Why Are Condo's More Expensive Than Houses?

[Potosi]

They remain unsold, rule 1 is to keep the prices high, and all developers stick to this agreement. That makes problems down the line for the buyers, with 30% or 40% occupancy, money for maintenance and repairs is always short.

[yoslim]

So what happens to the unsold Thai units? like the ones that you can look into from the car park of cental dept store,does anyone ever buy them and do they go cheap?

View Talay 6 was built way before Central so I guess the lucky owners of those units got screwed

[BlackPuddingBertha]

View Talay is somewhat unusual in that they dont use agents. VT1 and VT2 have been completely sold out in both farang and Thai name for years, probably due to the prices still being low at that time. All the newer VT buildings (3, 5, 6, 7 and 8) have units still for sale, though not necessarily in farang name. Some of those buildings have a lot of units still for sale. Prices are too high. You can always try getting a discount but I wouldnt hold my breath.

Other developers all seem to use agents, either sole agents or any old agent, and of course these agents get/share the commission (which may be 8%), and this does give them some incentive to sell the units. You can certainly negotiate discounts in these buildings, though how much will vary from building to building. Dealing direct with the developer seems an obvious place to start, if you can.

[Gnasher328]

Just spent 3m in a condo in CM. The noise was appalling, it seems that up high you get it from a lot further. Also the heat is intensified, especially if you have a bedsit as the fridge and any cooking chucks out a huge amount. And the thing I missed most was the ability to 'potter' in the garage or garden. I saw a couple of houses belonging to or rented by friends, much nicer, so next time I will rent a house. Not much more expensive either, 12k/mth for three months in a condo, 8-10k for 6 months in a house.

[BlackPuddingBertha]

Just spent 3m in a condo in CM. The noise was appalling, it seems that up high you get it from a lot further. Also the heat is intensified, especially if you have a bedsit as the fridge and any cooking chucks out a huge amount. And the thing I missed most was the ability to 'potter' in the garage or garden. I saw a couple of houses belonging to or rented by friends, much nicer, so next time I will rent a house. Not much more expensive either, 12k/mth for three months in a condo, 8-10k for 6 months in a house.

Maybe you should have tried a different condo. Though if you like to potter in the garden one wonders why you moved into a condo in the first place. You cant really blame anyone for the lack of that particular facility.

[Pattaya46]

They remain unsold, rule 1 is to keep the prices high, and all developers stick to this agreement. That makes problems down the line for the buyers, with 30% or 40% occupancy, money for maintenance and repairs is always short.

Why would unsold units make maintenance condo money short ?

The promoter has to pay condo charge for old unsold units until they are first sold.

Other problem in this thread is that many members think that an empty condo apartment

is an unsold apartment, and most of time they are wrong

[Pattaya46]

... like the ones that you can look into from the car park of cental dept store, does anyone ever buy them and do they go cheap?

View Talay 6 was built way before Central so I guess the lucky owners of those units got screwed

Nobody should have buy them. The Central Beach Festival project was already announced when they began to sell VT6. I know about that because I was at this time interested by VT6 and went to City Hall to see the big maquette of Central Beach Festival. I can even tell you that the project was bigger than it is now: 2 big towers, 1 for an hotel and 1 for 1 condo, but they only built 1 : the Hilton.

[BlackPuddingBertha]

Why would unsold units make maintenance condo money short ?

The promoter has to pay condo charge for old unsold units until they are first sold.

"Has to"? Yes but maybe "is supposed to" would be closer to reality.

If the developer is also the management company (as they often are for the first few years until they get voted out) they may have little incentive to pester themselves for common fee money and may just spend the sinking fund instead.

[Pattaya46]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

[yoslim]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And usually half the owners are abroad during general meetings, the rest doesn't want to get involved and those getting involved just want to squeeze out as much money as possible out of the owners

[jbrain]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building. Throw in some strawmen friend owners and where you end up?

[Naam]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building. Throw in some strawmen friend owners and where you end up?

and that's why clever people live in houses and not in condos

[thenervoussurgeon]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building. Throw in some strawmen friend owners and where you end up?

and that's why clever people live in houses and not in condos

I personally would not live in a condo ,but our son is young and when he leaves Uni he would like a small condo like he has now ,then when i was his age i didnt mind living in a studio flat.

[jbrain]

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building. Throw in some strawmen friend owners and where you end up?

and that's why clever people live in houses and not in condos

Damn, this is the second time in a single day that you acknowledge on the open forum how clever I am.

[Naam]

and that's why clever people live in houses and not in condos

... the management company (...) may have little incentive to pester themselves

for common fee money and may just spend the sinking fund instead.

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building. Throw in some strawmen friend owners and where you end up?

Damn, this is the second time in a single day that you acknowledge on the open forum how clever I am.

nobody is perfect. we all make mistakes... even i

[BlackPuddingBertha]

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

Sounds great on paper but in practice, as others have mentioned, a building that has a significant proportion of unsold units will be managed exactly as the developer wishes, especially if the developer is also the management.

[BlackPuddingBertha]

and that's why clever people live in houses and not in condos

Ah. That would be the house that you cant legally own here. Doesn't really sound very clever to me; quite the opposite in fact.

And personally I would rather have to argue a bit about few thousand Baht maintenance fee than have to spend millions installing fancy security systems and buying guns and employing staff and keeping dogs and still wonder when I go to sleep if I'm going to wake up with my throat slit and my Mercedes missing.

[Pattaya46]

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building.

Pure speculation. What are you trying to prove here ?

I don't know any condo at Pattaya who has this problem !

The aim of the constructor (or rather promoter) is to sell as many apparts as he can.

Most used condos in Pattaya are 100% sold since a long time.

[ThaiBob]

and that's why clever people live in houses and not in condos

Ah. That would be the house that you cant legally own here. Doesn't really sound very clever to me; quite the opposite in fact.

And personally I would rather have to argue a bit about few thousand Baht maintenance fee than have to spend millions installing fancy security systems and buying guns and employing staff and keeping dogs and still wonder when I go to sleep if I'm going to wake up with my throat slit and my Mercedes missing.

and don't forget transportation costs, having to buy motorbikes (never in a million years) and/or cars (well maybe not a Mercedes), as most homes are on the dark side so you have to budget for these additional costs. Maybe our good friend Jingthing is just more "clever" with his 10 baht sawng taeo rides.

[ThaiBob]

Wrong. The management company has no money power. It can only do what the Committee tell it to do, and the Committee is elected by the owners. Owners have lot of more rights since the 2008 Condominium Act

Sounds great on paper but in practice, as others have mentioned, a building that has a significant proportion of unsold units will be managed exactly as the developer wishes, especially if the developer is also the management.

Things have changed with the new condo law and don't forget the juristic person/committee holds the power of the purse string. Whether it is the developer or individual owners, all delinquent dues must be cleared and signed-off before permission is granted and chanotes transferred at the Land Office.

[jbrain]

And the commitee exist of the owners due voting rights, where the biggest owners ( read the contructor) has the most voting rights as he owns ?51% of the building.

Pure speculation. What are you trying to prove here ?

I don't know any condo at Pattaya who has this problem !

The aim of the constructor (or rather promoter) is to sell as many apparts as he can.

Most used condos in Pattaya are 100% sold since a long time.

Really? Then why is that so many " famous " condo's that have been finished several years ago have still new billboards erected " last 3 units, hurry "

Or have those promotion stands in the shopping centers at present time.

[BlackPuddingBertha]

Things have changed with the new condo law and don't forget the juristic person/committee holds the power of the purse string. Whether it is the developer or individual owners, all delinquent dues must be cleared and signed-off before permission is granted and chanotes transferred at the Land Office.

Indeed. But there are buildings here that still have a large portion of the Thai quota unsold, and little sign of them being sold. Whilst waiting to sell them the developer is supposed to pay the common fees, but if the developer is also the management (which they are in some cases) then generally not much happens especially as they may also have significant voting power for the committee.

They would have to sort it all out when (if) a unit gets sold, but in the meantime it may be another story altogether.

[Pattaya46]

Really? Then why is that so many " famous " condo's that have been finished several years ago have still new billboards erected " last 3 units, hurry "

Or have those promotion stands in the shopping centers at present time.

1- Which ones ?

2- I said "most", not "all"

3- I said "used", not the "new" ones barely finished (or even started) and for sell in shopping centers

[Oink]

_{Condos normally have two price lists. Farang & Thai but the Farang 49% tend to be the more expensive high floors and penthouses etc. From my experience, the thai 51% is discounted up to 30% from the farang pricelist and can also be bought by a farang with a shell company.}

_{Problem solved.}

_Oink

Edited April 16, 2013 by Oink

[William Osborne]

Why would unsold units make maintenance condo money short ?

The promoter has to pay condo charge for old unsold units until they are first sold.

Other problem in this thread is that many members think that an empty condo apartment

is an unsold apartment, and most of time they are wrong

'Promoter' is going to pay maintenance fees on unsold units...right !!!....and yes, empty condos normally do equate to unsold units !! ..obviously you work in the Real Estate Business so stop posting rubbish !

[BlackPuddingBertha]

...... the thai 51% is discounted up to 30% from the farang pricelist and can also be bought by a farang with a shell company.

Problem solved.

Some might say that when you buy in company name your problems have just begun.

[Jaybonnaza]

Have had the villa up for sale for 2 my years 8.9 mill

And that was reduced - no interest as people are buying condos in Phuket

Plenty more pics but this is nai harn and the market is not moving at all

[jbrain]

Have had the villa up for sale for 2 my years 8.9 mill

And that was reduced - no interest as people are buying condos in Phuket ImageUploadedByThaivisa Connect Thailand1366123379.550219.jpg

ImageUploadedByThaivisa Connect Thailand1366123399.050640.jpg

Plenty more pics but this is nai harn and the market is not moving at all

Maybe it's 50% overpriced

[WinnieTheKhwai]

Oh come on, be kind. 30%.

[MrJ]

Oh come on, be kind. 30%.

Villa? Bungalow!