Buying a condo in Thailand: 4 things to know
As condos are increasingly becoming buyers’ favourite investments, their potential to yield a profit can be potentially quite high. From low maintenance costs to the ability to use the property for residential or investment purposes, condos can offer great value and accessibility. Here, we have 4 things that potential buyers should know before investing in a condominium.
As always, The Thaiger recommends you do LOTS of homework before committing to a purchase of property in Thailand.
1. The purpose of your investment
For foreigners wanting to purchase a condo in Thailand, it is important to be prepared for a more complicated purchasing process than Thai citizens. Expect additional costs, regardless of how you intend to use the condo. If you want to buy a condo for residential purposes, you will need to consider your needs when choosing a 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, and friends.
Meanwhile, buying a condo for investment purposes involves a whole other set of questions to ask. The condo’s location, profitability, and rental potential are all factors that should be addressed before buying. Moreover, the condo’s market demand and growth opportunities are also important details to consider.
2. Location and future possibilities
Even if you are purchasing a condo for residential living, it is important to make sure the condo’s location is ideal. As it is an investment, knowing its 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. And, knowing that information will help buyers determine if it is a location in which to invest. Location, location, location.
3. Calculate the cost
As the price is the most important thing to consider, calculating the additional costs on top of the selling price is essential. Foreigners in Thailand will most likely have to pay a bit more in fees and costs than Thai citizens, along with the normal additional taxes. Therefore, calculating your monthly budget based upon your income, cost of living and other bills should be included in your considerations. Ask you 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 in which it is found. Furthermore, researching and anticipating to what extent the land’s value and neighbourhood has the potential to increase is a good idea. As land prices may reflect the land’s future worth, it could also reflect the opposite.
(FazWaz.com, for example, has an excellent price comparison guide on all properties in Thailand)
Luxury condo in Bangkok
4. Developer’s credibility
The developer’s reputation is the final consideration when buying a condo. As the reputation of the brand can affect its resale value and rentals opportunities, the developer’s reputation is important. Even if you have heard or seen good things from a developer, the condo should portray the developer’s promises. Such things as using good quality materials in the condo’s construction and having systematic condo management performed will also help avoid future repair and reconstruction costs.
Carefully considering these factors above will help ease the burden of potential debt and stress when buying a condo. As it is, indeed, an investment, a condo needs to be appropriately researched before making the decision in which to buy.
Please do lots of homework before committing to purchasing a property in Thailand.
