Six Essential Things to Consider when Buying Second-Hand Condos

04 ก.ค. 2017 เทคนิคการซื้อขายเช่า



When we talk about “second-hand” many people would harbour a misconception that it must be old and run-down, needing major repairs. However, when it comes to the real estate products such as condominiums, “second-hand” does not always mean decrepit and dilapidated.

This is because when a condominium unit changes hands from one owner to the next profits are generally made. An example is when the owner of an unfinished project sells the down payment obligation to a new buyer even while the project was still under construction or the construction has not even started.

In reality, this is no difference from buying a brand-new unit on the very first day of offering. Therefore, buying a re-sale condo means just buying from a person who bought the unit on the pre-sale day or VIP day which entitled the first buyer to choose a unit with the best preferable view and floor without having to queue up.

You would thus save time and the energy to drive to inspect the project. If you are one of those who are looking for a ready-to-move-in second-hand condo unit, there are a lot of choices in the market from newly-completed projects to old projects dating from the early days of condominiums in Thailand.

For new projects built in the past five years, the prices usually appreciated according to the land price mechanism, and the units are also generally smaller.

This is compensated by more modern floor plan designs to maximise the functional demands and are practical for modern living. At the same time, the common areas are also maximized to compensate for the smaller living units.

Therefore, new projects would compete to offer better and more comprehensive central facilities for the unban tenants. If a project is more than 10 years old, you must accept that it is an old condominium building. However, this is counterbalanced by lower prices, excellent locations and large airy units.

The design of an old project is also dated with simple boxy design unlike the new aesthetically pleasing designs of current condominium projects.

But if you talk about value for money, these old condominiums are the worthy investment especially for those who look for a place to actually reside in, as the units are generally larger while some projects are located in excellent areas. Best of all – the prices are lower than those quoted by newer projects as in those days land prices were not as high as at present.

In some cases, many members of the new generation have their own styles that they can significantly decorate or renovate the units to fit their own images, as evident in several renovated units in old condominiums that we often see.

So much so that a ripple has been created in the demand for old condo units. However, some knowledge and experience are needed to choose old condo units that are perfect for you.

Today, Plus Property will reveal some tips for choosing second-hand condo units for your own residency from the experience of real-life real estate gurus:
  1. Good location
    A good locations must consist of three attributes – “near”, “complete”, and “value for money”
    • “Near” – Means close to significant places such as schools, government centres, offices, shopping centres, expressway or mass transit train stations
    • “Complete” – Means the abundance of amenities for daily living both within the project and nearby, along with lifestyle areas that can answer your demand
    • “Value for Money” – Means the price compared to new projects located in the same vicinity must be lower or the price per square metre must be lower than nearby projects in the same segment

  2. Project Inspection
    Being a second-hand unit means that you can view the actual project. To feel the ambience and the atmosphere inside and of the area surrounding the project to compare the negative and positive aspects.

    You can judge for yourself whether you like the view from the particular floor and how do you like your prospective neighbours and whether their lifestyle matches yours. Also, you can see whether the common areas are in working order along with the upkeep.

    Those are all crucial factors that can tell you whether the project is good or bad. Because, in the end, you will know right away whether you will be happy living here. All these, you will find it difficult to tell in a new project or a first-hand project.

  3. Cashflow of Project
    This is another important matter, because no matter how good the unit or the project looks, if the juristic person does not have the ability or the experience to manage the project or if there is dishonesty among the committee members, it can become the new unit owner’s biggest nightmare.

    Therefore, it is wise to check the cash flow and the income and expenditure of the project to ascertain its viability. This is because if the cashflow is minimal, any repair or emergency maintenance will be difficult.

    If the cashflow is healthy then you can be sure of an efficient management, in which case you are the big beneficiary from the already existing capital.

    “For some projects, the cheaper prices may not mean a really good bargain for you. You must look at the shared debt and the risks, because without a sufficient central fund the project can deteriorate very quickly.

    On the other hand, for new project, we can only hope and dream that the juristic person that will come in to manage the project will be reliable and effective.”

  4. Must be tangible
    The purchase of a second-hand condo or re-sale condo for an actual residence is akin to buying a cheap merchandise at this time. If the project is well maintained and managed, the value will constantly rise and even multiply.

    At least it will be an appreciating asset because after you have acquired it, the value will continue to rise. It can be said that you will gain both the asset and the profit if and when you decide to sell in the future.

  5. Reliability of Agent or Representative
    Purchasing real estate from a reliable and trusted representative will decrease the element of risk and increase the opportunity to check the facts and investigate the background of the representative as to his/her employer and the company.

    Usually a respected representative or agent would be able to help with all the paperwork including contracts and deed transfers. They would also act as the astute middleman between the buyer and the seller, until the sale has been concluded and the transfer completed.

  6. Carefully Check Deed & Ownership
    When buying a second-hand condominium unit, you need to check if the seller is really its rightful owner entitled to enter into the legal transfer of the unit. You must verify that the transaction will be absolutely lawful.

    In the case that a previous transfer has been made, a contract specifying the intent to sell and to buy must be made along with an amount of deposit.

    The back of the title deed must be scrutinised to ascertain the rightful owner. A copy of the Or. Chore. 3 title deed may be an old copy made before subsequent changes in ownership and the back does not show those changes.

    Therefore, you must ask for the actual title deed to make sure, while a letter confirming the payment of the deposit must be signed and sealed.

Those who are interested in homes and other living arrangements, may look up interesting articles at www.plus.co.th. Plus Property, as a professional real estate agent with the expertise in the transaction and rental of real estate supported by a very experienced team, is ready to provide you with the consultations on homes and other living arrangements.

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Find your right condo unit: Bangkok condo for rent, Condo for rent, Condo near BTS/MRT

Explore how PLUS can help manage your property: Living & Property Management, Facility Management, Sole Agent, Bangkok Condo For rent

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