Buying a secondhand condo offers several advantages, including potentially lower purchase price and maintenance fees compared to new units, the possibility for negotiation on price and terms, the opportunity to assess construction quality, and gain insight into historical market performance. Add to that there is already established infrastructure and amenities in the surrounding area.
In Thailand, abundant resale properties are available. Be it in Bangkok or popular destinations like Chiang Mai, Pattaya, Phuket, Koh Samui, and Hua Hin. Some are brand new as investors purchased off-plan and are reselling them. Other preloved properties in older buildings may be larger but with fewer communal facilities.
This buying guide highlights key factors to assist your decision-making if you are purchasing a condo to live in or as an investment.
Location:
The location of the condo is crucial. In Bangkok, being close to mass transit connections and expressways is ideal. Consider factors such as proximity to shopping centres, schools, hospitals and recreational facilities. Being close to parks is another plus. Evaluate the neighbourhood for safety, cleanliness, and overall appeal.
Condition of the Property:
A detailed property inspection is a must. Carefully assess the condo's condition, looking for signs of wear and tear, structural issues, or maintenance problems. Consider hiring a professional inspector to conduct a thorough property inspection.
Additionally, examine the project for signs of defects in construction, maintenance issues and the overall upkeep and tidiness of the common facilities like gardens, car parks, reception and other public areas. Get a feel for the ambience and atmosphere. Is it positive? Is it a place you would feel proud to call home?
Facilities and Amenities:
Assess the available facilities and amenities within the condominium complex. Particularly in newer builds, a wide range of shared amenities are offered. Swimming pool, sauna, jacuzzi, fitness centre, kids pool and play area, pet lawn, co-working facility, garden and bbq, parking spaces, security systems, meeting rooms, and convenience store may be onsite.
Older complexes may have fewer 'bells and whistles'. Decide whether these amenities meet your requirements and add value to the property.
Developer's Reputation:
Find out the developer of this project and their other projects. Research their reputation, construction quality, reliability, and ability to deliver on their promises. A second-hand condo (like most buildings) deteriorates over time, so gaining insight into the developer's other projects may help with your assessment.
Condominium Juristic Person: Management and Maintenance, Regulations and Fees, Cashflow:
In Thailand, a 'Juristic Person' oversees maintenance, financial management, enforcing rules, dispute resolution, security, safety, and administrative tasks. The developer sometimes maintains this position, particularly in newer properties.
Ascertain how well the property is maintained and repairs carried out. If possible, find out the responsiveness of the juristic person to residents' concerns or emergencies.
Familiarise yourself with the condo regulations regarding renting out the condo, pets, noise, use of communal facilities, and adherence to building laws. Establish the cost of management fees.
Review the cash flow of the condominium yourself or have your lawyer or accountant do so. This is a critical matter. If the juristic person is incompetent or there is dishonesty, it can become your worst nightmare. Assess the income and expenditure. If fees are not being collected, or expenditure is unwisely spent, attending to repairs, maintenance, and renovation may be inhibited, impacting the value of your property.
Title Deed and Ownership:
Engaging a reputable lawyer to assist with the legal aspects of this process is essential. This includes checking the title deed and ownership documents, and the seller has the right to transfer the condo. Any outstanding debts or disputes should be revealed during this due diligence process.
Seeking this professional advice, be it a lawyer or accountant specializing in Thai property law, can provide guidance, ensure a smooth transaction, and protect your interests throughout the buying process. Sure, it will add to the overall costs. However, it provides peace of mind and can safeguard your investment.
Resale Potential / Value for Money:
Factors like location, condition, amenities, and demand in the area influence the property's future value and help you assess resale potential. Also, check out online prices of comparable properties. Your Lazudi real estate agent can also provide insight on this front.
Are you moving to or living in Thailand and planning to buy or sell property? Lazudi is a leading tech-enabled brokerage with top agents and offices throughout Thailand, ready to assist whether you are buying, selling or renting.
