Buying A Condo A Word Or Ten From The Wise!

[makavelithedon]

Hi all,

I would appreciate some wisdom from the more senior members who have probably been down the route of buying, and if doing it again would have done things differently!

Two of my family wish to buy a Condo here between them, so I wondered if you could advise on the best course to take from the off! They have found something they like, and that's as far as I've got before posting here. I will say that I will have to liase for them, as they are not planning to come here for some time and construction has only just started -with estimates being 16-17 months.

I wish to have a lawyer deal with everything that I am sure of reading previous posts( Recomendations would be good), but would welcome views from people here with far more experience of this in Thailand than me -I really don't want this being any hassle!

Many thanks in advance

MAK

Edited May 1, 2006 by makavelithedon

[backflip]

"construction has only just started -with estimates being 16-17 months."

Learn patience. The construction will take substantially longer than you expect.

[The Skipper]

Things are screwy here.

Buying into an unfinished project?

Good luck.

Things just never turn out like the brochure.

This is Thailand, Buyer beware.

Will the view be as nice as they say?

Will you hear the industrial laundry room next to your unit, or will the road noise drive you crazy or is there a hundred dogs in the neighborhood barking all nite below?

Does the neighbor above, below or beside have a Home karaoke System and Sub Woofer?

Does your sucurity guard wash his car at 6am and play the stereo,

or the neighbors driver hang out on your doorstep all day?

Is construction about to begin next to your place soon?

Is there a Mcdonalds opening below your unit with the exaust fans blowing that smell into your apt?

Did the handyman install the outdoor lighting right outside your bedroom making it brighter than a 7-11?

Do motorcycles and Tuks Tuks race by or park with their exaust blowing into your windows.

or does the hallway smell bad?

Is the elevator fast, hot, dependable?

Do the neighbors above come home drunk every nite at 3am and fight?or bring the bar home and party?

Are a bunch of toddlers using the hallway for a daycare center?

Do the neighbors nannys allow their kids to go crazy out at the pool every afternoon?

Are the owners getting along or are they dragging each other and you into court, doing black magic and voodoo all nite?

Is the neighbors retarded housekeeper camping out under your bathroom window?

Does she have 16 cats that fight all nite?

Is your unit facing the hot side of the building or is there an all nite entertainment center nearby?

Will they maintain the place or will it go bankrupt?

Is the place put together well or does it start falling apart the moment you move in?

Don't let this project ruin your relationships.

Introduce them to the sales people and stay out of it.

Edited May 2, 2006 by The Skipper

[Master Chief]

Hey guys

There are great lessons to be learned from people whom have stayed for a while in paradise, it is never as easy as people try to tell you. And that goes for the developers, sales officer and property agents. There are so many things that can happen during a construction, it takes 2-3 years to finish a medium sized development and there is plenty of time for disasters.

I do not know your agenda to get involved in the buying of the condo, lets go for receiving some small gratitude or if it is just of pure kindness. But still so many days before move in can be so just hold on as the storms are coming.

[makavelithedon]

Thanks guys, getting cold feet already! I think I'll leave this well alone after chewing it over. And I'm going to advise them do the same. If it goes drastically wrong you've got no recourse bar a 5 year expensive court action and a 50/50 outcome after that. Took skipper to bring me quickly to my senses. Thank you.

I've been here long enough, why should this process be any different from day to day stuff eh?

Cheers,

MAK

[ataloss]

The Skipper is right on the money here. Just to prove the point he makes, try renting a condominium. I did after my rented house had been broken into 3 times while I was away teaching. Lost my laptop, plus plus... and eventually a stereo, but not the speakers as I interrupted the thieves on their 3rd burglary as they were making their way over the back wall - the speakers were left on the upper balcony. Not opportune to walk in on a burglary as you could well end up dead over a 1000-Baht radio. I moved ASAP thereafter. The joys of living in a secure condo (so-called security even with security personnel) ended with my M/C stolen right under the nose of a night sentry, and my condo door was later pried open. But having bought a new m/c and installed a steel door, my teaching lessened and I was home a good part of most days. What torment! The noise of construction was constant, from condos being renovated. The banging and drilling continued all day long (no exageration), reverberating through the concrete from even the most distant flat, as if they were drilling in the room next to you. I moved to another condo with the same result. Don't rent, simply visit any condo during the day to feel how miserable the retired elite now are, after parting with their retirement nest egg for a Thai condo. Oh, I am back renting a house, but with 4 Rottweilers as family members.

[thaihome]

The Skipper has indeed provided a very valuable list, but except for the reference to tuk-tuk it is a valuable list for buying property anywhere in the world. I have used a similar list for every house I have ever bought, in the US or in Thailand.

As far as buying pre-construction, there are some risk, which can be mitigated by some basic research into the company and its financial strength.

The construction time for a building is dependent on the size and the motivation of the builder to finish. Our building, 300 units, 20 stories, took about 18 months, we bought about 2 months after construction started so we have waited 16 months to move in. The unit is exactly like the model and we have no major complaints. Construction quality is ok, not perfect, but having been in the construction business for about 30 years now, I have never seen perfect yet.

Maybe we were lucky, maybe the fact the building sold out a year before construction finished (motivating the builder) is sign that people did their homework and like what they saw. Based on a couple a sales I know about, one speculator that bought when we did made about 20% in a little over a year (with 25% investment).

Anyone else have first hand experience to pass on?

TH

[malcolminthemiddle]

Many new condo units are bought of plan by speculators who have no intention of completing the sale and hope to cash in before the final payment is due which in some cases can be as much as 70 - 80% of the whole purchase price.

When it comes to final payment day and the speculators have failed to find a buyer at their new, higher price, they will off load the unit at cost or less.

Suggest you keep an eye on the project in question and tell your family members to keep their "powder dry" ready for the opportunity to buy from a speculator when the project is nearer completion.

The next 18 months for the Thai construction industry is uncertain, let the speculators take the risk.

Edited May 3, 2006 by malcolminthemiddle