Buying or renting a townhouse or apartment as a new home can be easier than buying a house and certainly simpler than building a house. Prices can be about the same, but there is a difference in what you get. In an attached-style home, owners also pay less in property taxes each year.
Economy on the Rise
Now is a good time to buy residential property in Thailand. The economy is on the rise thanks not just to tourism, but also technology.
Thailand’s finance minister says the country’s gross domestic product will grow by at least three percent this year, Thai PBS reported. China’s drop in demand for raw materials from Thailand is forcing the country to shift its economy into modern sectors. The current top exports are:
- Vehicles
- Medical equipment
- Machines
- Plastics
- Electronics
Crops did not even crack the top ten of the export list, this year. Based on the first quarter, the deputy commerce minister predicts exports could increase by five percent this year.
The national government also is investing serious money into infrastructure, this year. Railways are on the way for in the form of a national system with help from China and a localized system with help from Japan.
There was a bit of a snag with financing from China recently, but Thailand still wants an 873-KM track and plenty of Chinese trains.
Three Japanese companies will be building a railway in Bangkok starting in August, Tamaki Kyozuka of Nikkei Asian Review reported. The project is expected to cost $930 million and should be completed by 2020.
On the tourist front, 60 to 70 percent of foreigners who visit the country return. Tourism increased by 25 percent from January to May of 2015 compared with the same period the previous year.
The Ministry of Tourism and Sports says international arrivals reached more than 9 million from January to March this year. Many of the tourists were from China. A growing number of tourists are pursuing leisure time sports such as sailing, golf and tennis. Muay Thai also is an attraction for many visitors.
Townhouses
With a townhouse, owners usually have a small yard in addition to the housing unit. The home usually is attached to another on two sides. The property faces a street, and owners usually have an attached garage with a driveway or a separate garage nearby.
One of the advantages of a townhouse is there are no neighbors upstairs or downstairs. Sometimes, the property association provides lawn care with the monthly association fee. Insurance rates are a little lower with a townhouse as compared with a single-family house.
Aside from financing, price, location and availability, less obvious things to check out before buying a townhouse are the reputation of the developer and the bylaws of the property association especially when it comes to assessments. Not all developers build quality homes, and assessments can be expensive and surprising.
Drawbacks of townhouse ownership include slower property appreciation and a tougher resale market than detached homes.
Renters have it pretty easy with a townhouse. They get all the advantages of the property without having to attend boring association meetings or pay assessments for infrastructure.
Apartments
An apartment is most like a condominium. It can be inside a high-rise building and have an adjacent parking lot. Apartments also can be in duplex form and only have street parking.
In some areas, apartment ownership is common, but in many places a property management company owns the buildings and the units. Apartments provide the least amount of privacy of all forms of housing.
Residents should check out the thickness of the interior walls and soundproofing before signing a contract. The upstairs neighbors might be into weightlifting or have an entertainment system with a sub-woofer.
Apartments generally do not have associations, so dues and assessments are not an issue. Insurance and taxes are the lowest of all types of residential properties. Apartment rentals also usually have some type of maintenance program, so if the sink clogs, the landlord or property manager will send in a free repairman.
New vs. Old
Buying or renting a new property can have many advantages. The best thing probably is everything is new, under warranty and should work.
Those buying a new townhouse or apartment from a developer, can take advantage of the variety of floor plans available and add upgrades. It often is less expensive to pay for the upgrades before moving in. It certainly is less hassle.
Renting a newly built apartment can be a dream. Chances are the rent will be higher than an older unit, but it’s kind of like buying a new car of instead a used one. Renters of newly built apartments or townhouses are paying extra for state-of-the-art appliances.
Older properties have charm. Hopefully, most of the problems have been worked out by the previous owner or tenant. To ensure new residents get the most value for their money, they should inspect the property before renting.
In the case of a buyer, a formal independent home inspection is well worth the money. A qualified inspector can spot all kinds of code violations and potential problems. With the inspection report, buyers can negotiate with the seller to have repairs made before closing or get a lower sales price.
To find apartments and townhouses for rent or sale as a new home in Thailand, the DDProperty website is a good place to start. Visitors can customize searches for properties based on location, price, number of bedrooms and property type.
Individual listings include photos of the interior and exterior of the property and a long list of features. If visitors find properties they find interesting, they can call the listing agent by phone or use the contact form on the listing’s webpage. The agent can set up a meeting time to tour the property.
For me, my first priorities are school and transportation. We just moved to a new condo and the first thing that we searched is the private elementary school because I have a grade 4 daughter.