Executive Condominiums, The New Way Of Housing

The executive condominiums are a type of housing that is becoming very popular in some parts of the world. The first one was constructed in the year 1994. This housing is somewhere in between private housing and public housing and they really look like private condos. They are usually enclosed and come with security and a gated compound. One other thing that can be noted about the executive condominiums is the fact that they come with all sorts of amenities that the residents can use. These include things such as playgrounds, clubhouses, and swimming pools. The executive condominiums are also usually sold and built by various private developers who are well known in the construction circles.

The construction is encouraged by the government and their construction is actually done at a much lower price. This is because the land prices come with subsidies from government. The CPF, Central Provident Fund grants can be taken by the buyers so as to assist them in paying for the executive condominiums as sold by the developers.

The executive condominiums are subject to regulations such as those that are applied to the different HBD flats. There are several limits and restrictions that have been put forward with respect to the ownership. The minimum period of occupancy for such condominiums is at least five years. During this first period, the executive condominium can be up for sale and it cannot be rented out wholly. After the first period, the citizens and the permanent residents can buy the property. After ten years have elapsed, foreigners can gain access to it.

There are executive condominiums located in different parts and the developers are usually well known in their circles. Usually, they include different blocks and come bearing hundreds of housing, residential units and most of the time they are luxurious. The establishments usually cover some sizable lands, creating space for all sorts of family related activities.

Usually, they are created in such a way that they have facilities that make life even easier. They include things such as:

· Lush landscaping

· Sky BBQ

· Tennis court

· Clubhouse

· A lap pool

The location of such projects is also thought out carefully. They are established near public transportation as well as expressways which allow commuters to connect to all other parts of the areas with great ease.

You also find that there are different amenities near such establishments. They include eating houses, minimart and shops for those with banking needs, retail and full dining needs. Apart from the amenities, education center, childcare, food court and supermarket are usually created so as to supply the resident with all the things that they may be in need of.

The units are designed in all shapes and sizes and the most essential aspect is the space that the residents are able to enjoy. Different family sizes can find a suitable unit with great ease. Grants are also given to assist citizens’ access to the property. If anyone is in doubt, financial calculations can be done so as to help you know whether you are actually eligible to purchase an executive condominium unit.

Offices, Condominiums and Apartments – How Have Things Changed In The Past 10 Years In Bangkok?

Hi. I’ve been working as a real estate agent in Bangkok since 2006. In that time I have seen some changes, but surprisingly very little has changed. Let me explain.

Apartment Rental Prices Bangkok 2008 – 2018

Rental prices of most apartment buildings have increased very marginally over the past 10 years. Whereas a spacious 3 bedroom apartment in Sukhumvit area would have cost 70,000 Baht 10 years ago, it may cost you 85,000 Baht today. That’s only a 20% increase over 10 years, actually far less than inflation, and in many ways an apartment is cheaper now than 10 years ago.

Why? It’s difficult to say but I would guess that ongoing political problems, 2 coups, and a pretty stagnant economy barely kicking over at around 3% growth in GDP each year are the reasons. This level of growth may be acceptable for a world leading developed nation, but for Thailand that (let’s face it) still has some way to go in terms of development, it’s not very good.

The apartment rental market in Bangkok is mostly governed by expats. Thai people don’t rent at these prices, either they don’t earn enough, or are sensible enough to buy a property in the suburbs, or are part of the immensely wealthy elite and already own several blocks in central Bangkok. As the number of expats has remained fairly constant, so have rental prices.

Newly built condominium buildings have seen a rise in rental prices, and there will always be a small percentage of people who have sufficient budget and only want to live somewhere very new, something is particularly true of Japanese renters, but the new buildings will become old and once they have been constructed and a rental price has been established, you will notice that the price will stay relatively stagnant from then on.

This is actually the same with condominiums for sale. Once a building has finished construction, a sales price and rental price is established, and it will remain stagnant at this level for years to come.

But prices have been increasing in Bangkok, everyone knows that!! So am I wrong?

Condominium Sales Prices Bangkok 2008 – 2018

I don’t think I’m wrong. There are some condominium buildings that have experienced a very good level of capital appreciation in recent years, but “on average” they haven’t.

Yes, prices have been increasing significantly in Bangkok, and this is something that all developers will happily promote to you when selling you their brand new project. They will show you graphs with an upward trend in prices, and show you that prices are increasing at least 5-10% year on year.

Prices of brand new buildings have been increasing a 5-10% year on year, but not completed buildings.

This is mostly down to increases in land prices. As land prices increase (and to some extent construction costs) so have the cost of new buildings. So new buildings get ever more expensive, but are completed buildings following suit?

No. And this is why I’m not wrong. A building that cost 150,000 Baht/sq.m. 5 years ago, may now only be 160,000 Baht sq.m. In this example around 1.5% compound growth. This building was brand new 5 years ago, and a brand new building today still under construction might cost you 200,000 Baht/sq.m. which is 33% more than the new building was 5 years ago, hence the 5%++ compound growth.

But the fact remains, the building that YOU purchased 5 years ago may have increased only 1.5% compound per year.

This is the ongoing trend with Bangkok property. New buildings constantly set new benchmarks in prices, and then remain the same. With even newer buildings adding a layer on top, setting new benchmarks, and then remaining at the same level. Even newer buildings still, just keep adding another layer on top.

This is why you will find such huge price discrepancy between buildings, even if they are located right next door to each other. An example would be Lumpini 24, a new condominium located on Sukhumvit Soi 24, where prices will fetch around 250,000 Baht/sq.m. So, a 60 sq.m., tiny little 2 bedroom unit will cost around 15,000,000 Baht.

Immediately next door is an older condominium called President Park, where prices have remained stagnant at around 60,000 Baht/sq.m. So, a very spacious 3 bedroom unit of 260 sq.m. will cost you around 15,000,000 Baht.

Four times bigger, located immediately next door, but the same price! So the old adage “Location, location, location” doesn’t apply here. It is ONLY based on the age of the building.

Here is an example of a newer building for sale, 275sq.m. asking 80,000,000 Baht: http://www.property-bangkok.com/viewproperty.asp?id=587

Here is an example of an older building for sale in a similar location, 366sq.m. asking 21,000,000 Baht: http://www.bangkokcondo.org/viewproperty.asp?id=614

Yes, the new condominium is much nicer, better design with newer lobby and sparkling facilities. But is the variation in price fully justified. I mean, 4 times the price!

Baring in mind that the interior of the new condominium will age and need replacing, and if you bought in the older building you can renovated the interior to have it all brand new.

In any event, whether you buy in the new condominium or older building is neither here nor there, the main issue being raised in this article is that prices of new projects may have increased nicely, but once you have invested in your condominium unit, you may not realise the same level of growth that you were told by the developer.

The only ones really seeing huge capital growth, are the land owners. And these are mostly already very wealthy Thai people, as non-Thai’s cannot own land. It doesn’t help the majority of non-wealthy Thai people who still remain financially strapped.

Office rental prices have also remained quite static. Over the past 10 years office rental prices have increased marginally, similar to the apartment buildings. However, as most investors (both Thai and Foreign) seem fixated on condominium buildings, the price of office space for sale has also remained quite static, and arguably office units for sale provide the best option for rental returns, given that office leases are normally minimum 3 years, and you don’t need to renovate the office space like you would with a condominium, with the former requiring a whitewash lick of paint, the latter new furniture, new bathrooms, new kitchen etc.

This is not to say that it is a bad idea to invest in Bangkok real estate. But you need to consider office space and commercial properties as well as residential, and you need to very carefully consider the building, as I previously mentioned, some condominium buildings have seen good growth over the past 10 years, whereas most haven’t.

You need to have a good eye. Best of luck!

Condominiums Can Be a Great Investment

For anyone thinking about investing in a condominium or a complex, consider the following rules to consider before doing so. Whether a residence or an investment, it pays to go by these rules.

The Rules of Condominium Purchase

• Don’t forget carrying costs

• Never rush into a purchase

• Buy at the right time

• Bargain prices may have high maintenance fees

• Always make a low offer

• Be careful buying during preconstruction

• Consider the physical facts

• Take into account future resale and demographics

These rules will give the buyer knowledge necessary for the size and type of condominium or unit offering the most on resale value. Investors save thousands and avoid ending up with an undesirable unit. For those that have previously owned a condominium unit, these steps will help them learn more so they can make an even better deal next time they buy. One can never have too much knowledge.

Never Rush – The Most Important Rule

It’s easy for someone to buy on impulse, especially if the condominium is presented in a very pretty package. However, most often when people fall in love with a good-looking investment and purchase on a whim without taking all the necessary steps to make sure it’s a great deal, they find out what issues the item has later.

This holds true for property as well, don’t end up with a “lemon.” Take the time to have inspections, get a good look at all the details, and consider everything from location, to condition and possible future value. The time spent before making an offer will make a huge difference not only in the amount offered for the unit, but also the satisfaction with the purchase overall.

Many investors that succumb to rushing to buy a condo unit are victims to:

• The excitement of owning a great unit

• The thrill of being a landlord

• Problems with important units within the property

• Sales pitch pressure and empty promises from the seller

• Not being prepared for all the issues that come with property ownership.

Taking time to go over all the benefits and possible issues before making a commitment to such a huge financial investment is smart. Take a breath and slow down, so that the real estate brokers’ or developers’ need for quick income and a crafty sales pitch don’t result in a less than wise choice.

Trust instinct and make personal decisions without the input from outside sources other than the property inspector. Just because the realtor is working for the buyer doesn’t mean they aren’t partners with the seller as well. By following the above rules, this will allow for a smart decision. It will also help the buyer develop skills necessary to make educated choices that will guarantee great transactions that are a true investment that will pay off in the end.

There are plenty of resources out there to obtain from libraries, homeowners associations, and other experts. Jump online if anything and get some information to guide on this exciting purchase. With the wealth of information at one’s fingertips, there’s no reason they can’t make a condominium investment that will be a real money-maker for them.

What You Should Know About the Ownership of Executive Condominiums

Executive condominiums are one of the best housing solutions that people go for today. In most cases, they are affordable and they can house a lot of people at the same time. There are various criteria to meet so as to be able to own an Executive condominium. Understanding the whole process can be of great help as it makes it much easier.

Documentation

There are different documents that one needs to provide during the process of application. Some of the documents that you may need to provide include income statements, marriage certificates, and birth certificates, NRICs among others. The best thing to do is to make sure that all the income statements are checked by the HR so as to ensure they are exactly what the HBD need.

Advantages of buying an Executive Condominium

There are different advantages that come with owning an Executive condominium. It is very similar to a private condo. In this case, there are facilities that the owners can enjoy and, usually, the facilities are meant for the use of the residents. The people applying for the Executive Condominiums can actually make use of a housing grant so as to get assistance with the purchase. The grant is given only to the eligible people who may not have applied for the grant at a previous date.

Renting the Executive Condominium

When you get your Executive Condominium, there are rules that govern how you can use it and one of the things that you will note is that you aren’t allowed to rent it out during the MOP in the first 5 years. MOP stands for Minimum Occupation Period. If there are other rooms within the Executive Condominium, you are allowed to rent them out within this same period.

Rules and regulations

There are different rules and regulations that govern the selling of an Executive Condominium. The owners need to fulfill MOP that covers five years. There is no transaction that can take place within this period and it has to be fulfilled first. After the five years that are set, the owners are at liberty to sell their units to other citizens or other permanent residents. After 10 years have elapsed, the Executive Condominium can be sold to foreigners. After the sale, there is a need to wait for some 30 months before you can buy any other flat directly from the HBD.

There are lots of properties being set up within the country and they are prestigious in nature. The establishments are usually able to offer lots of residential units that are luxurious. At some establishments, strata houses are usually included and most times they are exclusive. At times, shops and child care centers are also included so as to add to the convenience of the different residents.

Pools are also included with the establishments and they are very large ones in most cases. Different units are also made available and they include 1 bedroom units, 2 bedroom units, 3 bedroom compact units, 3 bedroom units, 3 bedroom plus study units, 3 bedroom dual key, 4 bedroom compact, 4 bedroom, 5 bedroom, penthouse, strata terrace, strata semi Detached.

55-Plus Condominiums – The Right Choice for You?

It’s an often-reported fact that as population is aging, and as such Condominiums in general are becoming quite popular. A separate segment of Condominiums are the 55-plus type.

These are units with bylaws which state that the occupant of the unit must be at least 55 years of age. By the way, only ONE of the owners of a unit needs to be of the specified age. For example, if the wife is 55, and her husband is 42, they qualify….. and I must add, “Good for Her!!!!”

For the right person, there are a number of advantages to these 55 plus condos. Here are a few:

1) Security: Many of these 55 plus condominiums are built with safety in mind, sometimes with security cameras but almost always with good secure locks on well-lit entrances.

2) Handicap accessible: Many buildings feature wider-than-normal hallways, entries and bathrooms, to allow access via wheelchair or walker.

3) “Community Spirit”: Quite often, the residents organize weekly pot-luck dinners, shopping trips, card-games and other gatherings.

4) “Birds of a Feather”: Since everyone in the building is 55 yrs or older, and many are retired, residents tend to have a lot in common, and friendships are made easily…. if you WANT to do so.

5) Conveniences: Local grocery stores often arrange weekly bus-trip to their stores. Some condos arrange for a local nurse to attend monthly, or bi-monthly for a general visit.

6) Amenities: 55 plus condos often feature amenities not found in regular condos. Things such as a reading room, a meeting room, a lounge with kitchen, a fitness room and more.

Home owners who are thinking of selling their houses for a variety of reasons (want to travel, no more yardwork, security issues), but don’t feel they are ready for a retirement community, might well consider checking out a 55-plus Condo.