"Real Estate"

[blackcab]

The properties I've seen that remain unsold are a combination of expensive and problematic.

 

Often there is an unfinished structure that can not be completed because building regulations have changed over the years. The unfinished structure is often completely incompatible with current regs.

 

This would mean either extensively reworking the concrete structure or in reality tearing it down and starting again - which adds more cost to an expensive property in the first place.

 

Who needs that kind of headache?

[trogers]

47 minutes ago, blackcab said:

The properties I've seen that remain unsold are a combination of expensive and problematic.

 

Often there is an unfinished structure that can not be completed because building regulations have changed over the years. The unfinished structure is often completely incompatible with current regs.

 

This would mean either extensively reworking the concrete structure or in reality tearing it down and starting again - which adds more cost to an expensive property in the first place.

 

Who needs that kind of headache?

 

Remain unsold after two decades due to bad location. There is one whole housing estate that fits into this event. The one located along the Bang Prakong river, between the power plant and the Bangna highway.

[lkn]

15 hours ago, digibum said:

There are a lot of whacky little things with the way Thai RE works […]

 

Why could it not be the other markets which are whacky? People going into debt buying property they do not intend to live in or rent out, and expect to make a profit much higher than the price of capital, completely skewing the actual demand.

 

Though property tax in Thailand is different than most other markets, so it’s effectively free to hold onto a condo, and that might be why you do not see any rush to sell. Of course for a single individual, the mortgage might be a better motivator to sell an unused condo (if they have a mortgage), but say a bank that has thousands of empty condos in their portfolio, here a different property tax system could motivate them to get them sold at their current market value.

 

[trogers]

1 hour ago, lkn said:

 

Why could it not be the other markets which are whacky? People going into debt buying property they do not intend to live in or rent out, and expect to make a profit much higher than the price of capital, completely skewing the actual demand.

 

Though property tax in Thailand is different than most other markets, so it’s effectively free to hold onto a condo, and that might be why you do not see any rush to sell. Of course for a single individual, the mortgage might be a better motivator to sell an unused condo (if they have a mortgage), but say a bank that has thousands of empty condos in their portfolio, here a different property tax system could motivate them to get them sold at their current market value.

 

 

Not just motivation on the banks, but also the developers who may be hoarding substantial unsold stocks...

[digibum]

4 hours ago, lkn said:

 

Why could it not be the other markets which are whacky? People going into debt buying property they do not intend to live in or rent out, and expect to make a profit much higher than the price of capital, completely skewing the actual demand.

 

Though property tax in Thailand is different than most other markets, so it’s effectively free to hold onto a condo, and that might be why you do not see any rush to sell. Of course for a single individual, the mortgage might be a better motivator to sell an unused condo (if they have a mortgage), but say a bank that has thousands of empty condos in their portfolio, here a different property tax system could motivate them to get them sold at their current market value.

 

 

I think one major factor that differentiates the Thai RE market from many others is transparency.  Given the fact that information about the Thai real estate market is so difficult to come by prevents people from making informed decisions.  

 

 

 

[KittenKong]

9 hours ago, digibum said:

I think one major factor that differentiates the Thai RE market from many others is transparency.  Given the fact that information about the Thai real estate market is so difficult to come by prevents people from making informed decisions.  

 

Glasnost is noticeably absent in Thailand, not just in relation to real estate.

 

Smoke, mirrors, protectionism and general vagueness are the order of the day.

[thailand49]

Not sure right place to ask this question?

I have a friend who is planning on buying a house with his Thai wife.  The question ask of me is how does he know the house is CLEAR AND FREE from any type of loans or loans the Thai owner might have on the house.  In the U.S. in sales we go through a Title Company!  How can we make sure the house is clear and free?

[yaagjon]

Any loans on the property should be registered at the land office I believe. When I've bought my houses my x wife went to the land office to see if any debts were registered against the property before we made our offer, if I remember correctly.

 

 

 

[trogers]

31 minutes ago, yaagjon said:

Any loans on the property should be registered at the land office I believe. When I've bought my houses my x wife went to the land office to see if any debts were registered against the property before we made our offer, if I remember correctly.

 

 

 

 

Or, the original title deed is being kept by the moneylender or pawn shop...?

[thailand49]

Thanks fellas, good lead for starters.

[blackcab]

Loans or any other type of encumbrance are typed onto the back of the chanote.

 

I've attached an example. The top line of text says, "Jam Nong" or mortgage. The line underneath says, "Tai Torn Jak Jam Nong" or the mortgage debt has been cleared and the mortgagor's interest in the property has been cancelled.

 

If you have a photocopy of the chanote of the property you are interested in, you can go to the Land Office and ask if there are any encumbrances on the property.