Recent flooding activity in Thailand has caused the demand for condominiums to rise. Some people are either opting to buy a condo as a second house or just as an investment. Either way, certain questions are starting to crop up, as they begin to search for a condominium. These are some of the major factors each buyer should consider while buying a condo.

Recent flooding activity in Thailand has caused the demand for condominiums to rise. Some people are either opting to buy a condo as a second house or just as an investment. Either way, certain questions are starting to crop up, as they begin to search for a condominium. These are some of the major factors each buyer should consider while buying a condo:

On-plan or Off-plan Site

An on-plan site refers to a condominium project which has already been completed and ready to be occupied. The advantage of buying a completed project is that you see the end result instead of settling for an architect’s vision. What you see is what you will get in terms of unit size, the view (s), facilities, common areas, etc. The only problem posed with this avenue is the relatively limited supply of completed projects, open for sale. In most cases, very few units are left unsold by the developer, which leaves the secondary market as the available option. Now that can be very expensive. Another option is to buy an off-plan condo, which simply refers to an uncompleted or yet to start condominium project. This avenue offers the benefit of being able to choose from a wider option, plus at a cheaper cost. The risk is not being able to see the actual completed project physically.

Pricing

Pricing is one of the major concerns, while shopping for a condominium. On average, the prices of condos in Bangkok have increased by 5.2 percent y-o-y, for completed projects. However, the average price of off-plan projects has slightly decreased due to the shift in focus this year, from the luxury to the mid market. But projects located in prime CBD locations, which have access to a mass transit stations still continue to command a high purchase price. This year promises to offer good opportunities for buyers, due to the various promotions offered by developers for units left for sale. There are also good offers from existing buyers, who dispose of their units before transfer of ownership.

Mode of Payment

If you have liquid cash, then you should be ready to go. But, if you opt to buy a condo through a mortgage, you need to calculate the amount you will pay in monthly installments and convert that back to the price of the condo. Accommodate 10-30 percent of the purchase price as a down payment.

The Location

You can ground your search to a particular area of preference. You can do so through the internet, bill board, magazine or real-estate agent. In view of the recent flooding, it would be wise to check whether the area where the building is located was affected by the flood. Building in the areas that remained safe is naturally more expensive but given the security you will feel, it will be worth it. Finally, make sure you check the credentials of the developer. Again, I would recommend paying more if you are sure your building will be built.