6 Important Factors That You Must Consider Before Buying a Condo in Thailand
6 Factors to Consider before Buying a Condo in Thailand
Thailand is the "Land of Smiles” and perhaps one destination that every traveler wishes to visit someday. Moreover, if you are an avid traveler who goes on vacation two or three times a year and loves to hit the beach, then Phuket Thailand is indeed the best tourist spot for you.
Not all are satisfied with just one visit, and therefore, decide to invest in buying a condo in Thailand. This is an investment where they can rest during their long vacation and rent out when they are not using it.
While investing in a cheap condo in Bangkok makes sense, there are certain factors you must look into before buying a condo in Thailand.
This year Forbes named Thailand as one of the top 10 places in the world to retire. This was based on a number of factors that put Thailand in the top 10 in the world. Whether you're considering something near the beach or something in town, Thailand offers something for just about everyone.
Thailand's climate is ideal with only two seasons, wet and dry. With an average annual high temperature of 32 C and an average annual low of 25 C. The weather during the wet season is by no means unpleasant and crowds are down during this time.
Is it really worth it?
Before you proceed to invest in a condo in Thailand, check to see if the investment is really worth it.
One of the best ways to compare condominiums in Thailand is by comparing the "price per square meter". Calculate the price per square meter quickly by dividing the purchase price by square meter size of the unit. Researching property listings online can help tremendously to establish an average price per square meter for the area or areas you are considering.
Does the condominium have ample facilities, and are they nice? It's good to know that all the facilities that you and your family could need are available.
Is buying a condo in Thailand a good investment?
The upward price trend for condominiums and properties in good locations is consistent over the last 15 years. Plus, prices are quite resilient when the market turns down and in Thailand significant price drops are rare. It is predicted that Thailand's tourism industry will continue to grow for many years to come.
How big is the space?
Buying a condo in Thailand might not resemble the kind of space you are used to or need.
Buyers from Hong Kong consistently comment that the condos in Thailand are big. However, not everyone feels this way.
On average studio condominiums in Thailand are about 450 square feet in size including the balcony. One-bedroom condos average about 600 square feet and two-bedroom condos average around 1,000 square feet in size.
Typically the older the condo the bigger the condo.
Quality of construction
The construction sector in Thailand has not changed much over the years.
Most of the condominium construction crews in Thailand are Burmese workers. Though they are underpaid, they do not lack skills. In fact, it is unbelievable how resourceful these workers can be given they work with minimal power tools and machinery.
The main materials used for condominium structural work is concrete with steel reinforced bar. Simple, strong and durable.
While professional developers typically do not cut corners, less professional companies might be tempted.
Construction quality is a function of three primary components:
1) The quality of architectural, structural and engineering drawings
2) The quality and specification of material
3) The quality of workmanship and on-site supervision
Quality of fixtures and furnishings
Good quality fixtures and furnishings is one of the most fundamental factors underpinning the value of your condominium unit. It also plays a crucial role in the avoidance of ongoing repairs.
While poor fixtures and furnishings will not only show premature signs of aging, they can significantly depreciate the value of your condo unit. Good fixtures and furnishings will provide an enduring benefit to your asset and age well with time.
It should be evident, choosing the right developer is an issue of fundamental importance both to your finances and your mental health. It is easy to find a developer through advertisements in local property magazines, through internet searches, or billboards.
The most important step is to sort the good from the bad and focus only on the best developers. Your real estate agent will be of tremendous help in this area.
Buying a condo in Thailand requires some research. Selecting a developer that not only has condominium construction experience but condominium construction experience in Thailand.
Is your condo overpriced?
In most western countries, a condominium can be valued by an appraiser.
In most western countries your realtor can provide comps of what other units sold for in the same building. However, in Thailand, Vietnam, Malaysia and Indonesia buyers tend to pay what they think a property is worth.
Thailand does not have a multiple listing service (MLS) to assist realtors in helping buyers compare prices and comparable units.
Again, a good technique to compare properties is to calculate the price per square meter.
Property valuation takes into consideration factors such as general economic trends, location of the property, condition of the general property market, general demographics, any recent renovations, and of course the property itself.