Buying A Condo

[Easternsea]

I am contemplating buying a condo somewhere, maybe Chiang Mai, maybe somewhere in Isan. I don't particularly need something up-market or "only for farangs"; local standard is fine. In other words, I don't really want something only advertised on internet sites dedicated to farang buyers.

I could pay around 30,000 US$. I am new to this and just getting started with the idea. Could anybody out there share their experiences with me?

1. Is buying a condo a hassle? Is it easy to get swindled?

2. Can you get something nice for 30,000 USD?

3. Do you automatically get some sort of visa if you own a condo?

4. Is it easy to sublet the condo? I wouldn't plan on living in it for a few more years. I would continue to live outside of Thailand.

Thanks for any advice.

[lopburi3]

1. You must use money certified from outside Thailand and follow the rules - not a big deal in tourist areas but could be in less informed regions. FYI: most Thai equate condo to bird house and would not consider living in one if their income allows anything else/or they have to be in center of city. Yes, it is very easy to be taken in any real estate deal but usually amounts are minor if you do your homework.

2. Yes. But that of course depends on what you consider nice and where you purchase.

3. No.

4. If price is right not too much of a problem - but remember rents are extremely low here and few Thai want to live in a condo.

[Easternsea]

Dear Lopburi3,

Thanks for your expert reply.

I have some follow up questions prompted by your response to me:

1. Do I need Thai residency to buy a condo?

2. What do you mean most Thais would consider a condo a "bird house"? Too small?

Thanks again.

[lopburi3]

1. You do not need to be a resident to buy.

2. I believe a quote by a government official was along the lines that they were fit only for foreigners and mosquitos.

Some have been converted into homes for birds as the nests provide more income than the building. There is also a very serious problem with maintenance payments not being made and thus loss of utilities for folks in lower priced units. At the higher levels you have various ways the builders keep control (such as owning units for rent) and swimming pool becoming a fish pond and the parking area a 7-11. Of course not all - but the risks are likely much higher than your home country.

[Jeff1]

Lobburi3 ,

Please tell me more about " certified money from the states "

Will a current months bank statment from the U.S. do ?

Travelers checks ( alot ) OK ? I know I will have to convert them to Baht

I wont be buying a condo, but a house or business is probable.

Thank's ,

Jeff

[lopburi3]

I believe that there is specific paperwork required at the Thai bank end of the exchange process that has to be presented when you use this money to purchase a condo. Not sure of business but would think that same requirements would be in place. As foreigners can not purchase a house directly would not think it would be required. You should be able to find details somewhere on this site or in forum with a search. Would never buy so have not retained the memory.

[Jeff1]

Thank you for your reply lopburi,

I do understand I cannot buy a house directly.

I will bring Bank statments from the U.S. and see what happens.

[lopburi3]

Condo purchase page

The above link should give you the legal angle (at bottom of page). Happy reading.

[Easternsea]

Lopburi3,

Why do you say you "would never buy"? You would never buy a house, never buy a condo, never buy any property in Thailand as a foreigner?

[lopburi3]

We are talking condo so that was my main meaning. I can not buy a house and do not feel at all comfortable with the work around's for that. I bought a house for my wife many years ago so not in need for a place to stay.

In addition do not believe many condo type buildings with maintain their value long with the normal lack of maintenance seen.

[bmanly]

Easternsea, I will give you my knowledge of Property around the the Pattaya and Jomtien area. First of all I would ask myself, do I want to make a profit on my condo or do I just want to live there rent free and not worry about capital gains. If it is the later and not both then it might be worthwhile. Then work out how much money your money can return elsewhere which you can use to rent a condo.

Now being Australian I will convert your money into AUD and that will give me $37,500. In Australia you can get 5.7% PA interest on that with blue chip bank deposits. That would return $2,137 AUD. Convert that to baht it will give you around 5,500 baht a Month for rent with NO RISK.

Now back to condo's. My friend bought a condo in Jomtien 5 years ago for around 580,000 baht. He sold that condo last year for around the same money. In the mean time he had to pay annual on going maintenance fees. All in all he would have been better off renting that property rather than buying. Another point, once you have bought who can say you won't get a young person as your neighbour playing heavy metal music all hours of the night? If you own you can not move (unless you sell) however if you rent you can move out anytime.

Another friend of mine into property owns 2 condos in Jomtien, he could not rent either of them for a period of 8 Months last year. That would make a very lousy investment and whilst you keep holding it the maintenance fees still have to be paid. I always ask this question if I had the money for those 2 condos invested elsewhere would I be better off or worse off. Usually you are better off. He only got 2 Months rent around Christmas, a bad return.

Then there are 2 other friends who have bought in Central Pattaya in Soi Arunothai in the Gow Caret building. There are hundreds of units there and it is not a real ideal location as it's quite a walk from the main shops and bars near the beach. They have retired there so they are happy so do not care about capital appreciation. Because of the location they have to take a motorcylce taxi home everynight they go out, that adds up. One other point, a lot of these buildings have owners who do not pay their maintence fees. When this happens there is less money in the pool to fix up things as they need to be done. I have been in some buildings where one of the lifts is pernamently disabled because they can't afford to repair it. I don't know how they will eventually extract the money out of them but it is a common problem.

My advice is think long and hard about it, when you rent long time you can get a very good Monthly rate and keep your money at hand in a safe investment for the future. Plus you can move on anytime and if anything happens be it bad neighbours, political or even worse, you can just move on anytime. I hope this helped. (I own no property in Thailand but haved owned several in Australia and still currently own 1 there)

[mbkudu]

I just bought a small condo in Bangkok and everything turned out fine. To buy, you must send the money into Thailand from another country. I flew to Bangkok, found an agent, looked at a few units, found one I liked, put down a small deposit called a booking fee, went to Thai Farmers Bank and set an account in my name and then flew home back to the States. The agent will set up a signing date which is very impotant to stay with. Next, I wired the balance to MY bank account in Thailand. It is important to state on the wire transfer form: "For the purchase of a condominium." This is so that your bank in Thailand can issue you a special document called a Tor Tor 3. After that, I gathered passport copies, the Tor Tor 3, cashiers checks and headed to the land department with my real estate agent to hold my hand. There are various "fees" that must be paid, but they are all included in the total price.I had decided to return to Thailand to finish everything, but it is possible to grant power of attorney to someone to do it for you, like an agent or lawyer. This was my first time, so I wanted to go through the process.

Lastly, the title deed was handed to me with my name in both Thai and English. One last note. Get a copy of the title deed, have translated or have a Thai friend who you can trust, read it to you and compare it to the actual property square meters, address, name of owner ect.. especially if it is upcountry or in Pataya or Phuket; this important to do BEFORE YOU HAND OVER ANY MONEY!

Good luck.

[sabaijai]

I, too, am very happy with my condo purchase in Chiang Mai. But I shopped around very carefully and didn't buy till I felt I had found the right place at the right price. I've owned it for a year and a half and, according to what the same units are selling for now (it's a relatively exclusive, 18-unit building), it's worth twice what I paid for it 18 months ago.

From what I've been able to gather talking to other expats, Pattaya/Jomtien appears to be one of the worst places for condo developments where maintenance drops, etc. Central Bangkok seems quite a bit better, 'fringe' Bangkok not as bad as Pattaya/Jomtien but not very good either. In Chiang Mai I don't personally know anyone who has had a problem with lack of maintenance but obviously I'm not familiar with every condo in the city.

This is my second condo residence in Ch Mai. I rented my previous one for five years but should have bought it as the price increased during those five years.

One other thing to look at is how long you plan to own/reside. I did the math on my current place and realised that it would pay for itself in roughly 15 years, even if the value were to stay the same.

There is also something to be said for the 'intangible' side of home ownership. For some it doesn't mean a thing, for others it's a factor.

I bought my place primarily to defray the cost of rent over the long term, and secondly as an investment. So far it appears to have served me well on both counts.

I think the key, as with any property purchase anywhere, is to do your homework. Good location and good management are essential.

By the way, almost all of the units in my building are owned by Thais of high income and social standing. They certainly wouldn't agree with the birdhouse assessment ...