Pattaya 9 Karat Condo 138 Rooms For Auction

[Banana7]

I heard that the Court has ordered 138 rooms at 9 Karat Condo Arunotai Soi 2 Pattaya, to be sold at auction about March 28, 2017. My understanding is that the rooms will be sold individually, not in one lot, and each room has 5 years of maintenance fees outstanding which must be paid before the condo will issue the debt free letter, that is required by the land office to transfer the title. It's best to contact the condo office to get the exact date, time and location of the auction.

 

The court order is posted in the condo office all in Thai, and I can't read Thai, so best to bring someone who understands Thai.

 

Edited March 23, 2017 by Banana7

[johng]

How much is 5 years maintenance fee ?
Can you take a photo of the court order notice and post it here ?

[Banana7]

1 minute ago, johng said:

How much is 5 years maintenance fee ?
Can you take a photo of the court order notice and post it here ?

I estimate the 5yr. maintenance fee for a single room unit is 33,000 baht, basically 550b a month. Single room is about 32 sq.mt.. There maybe multiple room units too.

 

In the next day or 2, I'll look into taking a photo of the Court Order - it is multiple pages.

 

[bkk6060]

It looks like it could have potential.  Airbnb has Ads for 350 b a night.  What type of people will be your neighbors at that rate?

It looks to me like a potential LB haven.  

Edited March 23, 2017 by bkk6060

[Banana7]

18 hours ago, johng said:

How much is 5 years maintenance fee ?
Can you take a photo of the court order notice and post it here ?

The Court Order is about 20 pages, so I've attached only a photo of the first page, last pages, and some in between for your reading pleasure.

 

I believe the first auction date is March 29 somewhere on Thepprasit Road.

Edited March 24, 2017 by Banana7

[johng]

Thanks very much @Banana7

[bkk6060]

HAHA.  Great thanks now can you translate it for us.

[bkk6060]

I just checked this place out.  It is very unkempt except for the pool which was very large and clean.  The minimum bid will be approx. 500,000 b for a studio 28 Sq meters.

I walked around and many areas are dirty with things in disrepair.  A bunch of out of business shops on the first floor. It made me depressed really had kind of a prison feel.

Mostly people seeking German at the pool.

The location is actually good took me about 3 minutes on motorcycle to 3rd road.

I took some photos of some open/empty rooms which obviously are in need of work/money.

It would not be my choice but if someone found a decent room and had cash to fix it up, it may suit their needs.

[Banana7]

2 hours ago, bkk6060 said:

HAHA.  Great thanks now can you translate it for us.

As I indicated in the initial post, I can't read Thai, so I cannot translate it for you.

 

Best to find a Thai friend who can translate into  English. The auction will be in Thai so you'll need their help at the auction too, and afterwards, to ensure you get free and clear legal title.

 

Another important fact is that the rooms are in Thai name now. So if you want it transferred into foreigner name, you'll have to prove the funds, in the amount of the purchase price, originated outside of Thailand. Also check with the land office what percent is in foreigner name. The last I heard, the condo was about 35% in foreigner name,

 

Buyer beware, some of the rooms will be complete gut jobs and are not currently habitable. 

 

 

[Banana7]

11 minutes ago, bkk6060 said:

The minimum bid will be approx. 500,000 b for a studio 28 Sq meters.

I'd be surprised if anybody paid 500k for one room that was a complete gut job. I know one person who bought a complete gut job room from one bank, within the last year, for 280,000 baht, and she fixed it real nice, and made a handsome profit.

 

I'd say 500K is ok if the room is habitable and is currently rented, or was previously rented.

 

Edited March 24, 2017 by Banana7

[onemorechang]

Looks like a dump to me.

500,000 b for a studio 28 Sq meters. quality 

[johng]

9 minutes ago, onemorechang said:

500,000 b for a studio 28 Sq meters

At the government housing estate in Na Jomtien ( which is simular-ish to the 9 Karat condo)

the price for 33 square meter unfurnished rooms on the ground floor started at 350,000 baht about 5 years ago  now they are asking 470,000 baht  that's straight from the government Ooh-Arton  organisation...no swimming pool and 100% Thai owned...fully done up there are people asking 800,000 baht for their 33 sq meter rooms.

[Banana7]

26 minutes ago, onemorechang said:

Looks like a dump to me.

500,000 b for a studio 28 Sq meters. quality 

I can understand your opinion especially based on the pics. The major reason for the poor common area conditions is lack of funds. My latest research indicates there are 576 units in the buildings but only 146 units are paying maintenance fees on a regular basis. The rooms up for auction have not been paying. So after the auction there should be 284 units paying maintenance. The condo will get about 4,000,000 baht in back maintenance from the auctioned units, which will be a decent sum to pursue the other delinquent room owners.

 

Another plus is that just last week the condo was connected to municipal water. Now water costs will be less than water revenue. Previously, water expenses were more than double water revenue, and the balance was funded by maintenance fees.

 

This is probably a major turning point financially for this condo.

 

Also there is a new condo committee, voted in last week, and all are very good people.

 

 

 

 

Edited March 24, 2017 by Banana7

[onemorechang]

13 minutes ago, johng said:

At the government housing estate in Na Jomtien ( which is simular-ish to the 9 Karat condo)

the price for 33 square meter unfurnished rooms on the ground floor started at 350,000 baht about 5 years ago  now they are asking 470,000 baht  that's straight from the government Ooh-Arton  organisation...no swimming pool and 100% Thai owned...fully done up there are people asking 800,000 baht for their 33 sq meter rooms.

Maybe be.

But i would  pay a bit more and get better neighbours.

Also if a load of rooms are about to be sold off in one building,

its welcome to 5 years of construction work from all the new owners.

Also the maintenance of the building is a big factor and Sink fund

 

Edited March 24, 2017 by onemorechang

[Banana7]

Just now, onemorechang said:

Maybe be.

But i would  pay a bit more and get better neighbours.

Also if a load of rooms are about to be sold off in one building,

its welcome to 5 years of construction work from all the new owners.

Yes, you are right about construction.

 

Bear in mind, the condo charges a 10k baht construction deposit up front and reduces it 300b a day for construction. There is a strong incentive to get the renovation done quickly without unnecessary delays.

 

Also construction is only permitted 10am to 4 or 5pm.

 

[johng]

5 minutes ago, Banana7 said:

Yes, you are right about construction

One of the good things of living with  poorer working class Thai people is that they are out at work all day and have very little money to do noisy construction work on their condos, though they do sometimes like a party and there is always the chance of burk with  mortar and pestle at inappropriate times.

[Banana7]

29 minutes ago, johng said:

there is always the chance of burk with  mortar and pestle at inappropriate times.

Yes you right again. But most people who do that maybe unaware of the rules. Also, most don't want to piss-off their neighbour. Nobody wants to live in a place surrounded by enemies.

 

A quick call by the offended to security will bring the security guard to the offender to remind them of the rule. Hopefully, the visit will be sufficient to stop the noise and if it is not, the guard will report it to the office, for further action.

 

Also, there is a complaint register at the office, where you can register your complaint. The office staff will follow-up your complaint. Fines can be levied for offenders.

 

Some of the rooms, being auctioned, are currently rented, so they are in decent shape, and need no renovation. However, everybody has different standards for what is required, so maybe even a rented room will be renovated.

 

 

 

 

Edited March 24, 2017 by Banana7

[KittenKong]

3 hours ago, Banana7 said:

Another plus is that just last week the condo was connected to municipal water. Now water costs will be less than water revenue. Previously, water expenses were more than double water revenue, and the balance was funded by maintenance fees.

 

I see no reason for such a thing to happen, apart from incompetence or dishonesty.

 

[Banana7]

31 minutes ago, KittenKong said:

 

I see no reason for such a thing to happen, apart from incompetence or dishonesty.

 

There is a long story about the water and its not really relevant for the primary subject of this thread, other than to say - things are improving  and one the major issues has been resolved, well almost resolved. The condo is drawing lots of water leaving little for any other houses, so now the street water pipe is being replaced by a larger one, you can see it on Arunotai Soi 2. Once it is replaced, there should be enough water for all.

 

Edited March 24, 2017 by Banana7
add photos

[prk888]

having read all the posts and reading between the lines  can i ask Banana7 what your interest is ?  Your glass seems over  half full despite all the negatives in this thread so just wondering why..

[KittenKong]

8 hours ago, prk888 said:

having read all the posts and reading between the lines  can i ask Banana7 what your interest is ?  Your glass seems over  half full despite all the negatives in this thread so just wondering why..

 

If I, a farang, was a co-owner in that building then I would like to see those 138 rooms bought by many other different farangs also. In my experience farang co-owners are more likely to take an interest in improving the building, and having one person controlling many votes in a building is simply bad news all round.

[KittenKong]

11 hours ago, Banana7 said:

There is a long story about the water and its not really relevant for the primary subject of this thread, other than to say - things are improving  and one the major issues has been resolved, well almost resolved. The condo is drawing lots of water leaving little for any other houses, so now the street water pipe is being replaced by a larger one, you can see it on Arunotai Soi 2. Once it is replaced, there should be enough water for all.

 

I was commenting on what you said about the building losing money on water supply rather than there not being enough water.

 

Losing money like that is simply bad management. Though perhaps you were including water used communally (pool, gardens) in your income/expenditure comparison? In that case it would be normal for the excess to be paid from the common fee.

[Banana7]

21 minutes ago, KittenKong said:

 

If I, a farang, was a co-owner in that building then I would like to see those 138 rooms bought by many other different farangs also. In my experience farang co-owners are more likely to take an interest in improving the building, and having one person controlling many votes in a building is simply bad news all round.

I too am of the same opinion as you. Since this website is frequented by many falang living in Thailand, I am hoping many falang choose to go to the auction and buy a condo.

 

[Banana7]

8 hours ago, prk888 said:

having read all the posts and reading between the lines  can i ask Banana7 what your interest is ?  Your glass seems over  half full despite all the negatives in this thread so just wondering why..

I would like to see more westerner co-owners in the condo because most are vocal and support improving the condo to western living standards.  The Thai condo co-owners are very passive and exhibit little interest in improving or maintaining the condo to modern living standards.

 

I am a co-owner in the condo.

[Henryford]

My tgf used to live there. It was a dump really, albeit with a nice pool. You would have to be desperate to want to buy a condo there, maybe as one to rent though.

[bkk6060]

2 hours ago, Henryford said:

My tgf used to live there. It was a dump really, albeit with a nice pool. You would have to be desperate to want to buy a condo there, maybe as one to rent though.

I did fail to mention I saw several attractive TG walking around the place.  Maybe they were overnighters who knows. I am sure the cheap rent and location could be attractive for them.  Just a comment I am sure it will not sway someone to buy there. :)

[smedly]

and what happened to the previous owners of these apartments ? 138 units that were owned by ?

 

and what happened to the fees that were previously paid by ....owners for years

 

There is something very naughty going on in that place.............approach with extreme caution and make sure you have a very good lawyer to look over the fine print

 

and remember that existing owners are not your friend... they want a result in their favour

[KittenKong]

2 hours ago, smedly said:

and what happened to the previous owners of these apartments ? 138 units that were owned by ?

and what happened to the fees that were previously paid by ....owners for years

There is something very naughty going on in that place.............approach with extreme caution and make sure you have a very good lawyer to look over the fine print

and remember that existing owners are not your friend... they want a result in their favour

 

As far as I know the 138 units were owned by one person who used the power those votes gave him to manipulate the committee and management into doing what he wanted. I seem to remember reading about it on here a year or so ago. The common fee was not paid on those units, hence the outstanding debts.

 

I think that the naughtiness there is drawing to a close and apart from needing to be aware that there are outstanding fees to be paid, and possibly renovation work to be done, I see no obvious legal drawbacks to the purchases. I'm sure that a lawyer would be happy to take money to confirm that.

 

As I mentioned, if I was a farang co-owner in that building I would be keen to see as many of those 138 units as possible bought by individual farangs. That would be to my benefit and to that of the building and other co-owners also. So in that respect the OP is doing exactly what I would do. He sounds like the sort of person I would like to share ownership of a building with.

As an aside, I think that there should be a law prohibiting any one person or group from owning more than a very small percentage of any condo building. The condo act already prohibits any one co-owner from using more than 50% of the total votes present at a GM, but that number should be reduced significantly.

[ThaiBob]

I would also add to the above that voting privileges should be rescinded if common fees are not paid. 

[Don Mega]

So these can be owned by a foreigner or do thay have to go in a company name ?