Has the condo discount festival started ?

[ThaiBob]

Foreign deals are mostly cash, since they would have a hard time to secure a mortgage et al.

So it's obvious that the mortgaged properties belong to the Thai population.

Now try to explain us why a Thai would mortgage a condo in Bangkok but pay cash for it in Pattaya, since it is purchased for the same purposes

Certainly, local Thais in Pattaya are renters not buyers. Ever notice how the population of Pattaya seems to double on those long Thai holidays, it's the rich Bangkok Thais visiting. They buy these condos as second homes and rental investment purposes. I know for fact in my project several Thais drive from Bangkok in their Mercedes and stay in their condos 5 nights a year and hire property managers. The dangers for Pattaya real estate is not bank foreclosures of Thai mortgages but Russians walking away from their sales contracts or not buying in the future.

They buy these condos as second homes and rental investment purposes.

Right you are, and they do that with money from the bank. But after they discover that trees not really grow into heaven, and that their condo doesn't rent out because there are a zillion others purchased for the same purpose, they have to foreclose because they can't pay the bank anymore.

Go have a look at VIP condo in Baan Amphur, or the one next door which is called Royal cliff condo I think, majority of owners are Thai in these 2 luxury buildings, and a lot of foreclosed condos.

Thanks for the tip. I will visit VIP as it is not far from me and I have a friend interested in the condo market and specifically looking for great deals or foreclosures as rental properties. Exactly who do I see, obviously not a realtor, the business office, a list of bank foreclosures in the lobby, individual unit numbers?

[Anthony5]

Foreign deals are mostly cash, since they would have a hard time to secure a mortgage et al.

So it's obvious that the mortgaged properties belong to the Thai population.

Now try to explain us why a Thai would mortgage a condo in Bangkok but pay cash for it in Pattaya, since it is purchased for the same purposes

Certainly, local Thais in Pattaya are renters not buyers. Ever notice how the population of Pattaya seems to double on those long Thai holidays, it's the rich Bangkok Thais visiting. They buy these condos as second homes and rental investment purposes. I know for fact in my project several Thais drive from Bangkok in their Mercedes and stay in their condos 5 nights a year and hire property managers. The dangers for Pattaya real estate is not bank foreclosures of Thai mortgages but Russians walking away from their sales contracts or not buying in the future.

They buy these condos as second homes and rental investment purposes.

Right you are, and they do that with money from the bank. But after they discover that trees not really grow into heaven, and that their condo doesn't rent out because there are a zillion others purchased for the same purpose, they have to foreclose because they can't pay the bank anymore.

Go have a look at VIP condo in Baan Amphur, or the one next door which is called Royal cliff condo I think, majority of owners are Thai in these 2 luxury buildings, and a lot of foreclosed condos.

Thanks for the tip. I will visit VIP as it is not far from me and I have a friend interested in the condo market and specifically looking for great deals or foreclosures as rental properties. Exactly who do I see, obviously not a realtor, the business office, a list of bank foreclosures in the lobby, individual unit numbers?

Ask the sisters at Green travel, opposite friendship supermarket, they live in the building and know many.

Don't expect them to be cheap because they are foreclosures. Foreclosing procedures in Thailand are not same as in the rest of the world.

Even after foreclosure the owner may live there for several more years, pending legal proceedings, and is even allowed to sell the property himself as long as he pays what he owns the bank.

That's why there are so many foreclosed properties in Thailand of which you're not aware.

[ThaiBob]

Foreign deals are mostly cash, since they would have a hard time to secure a mortgage et al.

So it's obvious that the mortgaged properties belong to the Thai population.

Now try to explain us why a Thai would mortgage a condo in Bangkok but pay cash for it in Pattaya, since it is purchased for the same purposes

Certainly, local Thais in Pattaya are renters not buyers. Ever notice how the population of Pattaya seems to double on those long Thai holidays, it's the rich Bangkok Thais visiting. They buy these condos as second homes and rental investment purposes. I know for fact in my project several Thais drive from Bangkok in their Mercedes and stay in their condos 5 nights a year and hire property managers. The dangers for Pattaya real estate is not bank foreclosures of Thai mortgages but Russians walking away from their sales contracts or not buying in the future.

They buy these condos as second homes and rental investment purposes.

Right you are, and they do that with money from the bank. But after they discover that trees not really grow into heaven, and that their condo doesn't rent out because there are a zillion others purchased for the same purpose, they have to foreclose because they can't pay the bank anymore.

Go have a look at VIP condo in Baan Amphur, or the one next door which is called Royal cliff condo I think, majority of owners are Thai in these 2 luxury buildings, and a lot of foreclosed condos.

Thanks for the tip. I will visit VIP as it is not far from me and I have a friend interested in the condo market and specifically looking for great deals or foreclosures as rental properties. Exactly who do I see, obviously not a realtor, the business office, a list of bank foreclosures in the lobby, individual unit numbers?

Ask the sisters at Green travel, opposite friendship supermarket, they live in the building and know many.

Don't expect them to be cheap because they are foreclosures. Foreclosing procedures in Thailand are not same as in the rest of the world.

Even after foreclosure the owner may live there for several more years, pending legal proceedings, and is even allowed to sell the property himself as long as he pays what he owns the bank.

That's why there are so many foreclosed properties in Thailand of which you're not aware.

I think we are talking about VIP Condochain in Na Jomtien, na Jomtien soi 36. This building is not that new so these Thai buyers did not buy from developer but were resales that they got bank financing and are now in default. The building looks very secure and doesn't look inviting to curiosity seeking visitors(me). From what you say Thai banks are very forgiving, letting a defaulter, live in the unit rent free, and no eviction. I have seen repossessed properties on bank websites and have been told these properties go to auction but I have no idea of the details.

[KittenKong]

Go have a look at VIP condo in Baan Amphur, or the one next door which is called Royal cliff condo I think, majority of owners are Thai in these 2 luxury buildings,...

I've heard VIP called quite a lot of things but never "luxury", until now.

The one next door is Sunset Heights, then Krisda Golden and STS (now Natasha) and finally Somprasong.

They range from rather nice to complete dives but they all suffer from being miles away from anything in particular, and the traffic just gets worse and worse.

[bartender100]

Sorry for a bit o/t but there are a few posters in the condo business on this thread.

I seem to remember reading a while back that it was illegal to advertise a condo for sale with a notice on the door. True or false?

[KittenKong]

I seem to remember reading a while back that it was illegal to advertise a condo for sale with a notice on the door. True or false?

It would be contrary to the internal rules of most buildings (which are not always applied) but I don't see how it could be illegal.

The balconies of JBC are festooned with for sale/rent signs which would not be tolerated in my building, nor would we allow anything more than a name card/plate on the front door of a condo. Most condo buildings, including mine, have a noticeboard for that sort of thing.

Edited February 7, 2015 by KittenKong

[georgegeorgia]

Dont want to get off topic but my building allow you to hang all your clothes on the balcony to dry...some buildings dont allow that.

[mike2011]

I have read the rich Thai argument many times. It does not convince me. It surely holds true for places near the Royal Cliff, a place where the local royals are said to be hanging out.

The idea that a 'rich' Thai family would stay in one of those 28-45 sqm condos is somewhat ridiculous. Rich Thai would not rub shoulders with Ian from Liverpool, Hans from Berlin, etc. They also do not want to be seen anywhere close to a place where a working girl walks in.

Thais get a better price for their places forming 51% Thai part of the building. That will help them but even if you have a car most will need a credit like they do need it for, yes, the car. The renting out is probably true but on a much smaller scale than is suggested.

The real capital input into the condo market on part of the 'Thai' side is on the company level with those condos reportedly sold while being on 'resale' by the developer. He booked these as sold since he had to show the bank high sales figures for his credit. In that perspective, the 'Thai' share is not the explanation why nothing bad has happened to the condo market. On the contrary, it is a ticking time bomb. Once the developer is in trouble, the whole bubble will burst.

I knew one family who owned a small condo down in Na Jomtien. They bought it very cheaply following the 97 crash. Yes they keep it empty and sometimes they drop by. They would have never bought one of the badly built and even worse fitted-out condos that are now on offer.

The Thai argument is in my view largely an argument that is put forward as nobody can really check its veracity and the visitors from BKK might seeem to lend some credibility. On closer inspection, it is hot air from an agents mouth. Nothing unusual and to be expected. If the Thai market would be so smoking hot developers would have dropped the Thai 'discount' in a heartbeat and charge higher prices than they do for farangs.

[NickJ]

For deals go to almost any bank and look at the forclosed property books.

sure....a ton of crap but I was surprised.

[anto]

Sorry for a bit o/t but there are a few posters in the condo business on this thread.

I seem to remember reading a while back that it was illegal to advertise a condo for sale with a notice on the door. True or false?

JBC as mentioned has many for sale and rent on the balconies mostly .Also Park Lane ,the 6 year old building nearby ,the same .