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When should we buy property?--Article for "The Nation"

When should we buy property ?
Theerathon Tharachai
June 2nd, 2008

Most people buy their houses when they moved out from the family, get married, or move to the new area. For some, owning a property also gives them sense of security and comfort. These drive the continuing demand of residential real estate regardless of the economic condition. The real demand persists, with some change in taste and consumer behavior.

In regards of timing, this particular moment is indeed proper time to buy because of various reasons as the following:

1. The tax stimulus package offers the massive discount in transfer fee and mortgage registration. The related transaction costs are reduced from about 2% to 0.02%, which translates into 100,000 THB for the housing unit that costs 5,000,000 THB. The tax stimulus package only last until March 28th, 2009.
2. Property price is on the rise with the increase in construction cost because of the rising cost of steel and land. If the current trend continues, the cost of overall construction materials may rise up to 20% from last year. Besides, price war from the developers is unlikely due to the pressure from rising construction cost and the decrease of supply. Some developers already raise the price from last year. There is a tendency that by the end of this year, the price of the new units may rise up to 5%, especially in the condominium market where the higher number should be expected due to the higher dependency in steel price and the faster rise of land cost.
3. The interest is likely to go up than come down. We start to see that the interest rate has been bottomed out and can even rise with the high inflation. This is probably be a good time to buy for those buyers who can still find the low fixed rate mortgage loan offered by some banks.

For those who decide to buy, some advices worth taken into consideration are:

1. Choose the ready units or those that are close to be finished since the price has not yet been adjusted to the increasing cost
2. Make sure the units are legally clean. Those legal issues related include EIA permit and construction permit. This is to avoid risk of the delay of breach of contract.
3. Find the environment that fits your lifestyle and provides good quality of life. The good environment means clean, green, safe, comfortable, and convenient.
4. Location, location, Find the location that can save your time in life, taken into account traveling to workplace and schools.
5. Compare several alternatives. Do your own researches using various kinds of sources include the Internet, newspaper, brochures, magazines, word of mouths, and site visit.

Create Date : 23 มิถุนายน 2551

Last Update : 23 มิถุนายน 2551 10:16:35 น.

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