Buying a Condo in Bangkok with Loan - General Advice Needed

[SS1]

Hi,

 

Me and my gf are thinking of buying a condo in Bangkok, or more clearly, she wants to buy a condo to have something secured for the future. I am actually happy to rent since rent is so cheap here, but do understand my girlfriend as well why she prefers to purchase one. I think what we will do is that she is going to take the loan by herself and I will pay her some rent, which she will use together with her own income to pay back the loan. Alternatively, we will purchase the condo together 50/50 ownership, although I am not so sure about committing to a 20-30 year loan as you never know if you can stay here permanently or not.

 

I have several questions that I'm looking advice for:

1. My girlfriend is convinced that the best way is to purchase a brand new condo, because the loan interest will be cheaper. Also, she is saying it may be better to buy one under construction, as a ready one will be more expensive (but she is considering a ready one as well as it's of course better to see what you are actually getting). Do you all agree with this? Is it better to buy a new condo if you are taking a loan? I would be happy with a second hand one, but according to her it will get more expensive at the end. 

 

2. We are not too demanding location wise, but somewhere e.g. Ratchada/Huai Khwang or alternatively around On Nut would be good. We are currently near Rama 9 MRT renting but these condos are a bit over her budget. Her budget is around 2-3 million, preferably just a bit under 2.5m. We would hope to get a 1 bedroom with minimum 35m3 but preferably closer to, or over 40m3. Is it easy to find decent places with these specs with this budget? ? She will need a BTS/MRT close enough to go to work. 

 

3. Is it possible to get a joint loan without being married? I've got a decent job and a work permit since 1 year. If not, is it possible to make a legal arrangement that I will own 50% if I pay 50% towards the condo price, even though the loan is in her name? 

Any advice or tips appreciated. She gets quite excited after seeing some and is ready to buy, but for me I would want to see at least 20 different places before deciding on one and do some proper research beforehand. After reading a bit I have at least understood that financially buying a condo here is not some kind of a good investment. 

[trogers]

New 30+ sqm units would only face falling or stagnant values for the next two decades, as demand has to catch up with supply.

 

After the first decade, those owner-occupiers will need to get larger units due to having kids...

 

Older condo units of the pre-2000 era with prices Bt50-55,000 per sqm would be your better bet.

 

Interest cost = interest rate x principal

 

High principal at 1% lower interest rate may not be cheaper!

Edited October 10, 2016 by trogers

[realenglish1]

Wait for the crash in the condo market before you buy Overbuilding and not enough to buy and rend

[bitcoinforever]

first thai do not like to buy old , afraid of ghost , fear of bad spirits.very Buddha of them?? go for older bigger.cheaper= rehab 

[vukovar77]

Do not buy.Just rent!!!

Buy off plan-under construction is very dangerous as well!!!

Let her to buy by on her own.You can only gave her some money per month like a rental until you live there!!!

[Acharn]

Whatever you do, don't buy something that's under construction. There's a good chance the developer will decide it's not going to be profitable enough and just walk away. Over the years I've seen so many stories of people who bought a condo "under development" and either they never got anything, or they got a really crappy apartment and additional facilities, e.g. swimming pool, recreation center, never materialized.

[trogers]

41 minutes ago, Acharn said:

Whatever you do, don't buy something that's under construction. There's a good chance the developer will decide it's not going to be profitable enough and just walk away. Over the years I've seen so many stories of people who bought a condo "under development" and either they never got anything, or they got a really crappy apartment and additional facilities, e.g. swimming pool, recreation center, never materialized.

 

Usually, developers walk away because the development cannot pre-sell at least 70% of the units, creating a shortage of funds to finish.

 

Those that can pre-sell only 70-80% would mean, finishing construction with cuts in construction budget, thus, crappy finishes or lack of amenities.

[smotherb]

If she wants to buy a condo, good for her. if you want to be a nice guy, just pay her rent while you live there.

[Ulic]

Do not buy off plan for the numerous reasons given. Buy an existing condo, preferably

a few years old so you can see exactly what you are getting. Check with building

maintenance to see if any big renovations/maintenance projects are coming down

the pipe. (Roofing, building painting, etc....) that require an extra charge.

Best of luck with your search.

[trogers]

6 hours ago, bitcoinforever said:

first thai do not like to buy old , afraid of ghost , fear of bad spirits.very Buddha of them?? go for older bigger.cheaper= rehab 

 

Easily overcome. Find one you like that is for sale and offer to rent it first for a year, with an option to buy it at the end of the lease.

 

You would know within the year if there is haunting, or worse, bad neighbours... ?