How easy to get money back from failed project ?

[joebrown]

20 hours ago, al007 said:

I agree with what has been said so far

 

However try and stay strong, insist on the discount to what they are changing hands at

 

Is the developer in default on the current site and running behind

 

Do you have a lawyer, what does he say, being thailand probably useless

 

Tell the developer point blank sort you out and you will be quiet, otherwise any tactics are fair and you will encourage prospective investors to go else where

 

Do your best to talk face to face and do it quickly

 

Definition of preferential creditor, he who know first someone is going bust

 

 

"Tell the developer point blank sort you out and you will be quiet, otherwise....etc"

I think this suggestion is fraught with danger, particularly encouraging prospective investors to go elsewhere.  Taking this route could easily lead to the developer bringing a defamation charge against you for damaging his reputation.

[trogers]

Those who advised dumping that 40% and walk away are probably younger than 40 years of age. They can easily make back the loss in a couple of years.

 

Those who advocate threats are probably new to Thailand. There are legal venues to follow, but they are cumbersome and takes more than a decade. At the end of cost and time, a successful verdict is only of worth if the developer is still solvent.

 

Better to take a 10% loss and own a physical condo unit at this point in time. The OP is fortunate that the developer has unsold units in another development. Some are not so lucky.

Edited July 1, 2017 by trogers

[Fairynuff]

Nothing wrong with buying off plan with due diligence. I bought off plan in Bangkok. Excellent project, well managed and sold after a number of years having made a very good profit. Always tread with extreme caution and it will pay off.

[scorecard]

12 hours ago, TallGuyJohninBKK said:

I don't know what the problem is here with the buy off plan market:

 

--Is it that the banks won't lend enough money to the developers for their projects, so they have to rely on the buyers' funds to actually complete construction, and then don't if they don't get enough buyers?

 

or

 

--the banks lend enough for the projects, but the developers go over budget and/or simply abscond with the buyers' deposits without completing the projects?

 

 

Your second point has happened dozens of times in many locations in Thailand, go back 5 years and more and this was rampant in Bangkok, dozens of new condo / housing projects, thousands of folks signed up and made numerous payments, project cancelled, no refunds, no agency made any effort to investigate or prosecute, no changes to laws to ensure this practice can't happen and/or new laws to keep buyers funds in a secure depository, etc., etc. 

 

What's also in the above picture, most of the project 'owners' hired fast talking smooth and beautiful sales people (mostly female), who made lots of claims and fake promises to customers, and the sales people walked away with large commissions on every sale, often numbers like 200,000Baht, and untouchable.

[newnative]

4 hours ago, trogers said:

Those who advised dumping that 40% and walk away are probably younger than 40 years of age. They can easily make back the loss in a couple of years.

 

Those who advocate threats are probably new to Thailand. There are legal venues to follow, but they are cumbersome and takes more than a decade. At the end of cost and time, a successful verdict is only of worth if the developer is still solvent.

 

Better to take a 10% loss and own a physical condo unit at this point in time. The OP is fortunate that the developer has unsold units in another development. Some are not so lucky.

Good advice here and probably the best outcome without putting more money at risk.  

[funandsuninbangkok]

Tell developer you will take 50 baht on the 100 now , today cash money and leave. Haircut best option. Other unit will be money pit / no maintenance, empty units, leagal fights forevermore 

 

move on with you life

[hugh mckee]

sorry, if I'm hijacking this thread slightly?

 

I have just joined and reading your comments terrify me, I have just bought a condo off-plan and paid 100% upfront,

over 7 million baht about 1/3 of my savings, I did what research i could and have watched the condo being built over the

last year when I visit Pattaya on holiday, much construction seen and build ahead of plan and one year to go which they expect to complete before schedule, the condo is 90% sold, few units remaining, with all this in mind and reading beforehand that

98% of condos get completed and this one is half way there and 90% sold (UK developer) I maybe stupidly thought I want

one of these beautiful condos and got discount for paying 100%, if i did this in UK, I would not be worried, speaking with the

condo developer/owner beforehand convinced me to "go for it"

 

does anyone who buys off-plan need their head examined as written on here? where does that leave me? not only did I buy

off-plan, I paid 100%...means I must be "one flew over the cuckoo's nest"

 

is there any instance where buying off-plan is a good idea?

 

to secure my unit and good price (exactly the one I wanted and def' be gone if I didn't buy off-plan) I had to "go for it"

could not wait, yes I did not have to pay 100% and for higher price could have paid 30% deposit.

 

I know no one on here is going to tell me "don't worry your condo will be built...relax" but i am shocked to read the comments

on here and elsewhere too about buying off-plan, I did read some of these beforehand but doing what due-diligence I could

and speaking with developer meant I took the plunge

 

I would be interested to read your thoughts even if it is to tell me what an idiot I am, hopefully I can be a lucky idiot

and get away with my foolishness?

 

Edited July 5, 2017 by hugh mckee

[KittenKong]

37 minutes ago, hugh mckee said:

I have just joined and reading your comments terrify me, I have just bought a condo off-plan and paid 100% upfront,

over 7 million baht about 1/3 of my savings, I did what research i could and have watched the condo being built over the

last year when I visit Pattaya on holiday, much construction seen and build ahead of plan and one year to go which they expect to complete before schedule, the condo is 90% sold, few units remaining, with all this in mind and reading beforehand that

98% of condos get completed and this one is half way there and 90% sold (UK developer) I maybe stupidly thought I want

one of these beautiful condos and got discount for paying 100%, if i did this in UK, I would not be worried, speaking with the

condo developer/owner beforehand convinced me to "go for it"

 

What you have to remember is that in Thailand many things are hype, smoke and mirrors. There is little substance or integrity here.

 

Another thing to remember is that many expats come here simply because they failed elsewhere or even have arrest warrants out for them at home. Dont trust anyone just because they have the same skin colour as you.

 

Purchase discounts are often applied to artificially inflated list prices that no one will actually be paying. People are often asked for large deposits when much smaller ones are the norm. Vendors can lie here with impunity. In the same way company-name purchases are promoted as being normal and safe when in reality they are neither.

 

All that said, if the building is largely sold and is being actively worked on then there is a fair chance that it will get finished. You can breathe a sigh of relief when you actually get the chanote in your name. Hopefully the building layout and internal finishes will actually correspond to what was described in the sales literature, though for many it doesnt. Hopefully you will also be able to create your building committee without too much trouble, and your common fees will have been set at a sensible level that will cover outgoings.

 

Even so, you may find that your finished unit is not worth what you paid for it. Time will tell on that one.

 

Personally I would never put more than 10% of my net worth into Thailand, and that includes my condo, my car, my furniture and my bank accounts here. I simply dont trust them enough. If it all goes pear-shaped I can walk away and would barely notice the loss.

[newnative]

1 hour ago, hugh mckee said:

sorry, if I'm hijacking this thread slightly?

 

I have just joined and reading your comments terrify me, I have just bought a condo off-plan and paid 100% upfront,

over 7 million baht about 1/3 of my savings, I did what research i could and have watched the condo being built over the

last year when I visit Pattaya on holiday, much construction seen and build ahead of plan and one year to go which they expect to complete before schedule, the condo is 90% sold, few units remaining, with all this in mind and reading beforehand that

98% of condos get completed and this one is half way there and 90% sold (UK developer) I maybe stupidly thought I want

one of these beautiful condos and got discount for paying 100%, if i did this in UK, I would not be worried, speaking with the

condo developer/owner beforehand convinced me to "go for it"

 

does anyone who buys off-plan need their head examined as written on here? where does that leave me? not only did I buy

off-plan, I paid 100%...means I must be "one flew over the cuckoo's nest"

 

is there any instance where buying off-plan is a good idea?

 

to secure my unit and good price (exactly the one I wanted and def' be gone if I didn't buy off-plan) I had to "go for it"

could not wait, yes I did not have to pay 100% and for higher price could have paid 30% deposit.

 

I know no one on here is going to tell me "don't worry your condo will be built...relax" but i am shocked to read the comments

on here and elsewhere too about buying off-plan, I did read some of these beforehand but doing what due-diligence I could

and speaking with developer meant I took the plunge

 

I would be interested to read your thoughts even if it is to tell me what an idiot I am, hopefully I can be a lucky idiot

and get away with my foolishness?

 

      I always recommend that if you are going to buy off-plan, choose a well-known, well-financed, large builder with a good track record of completing projects--builders like Sansiri, Lumpini, Trust, SC Asset, Supalai, etc.  If it's a public Thai company, all the better.  It's likely they will get their projects finished and finished on time.  We don't usually buy off-plan but my partner and I are buying off-plan a small, getaway condo just starting to  be built in Bangkok.  It's being built by one of the name builders I mentioned and we're certain it will be finished.  But, even with all that certainty,  we just put the minimum required down.

      The builder may have told you the condo is 90% 'sold' but it's probably a case of 90% 'booked'.  A condo isn't really sold until all the money is paid and the chanote (title deed) is delivered to the buyer.  Some buyers have booked a unit or units, paid the minimum required, and they hope to sell the bookings at a profit at some point before the condo is finished and they have to come up with the rest of the money.  Usually there are units that are turned back in to the developer when a buyer can't find someone to sell the booking to and the developer then needs to find new buyers for these units.  Even a super-successful project like The Base, which was supposedly 'sold out' in a matter of weeks, had several hundred units that were turned back in to be re-sold.

        The builder likely told you that if you didn't buy that unit that you liked it would be gone forever and, that's that.  You missed out.  Too bad.  Not exactly true.  Those 'booked' units that I mentioned earlier will be available for buyers to purchase while the condo is being built and often they are prime units that were snapped up in the first days.  My partner and I bought very special, prime units at The Base and Centric Sea from re-sellers.  The re-sellers made a little profit and we got the excellent units we wanted and we were able to sell them at a nice profit a year or so later once we had tweaked them and, in one case, rented it for awhile.

      Now, hopefully some good news.  First, it's good that the condo is still being built--hopefully that will continue.  Despite all the scary stuff you've read,  most new projects do eventually get built.  Someone will likely mention the Waterfront project but that is really a unique, complicated case involving height protests, land encroachment issues, etc., and not the norm.  Some projects are finally finished a year or more later than the expected finish date but most do get done.  If you are at the 7MB price point and the condo is as special as you say it is, I think you should do fine with it.  There are lots of small, very UNSPECIAL condos out there for sale but really not that many larger units with something special on offer.   Good luck and hope you'll keep us posted with progress reports now and then.

[hugh mckee]

thank you so much for your replies.

 

I think if I had and read and listened more closely to the forums and not to the developer then I don't buy so I hope

it turns out to be a good (and lucky) thing for me that I only read and listened more to you guys after and not before

my purchase.

 

yes maybe 90% aren't really sold? and i could still have got my "poolside corner unit"? but after viewing many condo's

this one ticked so many boxes for me and my heart ruled my head a little, well a lot and of course now fear that I made

a much bigger gamble than I originally thought but forums too can have a disproportionate number of negative comments

as people are less likely to post when things go as planned but nevertheless will be an anxious guy for next few months now.

 

sure i will keep posted if anyone interested in the outcome.

 

didn't post name of condo, not sure wise or allowed?

 

thanks again

 

[pattayadude]

On 6/30/2017 at 11:18 PM, TallGuyJohninBKK said:

I don't know what the problem is here with the buy off plan market:

 

--Is it that the banks won't lend enough money to the developers for their projects, so they have to rely on the buyers' funds to actually complete construction, and then don't if they don't get enough buyers?

 

or

 

--the banks lend enough for the projects, but the developers go over budget and/or simply abscond with the buyers' deposits without completing the projects?

 

or

 

the banks do lend, would lend, could lend but also require solid collateral .

Most farang developers(here I'm talking about honest, straight-shooter developers) do not own collateral in Thailand so that tosses that possibility out of the window.

And smart developer would not pay for anything out of pocket anyway since there are so many pu$$y whipped drooling farangs ready to invest in a pie in the sky.

That is exactly why they have their flashy kiosks run by russian models in malls collecting massive amounts of down payments  almost two years before even any worker lays a hand on a construction tool.(again, I am still talking about honest developers)

it's sad.

it's pretty exciting for some, to own their own condo and call it "home".

Some older expats are quite vulnerable because they don't even have a house back home to go back to.

And they fall in the net like a sardine.

Most constructions normally do get completed, have already completed however!

But there are some which don't for various reasons, mostly illegal practices.

Edited July 17, 2017 by pattayadude

[pattayadude]

On 7/5/2017 at 9:04 PM, hugh mckee said:

thank you so much for your replies.

 

I think if I had and read and listened more closely to the forums and not to the developer then I don't buy so I hope

it turns out to be a good (and lucky) thing for me that I only read and listened more to you guys after and not before

my purchase.

 

yes maybe 90% aren't really sold? and i could still have got my "poolside corner unit"? but after viewing many condo's

this one ticked so many boxes for me and my heart ruled my head a little, well a lot and of course now fear that I made

a much bigger gamble than I originally thought but forums too can have a disproportionate number of negative comments

as people are less likely to post when things go as planned but nevertheless will be an anxious guy for next few months now.

 

sure i will keep posted if anyone interested in the outcome.

 

didn't post name of condo, not sure wise or allowed?

 

thanks again

 

I know of one project  100% finished(can't name it here) and some (I think 10% of) investors have moved in by paying off 100% but the project has title issues and no one has a title yet as developer can't seem to obtain the title for a long time now. The rest of the owners are reluctant to pay-and-move-in  if there is no title. its a stalemate for now but there is a bad smell and stinks to high heaven.

Interiors are horribly low quality finished by the way, not even remotely close to showroom units.Walls out of plumb and doors coming off the hinges etc.

[pattayadude]

On 6/29/2017 at 11:12 PM, plus7 said:

Do you think it is better to wait for the end term of the contract and get money back or exchange on ready apartment and then sell ?

it all depends how much money you invested in the failed project.

1M-5M or more?

 

On 6/29/2017 at 11:12 PM, plus7 said:

However I think those condos are bit overpriced

a bit?how much is a bit? if that "overpriced" value is more than what you already invested, I'd walk away with my loss, buy a bottle of scotch and see who's gonna finish who first, the bottle or you :)...and then move on.

 

On 6/29/2017 at 11:12 PM, plus7 said:

There is a chance to exchange invested money in already built condo in another project of same company

you still trust those vultures? they already dry-cleaned you once!

[metisdead]

Flaming posts have been removed.  

 

Quote

to moderator, I genuinely posted some months ago about difficulties with a condo purchase and freely admitted how stupid I'd been, I did not realise that this make people like destiny1990 feel good and gave him the opportunity to ridicule me online, I have no time for this nonsense and reading from the likes < snip > could you please delete my account, I cannot find this facility on my profile and wish my account to be deleted, please do this as soon as possible.

 

Thai Visa does not delete accounts, your option is to sign out of this forum and never sign back in again.  

 

This topic is now closed.