Purchasing Condo -- Appreciate Advice

[JayBird]

Hello all,

 

I'm planning to purchase a Condo (full cash, no mortgage)  (most likely in Bangkok).  I'm working on my short list now.  In parallel I want to get a few things ready and was hoping I could get some advice.

 

1) I plan to wire money in foreign currency to Thailand (I have a bank account here).  Indicating to be sent in the foreign currency (so that the exchange should be done by the bank itself).

2) When I instruct my bank to send the money I simply indicate in the comment section 'For Purchase Of Condominium'

Do I need specific words?  Does it need to be in Thai or only English?  Do I need to inform my bank *BEFORE* I send the wire?

3) After the money has arrived in the Bank I plan to get a piece of paper from them showing that the sum has been transferred in from a foreign bank in a foreign currency for the purchase of the condo.  The amount will be greater than 50k USD.

4) I then find a Condo I like that can be owned in a Foreigner's name ( I do not wish to do the company route or other alternatives).

5) This may be overkill, but I like the idea of securing a Lawyer to help with the transaction.

Is this really over kill?  Is it so simple for me to do it myself?

Anyone can suggest a good legal agency to handle this?  And what kind of costs should I expect.

6) I will then pay an amount for the condo equal to the selling price, plus 50% of transfer fee plus legal fees.

Am I missing any other fees? I know I should not pay the tax (previous owner's responsibilities).

7) After I get the deed I presume I am responsible for a few fees:

Maintenance Fees

Sink Fund?

Am I missing anything ?

 

And this may be an odd question: Is there a fee or provision to pay every year or so to 'rebuild' the condo?  (I know in Japan the condos have to basically be rebuilt every couple of decades).

Another odd question: Is there a requirement that condos be torn down after a certain amount of time?

 

Any other advise or suggestions would be appreciated.

 

 

Thank you kindly all.

 

[Peterw42]

That sounds like all the right steps. The "for purchase of condominium" (or similar)is fine, lots of people mention that its not strictly necessary.  Transfer fee is usually spit 50/50 but not always, sometimes its part of the price negotiations. Condos have maintenance fees, Sinking fund is a lump sum paid by the first purchaser (brought from developer). There is no building rebuild fund and not torn down etc.

A lawyer isnt usually needed (buying off the plan maybe needed), the real estate agent usually goes to the land office with buyer and seller and does most of the dealing.

I would reverse steps 3 and 4, find the condo then get the FET from the bank, otherwise you dont know the amount.

 

Good luck

[blackcab]

As above. A lawyer isn't needed. The land office won't complete the paperwork unless everything is correct.

 

As a purchaser you need a bank cheque for the purchase price, some cash to pay the land office fees, a FET form from your bank and your passport (plus copies of passport, FET form and bank cheque). That's it.

 

The land office will tell you when to pay the fees. They may want a copy of your bank cheque. After the fees are paid you just wait until you collect the chanote and then you hand over the bank cheque at the same time. The staff at the land office will tell you what you have to sign and where. Job done.

[KittenKong]

1 hour ago, blackcab said:

The land office won't complete the paperwork unless everything is correct.

 

This may be the case in Bangkok. Elsewhere I would not assume so much.

[rak sa_ngop]

Suggest you find yourself a friendly estate agent. Even if they did not find the condo for you, they will happily help you through the process of buying the property.

 

The reason: Because the agent will be able to negotiate a commission from the seller of about 3 % or 4 %. This won't cost you anything as it is pretty standard practice in Thailand for the seller to pay.

[wpcoe]

31 minutes ago, rak sa_ngop said:

Suggest you find yourself a friendly estate agent. Even if they did not find the condo for you, they will happily help you through the process of buying the property.

 

The reason: Because the agent will be able to negotiate a commission from the seller of about 3 % or 4 %. This won't cost you anything as it is pretty standard practice in Thailand for the seller to pay.

 

I have mixed feelings about that strategy.  As a condo owner, if I advertise on the bulletin board in the lobby and find a buyer, I would not be amused to then have the buyer introduce me to his agent who would expect a commission.  In such a scenario I would fully expect the buyer to pay any fee/commission to the agent.

[JayBird]

Thank you all for the feedbacks:

 

1) If I find a property on a web site (not direct from owner), let the real estate agent handle it.... anyone know good real estate agents?

2) I should be able to do the work without a lawyer (when doing the title search will this show all the liens on the property or might it be that someone else has filed a claim on the property but I need to go look elsewhere to find out?)

3) Should be the same experience if I buy in Pattaya?

 

Thank you all!

[AJBangkok]

You will need a letter from the condominium jurisdic person saying that there are no outstanding common fees payable on the condo. I'm not sure if they also confirm if the foreign quota is open but the condo manager would know. It's a standard letter.

[rak sa_ngop]

21 hours ago, wpcoe said:

 

I have mixed feelings about that strategy.  As a condo owner, if I advertise on the bulletin board in the lobby and find a buyer, I would not be amused to then have the buyer introduce me to his agent who would expect a commission.  In such a scenario I would fully expect the buyer to pay any fee/commission to the agent.

This strategy worked for me about 10 years ago. I was relatively new to Thailand and definitely needed somebody to guide me through the process. I was buying from a Thai owner (who was a corporate lawyer) so I needed the guarantee of no funny business.

 

Of course a lot has changed now and direct selling through the internet is pretty common.  So I suppose it all boils down to how badly you want to sell and how badly you want to buy.

[tagalong]

Only a fool buys a condo in Thailand.... Wait until you get neighbors from hell on each side of you n at any hour of the night n day,  slamming bloody doors, n I MEAN SLAMMMMMMMMMMMMMM

[elgordo38]

Short advice not Bangkok and do not buy. Its like marriage. 

[Lovethailandelite]

26 minutes ago, tagalong said:

Only a fool buys a condo in Thailand.... Wait until you get neighbors from hell on each side of you n at any hour of the night n day,  slamming bloody doors, n I MEAN SLAMMMMMMMMMMMMMM

Why not just say you cannot afford to buy a Condo? Its better than making excuses your whole life.

[12DrinkMore]

41 minutes ago, tagalong said:

Only a fool buys a condo in Thailand.... Wait until you get neighbors from hell on each side of you n at any hour of the night n day,  slamming bloody doors, n I MEAN SLAMMMMMMMMMMMMMM

 

Friend of mine was driven to distraction by the scraping of chairs, thumps, thuds and assorted noises from the condo above, particularly at weekends when the whole Thai family came to stay.

[blackcab]

6 hours ago, AJBangkok said:

You will need a letter from the condominium jurisdic person saying that there are no outstanding common fees payable on the condo. I'm not sure if they also confirm if the foreign quota is open but the condo manager would know. It's a standard letter.

 

The seller has to provide this to the Land Office, along with the quota letter. 

[mike324]

On 1/9/2017 at 4:05 PM, JayBird said:

Thank you all for the feedbacks:

 

1) If I find a property on a web site (not direct from owner), let the real estate agent handle it.... anyone know good real estate agents?

2) I should be able to do the work without a lawyer (when doing the title search will this show all the liens on the property or might it be that someone else has filed a claim on the property but I need to go look elsewhere to find out?)

3) Should be the same experience if I buy in Pattaya?

 

Thank you all!

 

CBRE, Century 21 are pretty reputable. CBRE seems to be the biggest and most active in Bangkok. Many times real estate agents can help you through the process for a small fee too. Stick with agents from reputable companies such as CBRE, Century 21, Acuterealty, Knight Frank.

[little mary sunshine]

Rent in the building.for at least

6months before purchasing.

[12DrinkMore]

2 hours ago, elgordo38 said:

Short advice not Bangkok and do not buy. Its like marriage. 

 

You mean the rather pursuasive argument against buying into a depreciating liability?

[little mary sunshine]

Compare the "amount of return "you would get

on the same Dollars invested in Indexed Mutual

Funds......usually enough to pay your rent, and you

have no ownership problems, can move at the end

of your lease and still have your money!! 

[stgrhe]

"7) After I get the deed I presume I am responsible for a few fees:

a) Maintenance Fees

Sink Fund?

c) Am I missing anything ?"

 

7a) Yes, you are responsible for the yearly maintenance fee, which should be paid in full at the end of the fiscal year.

7b) Yes, if it is a new build without previous owners. The sinking fund is only a one-time payment.

7c) Yes, you should carefully check the maintenance company to ensure that it is a solid company with good tracking record. Also, if it is an existing condo try to get in contact with one or more of the board members.

 

Good luck.

[realenglish1]

Response to your inquiry They have overbuilt condos in Bangkok and the surrounding area Realtors are sending out a "be cautious warning "

 

It would not suprise me if there was was a correction in the price of condos in 2017

 

The banks are now not willing to loan a lot of people so how do you resell

 

The bubble may be about to burst be very carefull

Personally I would not buy in this market 

[MANFROMBOCA]

IF your sending into Thailand more than 50K us$ you should notify the bank of incoming wire

 

as far as a lawyer,, if it makes you feel more secure use one, if it was my first time buying property here i would

[lkn]

1 hour ago, MANFROMBOCA said:

IF your sending into Thailand more than 50K us$ you should notify the bank of incoming wire

 

To clarify, the bank will not deposit the amount on your account before some form has been filled out and a copy of your passport has been added to their archive.

 

The bank should contact you, once the money has arrived, but if you hear nothing, contact the bank. Notifying them in advance probably makes little difference.

 

[Tracyb]

As others have stated..... Lawyers are not absolutely necessary, but if you choose to have one look over the agreements and finalize everything at the land office, I recommend Baker and McKenzie in Bangkok.  I used them when I purchased my condo and I was happy that I did as the RE agent representing the seller was not on the up and up.   The attorney caught some shenanigans and corrected them before the close of the deal.  I paid them about US$3000 to handle everything..a bit pricey perhaps, but they did save my ass in the deal!

[elgordo38]

5 hours ago, Lovethailandelite said:

Why not just say you cannot afford to buy a Condo? Its better than making excuses your whole life.

Boy with advice like that you do not need enemies. fur sure. Wait till he gets his post count up then you will really see him shine. He is still refining things. 

[zorro1]

You can not get a mortgage so it has to be full cash.
I would go bangkok, prices are skyrocketing due to the lack of land for development. Same thing happened Singapore and Hong Kong. A simple issue of supply and demand

[ExpatOilWorker]

2 hours ago, realenglish1 said:

Response to your inquiry They have overbuilt condos in Bangkok and the surrounding area Realtors are sending out a "be cautious warning "

 

It would not suprise me if there was was a correction in the price of condos in 2017

 

The banks are now not willing to loan a lot of people so how do you resell

 

The bubble may be about to burst be very carefull

Personally I would not buy in this market 

 

I think you are right. Prices are falling, this unit is advertised for 3.5 million: 

 

[zorro1]

Have a look at the recent frank night thread very very bullish for Inner bangkok
Buy lower Sukhumvit as close to a bts as possible but that may no longer be possible for most on here

It's just to expensive now.. Feel terribly sorry for fence sitters who just sit on hands watching the market go ballistic

If you can afford go Asoke it's emerged as the primary upmarket area

Good luck! [emoji16]

[Lovethailandelite]

30 minutes ago, elgordo38 said:

Boy with advice like that you do not need enemies. fur sure. Wait till he gets his post count up then you will really see him shine. He is still refining things. 

I doubt I posted anything that a long term ex pat and anybody who is financially secure in Thailand wasn't thinking.
The thread below sums him up nicely. Where is he living, Southend on sea? It cannot be Thailand. He hates Thais.
 

 

[Lovethailandelite]

24 minutes ago, ExpatOilWorker said:

 

I think you are right. Prices are falling, this unit is advertised for 3.5 million: 

 

The only problem is it only has 10 years left on a lease. That's the reason it looks cheap. If it was freehold it would be in the region of £12mil in that area for 60+sqm.

[elgordo38]

21 minutes ago, Lovethailandelite said:

I doubt I posted anything that a long term ex pat and anybody who is financially secure in Thailand wasn't thinking.
The thread below sums him up nicely. Where is he living, Southend on sea? It cannot be Thailand. He hates Thais.
 

 

I will try and digest what your referring to. Never heard of tagalong.  I will try and analyse this comment  Where is he living, Southend on sea? It cannot be Thailand. He hates Thais. but it really doesn't make sense except to you and well thats all that matters.