Can S'one Show The Dummies Guide To Buying A Condo

[ChUcKyChUcKs]

Hi All!!

I've been reading various posts on this board for some time now with regard to buying a condo and i have to say that i am still very confused..am i stupid?

I've been going to Thailand for around 5-6 years now and have decided that i would like to invest in a condo...somewhere i could maybe retire to in years to come.

After thinking about location..i have decided that Pattaya is my ideal choice.

I was there a few weeks ago and went and viewed 3 different condos..two just off beach road and one up on the hill.

I decided that the hill was the one for me...the guy showed me the mock up condos and took me up on the building site to get an idea of what it would be like..i was impressed.

He told me that now was the time to buy as the airport was going to boost property prices in Pattaya way high (anyone want to comment on that).

The condo was 90sq m and was priced at 4.5 million...it's not furnished...do you guys think this is a good price?

The sales guy tells me that he could possibly negotiate a 5% discount for payment in full.

Now as i know nothing about buying in Thailand..i am a bit paranoid of handing that sort of money over..the building is freehold..i worry about maybe the government saying in years to come that they have the right to take the land back..maybe i hand the money over and the project dosen't get completed..will i get my hard earned cash back and then theres all the bank transfer stuff,how to rent it etc etc..i'm sure you know where i am going.

So there you have it..my head is well and truely pickled thinking about it..so i was wondering if some kind smart person on here could possibly tell me in simple english the answers to all my questions and worries...i would be eternally greatful for any advice.

A very confused

Mark

[solo siam]

I wouldnt do anything without speaking to a reputable lawyer, not sure too many people pay cash upfront for off-plan purchases, although I may be wrong.

[icecubes]

Hi All!!

I've been reading various posts on this board for some time now with regard to buying a condo and i have to say that i am still very confused..am i stupid?

I've been going to Thailand for around 5-6 years now and have decided that i would like to invest in a condo...somewhere i could maybe retire to in years to come.

After thinking about location..i have decided that Pattaya is my ideal choice.

I was there a few weeks ago and went and viewed 3 different condos..two just off beach road and one up on the hill.

I decided that the hill was the one for me...the guy showed me the mock up condos and took me up on the building site to get an idea of what it would be like..i was impressed.

He told me that now was the time to buy as the airport was going to boost property prices in Pattaya way high (anyone want to comment on that).

The condo was 90sq m and was priced at 4.5 million...it's not furnished...do you guys think this is a good price?

The sales guy tells me that he could possibly negotiate a 5% discount for payment in full.

Now as i know nothing about buying in Thailand..i am a bit paranoid of handing that sort of money over..the building is freehold..i worry about maybe the government saying in years to come that they have the right to take the land back..maybe i hand the money over and the project dosen't get completed..will i get my hard earned cash back and then theres all the bank transfer stuff,how to rent it etc etc..i'm sure you know where i am going.

So there you have it..my head is well and truely pickled thinking about it..so i was wondering if some kind smart person on here could possibly tell me in simple english the answers to all my questions and worries...i would be eternally greatful for any advice.

A very confused 

Mark

<{POST_SNAPBACK}>

This I the best advice you will get

Dont under any circumstances give payment for any

uncompleted dwelling in Thailand.

There is no guarantee anything will be finished here.

Have a nice day

[The_Other_Mac]

How about looking around some previous developments by that company? See the (lack of) quality and the (hopeless) building management, try to talk to some residents. Then decide if you want to go with them.

Also look for the small print showing how much they have earmarked for construction costs and how much they have actually deposited in the bank. Um, except I can't remember what a decent percentage is, but the deposit should be sizable. (Anyone?)

People do buy off-plan, but with reputable brandname developers, and with a deposit/installments/balance arrangement.

[icecubes]

People do buy off-plan, but with reputable brandname developers, and with a deposit/installments/balance arrangement.

<{POST_SNAPBACK}>

Your quite right.

There is an abundant amount reputable developers in Thailand.

I retract my last comment. Sorry to you all.

Please to all, fell free to hand over your cash to these people

I?m sure, you will not be disappointed and you will be refunded in full

If there is any problems, im sure the courts will help you as well if

needed.

Have a nice day

[Kringle]

If you can't see it finished, then don't buy it. Think about it this way, how many unfinished buildings do you see all over Bangkok? Just my 1 baht's worth on the subject.

[charles]

If you can't see it finished, then don't buy it. Think about it this way, how many unfinished buildings do you see all over Bangkok? Just my 1 baht's worth on the subject.

<{POST_SNAPBACK}>

Fair enough, although one might argue a bit of a simplification.

The unfinished buildings around Bangkok date from the 97 crisis. Although many people like to think history will repeat itself, at present there isn't any evidence of what happened then with property happening again in the near future. There really was a huge oversupply and ridiculuous speculation back in the mid 90s.

IMO, the chances of an established PLC type developer failing to complete a project or return your deposit (if it's cancelled) are fairly slim. The crucial point is to check out the developer. Any "one-off" developer or family firm who fancy diversifying into real estate should be avoided. In any case at least 70% of the price should only be paid upon transfer of the unit when the project is complete. And the deposit paid before completion would normally be in installments.

At the end of the day, buying off-plan is just a variation on the risk-and-reward principle. Buying off-plan early means you get to choose a better appointed unit at a (hopefully) lower price. But of course you have the worry that the development won't be completed or will fall short of its supposed specifications. Again, all the more reason to thoroughly check out the developer.

If you don't buy off-plan, if it is a good development, then by the time it is completed, at best only the less well-appointed units will be left (and often prices between well and not well appointed units are not that different - for example it gets more expensive the higher the floor but not by that much, while on a given floor all units might have the same per sq.m. price despite some having good views and others being blocked by other buildings). So if you want to get a better appointed unit but only when the building is ready for transfer, then you will need to buy out the contract of someone who has already booked such a unit. This can easily be done but of course you may have to pay a premium for it. Some people might consider that worthwhile in order to avoid the mentioned risks of booking off-plan.

Edited October 10, 2005 by charles