Answer these questions to help you to invest safely in Bangkok and the rest of Thailand.
by Sirichot Chaiyachot.
Purchasing a condominium is always a good option from a legal point of view in Thailand, since Thai law does not allow non-Thai nationals to either jointly or solely hold the ownership of land in the Kingdom. So, how can you identify a good investment?
By following these simple tips, I am sure you will find the ideal condominium for your investment:
1. Property’s Location
Is it close to the following places? BTS, MRT, airport link, food shops, shopping malls, convenience stores, and entrances and exits to the expressway.
Where it is located? In a dark, small and/or narrow soi (alley), or on main roads like Sukhumvit, Ratchada, or Sathorn Road in CBD areas like Siam, Chidlom, Ploenchit, Ratchadamri, or Silom, along the Chao Phraya River, or in the Ratchada, Sathorn, Ekkamai or Thonglor areas.
2. Price per Square Meter
Older, well-located, and properly maintained buildings frequently offer far better value than brand new projects. A large (100+ square meters) property can often be had for less than a much smaller unit in a new development.
3. Facilities and Project’s Area
How many swimming pools are there and how big are they?
Is there a fitness center, and does it seem to have enough capacity for 10 to 20 people to use it at the same time? A big lobby, saunas, a library, a playground, tennis courts, a garden and other similar facilities?
Are there any laundromats, food shops, or convenience stores inside the project or close to the project?
Is there a shuttle bus or a van to drive you to the BTS or MRT, airport link, the closest shopping mall or the main road?
Are there key cards that can access the main entrance of the building and can be used only for a certain floor? Is the lighting around the project sufficient? Is CCTV around the project sufficient?
Is there a 24-hour security service and no fewer than five security staff per shift in a medium-sized building? Are the walls surrounding the project high and stable enough for proper security?
5. Room Layout
The most useful and functional room layout should be square or rectangular in shape. It should not be a half circle, triangle, trapezium, or other shapes.
There should be at least a small balcony for drying clothes and putting out some small flower pots.
The kitchen should be far enough away from the bedrooms to avoid ants, cockroaches, and other insects, as well as food odor coming into the bedroom.
Are there enough sockets available for each room, and are they located in functional areas?
6. Car Parking
There should be no less than 40 percent car parking spaces for the total units of the project, or at the very least one fixed car space for units 60 square meters or larger. Fixed car spaces are normally included as part of the purchase price and as part of a unit’s area.
The distance from your unit to the closest land should not be less than 30 meters. If the view from your room is right next to the river or klong (canal) or main road, you can be assured that there will be space enough from your project to any other project that may be constructed sometime in the future.
You should avoid units with direct sunlight in the morning or afternoon. These units can be hot and lead to high electricity bills.
8. Height of Floor
Usually, the price of the units on the higher floors will be higher than the units on the lower floors. If your intention is to rent units out, it is not necessary for you
to purchase units on the high floors, although they may command a slightly higher rent.
9. Reputation of the Developer
This is very important if you are going to purchase an off-plan project. You should be confident the developer is reliable and reasonably sure they will be able to complete the project in time, or certainly with no more than a one-year delay. In the event that they do delay the work, you should ensure there is an appropriate penalty in any Sale and Purchase Agreement.
Do a proper check of the background of the developer and investigate the quality of their previous projects and the feedback from their previous customers.
10. Common Area Fee
The average common area fee in Bangkok is around THB 25–120 per square meter per month, and it depends on many factors, including the building facilities, the security of the building, the competence of the condominium juristic person staff, and the area of the project.
11. Condominium’s Juristic Person
Do they have any English-speaking staff? Are they professional, competent, and helpful?
12. Average Rent in Nearby Area of Comparable Quality and Standard
This is quite important if you are going to rent the property. You must know the average monthly rent in the same area. Is it worth it for your investment?
It may well be worth paying an agency to find a tenant, or for this agency to collect the rent from any tenant or to assist you in the resolution of any problems.
Please also be aware that housing and construction taxes will apply in the case of apartment renting. At present, these taxes are 12.5 percent of the total rent per year paid to the local government authorities.
13. Quality of Materials Inside the Unit, and Construction, Fittings, and Furniture
This is quite important if you are going to use the property as your main residence in Thailand. However, up to an extent it is obviously a matter of personal taste.
Good luck with your investment in real estate in Thailand!