Hi everyone, this is the 2nd episode of our Invest Bangkok Property Ask Us Anything.
In the following video, we will be answering 6 questions posed to us by some clients.
Here are the questions we dealt with in this video.
Question: Why Are Prices Of Condominiums Different Within The Same Area?
Answer:
In Bangkok, it is interesting to see development prices varying as much as 20 to 30% when they are all located in the same vicinity. There are many contributing factors.
Firstly, you have to understand that in Bangkok, condominiums come in various grades. A condominium can range from having super high-end luxury finishes to the mass market where the developer squeeze 1000 over units within 1 tower block with average quality finishes.
There could also be high rise developments on the main road with a full plethora of facilities versus a low rise in the small lane with just a 20 meters pool and a simple gym.
These are all reasons why condominium prices can vary in the same location. And at the end of the day, these factors will also affect your rental demand and resale value.
Question: Should I Consider Buying Resale Versus New Launches?
Answer:
It depends. Resale condos are normally cheaper than new launches. A lot of resale condo on the market are quite run down with limited facilities.
Tenants may more than likely demand newer condos with better facilities.
However, having said that, there are still some resale condos that represent good value. You just have to find them.
There are also instances that investors may prefer new launches because typically, an investor is only required to pay a portion of the property value before it completes. And in between the purchase till completion, the investor can choose to sell on the property for a profit if the situation allows.
Over at InvestBangkokProperty.com, we also can assist our clients who may be interested to look at resale properties. We run an agency in Bangkok and will be able to source for quality properties locally.
Question: Do I have to pay tax when selling my property in Bangkok?
Answer:
Yes, there are taxes involved. We have a holistic article on the taxes to pay when selling your property in Bangkok. You may read more here: Thailand Property – Legal and Tax Issues.
Question: How should I transfer funds to pay for my property in Bangkok?
Answer:
For foreigners, you have to wire the funds via the bank. The wiring of funds has to be done in your respective foreign currency, not Thai Baht. This is a process that must be done right or you may encounter difficulties during the title transfer.
Question: What are the payment schemes for buying property in Bangkok?
Answer:
In Bangkok, for the purchase of new condos, you are typically required to first pay a deposit to the developer. This amount could range from THB100,000 to THB200,000.
Then within the next 14 to 30 days, you will be asked to make a transfer of about 25% to 30%. Once that is done, the developer will then proceed to prepare the Sales and Purchase Contract.
As for the final balance, it shall be payable when the condo is completed and ready to transfer.
The terms of payment will differ with different developers.
Question: Can foreigners get a loan to purchase property in Bangkok?
Answer: Yes, foreigners can get a loan. However, do note that a loan can only be secured upon completion of the property. There are a few banks that offer property loans to foreigners.
Typically, the loan to value for foreigners is up to 60% or 70%.
For the list of banks available, you can contact us for more information.
Got a question for us? Email us at [email protected]
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