Buying a Condo

[turock1000]

hey Lads!

 

just been tossing the idea around lately of purchasing a condo in Pattaya and wanted some advice from the guys who have done so

 

What are the positives and negatives??

 

Is there much expense in the way of maintenance?

 

Is it safe to purchase with the internal problems of the country?

 

Is it easy to rent out your place or more of a hassle than what its worth?

 

I would only be around about 3 months a year so not too sure if it is worth the bother and is just renting the best way too go

 

Any testimonials would be much appreciated!!!

 

Cheers

[George111]

Well I would say wait till the baht is weaker to buy, it's peaking right now I think.

[Edge]

hey Lads!

 

just been tossing the idea around lately of purchasing a condo in Pattaya and wanted some advice from the guys who have done so

 

What are the positives and negatives??

 

Is there much expense in the way of maintenance?

 

Is it safe to purchase with the internal problems of the country?

 

Is it easy to rent out your place or more of a hassle than what its worth?

 

I would only be around about 3 months a year so not too sure if it is worth the bother and is just renting the best way too go

 

Any testimonials would be much appreciated!!!

 

Cheers

 

I'd say look in Sales/Wanted and ask Mr Dom, but I doubt 3 months/year justifies it.

[jerry]

A condo is save to buy but renting out is a hassle .

3 months a year is madness , RENT !!

[turock1000]

yeh i did think 3 months was a bit short of a stay to buy instead of renting, but the idea of owning a nice condo for 3 million bt is quite appealing!!!!!!

 

I guess renting will also offer me greater flexibility with my time off

[Craig_ozz]

yep 3 months doesnt justify the outlay - especially with the exchange rate at the moment.

[chris2004]

Yes as others have said 3 months is too short to justify buying unless you are planning to spend a lot more time here in the future, then you will have your own place ready and waiting. But who knows what the future will bring, Pattaya may be very different in 20 years.

[jeevay001]

Hi,

 

I'm very new to the forum, so I am sure a search would find me an answer, but...

 

I thought buying any form of real estate (ie: Condo) was forbidden for non-Thai's ... or is it just owning land that is forbidden?

[beachroadlover]

Hi,

 

I'm very new to the forum, so I am sure a search would find me an answer, but...

 

I thought buying any form of real estate (ie: Condo) was forbidden for non-Thai's ... or is it just owning land that is forbidden?

 

 

You are not allowed to own land. You can own your own condo, provided it is in the 49% of the total square footage of the building. 51% must be thai. You may buy a house but you will not own the land beneeth, so you would have to lease the land

[beachroadlover]

hey Lads!

 

just been tossing the idea around lately of purchasing a condo in Pattaya and wanted some advice from the guys who have done so

 

What are the positives and negatives??

 

Is there much expense in the way of maintenance?

 

Is it safe to purchase with the internal problems of the country?

 

Is it easy to rent out your place or more of a hassle than what its worth?

 

I would only be around about 3 months a year so not too sure if it is worth the bother and is just renting the best way too go

 

Any testimonials would be much appreciated!!!

 

Cheers

 

 

I would say it is a good idea if you plan to use it for many years,and If you find a condo that is easily rented out it will pay for itself in 15 to 20 years. When you are not using it rent it, many foreigners do this. You must do your homework to figure out it's apeal to renters. If you buy something that is off the bus routes ot to far from the main areas it may be very difficult to rent. Condos like View talay 6 are very easily rented, as an example. Ocean view, close to all entertainment, large pool, close to central festival mall.

[El Cata]

I would suggest that with your current level of knowledge / experience that you should not purchase a condo in the near future. There are many pitfalls!

 

Whom would you purchase it from? Which solicitor would you trust to carry out the conveyance? Would you buy phase 1 or a completed project? Have you budgeted for property tax on completion? Should you set up a Thai company in order to 'pseudo-own' the condo, but purchase at the 'Thai price'?

 

After you have bought the condo there are also maintenance fees to consider; upkeep of the building, pool & refuse removal etc. These will drain your funds if no rental income is forthcoming.

 

If you want to rent it out for 9 months, you will likely have to engage the services of a company such as Dancewatchers, who will market / manage the condo.

 

Anyway, food for thought, from someone who knows squat about buy to let condos in LOS.

 

Good luck.

 

Peace.

Edited October 7, 2010 by El Cata

[turock1000]

I would say it is a good idea if you plan to use it for many years,and If you find a condo that is easily rented out it will pay for itself in 15 to 20 years. When you are not using it rent it, many foreigners do this. You must do your homework to figure out it's apeal to renters. If you buy something that is off the bus routes ot to far from the main areas it may be very difficult to rent. Condos like View talay 6 are very easily rented, as an example. Ocean view, close to all entertainment, large pool, close to central festival mall.

Hey Mate

 

you are correct i think that research is very important in ensuring any sort of rental return and i actually think that View talay 6 would be the perfect place for me to live and an appealing area for renters due to its prime location!!

Edited October 7, 2010 by turock1000

[saxondale]

A condo is save to buy but renting out is a hassle .

3 months a year is madness , RENT !!

 

Pattaya's a tenants market.

 

Doubt it will change until building regs are enforced.

[cairns8]

I don't own a condo here,i rent,i can tell you that there are far too many rental places on the market,a lot of places sit vacant for months.I was going to rent at view talay 5 in jomtien,most of the online rental sites quoted prices around the 20 to 25000 a month range.I walked into the lobby and could rent similar condo for 15000 month..if you want to buy,buy because you want to live in it ,not for an investment

[zanny]

Also 10 years from now, you will have a 10 year old condo on your hands you are trying to rent out in a flooded market. Also you might get stuck with something you don't like about it, the view, the size, position, neighbours, whatever. What happens when there is a crazy bargirl who knows where you live, and you can't move?

 

On the other hand if you don't own one, you can rent a brand at new condo project every year you come here, with new fittings and furnishings, a different location, better pool, bigger bathtub, if you feel like being close to the action, or the beach one year, or want somewhere quieter the next.....

 

If you work out the math alone, renting a really nice place for 33k a month is 100k every year, so after 30 years you are still better off renting and that does not include all the choice and flexibility and less hassle it affords you.

Edited October 10, 2010 by zanny

[DrDepravity]

...If you work out the math alone, renting a really nice place for 33k a month is 100k every year, so after 30 years you are still better off renting and that does not include all the choice and flexibility and less hassle it affords you.

Some valid points, zanny but I don't get your maths.

 

After 30 years you've paid about ฿3M in rent which is enough to own a decent pad outright - disregarding expenses.

[zanny]

Well your 3 million baht is about $100k aussie dollars. An online savings account which I have at ubank.com.au get's you 6% interest so that would be $6000 aussie dollars or 175,000 baht. You are actually better off keeping your money earning interest or dividends then sinking it in "another Pattaya condo"

[DrDepravity]

Well your 3 million baht is about $100k aussie dollars. An online savings account which I have at ubank.com.au get's you 6% interest so that would be $6000 aussie dollars or 175,000 baht. You are actually better off keeping your money earning interest or dividends then sinking it in "another Pattaya condo"

Wish it was that simple.

 

If you're getting an income in Australia, the marginal tax rate is about 31¢ in the $ - and it can be up to 46¢ in the $. That can put a big hole in your $6K pa yield from the alternate investment.

 

You also need to consider that both rental prices and property values will escalate over the next 30 years. Inflation is likely to feature as a major worldwide phenomenon over the next decade or so as governments struggle to reduce their post-GFC sovereign debts.

 

I'm not saying turock1000 should rush out and buy a condo - it does really depend on each personal situation.

 

As a pure investment, I agree there's pitfalls and lots of better alternatives. But if he's intending to occupy, even if only 3mths/12 or in the longer-term - then it may well suit.

 

If he can get tenants then that should at least cover the holding cost - and hopefully enough left over for "entertainment" expenses for the 3 months he does spend there.

 

It's very much a personal choice.

[USANA-Thailand]

I was looking at doing similar but the only good management company seems to be Dancewatchers who are almost always booked out (And they will only take on the VT buildings) so if you're buying elsewhere like The Avenue, City Garden, PBH the chances are it will be hard to rent. Most real estate agents run by thai companies have terrible customer service and despite over demand and loads of vacancies won't go to any effort to even ask a land lord for 3month rental instead of 6 minimum etc.

 

However if you can find a good agent to rent it out for you, or you buy in a good location and keep advertising when it's available here it may be worthwhile. It's true Tax Rates are as high as 46% in AU so even though we have good interest levels it works out to be much less.. However we also have fantastic tax laws for writing off investment borrowings. (Even if it's abroad you can still negative gear).. Of course some people could take advantage of this and not declare their cash earnings and claim it all as a lost.. which would be very dishonest to the tax man and not recommended

 

Property Cycles prove that generally real estate will go up and with leveraged borrorwings it usually makes sense but there is risk of political instablitly in Thailand which makes it some what a gamble.

[turock1000]

Also 10 years from now, you will have a 10 year old condo on your hands you are trying to rent out in a flooded market. Also you might get stuck with something you don't like about it, the view, the size, position, neighbours, whatever. What happens when there is a crazy bargirl who knows where you live, and you can't move?

 

On the other hand if you don't own one, you can rent a brand at new condo project every year you come here, with new fittings and furnishings, a different location, better pool, bigger bathtub, if you feel like being close to the action, or the beach one year, or want somewhere quieter the next.....

 

If you work out the math alone, renting a really nice place for 33k a month is 100k every year, so after 30 years you are still better off renting and that does not include all the choice and flexibility and less hassle it affords you.

You have some very good points!!

 

I guess the idea of renting with my money in the bank is more comforting than owning a condo in a unstable country

 

Where i see the benefits are in the long term with increasing property prices, basically locking in a cheap condo before prices rise in the decades to come but will property increase in the future or will the over flooded market keep prices low?? will Pattaya become more and more popular in the future with Thais and Expats increasing property prices?? will i even want to live here in the future??

 

only time will tell

 

But while i see owning a condo to have many positives and negatives i think its probably not worth the hassle and risk for a 3 month stay per year

[midge]

hey Lads!

 

just been tossing the idea around lately of purchasing a condo in Pattaya and wanted some advice from the guys who have done so

 

What are the positives and negatives??

 

Is there much expense in the way of maintenance?

 

Is it safe to purchase with the internal problems of the country?

 

Is it easy to rent out your place or more of a hassle than what its worth?

 

I would only be around about 3 months a year so not too sure if it is worth the bother and is just renting the best way too go

 

Any testimonials would be much appreciated!!!

 

Cheers

:001_Sawasdee:For only 3 month a year to use yourself,i think it's not rentable to bye a condo.Make your movement small and nobody knows what happen in future in LOS.IMO i think better you wait what' going on.Cheers

[Wifi-ads]

I don't live in Pattaya but do have experience of living and working in a popular holiday area. I would never recommend anyone to buy a single property abroad and try to rent it out with all the hassles involved. Who'e going to call a plumber/electrician/maintenance man for you if your condo is rented out and there's a problem? How much will a managing agent stiff you? Will they let it out unkonown to you and "forget" to tell you about it? After 24 years in a tourist area I probably still haven't seen all the tricks.

 

If you want to invest into property do it in your own country where you can look after it.