Buying a Condominium
Interesting to note that in spite of the recent flooding in bangkok the demand for condominiums has risen.
However what this has done is raise a number of questions among people about what to look out for, this article is to provide a series of guidelines.
First is the project, completed or off-plan (not yet completed).
- Completed building advantages are you will see the end product including the actual unit which you will get, the view, the lobby, the common areas, facilities and the overall atmosphere of the building.
- Completed building disadvantage are a limited number of properties to select from. Some developments have sold out but, today, in many new buildings there are still units left being sold by the developer or units being offered by existing purchasers.
Buying off-plan is the another option.
- An off plan purchase has the advantage that you have a wider choice of units and get the best possible prices when buying early.
- The risk with buying off-plan is that you will not see the actual end product. Most projects will concentrate on building mock-up rooms for 1 – 2 unit types. The buyers should be aware of the pros and cons of both options.
Some guidelines for those who have just started looking at buying a condominium are:
- Set the budget you want to spend. Do you need a mortgage or are you able to buy in cash? If you need a mortgage, you should calculate how much you can afford to pay in instalments every month and convert that back to the condominium price. Allow 10% – 30% of the price in cash as a down payment as necessary.
- Choose the locations you would consider for your condominium and start researching properties available for sale. There are many channels you can access, the most popular being websites, newspapers, magazines and billboards. If you have limited time, you can contact a real estate agent, who will qualify your requirements and identify the buildings which best match them. Then they will take you to see each available option.
- It is recommended that you should inspect at least 4 – 5 properties before making a decision.
- When buying in a completed building, check the defects in the actual unit and inspect the common areas, the condition of the car parking area, the common area maintenance fee and sinking fund, taxes, transfer fees and stamp duty, the mobile phone signal, internet connection and MATV (Master Antenna Television). Each building offers these amenities on a different basis.
- When buying off plan, it is recommended that you study the details of the floor plans, layouts and specifications provided in the units, and ask for a copy of the sale and purchase contract to read before paying the deposit. The contract should include all the details of the land title deeds, a description of the common area, specifications, facilities and amenities, the construction permit, floor plans and unit layouts. If the construction permit is not available, it should be noted that the deposit should be refunded if the project does not go ahead within a certain time period.
- Pricing is one of the main concerns for many people who are wondering where we are on the property cycle. On average, the prices of Bangkok condominiums have increased slightly, by approximately 5.2 % y-o-y for completed buildings. However, the average asking prices of new launch projects have slightly decreased as the majority of new launches this year focus on the mid market rather than the luxury market.
Lately many developers who have units left for sale after the building has been completed are offering the best promotions to clear their stock. Also, there are good offers from existing buyers who want to sell before ownership of their unit is transferred. Usually, during the holiday season, the downtown property market is quiet as most people have gone on holiday.
These are some of the ideas – if you wish some ideas or recomendations then please feel free to contact us