Buying a Condo offplan

[HampiK]

Hello,

There are always so many people who vote against buying a condo offplan. When i read many of the stories here, then I think I know why.

When I read, that many person pay 60-70% before condo finish​, I think this is too dangerous.

What in my opinion is accectable is, that you pay a small amount upfront for reservation and then at contract signing. And then while the construction is ongoing also. But this should not be more than 10-20% of the whole sales price.

Let's see on an simple example what i mean (sales price 7'000'000 Baht):

• Reservation 30'000
• Contract Signing 70'000
• Installments 30 Months x 24'000

So, when the condo is finished you need to pay the rest 6'180'000

With this example you can see, even when the construction is stop working after 5 months, you loose at maximum 220'000 baht. Of course this is still a lot of money, but much less than 50% (3'500'000) or even more.

To buy offplan you can become a much better price as when you buy it when the condo is finished. But you have to live with the dangerous of losing some money if the constructor is going wrong. Also would i do a short check about the constructor. If he already build a few condos without problems the risk is smaller than with a very new one, because you don't know if he have the knowledge. If you see the constructor of the new condo already had before some problems, if would say stay away.

Another big parts (especialy for Pattaya) is to buy in forgein name or in thai name. I would never buy in thai name. Because in my opinion it is not 100% legal so if they really check the company in the future and also do a "crackdown" many will complain again about the change in rule (similar to the complains in visa rules, which actually not changed that much only they check it better now).

This whole is of course only my opinion and has nothing to do with the reality, because reality always can change. For better or worse.

[shirtless]

7 million for a condo, mate dont do it or are you trolling.

[WorkingTourist]

The contract should state the completion date and penalties for delays.

Typically it would give the Buyer two options: 1) cancel the deal and get back everything paid (with interests!) or 2) fine the Developer daily at a cost corresponding to at least what alternative housing will cost you, while you wait for completion.

But definitely also make sure you know exactly what you are buying. So spend a lot of time going through the materials and talk with the developer’s people (architect / project manager), not just the sales staff.

Given the above, I think it’s fair to pay 50% in advance, and the final 50% when signing over the deed.

Also, make sure you actually do get a good price on the condo!

[WorkingTourist]

And yes, always buy in foreigner name.

If the sales staff advices you differently, I would be wary of dealing with them!

[trogers]

And yes, always buy in foreigner name.

If the sales staff advices you differently, I would be wary of dealing with them!

When an offplan condo project sold all that 49% to foreigners and very poor sales for the remaining 51% Thai portion, there is high probability it would remain off plan...

[HampiK]

7 million for a condo, mate dont do it or are you trolling.

7 million for a condo in a nicer location in bangkok is not that much. And if you really want to live there longtime a nice condo (for me) is important. If I have a "room" which i am not happy then i will go out more often.

Anyway, this way only an example. I have my condo already since 2 years in my name. I only want give numbers which are easier to understand as I only talk about 4% signing contract 30 times 2%.....

BTW, the prices of the condo in my building are going up since i bought if by about 20%. And according to the latest they should go up more. But i not care, because I not bought that condo for rent out or for investement. this special condo is my one, and i need for myself. So even when the price would go down I wouldn't be unhappy.

So far I know at the moment there are only very few farangs who own condos in this building. Most are middle class thai (Studio from about 3m, 1 bedroom about 4m, 2 bedroom 8-9m, duplex 12m up).

For Information I leave in the area Krungton buri, which have nice view to the river and also not too far to Asiateque or in about 1-2 years to IconSiam.. the new big shopping complex.

Edited September 20, 2015 by HampiK

[WorkingTourist]

7 million for a condo, mate dont do it or are you trolling.

7 million for a condo in a nicer location in bangkok is not that much. And if you really want to live there longtime a nice condo (for me) is important. If I have a "room" which i am not happy then i will go out more often.

Agree. I havent seen many Thai condos below 5m that I would want to live in for a longer period.

[elgordo38]

And yes, always buy in foreigner name.

If the sales staff advices you differently, I would be wary of dealing with them!

When an offplan condo project sold all that 49% to foreigners and very poor sales for the remaining 51% Thai portion, there is high probability it would remain off plan...

The above is good advice plus in my humble opinion buying an off plan condo is playing with fire. Read up on the Ace condo project. Construction quality being what it is is another important matter. My condo building with pool and good everything close by is 22 years old and has stood the test of time and quality of construction. If I was in the market I would buy a unit in this location of my choosing in the building and remodel in a manner of my choosing as well and whalla you have almost a new unit at a much lower price. Presently conditions being what they are in the country I prefer to rent. From time to time people mention here on TV about buying into a new unit and then running into construction problems and more than likely the builder is long gone cash and all. One important feature in this day and age a lot of people overlook is the quality and quantity of water. You are buying to spend an extended period of time there and water is the lifeblood of living. Our condo has its own well. Make a homework list and like they say in the Christmas song and check it over twice.

[WorkingTourist]

When an offplan condo project sold all that 49% to foreigners and very poor sales for the remaining 51% Thai portion, there is high probability it would remain off plan...

Hopefully the developer has a contingency plan, if they are mainly targeting foreigners. For example where I am buying, they are keeping the unsold units as serviced apartments, which is also what they did with their previous builds.

[HampiK]

My condo is a corner unit with 74sqm. I also looked cheaper condos with 40-50sqm, but came to conclusion, that this would not be enough over time. With my actual condo I feel confortable, and hope it will as well for future. I have 2 small balconies. Living room where i can see wat arun or kingpalace(little bit far away) and from the other balcony i can see the taksin bridge and the expensive hotels.

I already had a few times the fortune to see nice fireworks in the region of the hotels along the river. And hope to see one time the nice firework at the king palace. As many told location is also some how important. And because i never wanted to have a condo in the sukhumvit (Nana asok) area i came at the end to my actual area and i am so far happy

[KittenKong]

That’s the primary reason I went with a new build, I did consider redoing an old one, ideally obtaining a corner unit and its adjacent one, but the candidates I found were in buildings with subpar plumbing, wiring, and without facilities like gym or pool. In some of the new builds you get a rooftop pool, a nice gym, etc.

The main building wiring and plumbing should not cost much to replace entirely as they are normally all positioned in service risers and above false ceilings. They certainly are in my building. OK, if the wiring/plumbing in your own unit is bad then you may need to rip the walls apart to replace them but that should not be too expensive either.

I'd like to hear about these gyms and roof-top pools after 5-10 years of bad and/or dishonest Thai management and incompetent owner committees. Also about how much the common fees are to pay for these facilities. Also how much available parking space there is in this new build.

My ideal building in Thailand would have no gym or pool, both of which are a money pit. Just decent elevators and parking for at least 2/3rds of all units.

[Maestro]

Removed a troll post and an off-topic post and replies to them.

[peterrabbit]

Not with a barge pole unless you have a lot of experience with the real estate market in Thailand. The golden rule is you pay the money in the land office and then get the chanote. Anything else is fraught with danger especially for the foreign sucker inexperienced buyer.

[theguyfromanotherforum]

7 million for a condo, mate dont do it or are you trolling.

7 million for a condo in a nicer location in bangkok is not that much. And if you really want to live there longtime a nice condo (for me) is important. If I have a "room" which i am not happy then i will go out more often.

Anyway, this way only an example. I have my condo already since 2 years in my name. I only want give numbers which are easier to understand as I only talk about 4% signing contract 30 times 2%.....

BTW, the prices of the condo in my building are going up since i bought if by about 20%. And according to the latest they should go up more. But i not care, because I not bought that condo for rent out or for investement. this special condo is my one, and i need for myself. So even when the price would go down I wouldn't be unhappy.

So far I know at the moment there are only very few farangs who own condos in this building. Most are middle class thai (Studio from about 3m, 1 bedroom about 4m, 2 bedroom 8-9m, duplex 12m up).

For Information I leave in the area Krungton buri, which have nice view to the river and also not too far to Asiateque or in about 1-2 years to IconSiam.. the new big shopping complex.

For 7 million I have an option to buy a condo in downtown Toronto that will probably have better maintenance long term (actually, this is a given) and a better construction standards (that is also a given).

Also, there is no nice area in Bangkok. It's all slums with some nice landscaping done around your condo.

Also, there is a difference between buying and selling price. I am seeing some new developments being offered at discount prices for the past year and there are no takers. You get what someone else is willing to pay and in Thailand that may be a long wait.

Of course, if you are happy with your unit and plan to live there all this talk is irrelevant. It's just that your post is full of wrong information.

[trogers]

Also, there is no nice area in Bangkok. It's all slums with some nice landscaping done around your condo.

And this is why tourists visit Bangkok...with quite a few hopping in and out of the country while renting a pad here...

[HampiK]

For 7 million I have an option to buy a condo in downtown Toronto that will probably have better maintenance long term (actually, this is a given) and a better construction standards (that is also a given).

Also, there is no nice area in Bangkok. It's all slums with some nice landscaping done around your condo.

Also, there is a difference between buying and selling price. I am seeing some new developments being offered at discount prices for the past year and there are no takers. You get what someone else is willing to pay and in Thailand that may be a long wait.

Of course, if you are happy with your unit and plan to live there all this talk is irrelevant. It's just that your post is full of wrong information.

1. For 7 million baht a condo in toronto ??? In toronto you easily can buy a condo for 7 million canadian dollar. when you talk about a condo for 260'00 canadian dollar (about 7 million baht) yes you can.. but you also can buy in thailand a condo for 2 million... the question is if that is what you want.... I not know about the canadian market... but you can give a garantee that this condo for 260'000 canadian dollar is this amount worth in 5 years???
2. No nice areas in Bangkok, OK this is something we can not really compare that is your opinion and i have another. I agree not everything in bangkok is perfect (maybe far away) but I think no city is perfect every has her advantage and disadvantage....
3. about the price, this happen everywhere that the selling price is depending on the buyer. You can ask for 20 Million if nobody is paying then it is not worth this price....But at the moment it is still possible to sell the condo in a nicer area (which you not see to exists).
4. About wrong information... I not see any wrong information. Maybe some examples are extrem but till not wrong... But when we are talking about wrong information, conider point 1 where you told that with 7 million baht you can buy a condo in downtown toronto!!!

To rent or to buy and when buy to buy finished, old condos or offplan is in matter not easy.

the easierst way is for sure to rent, then to buy an existing condo and the most risk you have in buying offplan that is correct. But as most of the time according to the rist you save on the money.

I was renting a condo for about 7'000 baht for about 2 years about 10 minutes walk to surasak BTS station. It was OK, but would not be enough for a really longer stay for myself. So I checked different condos (buying prices between 3 and 10 million baht). the 3 million baht were many times already good and the 10 million baht were perfect but in my opinion too expensive for what I became. Every person has a different budget and different opinion what is perfect in price and confort for him.

Edited September 26, 2015 by HampiK

[theguyfromanotherforum]

Dude. My condo is on Queens Quay. It's one bedroom and currently goes for 250k. It's a nice building and in a nice harbourfront area. The 2 million baht condo in Thailand is in the middle of nowhere 24 square meters and will look like a dump in 6 years.

So yes.... Real estate in Bangkok is actually more expensive than Toronto... And this city has been in the bubble territory for the past 5 years.

Edited September 26, 2015 by theguyfromanotherforum

[trogers]

Dude. My condo is on Queens Quay. It's one bedroom and currently goes for 250k. It's a nice building and in a nice harbourfront area. The 2 million baht condo in Thailand is in the middle of nowhere 24 square meters and will look like a dump in 6 years.

So yes.... Real estate in Bangkok is actually more expensive than Toronto... And this city has been in the bubble territory for the past 5 years.

Two million bahts equal 250k Canadian dollars?

[theguyfromanotherforum]

Dude. My condo is on Queens Quay. It's one bedroom and currently goes for 250k. It's a nice building and in a nice harbourfront area. The 2 million baht condo in Thailand is in the middle of nowhere 24 square meters and will look like a dump in 6 years.

So yes.... Real estate in Bangkok is actually more expensive than Toronto... And this city has been in the bubble territory for the past 5 years.

Two million bahts equal 250k Canadian dollars?

No, it equals 73,000 Canadian dollars. You can get a place to live outside Toronto for that money and it will be twice the size of bkk condo. Edited September 26, 2015 by theguyfromanotherforum

[trogers]

Dude. My condo is on Queens Quay. It's one bedroom and currently goes for 250k. It's a nice building and in a nice harbourfront area. The 2 million baht condo in Thailand is in the middle of nowhere 24 square meters and will look like a dump in 6 years.

So yes.... Real estate in Bangkok is actually more expensive than Toronto... And this city has been in the bubble territory for the past 5 years.

Two million bahts equal 250k Canadian dollars?

No, it equals 73,000 Canadian dollars. You can get a place to live outside Toronto for that money and it will be twice the size of bkk condo.

My 1-bedroom condo units in Bangkok are Bt1.55m for 42 sqm and Bt1.95m for 60 sqm, bought in the secondary market, renting out at 15k and 18k respectively.

[hhgz]

You seem to be confused about buying anything, and the proper procedures to do so. Too, you want to be tutored in assessment of your investments. Sorry.

[theguyfromanotherforum]

Dude. My condo is on Queens Quay. It's one bedroom and currently goes for 250k. It's a nice building and in a nice harbourfront area. The 2 million baht condo in Thailand is in the middle of nowhere 24 square meters and will look like a dump in 6 years.

So yes.... Real estate in Bangkok is actually more expensive than Toronto... And this city has been in the bubble territory for the past 5 years.

Two million bahts equal 250k Canadian dollars?

No, it equals 73,000 Canadian dollars. You can get a place to live outside Toronto for that money and it will be twice the size of bkk condo.

My 1-bedroom condo units in Bangkok are Bt1.55m for 42 sqm and Bt1.95m for 60 sqm, bought in the secondary market, renting out at 15k and 18k respectively.

Impressed. That's a very decent return.