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Buying Apartments in a Condominium - The Most Common Option for Investors

CONDOMINIUM

Apartment, in our understanding, refer to a unit with the number of rooms counted by bedrooms. For example, a 1-bedroom apartment is a two-room unit, and a 2-bedroom is a three-room unit. Apartments can also be referred to as rooms in hotel complexes.

But what exactly is a condominium?

A condominium or condo is a multi-unit residential complex in a secured area, which may consist of one or several buildings and its own infrastructure: one or multiple pools, a gym, sauna, play area, reception, and café. Often, there's a free shuttle bus to the beach, and all these amenities are free for those residing in the complex.

The maintenance of the area is taken care of by the management company. Therefore, high-quality condominiums always have well-kept surroundings, a clean pool, timely elevator checks and repairs, and complex updates. If desired, the management company can take care of renting out the apartment in your absence: find tenants, assist with check-in and check-out, take meter readings, and handle cosmetic repairs.

A condominium is perfect both for renting out and for personal living.

Difference Between a Studio and 1-Bedroom Apartment

Typically, condominiums offer studios, 1, 2, or 3-bedroom apartments with living areas ranging from 25-150 m² and optional furniture packages. Rare and highly sought-after options like penthouses or duplexes are usually bought up immediately at the start of sales and during the construction phase.

Studio: A living room with a kitchen area + bathroom + balcony.

Example of a 28 m² studio:

1-Bedroom Apartment: Essentially, it's a 2-room apartment in our understanding: 1 bedroom + a living room with a kitchen and dining area + bathroom + balcony.

Example of a 1-bedroom apartment:

COST AND EXPENSES

How much can an apartment in a condominium in Phuket cost?

The cost of apartments during the construction phase starts from $3,500 per square meter. In completed projects, prices start from $4,700 per square meter. For example, the cost of a 28 m² studio in a condominium, which will be ready in a year, is $130,000.

Expenses When Buying Apartments

Thailand is known for its low taxes and property maintenance costs.

The property ownership registration tax ranges from 1.1% to 6.3% depending on the form of ownership. When renting out the property, there's also an income tax, as well as an annual property ownership tax, which appeared relatively recently.

Additional expenses include a contribution to the capital repair fund, applicable if the apartments are on the primary market. This contribution is usually one-time and can be around $20-25 per square meter. Additionally, the annual cost of maintaining common areas can be up to $30 per square meter per year. The property ownership tax is just two-hundredths of a percent of the value annually.

For example, a 38 m² 1-bedroom apartment in the center of Bang Tao at the initial construction stage can be purchased for $150,000. During the construction period, interest-free installment payments are available, and additional expenses are paid upon the commissioning of the property, including:

Property registration tax ranging from 1% to 2%

Contribution to the capital repair fund, a one-time payment of $20-25

Maintenance of common areas - $1,050 per year

HOW TO BUY AN APARTMENT IN PHUKET

WHAT TO PAY ATTENTION TO WHEN BUYING

Check the ownership certificate, known as "chanot" in Thailand.

Carefully review the contract and the payment schedule in case of installment payments.

Calculate expenses and projected income.

If you are buying an apartment before or during the construction phase, in addition to the above, it is recommended to:

Study the developer's portfolio, the number of completed projects, and whether there were delays in construction.

Verify the presence of a construction permit.

Check the Environmental Impact Assessment (EIA) certificate.

Once you decide on the choice of apartments, the transaction itself is straightforward. You sign a reservation agreement and pay a deposit to take the apartment off the market. Within a month, the main contract is signed, and the final step is the acceptance of the apartment.

It's not necessary to be in Phuket to complete the transaction at any stage; the entire process can be done entirely online. Payment is possible through any convenient method, such as bank transfer, cryptocurrency, or cash on-site.

Do you have any questions?

Feel free to write to us or call us on our social media, and we will be happy to provide you with free consultation on all inquiries ⬇️

✔️ Email: hello@apart-homes.com

✔️ Contact Phone: +66 83 503 2555

✔️ WhatsApp: +66 83 503 2555

✔️ Telegram: +66 83 503 2555