# Buying a condo. Is it worth it?



## The Mynah

Over the years in letters pages of various English language newspapers in Thailand, and again recently, I have seen people say that buying a condo is risky. I bought one anyway. Although a few problems have raised their head, I can't say I ever regretted making the purchase. Has anyone else had any problems?


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## Thai-Spy

One problem that frequently crops up is that a condo development will have 30% foreign and 30% Thai ownership with one unit each, and the developer will own the remaining 40% of the units as rental properties. 

Unfortunately the congregation of so much voting power in one person often means it's them deciding who manages the property and how, it's them setting budgets and schedules for repairs, and so on. The net effect is them turning what should be a fairly settled place into little more than an apartment building. 

And if the dominant owner is involved with more than one property, don't be surprised if eventually the fixtures start disappearing to be placed in the property that is newest or otherwise makes him the most money.


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## The Mynah

Thai-Spy said:


> One problem that frequently crops up is that a condo development will have 30% foreign and 30% Thai ownership with one unit each, and the developer will own the remaining 40% of the units as rental properties.
> 
> Unfortunately the congregation of so much voting power in one person often means it's them deciding who manages the property and how, it's them setting budgets and schedules for repairs, and so on. The net effect is them turning what should be a fairly settled place into little more than an apartment building.
> 
> And if the dominant owner is involved with more than one property, don't be surprised if eventually the fixtures start disappearing to be placed in the property that is newest or otherwise makes him the most money.


An excellent point Thai-spy. In the condo estate I live in (Pattaya) there is one owner with about 30% of the units. Luckily, this does not appear to have caused any major problems. Anyone considering making a purchase should perhaps check on whether the developer of the condominium has a history of being in the rental market.


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## cabralad

i am looking to buy a condo, got burnt at the first attempt ( lost $1500 ), i am trying again but using a different approach, i am getting the laywers involved before i pay any deposits to the developers.


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## Song_Si

When we were living in Phuket I had the idea of buying a condo there, leaving it as a rental when we moved away. 

Became friends with an Australian real estate agent working there - we were doing Thai language classes together. He talked me out of buying one - not good for business! - showed me ones under construction, completed and for sale, and at 5 years old - that put me off. 

Have a drive around and see what so many of the 'old' ones look like, then find out how old they really are - so many were built to a budget, looked good at sale time, but rapidly show signs of ageing, and maintenance is often overlooked. 

Re-sale can be very difficult, especially if the building is looking at all run-down - and so many do after a few years in this climate. At ten years many look like total wrecks.

As a rental they offer imo a poor return on investment - I've read 4-5% gross?, open to others observations on this; we lease a new house - first tenants - and the owners calculated the monthly rental for a 4% return. You can do a lot better than this in an overseas bank, without the additional costs and potential worries of property ownership. Ok if you are sure you want to live in it yourself, are sure you have/will always have good neighbours, and a commitment to building maintenance from all owners? 

I would still consider buying one if I was definitely settled on wanting to live the rest of my days in one part of this country - but I'm not, and have no regrets about not buying in Phuket. 

We're still in touch with the RE man there - heard from him last night, still picking up overseas investors at the airport and selling them managed apartments/condos, so obviously some people believe it's the right thing to do.


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## richrichie

*Best Bargain*

Considering that foreigners have no access to financing, buying a condo can be a big commitment. However with prices on the low side for beach side condos it can be a smart investment.

My suggestion is that if available first rent a condo in the building you are interested in buying in. It is a great way to check thing out before making a big financial commitment


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## jb44

Personally I would say you would have to be nuts to buy anything in Thailand. It is not in the buying ,it is in the selling (if possible) that is the problem.

Thousands where I am at the mo for sale, and thousands more being built or abandoned. As for houses that is money lost for sure

The 49/51 rule is ignored mostly,but it sure will catch people out one day

The only people who will tell you it is a good time to buy/ good investment are the property pimps
.
Getting just like Spain,25% of sales are distress sales, especially houses,fllyyears abandoned mess everywhere.

People fresh off the banana boat are the ideal buyers of property in Thailand


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## cabralad

I recently spoke to a thai lawyer about purchasing an off the plan condo, his advise was Do NOT purchase any property in thailand unless it is fully completed, i still think it is best to buy as rental in a good area is pricey.


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## duncbUK

Buy from a well known developer and you will be fine. Buy from a "one off" constructor and you may have problems.
I bought from LPN in BKK and they finished early and I can sell for a tidy profit.

Just be sensible and behave like you would at home, ie don't buy from an unknown developer. Simple.


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