How long does it take to find a buyer and sell a condominium (in normal times, not now)

[cmarshall]

10 hours ago, Peterw42 said:

 

Its often not much different to toyota leasing some land and building a car factory on it, they make cars for 30 years,  re-coup the initial construction cost, tax deductions and depreciation etc, make money for 30 years, then walk away. Add up the rent collected over 30 years and its a chunk of money and a profitable business venture.

Yes, I think you are right, after 30 years a renewal may be negotiated but not enforceable. 

 

Does an individual blue book exist for your apartment, or just one or the whole block ? 

 

I understand that factories have been regarded as disposable for sometime now, but I have never encountered the concept of a disposable apartment building until now.  In New York City some of the most desirable apartments will be listed as "pre-war," by which they mean pre-World War I.  I lived in one for a while and it was indeed superior in many respects.  In Paris I stayed in an apartment in the Fourth Arrondissement that dated from the 17th century.

 

I don't know about the blue book in my building, but will find out.  

[SCOTT FITZGERSLD]

in USA and europe the average time of selling an average residential property is 7-8 months.

In thailand the market is not real because many properties are on sale by banks who have long breath lo list them for many years, in high prices, because they do not want to write them off the books as a loss.

 

you better check the financial advantage of buying a property vs. renting one.

is the renting cost is 3-4% as it is in most developed economies, maybe you better rent, and invest your USD in some low risk investment, like CD or U.S. bonds.

Even banks in cambodia are offering 6% on deposits for 3-4 years.

 

In thailand you might also consider the risk of devaluation of the baht, that might get to 37-38-45 bht to USD, and offset any rise in property price.

[CH1961]

Note to all tenants ... 

 

Don't be confused. Do not buy any condominium. Renting is a wise decision. 

 

Thank you for support. 

Sincerely, your landlord. 

[smutcakes]

7 hours ago, AlexRich said:

What does buying a condo in Bangkok as an expat actually mean? It is effectively a 30 year lease, combined with annual maintenance charges. Sure, some people may be fortunate enough to sell a few years later for more than they paid, if market conditions permit. But many I have read about have lost money or ended up with an asset that is difficult to sell. Buying a condo in Thailand is no slam dunk.

No its not, condos by their very definition are freehold land owned by the collective owners into perpetuity. A few condos are called leasehold condos in the marketing fluff, but you can be sure it never says Condominium in the Lease agreement.

[smutcakes]

14 hours ago, cmarshall said:

Well, now that's confusing.  I am certain that the building where I rent is built on leased land because all the buildings in this area are known to be built on leased land.  But the building is always called a condominium and apartments are offered for rent or for "sale."  So, what you're telling me is that condo does not mean condo and buy does not mean buy.  Very interesting.

 

Nevertheless, it still raises the question that if, as I have heard, the lease on the land is indeed for thirty years then the "owner" of the apartment block is going to be left holding the bag at the end of the thirty year lease, possibly owning nothing.  I understand that while there may be a renewal clause in the land lease such clauses may not be enforceable.  Is this the case?

 

I presume you mean the Langsuan/Lumpini area. A large amount are leased from the CPB (or affiliated/subsidiaries/foundations) so any apartments/residential on this area by definition cannot be condominium buildings, despite what they call themselves. There are a few anomalies on the west side of Langsuan road and a few others scattered around like Nimit Langsuan,  although not complete, 185 Rajdamri (Raimon Land) Lumpini Ville etc which are Condominiums.

 

Your 2nd paragraph is correct which is why personally i would never take a leasehold unit in Thailand. Renewal clauses seem to not be enforceable, but like with anything there are grey areas and many many considerations as to what would happen at the end of the lease.

[soi3eddie]

"Money is made on buying a property and not selling it". If bought at a good (discounted) price then on future sale it is likely much easier to sell.

 

If bought in a "good" location - easy access to transport, shopping, dining, entertainment or parks etc. with parking then the old saying of location, location, location holds ever true. These are all value propositions and will likely result in an easier sale in 10 years time. Being close to the BTS/MRT is very important but less desirable if it means 1 hour on a train from central areas such as Siam or Silom. Walking 20 minutes from a station is no fun in the heat or the rain and motorcycle taxis take time and add costs too. Buying somewhere that is desirable to both Thais and Foreigners makes perfect sense for an easier and faster sale. Layout of property, facilities and potential nuisances (noise, neighbours or pollution) are important considerations.

 

For some people, ownership is important as it gives security and a happier life and the freedom to decorate and modify their home as they wish. No chance of being kicked out or ripped off by a greedy landord. On the other side, renting suits many people who don't have to "invest" millions of Baht but may have lower rent payments and can leave at short notice. Newer units have much smaller room sizes than older units. Older units likely have bigger rooms but may need renovations and updating. It's a personal choice whether to buy or rent and each of us have a preference depending on circumstances. As for sale then from what I've seen, the real estate websites here (HipFlat, DDProperty etc.) often have poorly listed properties with lack of pictures, limited description and sometimes even no price. If advertised well by the owner and motivated agents at the right price, in more normal times, I see no reason why a sale should take any longer than 9 months. Be sure to buy where there is foreign quota so as not to rule out overseas buyers. As mentioned in another post, Thai buyers that need to borrow for a resale unit will find it harder to secure a mortgage and at rates less attractive than newbuild.

 

My experience; I bought my 2 bed/2 bath 78sqm BKK freehold Condo in 2009 for 6 million Baht. On 5th floor of just 8 floors only 280 metres from BTS Sanampao (20 minutes from leaving my unit to arrival at Siam BTS) with parking and a rooftop pool overlooking neighbours gardens. Only 3 foreign owners here out of 90 units with most owners being professional type Thais (still can't see why so many of them feel the need for their Benz's when so close to BTS). A well managed project with good team of staff - security, engineers and cleaners). Initially bought just as an overseas "holiday home" which I furnished comfortably for me and my family. For a few years it was rented on TripAdvisor which worked well back then. Now I just use it for myself (after divorce) and have been here all through Covid which is definitely better than being in the UK (where I own two properties but choose to live in a rented flat). Thailand feels like home and I wouldn't want it any other way right now. Would I ever sell the BKK Condo? Unlikely, I will leave it to my half Thai son as inheritance.

Edited November 23, 2020 by soi3eddie

[CH1961]

3 hours ago, soi3eddie said:

I bought my 2 bed/2 bath 78sqm BKK freehold Condo in 2009 for 6 million Baht. For a few years it was rented on TripAdvisor which worked well

And you paid tax for? 

[Yellowtail]

2 hours ago, CH1961 said:

And you paid tax for? 

 

Does it make a difference? 

[Hanuman2547]

On 11/20/2020 at 7:13 PM, Lacessit said:

Put me in a straitjacket and take me away if I ever think of buying a condo in Bangkok. A city that's 1 metre above sea level?

People have been talking about Bangkok sinking into the sea for over 40 years. Back then they said in 20 years Bangkok would be flooded. Well, it's still here and other than the rainy season it's still holding steady above ground. 

[Hanuman2547]

Location, age of building, and supply/demand would be very big factors in selling or buying a condo. Sure, a newer condo in lower Sukhumvit, despite a much higher price, might sell quicker than say an older building in Pattaya like View Talay 1 or 2.  This is without taking into consideration the local economic situation or current immigration policies. 

[cmarshall]

8 hours ago, Hanuman2547 said:

People have been talking about Bangkok sinking into the sea for over 40 years. Back then they said in 20 years Bangkok would be flooded. Well, it's still here and other than the rainy season it's still holding steady above ground. 

 

That's a relief since as you no doubt astutely point out something that hasn't already happened cannot happen in the future despite the overwhelming consensus of scientific opinion.