Under The Current Climate Would You Buy A Condo?

[cmsally]

After scouring the market I bought a condo a 3min walk from Siam Paragon.

I ended up choosing this area because you can get on either of the BTS lines at Siam Square. Its only approx 300m walk to BTS . Land in that area is in short supply and rentals are very very difficult to find. They are building some kind of art museum around the corner, should be good for value.

I could have found cheaper around Sukhumvit Rd but mostly quite a hike to BTS. I think its an area where supply is limited, even the older condos have been repainted and are reselling around 4-5m.

[teej]

cmsally, what is the name of the project you purchased in, if i may ask? sqm? price?

[traveldog]

well I am taking the plunge so to speak here in phuket. top floor, ocean view. Buying off plan. Interestingly most of the farangs who already bought are doing it the company route according to the developer. Only two of us want freehold. Isn't that strange? Developer says they want it that way as its easier to sell/transfer???? Tax advantages? Anyway....I have been searching the market for years literally baffled by the bubbly nature here of prices....so this unit almost seems reasonable at 50k/sqm??? The exchange rate is a sad deal but now I am sure my dollar will strengthen, as soon as I transfer the monies

[backflip]

"Only two of us want freehold"

What does that mean? "Freehold" and "leasehold" are two methods by which property is controlled and the choice is not yours.

[Arkady]

well I am taking the plunge so to speak here in phuket. top floor, ocean view. Buying off plan. Interestingly most of the farangs who already bought are doing it the company route according to the developer. Only two of us want freehold. Isn't that strange? Developer says they want it that way as its easier to sell/transfer???? Tax advantages? Anyway....I have been searching the market for years literally baffled by the bubbly nature here of prices....so this unit almost seems reasonable at 50k/sqm??? The exchange rate is a sad deal but now I am sure my dollar will strengthen, as soon as I transfer the monies

There is no point in using a Thai company to buy a condo, unless the foreign ownership limit in the building has already been fully taken up. Even in that case using a Thai company with nominees and the attendant risks seems to defeat the purpose of buying a condo, the beauty of which being that you can legally own it yourself. If the foreign limit is full, it would be better to look for another development where you can still buy in your own name. Your developer is either talking rubbish, like most of them, or possibly telling you that other foreign buyers have used offshore companies to buy their units. Perhaps they hope to sell the whole company to another foreigner when they sell, rather than transfer the unit, thereby avoiding transfer costs and and tax here and maybe in their home country too. This is theoretically possible but most buyers would not be interested in buying the offshore company, which would involve them in a legal due diligence process, and would want to transfer the property instead, making the expense of the offshore company useless.

A condo developer buys either a piece of freehold or leasehold land to build the condo on. If it is freehold, the condo owners each get to own a share of the freehold. If it is leasehold (max 30 years in Thailand), the condo owners are jointly leaseholders and have to return the land at the end of the lease. There are many condos in Bangkok with 20 years or less to go on their leases but most resort condos are freehold. It is not the condo buyer's choice and it doesn't matter what ownership structure you decide to use. You should check your documentation to be sure you are really buying a share of the freehold or you might be in for a nasty surprise.

[traveldog]

Arkady,

Thanks for the reply and information. I am having the contract/paperwork checked by a lawyer....but from my reading it appears ok. My unit is a freehold unit and completely agree with what you are saying about the thai company option. So far the project has 33 units sold...8 remain and only two of the sold are to be held in freehold...at least that is what the developer is saying. He has done several other projects and they look pretty decent for price etc. It may be the foreign offshore company deal you mentioned as he specifically talked about less taxes on sale or transfer of the "company" ?

There is no mention anywhere about leasehold land only freehold. Ok so maybe i am confused about the others buying in with companies...but my unit is in my name and freehold. Thanks again.

[glaitong]

I voted "YES".

A condo is great investment. Especially the 4-6 million baht units.

Politicians change, but city life will be ruled by condo living.

The River - entry level units would be the best for a novice investor in Bangkok.

Do your research and read the documents.

Glaitong

[Scott123]

I voted "YES".

A condo is great investment. Especially the 4-6 million baht units.

Politicians change, but city life will be ruled by condo living.

The River - entry level units would be the best for a novice investor in Bangkok.

Do your research and read the documents.

Glaitong

Obviously, you bought "The River". But let me tell you, "The River" is on the wrong side (bad side) of the river....lol....that is why it is still at this price range (4-6 million baht unit for a brand new condo).

Enjoy your "River".

[Bangyai]

Sorry, the hard and fast rule never to be violated is:

NEVER PUT MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM

4.5 is more than I would be willing to walk away from.

Agreed. Besides, with rents here being so cheap why bother buying. The interest on 4.5 million baht at 6% is over 22,000 a month which would pay the rent on a pretty decent apartment. And then...if you get bored or want to move, no headache trying to sell.

[glyph]

"NEVER PUT MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM"

Robert DeNiro had a similar statement in "Heat". There is a big difference between Bob and TVers. When Bob made the comment, he sounded as though he was focused, strong, and in control. When a TVers posts this, he sounds weak and confused.

[LennyW]

"NEVER PUT MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM"

Robert DeNiro had a similar statement in "Heat". There is a big difference between Bob and TVers. When Bob made the comment, he sounded as though he was focused, strong, and in control. When a TVers posts this, he sounds weak and confused.

This is what all the Thailand / Real Estate bashers say when they have nothing intellegent to say!!

[pkrv]

This thread began back in 2006 - As I believe the English language teaches us 'time moves on'. What would I do today? If I had the money - get bored with it and allow those who wish to take my money to dream on and buy in the best.

If I did not have money, hope that I could buy up the entire world for 1 THB.

Life is about checks and balances.

Given the current climate of change in Thailand along with the new visa rules, lack of government coupled with the economic climate here... would you buy a Grade A Condo in a good location for about 4.5 million baht?

Yes or No?

[BEENTHEREDONETHAT]

Looking at todays economy I feel much more comfortable with the $ in my condo than I do with the $ in my off shore bank accounts. At least I will have a roof over my head. Bank savings and stock market look like deep black holes for money right now.

[unforgiven]

Sorry, the hard and fast rule never to be violated is:

NEVER PUT MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM

4.5 is more than I would be willing to walk away from.

I brought 1.5 million bought to the thai stock market about 6 months ago, I now have 5.2 million bt

[unforgiven]

"NEVER PUT MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM"

Robert DeNiro had a similar statement in "Heat". There is a big difference between Bob and TVers. When Bob made the comment, he sounded as though he was focused, strong, and in control. When a TVers posts this, he sounds weak and confused.

This is what all the Thailand / Real Estate bashers say when they have nothing intellegent to say!!

Ya I agree, if you can find a motivated seller a thai condo under say 5 million bt is a great idea. But you must find value a lot of falangs get ripped off because they get excited and played by the slimy estate agents a great idea is to read the obituaries and contact the deceaseds lawyer or family member. I know a guy that gets amazing deals that way.

[chiang mai]

Looking at todays economy I feel much more comfortable with the $ in my condo than I do with the $ in my off shore bank accounts. At least I will have a roof over my head. Bank savings and stock market look like deep black holes for money right now.

I have to agree also.

[hhgz]

This thread has been going for almost 3 years, and I think it's safe to say: the people who bought condos are happy, and the people who didn't buy condos are happy.

[pkrv]

This thread has been going for almost 3 years, and I think it's safe to say: the people who bought condos are happy, and the people who didn't buy condos are happy.

I think that says it all

[gaby]

Yes, provided it is designated as one of the 49% in the block that is allowed to be bought by foreigners, and that your own name is on the land title deed, and not a company name. I tjhink this should be pretty safe.

However, I would not buy a house or condo through a company in the present situation. Things may change, but right now - a resounding no.

good advice.

bought one in my own name too many years ago simply because i wanted something to call my own as well as to avoid pesky owners /landlords who keep wanting tio increase their rentals indiscrimatingly - inspite of the poltical situations.

the company name thing is a bit tricky when you decide to sell as there are many loop holes that you can and cannot plug and so can the company adivsers who at the end of the day who seem to be not available after you have signed on the dotted lines.

but if you must and if you intend to stay long term in thailand -it's not too bad a place to call home ..... away from whichever home you may have left behind for one reason or another.

that's why the genuine farangs who love almost everything thai are so successfully settled.