Before deciding to buy a used house.
Many people dream of owning a new house and being the first to live in their purchased property. However, buying a second-hand house also has its advantages. For example, older condos often have larger rooms and are located in popular areas. Houses may also be closer to the city because land for building housing developments or condos is becoming increasingly scarce in urban areas. Furthermore, buying a house/condo that is already occupied allows you to see the surrounding environment more clearly. But before buying a second-hand house, there are some essential things you need to know. Let's read on to find out what they are.
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Things to Know Before Buying a Second-Hand house
1. Financing: Second-hand house loans differ from new house loans in that you may not be able to borrow 100% of the property value, and each bank has different requirements. For example, second-hand houses/condos in provincial areas may offer lower financing than those in Bangkok, possibly up to 90%. Banks usually base their financing on the appraised value, not the purchase price.
Therefore, it's recommended to have sufficient funds for both the purchase price and renovations. Remember that a second-hand house may have been previously occupied, could be decades old, and may have a style that doesn't suit your taste, so renovations may be necessary.
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2. Interest Rate: Some banks offer different interest rates for pre-owned houses compared to new houses. Therefore, when comparing interest rates, it's essential to contact the bank directly for accurate information about pre-owned houses.
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3. Structure: After finding a suitable pre-owned house, the most important thing to consider is the structural integrity. We'll skip over aesthetics or minor repairs like peeling paint or cracked tiles, as these can be fixed.
Instead, focus on the structural strength: is the house tilting? Are there any cracks resulting from structural issues or soil subsidence? Are there any damp areas in the walls? Also, assess the plumbing and electrical systems to determine necessary budget allocations.
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4. Construction System: For those interested in renovating and wanting a pre-owned house in a preferred location but unsure of the interior functionality, it's crucial to understand the construction system of the house or condo. Is it permissible to add extensions or demolish existing structures? Sometimes, even within a single house, different walls may use different construction systems. For example, the main house might be built with traditional bricks, but the protruding kitchen wall is made of precast concrete, making it impossible to demolish the kitchen wall.
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5. Surrounding Environment: You need to know the surrounding environment of the house/condo you are interested in. Visit the property both during the day and at night. For example, in a project the author visited and was interested in, visiting in the early evening revealed that the condo unit was directly opposite a large advertising sign, causing constant light pollution. The curtains had to be closed even at night. If you have a car, be sure to visit after work or in the evening to check if there is sufficient parking. If it's a gated community, see if there are many cars parked in the street.
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6. Project Environment: This is something you shouldn't forget to observe. If it's a village or condo, there will definitely be common areas. Be sure to check the condition of these common areas. Are the gardens and roads well-maintained? This reflects the overall condition of the project. For example, a project I visited was only 5 years old, but some common areas were closed for renovations for an extended period. The buildings were old and dilapidated, possibly reflecting internal management problems or financial constraints for repairs. It also shows the quality of the project's management committee. A strict management committee can help resolve potential conflicts with neighbors.
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7. Ownership of the House/Condo: This is something you absolutely must check. Verify that the title deed and ownership documents are correct and that the details match the advertised sale. There have been cases where houses auctioned by the Department of Legal Execution were divided into two deeds, but only one was auctioned. Buying such a house would likely lead to headaches as you'd only get half the property.
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Bonus: Many people say that having good neighbors is like winning the lottery, right? Therefore, when buying a second-hand house, it's essential to visit the actual property and location to save time. Don't forget to check out the neighbors. Talk to the neighbors or the security guard to find out why the house is for sale.
There are recurring news stories about houses being sold because of harassing neighbors, such as the installation of CCTV cameras pointed into the neighboring property, forcing the original owner to sell. The new owner might buy the house thinking that because the neighbors never caused any trouble, they wouldn't cause any further disturbances. However, they are often mistaken, as these behaviors persist, leading to daily headaches and concerns about privacy.
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(Thanks for the helpful information from home.co.th)
