House signing over fees

[Spitfire]

Just a quick question, probably been asked before in the depths of this section somewhere but can't find it.

What is a regular/a usual figure for the signing of contract fees with a property developer when buying a new unbuilt house once the bank says "Yeah?"

The one I've spoken to, not in HH though, said 40 000 baht for the contract signing and admin costs etc and then pay the deposit for the house on top, after which, construction can begin with the blessing of the bank etc, in this case the SCB. Bank pays up when we are happy, 4 months later it's done. No dramas with the company, they are on their 12th development where I am, so no "crook" factor worries really like some unmentionables in HH etc.

Is this fair play, or am I being fleeced?

Thanks for any input.

[Norseman]

Hi mate.
According to my own contract I paid 20.000 Bt upon signing of the contract some years ago in Hua Hin. A few days later (about one week I think) I paid the entry-fee of 250.000 Baht before the developer started digging.
7 months later and some Baht lighter I moved in.
My best investment ever and I just love living here.

[Super Joe]

Spitfire,

Firstly, have you paid anything to date, like a non-refundable 'reservation fee', assuming the answer is 'no', then....

If you're paying a contract admin fee with 'sign-on', and then some time after paying the main deposit once the bank has given the final go ahead, then 50-100k would be fine inho. As long as it's part of the overall purchase price and not a new 'add-on'. Then if the bank said 'no' for any reason, they keep it to cover their 'costs' etc. Norseman's fee of 20k was particularly keen, but obviously some years back now and things have increased. It will be way in excess of their actual costs, but presumably they've taken the place off the market, sometimes up to 6 weeks while lawyers to and fro the contract, so reasonable recompense should it not go ahead. 100k is maybe the norm in HH that I've seen.

If you mean you are paying the main deposit also at contract signing, but that they want the contract admin fee also on top of the deposit, then imo this would be passable if the deposit is small at 5-10%, but not neccessary if a larger deposit, say 20% up.

Good luck, and don't be afraid to ask plenty of daft questions along the way, you know you'll only get daft answers. And put some pics up so we can all see how things are meant to be done

SJ

[Spitfire]

Thanks for that both of you, and yeah Norseman, reckon it's time to do it as an investment, tired of paying someone else rent.

Yeah SJ, nothing paid to date and the Mrs is busying herself with the lead roll in the purchase mostly with me submitting my stuff too to make sure the application process is a 'walk in the park'. Looks like they want 5000 to send all the info to the banks and reserve the plot, 40,000 to sign the contract after the bank says OK, then they want me to pay the 10% deposit, they begin building, and then "abracadabra" 4 months later it's done, hopefully.

Luckily, it appears I don't have to pay anything other than the reserve plot fee and the send info to the bank money, which is non refundable but no drama. Seems the SCB will decide and then if "Yes", then they want the rest and for us to 'sign on' after that.

Well, from what you say, then it doesn't sound too unreasonable.

Oh, did forget something, are there any tax issues to be aware of, ie paying some, and usually would that be likely to be included in the 'sign on' price or on top as an extra?

[hhfarang]

I paid 110k, but this included several design sessions with the builder's architect to put my rough drawings into official 20 to 30 page blueprint type plans (the kind you file at the Tessabahn to get permission to build), so with that I didn't consider the cost unreasonable.

[Spitfire]

Good luck, and don't be afraid to ask plenty of daft questions along the way, you know you'll only get daft answers. And put some pics up so we can all see how things are meant to be done.

OK, because you mentioned SJ, then will post the score and all can compare and comment or whatever.

The picture below is of an equivalent house that is almost finished on the same estate. Cost is 1.5 -1.6 million for the standard 60 talang wah, if you want more then I think the price is about 11,000 baht per extra talang wah you want, lots of different sized land plots to choose from, think my Mrs said she was happy with 80, so fine.

This is not obviously near the beach in a resort town, it's in Nakhon Ratchasima. Just give you folks a chance for comparing it and give a realistic look at the difference in price in a different place.

House is an average 1 story bungalow dwelling with 3 bedrooms, 2 shower rooms, open plan area for dinning room and living room, separate kitchen, utility area, garden, car port etc.

Not anything too Hugh Hefner but livable in and easy to sell as the locals go for this sort of house.

Not saying anything, just to report info, BTW, what would the equivalent house in an estate in HH cost, for my interest.



Edit - We decided to not go too crazy with the cost of a house as we are both still in our 30s, just a first time buyers job.

[poosmate]

Similar? Plus small pool/ bigger plot. 2.59 Million. 5kms Hua Hin beach.
Cheaper houses are available further from town on Thai aimed developments.

Advise about resale especially to Thais - they do not like second hand houses! Lower priced ( sub 3 million) new houses are normally available with bank loans for Thais this is what most prefer.
Farang on the other hand will buy second hand quality homes In my experience some at a higher price than similar new homes as they can move in immediately and will usually have overcome any "new build" problems.
And usually are not scared of ghosts

[Spitfire]

Thanks for that Poosmate, is a pool a standard extra or can you have without? Hell, 3 million up here gets you a 2 level porn pad with trees you never even knew existed.

Yes, in a perfect world, Thais like new stuff but many have to settle for 2nd hand, it's true with cars, houses and some other stuff, regardless of what they like to 'huff and puff' about and want to appear so 'perfect' etc, at least it's the case on a generally national level, not individual perhaps.

Superstitious crap is a factor, I guess, but not for me, reality is a much more of a "sharpening' factor when considering stuff like this, we like to live in the real world.

Nice one for the reply.

[Super Joe]

The picture below is of an equivalent house that is almost finished on the same estate. Cost is 1.5 -1.6 million for the standard 60 talang wah, if you want more then I think the price is about 11,000 baht per extra talang wah you want, lots of different sized land plots to choose from, think my Mrs said she was happy with 80, so fine.

Thanks Spitfire, looks like a nice little love nest, can't argue with the price either. I'd be tempted to go for as bigger land plot as your budget will comfortably allow, you might decide to put a small pool in, sandwashed floor area with a sala and a water feature or whatever, will all help when you wanna sell it. Especially one of the bigger plots knowing how Thais are with image and that.

Good luck,
SJ

[Spitfire]

Thought I'd reply on this as have got the final figures, so others can compare, of course location is everything. Where I am however...........

Reserve plot and take it off the market - 5000 baht

Decide how many extras etc and alterations you want before they start. A week later sign the contract.

Sign contract with developer - 30,000 baht

Initial deposit 50,000 baht in a lump sum, then pay five months of 10,000 a month as well, they start building when you give them a date. Total deposit 100,000 but can pay more if you want, which I elected to do.

When house is finished and you are ready to move in, sign over to the bank (25,000 baht) and they pay the rest, move in and start paying the monthly bill.

You also have to pay for the electricity and water meters to be fitted, plus an upfront payment of 12,000 baht to cover security/trash collection etc for 2 years.

Sure down there in HH it's a different score and figures, but gives a percpective on somewhere people would call 'average' elsewhere in Thailand.

[BBB]

Be careful don't hand over anything to (Edited by mod - no naming and shaming) he'll rob you of every penny he can and then deny that he's even met you let alone deliver a house. Literally scores of people have been duped by this con man so far including myself. Be aware he's also violent when confronted.

[Spitfire]

What confuses me is why people just turn up somewhere like here without doing any research at all, jump straight into buying a house without spending a reasonably decent amount of time getting oriented to the place and situation relevant to their needs.

Property developers the world over have a shoddy reputation, nothing new there I reckon. However, there are some that are professional and do a decent job.

All it would take is to spend some time talking on a forum like this and investigating with some of the more reasonable people you meet that have resided here for a while to avoid this problem with ease.

Reputations, as you say, are known and become common knowledge.

What makes people think they can just jump in somewhere like Thailand, which is a criminal's refuge, and 'abracadabra' everything just works out.

You should live somewhere for at least six months in rented accommodation before doing anything rash.

It's not the same as where you come from, they often have laws which are completely non-existent here, unless you want to spend even more money to get the judicial system to work, only to find that the property developer/other person has out-bribed you, so nothing happens.

Sometimes it just seems like 'lambs to the slaughter', but they are the naive people that allow the perps to live, thrive and survive here.

Wake up everyone reading this and smell the coffee if you are thinking of moving to paradise and building your dream home.

Note - There are, as said, responsible property developers here that offer decent services, have a look at the sponsors list for starters and start some threads or ask a few questions on a local forum, you'll be pointed in the right direction.

Note 2 - I read your post before it was edited, didn't see that company name on the sponsor list, simple precautions/common sense will save you from the clutches of villains here in LOS, in more areas than just this one, sharpen up people.

Do some detective work first, if it feels wrong, then usually it is.

I rest my case. Perhaps I should have started a new thread for this but thought it could be here after that post.

[hhfarang]

Property developers the world over have a shoddy reputation, nothing new there I reckon.

Maybe I was just lucky, but in 55 years in the U.S., neither me nor my family encountered shoddy developers and we have owned quite a few homes. Thing is, there, homes are guaranteed and a developer has to have a license proving he knows what he is doing (and he can't, at least in any case I've known of) pay off the authorities to overlook shoddy work. Also, a buyer there has the right to have a home gone over with a fine tooth comb by a government licensed, certified home inspector before closing the deal and they will find even the smallest flaw and then you can negotiate with the seller as to whether he has to repair the problem before you go forward with the deal. Also, the court system there works very well if you do get cheated out of your life savings.

Here, you can just call yourself a developer and start working as far as I know, and if you do get questioned, a few thousand under the table to the right person and the questions stop. Then, when you do cheat huge numbers of people out of their savings and ruin their lives and dreams of a retirement in paradise, either the developer has the right connections to avoid court or a court case takes so many years to complete that you will probably die before you see any repayment.

[Johan]

Similar? Plus small pool/ bigger plot. 2.59 Million. 5kms Hua Hin beach.
Cheaper houses are available further from town on Thai aimed developments.

Advise about resale especially to Thais - they do not like second hand houses! Lower priced ( sub 3 million) new houses are normally available with bank loans for Thais this is what most prefer.
Farang on the other hand will buy second hand quality homes In my experience some at a higher price than similar new homes as they can move in immediately and will usually have overcome any "new build" problems.
And usually are not scared of ghosts

It's very expensive for that small home

I wouldn't pay more than 1.5 for that one depending on the plot size and the location.

[crazy88]

Johan wrote

"It's very expensive for that small home

I wouldn't pay more than 1.5 for that one depending on the plot size and the location."


OK Johan tell us what it costs before the developer makes a wage or a profit.

148 sqm living, specs below

400sqm land

pool looks to be 7x3.5m with spa

Garden

perimeter wall and gate

Aircon

General infrastructure costs for the project averaged out per plot.

Show me how I can get this all for 1.5m 5km from the centre of town and I will be eternally grateful .


Structures -Reinforce concrete
Floor -Granito ceramic size 60x60 cm
Wall internal- external -Wall masonry 14 cm.
Paint internal- external -Acrylic paint 4 season brand or equivalent
Ceiling internal- external -Gypsum board elephant brand or equivalent
Roof -CPAC monior elephant brand or equivalent
Door -External white aluminum frame green glass, Internal wooden frame
Window -Aluminum white frame green glass
Bathroom -Ceramic size 30x30 cm, wall size 20x25 cm
-Free counter top Sakura granite
Sanitaryware -White closet (Kohler brand), White basin (Kohler brand) or equivalent
Terrace -Sandwash
Parking -Sandwash
The Fence -Wood slide door
Garden -Free grass pave
Kitchen -Free build in furniture top Sakura granite
Sink -Free stainless 1 hole ( Eve brand or equivalent)
Hood -Free hood size 60 cm (Hafele brand or equivalent)
Hob -Free hob 3 gas 1 electric ( Hafele brand or equivalent)
Hot shower -Free 3 point ( To blend faucet )
Insulator -Free under roof
Decorative Frames -Free decorative frames 8 set
Electricity -15 Amp
-Wiring with conduit

Crazy 88