Has the condo discount festival started ?

[johng]

How about this one. Did they redesign Jomtien bay overnight or am I missing something.

Na Jomtien ....... not Jomtien

[Pattaya46]

How about this one. Did they redesign Jomtien bay overnight or am I missing something.

Hi. I am not sure what you mean ?? The first pic is rather close to reality.

They didn't remove many condos or building as many other promoters do.

Even the recent projects on the right at the exit of the river are on the pic.

The biggest light on these pics is... the crystal blue color of the water !

On problem is that this area is currently a poor fishermen harbour

and this river a shelter for their small boats... I doubt they will move soon.

Other problem may be the big boat on the left of the second pic.

These are vere shallow water, with lot of sand. He couldn't enter this river.

[Anthony5]

How about this one. Did they redesign Jomtien bay overnight or am I missing something.

Hi. I am not sure what you mean ?? The first pic is rather close to reality.

They didn't remove many condos or building as many other promoters do.

Even the recent projects on the right at the exit of the river are on the pic.

The biggest light on these pics is... the crystal blue color of the water !

On problem is that this area is currently a poor fishermen harbour

and this river a shelter for their small boats... I doubt they will move soon.

Other problem may be the big boat on the left of the second pic.

These are vere shallow water, with lot of sand. He couldn't enter this river.

That is actually what I'm talking about. Now if you have a look at the pictures on their billboards they have along the roads you'll even be more amazed.

[gk10002000]

I would hope that 1 M or 1.5 M baht is not a problem for a lot of people, especially those on retirement. 35K USD to buy a 1 M Baht condo is not bad. I know many people are on pensions and fixed annuities so they may not have a chunk of cash, but I can't see going through the hassle of a mortgage for only 35 K.

[ThaiBob]

Current issue of Pattaya Property Guide discusses the lack of Russian buyers and Nova's cancellation of their Ocean Pacific Condominium project at Jomtien, and giving refunds. I see the cranes at the Caribbean inactive, what gives?

[tontraveller]

They are still working at Caribbean.

But "completed first quarter2015" might become 2017 at the current pace

[OMGImInPattaya]

Current issue of Pattaya Property Guide discusses the lack of Russian buyers and Nova's cancellation of their Ocean Pacific Condominium project at Jomtien, and giving refunds. I see the cranes at the Caribbean inactive, what gives?

What gives is oil is at $45 A barrel, there is no export market for Ladas, and the Russian Ruble is a pile of rubble.

[Chwooly]

It's never a good time to buy in Thailand. Condos never hold their value, construction quality is poor. Then there is the tenant/management nightmare. I know of numerous cases where owners and the management companies are at each other's throat over the use of service/maintenance fees. Management companies think of the management fees as a profit center as the property quickly deteriorates in this climate. This is a country where contracts mean little.

Bottom line, there is no reason to buy in Thailand. More property comes on the market daily, where is the bottom? Rent.

Buying property for investment here? I know the market in Phuket is at a standstill. Russians propped it up last year but that's over. Only a naive newbie would come to Thailand looking to buy something. The experienced expat knows buying here is for suckers. Everyone I know has either sold or kicking themselves for not selling when there was a prayer of getting out.

Dear Pinot,

I bought my condo some twenty years ago for 3 Million Baht, then spending about 1 Million Baht on a upgrade from the usual Thai standard product. The Condo has been well managed and well funded over the years, and we are sitting on a healthy

sinking fund.

Comparable units are now selling, ( Not asking) between the 13 to 15 Million Baht range.

I have just let the unit to a company for 80K per Month, I am moving into another one I bought in the same building about 10 years ago.

I conservatively guessimate the "Saved rent" over 20 years to average around 40 K per month, = 480,000 per year x 20 = 9.6 Million Baht.

Condo dues paid would have been around 1.2 Million, repairs and renewals not that much, with the exception of 4x Diakin ceiling Cassette air conditioners (Baht 160 K) lets say another 70 K, so a Total of 1.43 Million.

Interest of course, on the original 4 Million Baht would have to be calculated and deducted from the above figures.

One must also take into account the fact of actually owning a unit, gives you the piece of mind that the condo will not be sold sold by your landlord at some stage, plus most importantly in my view, you get to live in a condo designed specifically to your personal tastes.

I hope the above confirms my preference regarding buying or renting.

A lot of older people bought property decades ago when it was much cheaper. But that's irrelevant, we are talking about the present, not decades ago. I always find it strange when people can't seem to distinguish between past and present. Maybe they just do it because they think we're impressed, or they just can't understand how the distant past was a different world, or maybe it's just one of those age things.

Cheaper is relative, Years ago wages were a lot less, taxes less, cost of living less, I think the point that op is trying to make is that they bought and are happy with what they got, that ownership is prefered to rental and it is based on their experience. I would hazard a guess that Op is sharing in the hopes that it will be beneficial to someone. I am sure that in 20 years time someone will parrot you almost word for word when you decide to share your experiences from 20 years ago. The past is always relevant, It is just a matter of finding the relevance and learning from it. JMHO

[SGD]

I have a huge wedge of cash which will mop up property as a buyer of last resort but only when I can turn the magic 1% per month on a rental.

[Pheat123]

From my experience, the 6% the US agent(s) were paid, was worth every cent. They didn't sit in the office, but did a lot of field work, showings, etc. Time is money and they were on time for me.

Agents in Europe and the UK do this also, but for much lower commission rates.

As far as I'm concerned 6% is just plain silly. But if you are happy paying it, that's fine.

Just noticed this post, I think both Kitten Kong and myself have been here before.

UK commission rates are typically between 1 and 2% this much depends on the price of the property. Can you imagine selling a 5,000000 Pound apartment in Mayfair, @ 6% this would net the agent 120,000 Pounds commission !!!

I would guess agents overheads in UK are higher than the US, for a start, US fuel is about a third of the cost of UK.

But at the end of the day, as quoted by K.K. If you are happy paying it, that's fine.

Yep

I have sold well over 50 properties over the years in the UK

Never paid over 1.25% in sales commission

Many online agents you can now use in the UK to sell properties

I sold a property late last year in the UK for just under £240,000

I paid the agent £999 in total fees

The online agent came around took the pictures

Valued the property

Put a For Sale sign outside the property

Advertised the property on various websites

The only extra work I had to do was to do the viewings (big deal)

Everything else was handled by the agent

Estate agents do little work for a lot of money

Very often know jack shit about the property for sale

All my future property sales I will now use online agents abpnd do the viewings myself

[thailandusauk]

We should keep a thread open to inform others about the best deals we have been offered...

Someone said that a 3 Millions condo was offered for 1.5, so does it mean that they make at least 1.5 millions profit when selling a new condo ?

[balo]

The small 1br condo I have for sale in Jomtien has now been reduced to 1.35 mill from 1.8 asking price last year. Since I bought it off plan my loss will be around 150k , if I find a buyer. If I talk to the office or an agent they just say , no dont drop the price, just wait and the market will be good in 1 year again. Well I don't believe so. Should I go further down in price ? No point , I might as well rent it out for a year.

[AnotherOneAmerican]

The small 1br condo I have for sale in Jomtien has now been reduced to 1.35 mill from 1.8 asking price last year. Since I bought it off plan my loss will be around 150k , if I find a buyer. If I talk to the office or an agent they just say , no dont drop the price, just wait and the market will be good in 1 year again. Well I don't believe so. Should I go further down in price ? No point , I might as well rent it out for a year.

Bogus 300k discount for buying off plan?

And they have persuaded you not to undersell the new units still for sale.

One born every day!

[KittenKong]

If I talk to the office or an agent they just say , no dont drop the price, just wait ......

This is an example of Thai economics.

I suppose that if you expect to live forever and you dont care where you do it then it may make sense.

Personally having decided that I want to sell I would want to get it over and done with and move on before I die of old age or boredom.

[tontraveller]

The small 1br condo I have for sale in Jomtien has now been reduced to 1.35 mill from 1.8 asking price last year. Since I bought it off plan my loss will be around 150k , if I find a buyer. If I talk to the office or an agent they just say , no dont drop the price, just wait and the market will be good in 1 year again. Well I don't believe so. Should I go further down in price ? No point , I might as well rent it out for a year.

Your karma is just not good

This might be the most difficult time to sell with the Russian crisis, the euro going downhill.

Today you can see also a desperate Russian buyer who try to get rid of his purchased condo under construction, Dusit Grand.

Discounting almost 1 mio baht

Expect more to come..

[Pattaya46]

// No point , I might as well rent it out for a year.

Problem in this case is that your condo will not be a "new condo" anymore.

It's important for some (many?) people.

[zierf1]

What puzzles me about Thailand is the asking price for real estate is very high while the rent is very low. In the US it is the opposite. I can probably find properties cheaper in the US than in Thailand. The asking price for square meter in Thailand is ridiculous. Why the high prices? I know labor costs aren't a factor. Is the land that expensive? Property developers must have on hell of a profit margin in Thailand.

[67 CHEVELLE SUPER SPORT]

It's never a good time to buy in Thailand. Condos never hold their value, construction quality is poor. Then there is the tenant/management nightmare. I know of numerous cases where owners and the management companies are at each other's throat over the use of service/maintenance fees. Management companies think of the management fees as a profit center as the property quickly deteriorates in this climate. This is a country where contracts mean little.

Bottom line, there is no reason to buy in Thailand. More property comes on the market daily, where is the bottom? Rent.

Buying property for investment here? I know the market in Phuket is at a standstill. Russians propped it up last year but that's over. Only a naive newbie would come to Thailand looking to buy something. The experienced expat knows buying here is for suckers. Everyone I know has either sold or kicking themselves for not selling when there was a prayer of getting out.

Dear Pinot,

I bought my condo some twenty years ago for 3 Million Baht, then spending about 1 Million Baht on a upgrade from the usual Thai standard product. The Condo has been well managed and well funded over the years, and we are sitting on a healthy

sinking fund.

Comparable units are now selling, ( Not asking) between the 13 to 15 Million Baht range.

I have just let the unit to a company for 80K per Month, I am moving into another one I bought in the same building about 10 years ago.

I conservatively guessimate the "Saved rent" over 20 years to average around 40 K per month, = 480,000 per year x 20 = 9.6 Million Baht.

Condo dues paid would have been around 1.2 Million, repairs and renewals not that much, with the exception of 4x Diakin ceiling Cassette air conditioners (Baht 160 K) lets say another 70 K, so a Total of 1.43 Million.

Interest of course, on the original 4 Million Baht would have to be calculated and deducted from the above figures.

One must also take into account the fact of actually owning a unit, gives you the piece of mind that the condo will not be sold sold by your landlord at some stage, plus most importantly in my view, you get to live in a condo designed specifically to your personal tastes.

I hope the above confirms my preference regarding buying or renting.

fosseway, how many SQM unit are we talking ??? what is your current maint fees/assoc fees per month and where is the condo location ??? Just asking for I am doing a similar thing as you but I am only on the 2 year stage of the process and in the Phils vice T-land. I have forecasted out a plan that is close to what you have already done. Tried to PM you but for some reason the PM did not got through. Also, what is your current taxes on the unit for 2014 ???

Edited January 18, 2015 by 67 CHEVELLE SUPER SPORT

[KittenKong]

Property developers must have on hell of a profit margin in Thailand.

I think that marketing and commission must form a huge part of the total budget in many projects. It would be interesting to know the exact figures.

[morrobay]

10 years ago studios at View Talay Jomtien were 400,000 as advertised in weekly With compound interest formula : now = principle ( 1+%)^{n (years).}

Today with 3% inflation : 400,000 (1.03)¹⁰ = 537,566 baht

Edited January 19, 2015 by morrobay

[pegman]

I do not know about the 49% rule, but I suspect it is only 49% of sold units so if only 50% had been sold it would 24%...

But then are the remaining ones in the developers name?

Scary if over half the development is unsold and remains in the developers name as he would have virtual control over the management and could be depleting the funds for his own gain.

Units belong to the developer until sold. The 51/49 ratio is calculated on the whole building, and unsold units are assumed to be in Thai name for this calculation. For an example, look at VT5D which when I last checked still had unsold units but only in Thai name.

Developers often act as management for a few years before turning the job over (voluntarily or not) to a management company under the orders of a committee, by which time the developer can cream off a decent percentage of the sinking fund and common fee bank balance. They also like to avoid paying their share of the maintenance fee, even though technically they should do so. If they also manage the building it is easier for them to get away with it of course.

Having never been very interested in off-plan developments I'm not sure of the exact legal status of an unsold unit with no chanote, or of the voting rights of the developer, but I suspect that the advantage is to the developer and not the co-owners.

If I was interested I would wade through this to learn more: http://www.samuiforsale.com/law-texts/new-thailand-condominium-act-2008.html

When was VT5D built?

[KittenKong]

When was VT5D built?

I think they were transferring titles around 8 years ago.

[Donnie Brasco]

Just a question, They don't do mortgages for Falang do they ?

I have asked various people and gotten several different answers, I figured I would ask the fourm

Thanks in advance

The color of your skin (and your nationality) is not important.

Farang, Kairk, Jin, Gowlee, Neego, Nippon .........

If you are legally employed in Thailand, then you can get a home loan.

"can get a home loan" but it's still not easy and the regular branch officer will probably just say "cannot" so you'll need to talk to the right person. Also you'll need a bank with branches abroad as the money needs to be transferred in from abroad in order to get you a foreign exchange transaction form. I am not sure but I believe that for example Ayudhya / KrungSri doesn't have this facility but Kasikorn does ... (don't shoot me if not 100% correct, thanks)

The loans officer will likely arrange the loan at x% and you'll leave the office believing that you have your deal.

On closing day he/she or their boss will be waiting for you with a new "updated" loan agreement at a higher rate.

They may justify this with the excuse that "it's different when a foreigner is involved" or that they'd made a mistake" (gouging you at crunch time for a higher interest rate is considered shrewd business practice here)

Belt and suspenders at every step is advise able.

Better yet. Why bother locking yourself into ANY deal in a country as illegitimate as this.

RENT. RENT. RENT.

[balo]

// No point , I might as well rent it out for a year.

Problem in this case is that your condo will not be a "new condo" anymore.

It's important for some (many?) people.

I know I should have an advantage since its a new condo over all the old ones being sold for the same price but too many new ones also so if no buyers I'll just keep it as I planned a long time ago. If I can find a long term tenant it will only give me 10k per month but I'm happy with that. Edited January 19, 2015 by balo

[smedly]

The small 1br condo I have for sale in Jomtien has now been reduced to 1.35 mill from 1.8 asking price last year. Since I bought it off plan my loss will be around 150k , if I find a buyer. If I talk to the office or an agent they just say , no dont drop the price, just wait and the market will be good in 1 year again. Well I don't believe so. Should I go further down in price ? No point , I might as well rent it out for a year.

agents work hard at keeping prices inflated, not sure what you mean by buying it off plan but the reality is that someone likely paid an inflated price and convinced you to do the same, if people start flooding the market with correctly priced property the agents will have no choice but to do the same, in most western countries supply and demand and availability dictate price - those rules do not generally apply in Thailand, in my opinion if someone gets near to the price they paid for something then they are doing well, there are a lot that don't and wonder why - simple answer they were duped.

Been saying it for years and I will repeat it here - prices in Pattaya are inflated by at least 100%, the reason they get away with it is because falangs constantly make a comparison with their home countries and think they are getting a bargain when in reality they are not - the whole thing here is a massive deception.

[fosseway]

10 years ago studios at View Talay Jomtien were 400,000 as advertised in weekly With compound interest formula : now = principle ( 1+%)^{n (years).}

Today with 3% inflation : 400,000 (1.03)¹⁰ = 537,566 baht

I would be very interested in buying View Talay studios in Jomtien at around Baht 500K each.

I think they are advertised between 800K, for the very cheapest, low floor low spec.unit, up to Baht 1,500,000 for higher floors and specs.

Please let me know where to find these cheap units.

I do not own any units in these buildings, but at these prices I would certainly like to get involved in flipping them.

[morrobay]

10 years ago studios at View Talay Jomtien were 400,000 as advertised in weekly With compound interest formula : now = principle ( 1+%)^{n (years).}

Today with 3% inflation : 400,000 (1.03)¹⁰ = 537,566 baht

I would be very interested in buying View Talay studios in Jomtien at around Baht 500K each.

I think they are advertised between 800K, for the very cheapest, low floor low spec.unit, up to Baht 1,500,000 for higher floors and specs.

Please let me know where to find these cheap units.

I do not own any units in these buildings, but at these prices I would certainly like to get involved in flipping them.

My example is just what 3% inflation says that studio would be today , not the going price. This just could mean that they are overpriced now and per topic may be coming down in the next year.

[ThaiBob]

10 years ago studios at View Talay Jomtien were 400,000 as advertised in weekly With compound interest formula : now = principle ( 1+%)^{n (years).}

Today with 3% inflation : 400,000 (1.03)¹⁰ = 537,566 baht

I would be very interested in buying View Talay studios in Jomtien at around Baht 500K each.

I think they are advertised between 800K, for the very cheapest, low floor low spec.unit, up to Baht 1,500,000 for higher floors and specs.

Please let me know where to find these cheap units.

I do not own any units in these buildings, but at these prices I would certainly like to get involved in flipping them.

My example is just what 3% inflation says that studio would be today , not the going price. This just could mean that they are overpriced now and per topic may be coming down in the next year.

3% inflation is not realistic considering land costs, material and even labor increases (minimum wages) over the last 10 years.

[balo]

I have never seen any View Talay condos under 1 million the last 2 years, They were built in the 90's , and I think you still can sell the studios for 1.2 - 1.5 mill baht .

I have a 1 bedroom unit for 1.3 in a new bulding with an amazing swimming pool, garden, gym , restaurant , location maybe not as central as VT , but where do you want to buy ? An old room with a central location or a new room a bit further out for the same price.

[Anthony5]

I have never seen any View Talay condos under 1 million the last 2 years, They were built in the 90's , and I think you still can sell the studios for 1.2 - 1.5 mill baht .

I have a 1 bedroom unit for 1.3 in a new bulding with an amazing swimming pool, garden, gym , restaurant , location maybe not as central as VT , but where do you want to buy ? An old room with a central location or a new room a bit further out for the same price.

Your problem is that there are hundreds if not thousands of new rooms in a central location available at your price