are very shonky with no business morals at all. There are two new very upmarket developments near me (in downtown Bkk), they claim to be sold out but put up large banners basiclaly saying 'give us a call, maybe there are units for re-sale', furter inquiries will quickly reveal that a large percentage of units are for sale (first sale).

- I recently sold a condo in downtown Bangkok because I'm moving my family to another part of Thailand. The condo has in fact been very convenient but it'a now a little old and has numerous large & complex engineering problems which all urgently need fixing and will cost in total perhaps 40million Baht. The committee situation is a nightmare with 'clicks' who fight each other simply for the sake of fighting. Several committee members are determined that no money be spent at all and they fight every attempt to get engineering problems fixed, they are quite happy to ignore the problems, even though an inspection by the relevant authorities would probably bring hefty fines for non compliance with waste water regulations etc etc. The actual building manager has to be scolded again and again for security lapses. The office staff are totally lazy and slovenly, and avoid as much work as possible. One person found to be doing a rake off of the rent for one of the condos. Mistakes in accounting documents. The committee banned all office staff from having any dealings or discussions with outside suppliers because of collusion (one staff member was told to get two quotations for a new ceiling in one of the common area rooms, perhaps 5m x 5m; 40,000, and 28,000Baht. One committee member called another supplier directly, he came measured and gave a quotation of 5,000Baht). I could go on...

[TexasRanger]

All good info scorecard, thanks, and making me think about a house / townhouse now. I am not in a rush and it really just will be a place where I keep my work stuff and spend a week or so every couple of months. I must admit the idea of lousy management and repairs could be a nightmare, as could bad neighbours but I guess that's a risk everywhere.

[trogers]

Get a 2nd hand condo that is 5 years old or older. This way, you would be aware of the state of building management and the social class of your neighbours, and the surrounding neighbourhood.

New condos are more expensive, and carries the uncertainty as pointed earlier.

[hhgz]

"A Condo is the worst possible investment you can make in Thailand"

Not even close. A bargirl is more expensive, owning a bar is more risky, and sending you bargirl friend to "hairdressing school" so see can earn extra money is even worse.

[naidraw66]

A Condo is the worst possible investment you can make in Thailand

You are much better off to move just to the outskirts of Bangkok and buy a 3 bedroom house where you own the land.

I can be to downtown Bangkok in 30 minutes.

3 bedroom house in my Moo Ban with gated security if you want to rent are only 10,000 to 12,000 a month

This is a home with a garden yard, trees, driveway etc.

The problem with the condo is when the owners of the building decide to do a less than stellar job taking care of the building your investment becomes worthless

That and a glutton of condo's on the market and the fact that Thais rarely ever buy used housing

If you are not Thai then please tell us HOW you "own the land" . . . . . . ? As we all know Farangs are not allowed to buy land here in Thailand

[fletchsmile]

Your wife can get a mortgage in her name guaranteed by you. She does not need to be working or have any income. You do need an income though. Also likely they will only lend for a tenor up until age 65 for you if you are guarantor.

[aussiebebe]

Your wife can get a mortgage in her name guaranteed by you. She does not need to be working or have any income. You do need an income though. Also likely they will only lend for a tenor up until age 65 for you if you are guarantor.

Really? Which banks offer mortgages to unemployed Thais, if you don't mind me asking? I agree that foreigners can act as guarantors to their Thai spouse, I'm fairly sure the spouse must be employed. Could you give any details, please?

To the OP, I think the best chance of 'paying monthly' is getting a mortgage with a bank, there is no other reputable way. As for not having an early-repayment penalty, well I doubt it!

I think your reasoning is fine; you are looking for somewhere to stay infrequently, in a good location, in Bangkok, condos aren't the worst investment, good luck to you, just don't get suckered into a 'pay monthly' scheme!

If you consider a house, you seem to already realise that they come with their own set of problems ie you can't own them, the ground constantly sinks, worse location for the money. They even share some problems with condos such as selling them on, and gated communities have management (or should that be mis-management) companies also.

[naidraw66]

Your wife can get a mortgage in her name guaranteed by you. She does not need to be working or have any income. You do need an income though. Also likely they will only lend for a tenor up until age 65 for you if you are guarantor.

Really? Which banks offer mortgages to unemployed Thais, if you don't mind me asking? I agree that foreigners can act as guarantors to their Thai spouse, I'm fairly sure the spouse must be employed. Could you give any details, please?

To the OP, I think the best chance of 'paying monthly' is getting a mortgage with a bank, there is no other reputable way. As for not having an early-repayment penalty, well I doubt it!

I think your reasoning is fine; you are looking for somewhere to stay infrequently, in a good location, in Bangkok, condos aren't the worst investment, good luck to you, just don't get suckered into a 'pay monthly' scheme!

If you consider a house, you seem to already realise that they come with their own set of problems ie you can't own them, the ground constantly sinks, worse location for the money. They even share some problems with condos such as selling them on, and gated communities have management (or should that be mis-management) companies also.

As aussiebebe just posted above there are problems with buying houses, the biggest ofcourse being that as a foreigner you can not buy land here in Thailand. (You may however own the house located on the land) If your Wife/gf is Thai then ofcourse she can own the land, but that comes with its own set of problems!! I have just bought a condo, and for me there were two main considerations. 1. Outright ownership & 2. Security. I think if you do proper research and not jump in feet first you will find many suitable condominiums. One thing I would look for would be a maximum occupancy of Farangs, I think its 49%, this way I believe more care will be shown towards the property and its upkeep.

I have seen (somewhere) some new condominiums ofering monthly payments after paying an initial deposit. You will need to speak to some estate agents in the area(s) that you want to live!

[naidraw66]

Sorry I meant to say " As aussiebebe just posted above" . . .

Edited July 2, 2010 by Crossy
fixed it for you :)

[trogers]

...One thing I would look for would be a maximum occupancy of Farangs, I think its 49%, this way I believe more care will be shown towards the property and its upkeep.

My opinion is that you do not need to have 49% ownership by farangs to get more care in property management, but rather, the development may still be largely owned by locals, but a large portion of space (over a third) are leased out to foreigners.

[fletchsmile]

Your wife can get a mortgage in her name guaranteed by you. She does not need to be working or have any income. You do need an income though. Also likely they will only lend for a tenor up until age 65 for you if you are guarantor.

Really? Which banks offer mortgages to unemployed Thais, if you don't mind me asking? I agree that foreigners can act as guarantors to their Thai spouse, I'm fairly sure the spouse must be employed. Could you give any details, please?

To the OP, I think the best chance of 'paying monthly' is getting a mortgage with a bank, there is no other reputable way. As for not having an early-repayment penalty, well I doubt it!

I think your reasoning is fine; you are looking for somewhere to stay infrequently, in a good location, in Bangkok, condos aren't the worst investment, good luck to you, just don't get suckered into a 'pay monthly' scheme!

If you consider a house, you seem to already realise that they come with their own set of problems ie you can't own them, the ground constantly sinks, worse location for the money. They even share some problems with condos such as selling them on, and gated communities have management (or should that be mis-management) companies also.

My Thai wife stays at home looking after the kids and so no earned income. I have a job with work permit here in Thailand. We have a mortgage with Standard Chartered Bank. Our mortgage has no penalty if we repay it early. There is a penalty if we transfer the mortgage to another bank which is fair enough really. They would not lend directly to me or in joint names. It must be in your wife's name guaranteed by you. We pay each month from a joint bank account. You need to sign a document at the land office saying it belongs to your wife. There were a few other requirements in addition to proof of marriage and WP, such as minimum income of 75k, 6 months proof of income and so on. PM me if you have similar conditions and I can pass you on to the people dealt with mine if you want.

Edited July 2, 2010 by fletchsmile

[aussiebebe]

Hi fletchsmile, thats really interesting, thanks for taking the time to explain. I knew that Thai banks would grant mortgages to Thais, but that they'll do so under such circumstances is revelatory to me. Good for you finding something that works. Thanks for sharing how you did this, it could be useful to me (or someone else reading this thread) in the future.

[bkk_mike]

My wife (housewife) got a mortgage just last week to buy a condo with me as guarantor (and I don't have a work permit in Thailand as my job is in Hong Kong).

You won't get the 95% LTV that they give to Thais, but we still got 80%.

Admittedly we've been married over 10 years, and my wife has good credit and it's not like we were borrowing several times my salary...

(They credit-checked me as well, but unsurprisingly as I have no work permit here, I have nothing other than a savings account in Thailand so it came back with nothing.)