Wednesday, December 26, 2018
Bangkok provides property investors with multiple opportunities that are diverse. If you are not systematic and well-informed, you might find that buying is a confusing process. Gather as much information as you can about the property market in Bangkok, before making a purchase.
Go for the right strategy
At the time of buying a condominium, you must try to understand as to what is important for you. In short, you should set your priorities right. You should decide whether you are an investor who is looking for capital appreciation or rental yields or as an end user seeking a retirement. You might even just want to own holiday home as well. Thus, you should know your main purpose of buying.
Most of the low priced units look the best value as an investment. Keep in mind that a high-density development of well-sized. Usually, furnished apartments are more difficult to resell it. This is mainly when many units enter the resale market. Thus, the supply could get higher than the demand.
Take steps beforehand
You need to act quickly, no matter what. When a project is released, you must move ahead mindfully. Pick the unit or units that suit your requirements in the best possible ways. Never delay in the decision once sure.
Make wise buying choices
If you are an overseas buyer, you can pretty much buy a condominium unit under your own name. However, the condominium you select needs to come under the 49 percent sellable square meters maximum allocation to foreign buyers. You might need to insist on foreign ownership whenever possible. At the time of buying a condominium for resale purposes, you need to try to buy in foreign ownership. In usual, the Thai unit pricing is lower because it can solely be sold to a Thai national or Thai company.
Check the apartment size
Keep in mind that a good sized one-bedroom unit between 40-50 sqm. can draw a longer-term tenant for a minimum lease period. This lease period can be of 6-12 months. A smaller 22 sqm studio is only suitable for monthly short term holiday lettings. There are plenty of agents who may not consider listing a low income generating property for short periods. This is mainly due to low commission and time consumption. You can simply go for a small studio if you just need a nice holiday accommodation for yourself.
Do not go for oversupply
You can consider low or medium density project in areas where there is not an oversupply. Go for this if your investment strategy is mainly to attain a good deal of yield by renting your property. Keep in mind that long-term corporate tenants may demand good access to highways network. When it comes to retirees, however, they usually prefer a view of the sea. Even long-term tourists want to be close to a beach or local amenities.
Check the maintenance
At the time of buying a condo, you must check the maintenance fees of the building. As per the norm, you are supposed to get what you pay for. There are certain developments that might require a low maintenance fee. However, you can expect that the property will not be well-maintained. It might be badly managed. Thus, it will look dreary in a short while. Thus, it is not likely for you to get good tenants in that case. So, you must expect to pay between THB40-50 per sqm. for a truly well-maintained building.
Consider the extra fees
There are many houses that are resting on pound coin stacks concept. They are doing so for property ladder, mortgage, and real estate investment. You must ensure to check as to who is responsible for these things as a land office transfer fee, specific business tax and withholding tax. In general, the land office transfer fee is split in half and half. The rest of the remaining taxes are paid by the developer or landlord. However, you might come across unexpected fees in case you don’t go through the contract well enough.
Know about sinking fund
Make sure to ask what the sinking fund is payable to the juristic management. Do so right after transfer of ownership. The sinking fund is a contingency fund that is usually held by the juristic office. This is important to pay for building upkeep. The repair work is not really covered by maintenance fees. This might include painting the building or roof repairs at a later stage. When it comes to a new building, the sinking fund is not really used for the first few years. However, in older buildings, the co-owners might be required to top up the fund every now and then.
Hire a lawyer, if necessary
You might just think of using a lawyer in order to read through the sales and purchase agreement. He can handle the transfer in your absence pretty well! It is a fact that many buyers are told they don’t need a lawyer when they clearly do! Buyers need to keep in mind that a good lawyer will always explain the contract to you. So, make sure you understand everything inside out.
Go for a genuine agent
Make sure to use a well-known real estate agent. This will ensure you to receive good advice on buying a property in Thailand. Try to visit the offices of the agents. This way you can assess their ability to look after your investment, especially when you are not in Thailand. This applies to you, whether you wish to rent or resell your property.
You must receive a professional after-sales service from someone you can actually rely on. A professional agent usually makes you aware as to which developers you should tend to avoid. They come up with real good recommendations of tried and tested developers for you. Usually, agents provide the best possible information. After all, they pretty much want to keep coming back every time you buy.