Condo 2Nd Hand Up To 1M

[bangkokburning]

Ok, so my girlfriend buys a condo. A great way to save that rent money into something that might be considered an asset. Condo is already 5yrs old. What will become of this place in 30years? Seems like after the 10yr mortgage is paid up, all that can be hoped is to move out and rent it (yeah right) or live in it until it falls apart. Am I correct to assume that owners will recv little or nothing when that bldg is sold or torn down?

So, is this an investment for life?

[123ace]

At that price point the builing may have a life expectancy of 30 years only. If sea levels rise it may be a mute point anyway.

The upside is only there if the title comes with a proportion of the land taht the builing sits on. If so, then your GF will own a small freehodl portion of the land for re-development in the future - maybe.

[Piengrudee]

What will that condo look like in 20-30 years? What will your husband/wife look like in 20-30 years? Same same.

[trogers]

What was Bangkok like in the 70s? What will Bangkok be like after 2040? The word you are looking for is 'Redevelopment'. A concrete structure, if built correctly, can last 100 years. But its economic life is usually shorter. Look at the old buildings in HK and Singapore being demolished and new taller buildings shooting up in their places.

If the location is a desired one, someone will eventually come along to buy out all the unit owners and redevelop the site. If the location is bad, unit owners can simply live in the building till it collaspes...

That's why investment in real estate is always - location, location, and location...

Edited August 27, 2010 by trogers

[flying]

My guess would be that it depends a lot on the condo association for that condo.

If they are strict in enforcing maintenance fees & have a plan for scheduled maintenance then of course the condo should age better.

We have all seen the ones that do not enforce nor upkeep & well........