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  • Atricle Dump - Condominium Speculators are Alive and Well in Bangkok

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    y speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury cond
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    While discussing the resale of a condominium unit in the Phrom Phong area with another broker, I discovered to my surprise that the broker was in negotiations to sell the unit for the fourth time.

    Here's the interesting part: the condominium itself was still one full year from completion. In fact, the building was still a bare shell.

    How is this possible? You may think that most buyers want to see what they are buying, but this is not the case.

    Basically, there is a huge amount of traffic in the resale of condominium unit prior to a building's completion. It seems that the "buy new" culture in Bangkok is so great that property speculators are having a field day.

    Whereas an off-plan sale from the developer might set you back 80,000 baht per square metre, these units are being mopped up by property speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury condo

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    's the interesting part: the condominium itself was still one full year from completion. In fact, the building was still a bare shell.

    How is this possible? You may think that most buyers want to see what they are buying, but this is not the case.

    Basically, there is a huge amount of traffic in the resale of condominium unit prior to a building's completion. It seems that the "buy new" culture in Bangkok is so great that property speculators are having a field day.

    Whereas an off-plan sale from the developer might set you back 80,000 baht per square metre, these units are being mopped up by property speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury cond

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    at they are buying, but this is not the case.

    Basically, there is a huge amount of traffic in the resale of condominium unit prior to a building's completion. It seems that the "buy new" culture in Bangkok is so great that property speculators are having a field day.

    Whereas an off-plan sale from the developer might set you back 80,000 baht per square metre, these units are being mopped up by property speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury cond

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    gkok is so great that property speculators are having a field day.

    Whereas an off-plan sale from the developer might set you back 80,000 baht per square metre, these units are being mopped up by property speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury cond

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    y speculators who, shortly after putting down the initial deposit, will contact a broker and ask him or her to resell the unit, typically adding on 5% to 10% of the initial purchase price. Take a luxury condominium unit with an initial purchase price from the developer of 15 million baht. Shortly after signing the sales and purchase agreement, and putting down the initial 10%, the owner will try to resell the units at, say, 16 million baht. This would make a clear one million baht profit, from an initial investment of just a few million baht.

    The maths is simple: a successful speculator could make a 30% to 40% return in a few months. And, because there are no transfers of title deeds, there is no 2% transfer fee or 3.3% stamp duty.

    But is it right that an individual can sell an asset and make so much money and not pay taxes?

    The second buyer could also be a speculator, and buy the unit for million baht and sell it again shortly after for 17 million. But where does it stop?

    Well, each condominium ha

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