Build A Condo Instead Of A House.

[thaiwanderer]

Could sell leases on the Thai half?

if retirement type community, hold thai units in wife / thai company name, foreign quota in your / your offshore company names and sell usufructs?

[Khun Jean]

Could sell leases on the Thai half?

if retirement type community, hold thai units in wife / thai company name, foreign quota in your / your offshore company names and sell usufructs?

I have thought about leasing but i do not want to offer 30 year leases that are paid in advance, a usufruct on a condo is unknown territory for me. A 30 year lease where the first 2-3 years are paid in advance would be a good middle ground to provide the owner with enough security and the renter a not too high initial payment. Depends what the rental rate will be but i think the first payment should not be higher then 1MB.

I was thinking that the biggest market would be couples in their fifties, they not really have much choice except rent. With rent you are stuck with what you get and making it your own is problematic as rental contracts are not often given for more then 3 years.

If you can offer a condo freehold, or a 30 year lease it might satisfy their needs. I still think the freehold holds much more attraction as these can be inherited by their children or sold when needs change.

A rental contract with first option to buy might be interesting. I would go for that.

[Fgis]

Interesting !

I wonder how much would cost a small 5 storeys building ?

Also thinking about it rather than a house.

[Asiantravel]

Or you could develop an apartment building?

If you go along Sukhumvit Road in Bangkok notice how many high standard apartment buildings are owned by Indian families. For example The Orchid Tower in soi 8 but there are also many others in the area. The prominent Indian families never develop condominiums only apartments for which they get regular income. Maybe you don't want to become involved in building management but you can always hire a competent team to do that for you.

The advantage here is that you can build exactly what you want and if it offers good facilities and is in a good location, you will always have demand. I know The Orchid Tower is always full.

The advantage of keeping the entire building under one ownership is that you can enforce rules and regulations much more efficiently than when you start selling off ownership rights. For example a condo owners fail to pay their contributions.

Just a thought

[Khun Jean]

The disadvantage is that all your money is locked up and further investments is impossible, or bank loans are needed which will diminish your changes of further profit.

When building a condominium you would be able to sell the largest portion keep one or a few condos for yourself. The cost difference between a apartment building and a condo is very small.

You could then do it again, and again, and again.

[mccw]

Budget for building?

20MB ish?

[Khun Jean]

I don't have a quotation back from the prefab factory, but i hope to make the bare concrete structure without roof for around 10MB. The structure could be build in about 1-2 month time after foundation is ready.

I don't want to use a lot of labour and hate to see people walk around with bucket of concrete.

Pillars, beams will be precast and lifted in place, floor will be hollow concrete slab with a span of 6m.

I think this is the only way i can get a good grasp on the price as 90% of the structure will be made of products from a factory with a clear price and delivery schedule.

I hate to get one of those builders where a building team underperforms in speed and quality and ends up going over budget and unable to deliver on time, which seems the norm in Thailand.

The quality will be higher, the finishing should be easier, the knowledge level of workers does not have to be high, if they can put a nut on a bolt and tighten it, it should be enough.

As a first time "developer" i have not the experience to manage every detail so i want to prevent 90% of the little problems by going prefab.

[Phronesis]

My biggest concern is that if you do embark now on the building you will be looking at selling your completed condos around the same time that I think the unthinkable will happen.

[Khun Jean]

Just to be clear about that, I don't invest a dime until that event is passed for at least a year!

I can however prepare everything, and that is what i am doing.

[evanson]

Yes, go sling up yet another edifice to greed depriving it's neighbours of light and scenery why don't you.

Note to Land Department. 'Ever thought about zoning?'

[Khun Jean]

Yes, go sling up yet another edifice to greed depriving it's neighbours of light and scenery why don't you.

Note to Land Department. 'Ever thought about zoning?'

Chip on your shoulder?

greed, depriving, zoning. Where are you from communist north korea?

If zoning allows a condo then what is the problem?

[Humbugged]

What is the big event ?

If it is what I think...you could be waiting a long while....weekend at Bernies n all.

[mccw]

Didn't mention the economic timing.

Big question of debate.

Thoughts?

[Fgis]

I always think that the stupid one is the one building a house or living near empty land where it's clear that sooner or later a building will be buit...

[Khun Jean]

It is called 'risk', not stupid.

Often a build can trigger neighboring sales and builds.

This can increase the value.

If no one takes a risk then nothing happens.

if you are a follower, nothing wrong with that as the risk will be lower, but don't complain about the high prices.