Buying Condominiums in Pattaya - Wise words of caution

Now that the government is tightening up the Foreign Business Act to prevent foreigners setting up Thai nominee companies to buy property, condominiums are even more popular. The law is aimed at discouraging foreign developers buying large plots to build housing estates and condominiums. Even though the new law has not gone into effect yet, the announcement about the change was enough to stop almost all home sales. The resulting slump in the housing market has already hit major Thai developers. They are pulling back and aiming at the low to medium market instead.
However, condominium developers are seeing a rise in their sales. People are rushing in to buy up whatever they can. New condos are selling off-plan before the ink is even dry. Construction has already started on several new condo projects in Pattaya and Bangkok, and more are getting ready to start.
A word of caution here, though: Two clients this month have told me about deals that went bad. One was for a housing project in Samui Island, and the other was for a condominium project in Pattaya. Both were lucky enough to get their deposit back when the projects fell through. But I know others have not been so lucky. So, if you are looking at the market now to invest in property, make sure you check out the developer's credentials thoroughly before putting down a deposit on a new project. Make sure the developer has solid financial backing and that he owns the land already. Look for those who have a track record of finished projects.
Some so-called developers are drawing up plans for their projects, putting a retainer on a plot of land, and then pre-selling enough units to finance the land purchase and their project. Buying from developers like this is risky. Sure, it has worked plenty of times in the past, but how can you be sure it will work when you put your money down?Some Wise words from Marc Holt read the rest of the article Holt Reality