First-time homebuyer/condo buyer
1. Have Money
If you plan to buy a house, you need money! Over 90% of Thais buy houses on mortgages (the remaining 10% pay cash). This means most people have to "borrow money from the bank" and be prepared for long-term debt of 20-40 years. You'll need to plan your finances, have savings for a down payment (even though most projects say no down payment is required! You can borrow 100%, but having a down payment of 10-15% of the house price will reduce your debt and prevent excessive interest payments). In short, you need money for the down payment or long-term mortgage payments. This also includes having a stable job and a steady income, because otherwise, buying a house could become a problem in the long run.
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2. Have a Dream House/Condo
Many people might think this is unimportant, but having a dream house or condo makes the purchasing decision clearer. Regarding project selection, you shouldn't choose just any project; you should choose one where you'll be happiest and most comfortable. For example, someone who enjoys exercising and nature should choose a house or condo with plenty of garden space and exercise areas. Or, for those planning to remain single for life, their dream house or condo doesn't need to be huge; just comfortable living space for one person is enough. For those planning to start a family, get married, and have children, choosing a home that can accommodate future members is a good idea.
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3. Choosing a House or Condo
This follows step 2. Once you have a clear vision of your dream house or condo, consider realistic options that match your income. Simply put, a 1 million baht house would require monthly payments of approximately 7,000-8,000 baht, and your monthly salary should be at least three times that amount! This means that to buy a 1 million baht house, your salary should be around 20,000 baht.
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4. Applying for a Loan
This crucial step involves money and requires careful consideration. You should apply to at least 2-3 banks to compare interest rates and find the best option for you. Each bank has different approval criteria. You might get approved by Bank A, but rejected by Bank B and approved by Bank C – this can happen. Therefore, consider your options carefully.
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5. Handover Inspection - After Bank Loan Approval
The next step is preparing to receive the house or condo, which is equally important. Simply put, it's similar to inspecting goods before paying, but this is a very expensive item that most people only buy once in their lifetime or not often. Importantly, once purchased, it's a long-term debt of 20-40 years, so thorough inspection is crucial. Every detail, including structural work and various systems such as walls, floors, ceilings, door and window frames, plumbing, and electrical systems, should be carefully checked. Having an engineer inspect the work will greatly increase peace of mind. For condominiums, this fee ranges from 1,500-5,000 baht per unit.
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6. Transfer of Ownership
The final step before moving in is transferring ownership. This step involves considerable costs, roughly 2-3% of the property price. However, some projects offer promotions with free transfer fees, which can save a lot of money. But if you have to pay for it yourself, you'll have to pay the difference.
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7. Moving In
Finally, moving in is the final step! Once all six steps are complete, it's time to move in. Many people already have a vision of their new house or condo, and can decorate it to their liking. Don't forget to prioritize functionality! A good home should be one where you feel comfortable.
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7 Steps to Buying a Home (in a simplified version): For first-time homebuyers planning to purchase a house or condo, allow sufficient time to prepare and gather information. Have time to choose and compare projects to find the one that best suits your lifestyle and budget.
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Thanks for the helpful information from HOME.
