Condo prices and loan repayments.
Paying a monthly condo installment of 5,000 baht is a manageable amount. For those with limited budgets, how much should you borrow for a condo and what locations are suitable?
How much should you borrow per month for a condo? How much money do you need to buy a condo?
Based on general condo loan calculations, to determine your monthly payment, you should be able to support a debt burden no more than 40% of your income. This means that if your monthly salary is 15,000 baht, the maximum condo payment you can afford is:
15,000 x 40% = 6,000
Therefore, you can only afford a condo payment of 6,000 baht per month. However, if you have other debts, such as a car payment of 5,000 baht per month, your ability to pay for the condo will decrease to:
6,000 - 5,000 = 1,000
Your maximum condo payment capacity will be reduced to only 1,000 baht per month.
In short, how much money do you need to buy a condo? To afford a condo loan with a monthly payment of 5,000 baht, you need a minimum monthly salary of 12,500 baht and no other existing debts. Existing debts will significantly reduce your ability to make condo payments.
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Paying off existing debts will make condo payments easier.
The fact that you want to pay a 5,000 baht monthly condo payment indicates your salary isn't very high. To increase your chances of getting a loan and making comfortable monthly payments, you need to prioritize paying off other debts, including credit card debt, cash advances, and any other existing loans.
However, a poor payment history, including late payments or missed payments, will appear in your credit report. You must rectify this and pay off your debts before applying for a home loan; otherwise, your chances of getting a condo loan approved are virtually impossible.
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How much does a condo need to cost to afford a 5,000 baht monthly payment?
To calculate how much a condo you can afford with a monthly payment of 5,000 baht, you can use the formula "7,000 baht per million." This means that for a condo priced at 1 million baht, the starting monthly payment would be 7,000 baht. The basic calculation is as follows:
(1,000,000 x Monthly Payment Amount) ÷ 7,000 = Condo Price You Can Afford / Condo Loan Amount
For example, (1,000,000 x 5,000) ÷ 7,000 baht equals 714,285 baht. This means that if you want to pay 5,000 baht per month, you would need to buy a condo priced at approximately 700,000 baht (this is only an estimate).
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Where can you find condos with a 5,000 baht monthly payment?
Even though current condo prices seem quite high, and you might wonder if it's possible to buy one with a 5,000 baht monthly payment, there are actually many locations where condo prices are still relatively low. Most new condo projects are located in suburban or suburban areas, especially in provincial areas, where there are still many attractive options. Alternatively, if you look at resale condo projects, there are even more choices, and you can find projects in good locations.
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Thank you for the valuable information from DD Property.
