4 tips about buying a condo in Thailand
Buying property in Thailand requires some good advice and a bit of reading-up before plunging yourself into the hundreds of opportunities, around the country. Condos, which a foreigner can own the freehold, have the potential to yield a good profit for your investment.
Most condos have relatively low maintenance costs and the ability to use the property for residential or investment purposes, so condos can offer great value and accessibility.
As always, The Thaiger recommends you do plenty of reading and homework before committing to a purchase of property in Thailand.
1. Why are you buying a condominium?
For foreigners wanting to purchase a condo in Thailand, it is important to be prepared for a more complicated purchasing process than Thai citizens. There are also additional costs, regardless of how you intend to use the condo. If you want to buy a condo to live in, you will need to consider your needs when choosing the property. Things to consider before buying include knowing how many people will live in the condo and if it is near your office, school, family, or friends.
The condo’s location, profitability, and rental potential are all factors that should be addressed before buying as an investor. The condo’s market demand and growth opportunities are also important details to discuss with your agent or developer.
Ask lots of questions and even try and speak to other owners and check out the rental history of other condos on the property.
2. Location, location, location
Even if you are purchasing a condo for residential living, it is important to make sure the condo’s location is perfect, for your current needs and future potential. In an investment, knowing the condo’s resale or leasing potential is something to consider. Researching the ‘land price index before development’ is one way to determine if the area’s value will increase.
Last year Bangkok’s land price index drops 2.2% in the first quarter. It goes up and down. You need to check the trends to see if the area you intend to buy is trending up, or down.
The published price is one thing. Calculating the additional costs on top of the actual price is essential. There WILL be additional costs and you need to factor these into your monthly spending.
This is where you need to read the fine print and consult a property advisor or lawyer. Foreigners in Thailand will most likely have to pay more in fees and costs than Thai citizens, along with the other additional and ongoing costs. Ask your conveyancing lawyer for a list of all the costs you will have to pay before you sign anything.
Other factors to consider include knowing if the condo is reasonably priced for the area. Researching and anticipating to what extent the land’s value and neighbourhood have the potential to increase is a good idea. As land prices may reflect the land’s future worth, they could also reflect the opposite.
4. Who is the developer?
The developer’s reputation is a vital consideration when buying a condo in Thailand. As the reputation of the brand can potentially affect its resale value and rental opportunities, the developer’s reputation is important. Even if you have heard or seen good things from a developer, do as much checking about the developer and their current developments – Google is a good place to start. Also, speak to different agents and get their view on the bonafides of the development.
What materials do they use in the condo’s construction and finishes in the rooms? Do they have regular condo management performed? Have they contracted a management company for the development you’re looking at? Check their history as well.
Considering these factors above will help ease the burden of potential hassles, even debt or stress when buying a condo in Thailand. It’s a major investment, so a condo needs to be appropriately researched before making the decision on which to buy.
Please do lots of homework before committing to purchasing a property in Thailand.
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