Ombra Posted October 23, 2020 Share Posted October 23, 2020 I live near a condo which contains 48 apartments, and the owners are all foreign. It is mostly only busy during the high season, but this year no-one is expected to come. Given that it has been empty since March, can the company that owns the freehold and that provides the maintenance make a profit on an empty building from fees alone? They seem to do a good deal of maintenance, keep the swimming pool clean and full, and light the place well at night? If they have the fees, do they actually need tenants? 2 2 Link to comment Share on other sites More sharing options...
Popular Post Airalee Posted October 23, 2020 Popular Post Share Posted October 23, 2020 Your post makes no sense. Who exactly would be making a profit from fees? The owners who pay those fees? 6 Link to comment Share on other sites More sharing options...
Popular Post Peterw42 Posted October 23, 2020 Popular Post Share Posted October 23, 2020 (edited) 21 minutes ago, Ombra said: I live near a condo which contains 48 apartments, and the owners are all foreign. It is mostly only busy during the high season, but this year no-one is expected to come. Given that it has been empty since March, can the company that owns the freehold and that provides the maintenance make a profit on an empty building from fees alone? They seem to do a good deal of maintenance, keep the swimming pool clean and full, and light the place well at night? If they have the fees, do they actually need tenants? A company doesn't own the freehold, the individual condo owners collectively own the land. A condominium juristic collects fees from owners and maintains/repairs the common property. There is no income from tenants. The fees are held in a bank and pay for maintenance, repairs, upgrades, staff wages etc. The maintenance and costs for common property tends to be the same if the owners are there or not, the grass still grows, the pool still needs cleaning, light globes need replacing, insurance still needs to be paid. If maintenance is reduced then there is simply more money in the condo bank account to pay for future maintenance, repairs or upgrades. Edited October 23, 2020 by Peterw42 10 Link to comment Share on other sites More sharing options...
natway09 Posted October 23, 2020 Share Posted October 23, 2020 Read up about Juristic Committee, they simply collect monies from the owners to pay outgoings. It does not make money (or shouldn't). I think you will find that 51% of M2 ownership is absentee Thais who have leased or rented to foreigners 2 Link to comment Share on other sites More sharing options...
Lacessit Posted October 23, 2020 Share Posted October 23, 2020 It's probably less work to run an empty condo, garbage collection is one example. Although they may not be making as much money on electricity or water surcharges, so swings and roundabouts. Link to comment Share on other sites More sharing options...
SAFETY FIRST Posted October 23, 2020 Share Posted October 23, 2020 8 hours ago, Ombra said: , and the owners are all foreign. You'll find 49% only are foreign owned 2 Link to comment Share on other sites More sharing options...
scubascuba3 Posted October 23, 2020 Share Posted October 23, 2020 The office and staff can be a cottage industry with too many staff and even a separate management company, this is all paid for by the owners whether they are there or not, plus corruption is involved where I hear reports of companies having to pay extra to get the contract for painting and any work 2 Link to comment Share on other sites More sharing options...
Peterw42 Posted October 24, 2020 Share Posted October 24, 2020 14 hours ago, Lacessit said: It's probably less work to run an empty condo, garbage collection is one example. Although they may not be making as much money on electricity or water surcharges, so swings and roundabouts. Condos are individually owned and have individual accounts for their electricity, direct with MEA/PEA. Apartment blocks (one owner) can add to electricity but condo block have nothing to do with electricity bills. Link to comment Share on other sites More sharing options...
Peterw42 Posted October 24, 2020 Share Posted October 24, 2020 14 hours ago, SAFETY FIRST said: You'll find 49% only are foreign owned Often the other 51% is also foreign owned via a company structure. Link to comment Share on other sites More sharing options...
SAFETY FIRST Posted October 24, 2020 Share Posted October 24, 2020 2 hours ago, Peterw42 said: 17 hours ago, SAFETY FIRST said: You'll find 49% only are foreign owned Often the other 51% is also foreign owned via a company structure. Yes, there are foreigners that buy condos with a Thai company (I've never understood this) saying that Thai's buy condos with a foreign quota as they know the resale price is always higher for properties with foreign ownership. Link to comment Share on other sites More sharing options...
Surelynot Posted October 24, 2020 Share Posted October 24, 2020 On 10/23/2020 at 3:11 AM, Ombra said: If they have the fees, do they actually need tenants? My conclusion is no. I've been pondering on this very same thing. I live in a 'huge' condo....with every facility under the sun. Cleaners, security, pool staff, juristic.....there are way more staff than occupants...BUT....once all the units are sold in a condo they have a guaranteed income from the management fees.....as long as the costs are kept in line with the fees they are laughing.....who needs tenants? Link to comment Share on other sites More sharing options...
Peterw42 Posted October 24, 2020 Share Posted October 24, 2020 4 minutes ago, SAFETY FIRST said: Yes, there are foreigners that buy condos with a Thai company (I've never understood this) saying that Thai's buy condos with a foreign quota as they know the resale price is always higher for properties with foreign ownership. If a Thai person buys a condo its then in the Thai quota, if a foreigner buys a condo (up to 49% of the block) its in the foreign quota. Thais cant be holding foreign quota condos. A condo becomes foreign quota if its sold to a foreigner, otherwise its Thai . Link to comment Share on other sites More sharing options...
SAFETY FIRST Posted October 24, 2020 Share Posted October 24, 2020 49 minutes ago, Peterw42 said: If a Thai person buys a condo its then in the Thai quota, if a foreigner buys a condo (up to 49% of the block) its in the foreign quota. Thais cant be holding foreign quota condos. A condo becomes foreign quota if its sold to a foreigner, otherwise its Thai . Nope again. I keep correcting you. My daughter born in Thailand (Thai), has a condo in foreign quota. Link to comment Share on other sites More sharing options...
Delight Posted October 24, 2020 Share Posted October 24, 2020 29 minutes ago, SAFETY FIRST said: My daughter born in Thailand (Thai), has a condo in foreign quota. I am curious ! Do Thai people simply specify their choice- Foreign or Thai? Please explain ? Link to comment Share on other sites More sharing options...
Peterw42 Posted October 24, 2020 Share Posted October 24, 2020 (edited) 42 minutes ago, SAFETY FIRST said: Nope again. I keep correcting you. My daughter born in Thailand (Thai), has a condo in foreign quota. I presume you are talking about someone with dual citizenship Yes , if she has purchased it as a foreigner and imported the money from elsewhere. That is a foreigner owning a condo who happens to also be Thai. Otherwise a Thair cant own or hold a condo in the foreign quota, to suggest they can is just misinformation. Edited October 24, 2020 by Peterw42 Link to comment Share on other sites More sharing options...
Destiny1990 Posted October 24, 2020 Share Posted October 24, 2020 I think u should buy a condo there and find out the economics in reality.. Link to comment Share on other sites More sharing options...
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