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Thread: BAM to sell condos for 2,000 baht down ...hmmm

  1. #1
    Super Moderator LivinLOS's Avatar
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    BAM to sell condos for 2,000 baht down ...hmmm

    BAM to sell condos for 2,000 baht down | Bangkok Post: news

    Bangkok Commercial Asset Management Co plans to offer 500 condominium units in greater Bangkok for as little as 2,000 baht down.

    Senior executive vice-president Somporn Moonsrikaew, said the company, which acquires and repackages nonperforming loans and assets from banks, is aiming its 40 projects at self-employed workers, including taxi drivers, motorcycle taxis, food vendors but they must have verifiable places of businesses.

    The condos would have an average price of 300,000 baht, but BAM plans to offer 10-year payment periods to buyers who need only put down just 1,000 baht on the reservation date and another 1,000 baht on the contract-signing date. The unit then would be ready to move into.

    Buyers can pay instalments of 1,000-3,000 baht a month, depending on pricing. However, they have to pay off the balance in a final-year balloon payment of about 20% of the total value.

    The company will offer condos in the form of long-term leases, with the units transferred to buyers once they finish paying for them. Under such a system, buyers need not borrow from a bank to purchase a condo.

    The projects will be situated in provinces surrounding Bangkok.
    So people, who buy with 1000 baht down.. and 1000 - 3000 a month payments.. People on the breadline like taxi drivers and food vendors.. Then have a 20 % balloon payment to make, once they are 80% paid off and all the power is in the lenders hands..

    Is it just me or does that sound like a recipe to screw them over with refi or expensive foreclosure fees when they cant meet the balloon or gain any credit due to their work ??

  2. #2
    Senior Member geir's Avatar
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    It do sound a bit dodgy, but if the buyers are allowed to sell during those first 10 years it's a great deal.
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  3. #3
    Super Moderator LivinLOS's Avatar
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    Well maybe.. I would expect 300k condos in bangkok to be less than appealing..

    So then you have the same trap that a buyer with a job could live nicer, and a buyer without a job cant finance so needs a cash buy..

    Honestly dont know.. Just a balloon payment at the end, with pretty much a filing fee at the start, is kind of the opposite of how a responsible mortgage is worked out..

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    Sounds like a great way for BAM to make money
    LivinLOS likes this.

  5. #5
    Senior Member geir's Avatar
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    Agree it's a bit strange. Here the developers are buying big land plots, split them up and sell it to poor Thais. 10-20k up front and 3-4k monthly payments. A lot of people fail to pay and the developer gets another 10-20k from the next in line.........It's amazing how many people getting fooled by this.
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  6. #6
    Super Moderator LivinLOS's Avatar
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    Here theres been crazy condo building 1000s of units and the usual tiny bit down.. and off plan then resale and flip them once they are done process...

    Well I see lots of resale adverts on the completions.. I dont know if people will be renting them to cover costs or what..

  7. #7
    Senior Member geir's Avatar
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    Ranong is crazy as well these days....I bought my house for 1mil 3,5 years ago and can easy sell for 2 mil today........Think the whole "Burma is going to open up" have made the prices mental here.
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  8. #8
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by geir View Post
    Ranong is crazy as well these days....I bought my house for 1mil 3,5 years ago and can easy sell for 2 mil today........Think the whole "Burma is going to open up" have made the prices mental here.
    We bought land.. 650ish.. now in what ?? 3 years.. 2 - 2.5 asking there.. Dont think a lots selling but 1.5 or so seems to be minimum asking for plots a lot less nice than ours.. One aspect is a new bypass rd is going in about 500m away so that brings connection and development, but its just silly stuff.. Banks keep pushing more money at the next higher estimate price, we could borrow much more than the land cost us on it if we wanted.

    Proper daft and all on credit and farang greed.. A farang bought 35 rai for 25 mil, and is now asking 2 - 2.5 from other farangs per rai.. Thats in 1 - 2 years, he thinks a 300 - 400% markeup is perfectly logical and not at all pushing the market..

    But houses ?? Not going up much at all.. Everyone wants a new house.. theres 1000s in over supply now.. my village area, is the number one location in all Thailand for oversupply in the market and unsold homes. And my landlord thinks he wants to sell.

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    Senior Member geir's Avatar
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    Here it's under supply of houses and we get weekly people asking if it's anything for sale on our project........But it have to stop at one stage for sure. Wish it was that easy to sell on KP..............
    Anyway, looks like we both bought at the right time :-)
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  10. #10
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by geir View Post
    Anyway, looks like we both bought at the right time :-)
    But isnt that everyones mental perspective.. Ohh my property has gone up because of X.. Have wages gone up 400% ??

    Its that kind of causation correlation thing that property owners do.

  11. #11
    Senior Member geir's Avatar
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    Yeah, and then we comes back to the slaves of the system thingie..........higher debt, less freedom.
    LivinLOS likes this.
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