Average Maintenance Fees To Account For When Buying A Condo In Pattaya
Ranked as the number one area in terms of food, transport and accommodations, Pattaya is currently among the most popular investment locations in Thailand. In spite of the fact that property is relatively cheap in Pattaya compared to other resorts throughout Thailand, investors have recently brought up the problem of maintenance fees requires for their condo units. The good news is that Pattaya is also flexible in this sense, meaning that statistics suggest an investor will spend a maximum of 4% of the total cost of the purchase after the sale is complete.
The maintenance fees refer to the costs associated with the up-keeping of common area facilities, such as the swimming pool, water used for the green areas and the personnel working on the premises of the condominium. In addition, the fees can sometimes include extra amenities, like standard cable television, Wi-Fi or transportation. Depending on the services and the size of the development, the average maintenance fee for owning a Pattaya condo is around 40 baht per SQM.
Take note that although it’s very uncommon, some developers overcharge for maintenance and that the fees can be as high as 60 baht for SQM. On the other hand, undercharging for maintenance – meaning paying a fee as low as 25 baht for SQM – is never a good sign. It usually entails that the condominium provides subpar maintenance or that you’re investing in a quickly dilapidating building.
Utilities setup fees
Even though you will have to take around 7,000 baht out of your pocket, the good news is that the government imposed charges for water and electric metre setup is a one-time fee. This cost is usually accounted as a first-time buyer expense, meaning that if you rent or resale the condo, the other investor isn’t required to pay the fee.
In general, when putting out the condos for sale, developer include the price of the stamp duty, transfer and lawyer fees in the unit’s price. In an attempt to make the price more attractive for buyers, certain developers prefer to leave these expenses out of the asking price. To avoid any inconveniences and headaches, don’t hesitate to ask the developer about these fees beforehand.
In case you didn’t know, the sinking fund is a bank account where all co-owners in a condominium contribute with a pre-established sum of cash. The money is used to cover the costs of maintaining the building attractive for the next 15 to 20 years. The average contribution to the sinking fund in Thailand is of 450 baht per SQM and constitutes a one-off payment made at the same time as the transfer. In case you’re purchasing a resale condo, then chances are the fund was already been paid off by the previous owner.
Take note that the sinking fund contribution can increase in cases of condominiums featuring ample common areas and extensive amenities. The money from this fund is commonly used for repaving, renovations, painting, repairs, replanting of gardens and anything else that requires maintenance in the common areas.