Is buying an abandoned house a good idea?

Is buying an abandoned house a good idea? The relatively low price might tempt many people. However, besides price, several other factors need to be considered. What is an abandoned house? Who owns it? What are the advantages and disadvantages? Weighing these factors helps determine if it's worthwhile to buy for personal residence or as a real estate investment. Consider renovating an abandoned house to resell, perhaps transforming it into a restaurant, cafe, etc.

What is an Abandoned House?

An abandoned house is a house that has been left vacant and uninhabited. It may be a well-maintained house that has been abandoned for many years, or a dilapidated house requiring renovation before occupancy.

Reasons for an abandoned house include: the owner being unable to pay the mortgage, foreclosure, the owner's death, the owner moving abroad for work, owning multiple properties unused, or even being located in a flood-prone area.

__________________________________________

Who Owns an Abandoned House?

Even though it's an abandoned house, it still has an owner. Of all the reasons mentioned above, the primary cause is the owner being unable to pay the mortgage. This can lead to foreclosure by the bank, resulting in the property becoming a Non-Performing Loan (NPL). When an abandoned house becomes the bank's property, it will be auctioned off to find a new owner. If it cannot be sold, it will remain an abandoned house.

In addition, abandoned houses may also be government property, such as that of the Treasury Department. These are often older houses or buildings that, despite being neglected and dilapidated due to age, almost always have owners.

__________________________________________

How to Buy an Abandoned House

If you want to buy an abandoned house, here's how: For those interested in buying an abandoned house in a desirable location, there are three ways to do so:

1. Ask neighbors about the ownership of the abandoned house, where the owner lives, or if anyone knows them.
2. Check with the Land Department. Inform them of your intention to contact the owner or landowner to purchase the house. If you don't know the title deed number, you can now check the land deed, owner's name, and search for land plots in all 77 provinces of Thailand on the Land Department's website and Landsmaps app (SmartLands).
3. If you already know that the house is an abandoned house that has been foreclosed by the bank... This is a bank-owned property being auctioned off. You can contact the bank directly, which will have the owner's details and contact information.

__________________________________________

Is Buying an Abandoned House a Good Idea?
Deciding to buy a house, whether it's an abandoned house, a new house, or a used house, requires consideration of several factors. Abandoned houses have advantages and disadvantages that should be considered, as follows:

Advantages of an Abandoned House

1. Below Market Price
Price is a primary factor attracting buyers to abandoned houses. Their lower-than-market price can save significant money compared to new or used houses. You can buy directly from the owner or from a bank in the case of an auctioned abandoned house.

2. Negotiable Price
When buying an abandoned house, if you can contact the owner directly, you may be able to negotiate the price or persuade them to sell. This differs from buying a used house, which is often sold through a real estate agent, or a new house from a developer with clearly defined prices and discounts.

3. Future Value Appropriation
When buying an abandoned house, you are buying not just the house itself, but also the land. Therefore, the land value should be considered as well, as it will appreciate in value over time. If the land's valuation covers the price of the house, it's a worthwhile investment. 1. If the land alone is deemed worthwhile, then buying it is a good option.

2. Advantages in terms of location.
Abandoned houses built in the past are often located in prime locations, such as in developed communities or economically prosperous areas. This offers advantages in terms of transportation, diverse options, and complete utilities and amenities. This differs from new houses, as current land prices in cities are soaring and construction limitations force owners to move to suburban locations, which may be less convenient.

3. See the neighbors and surrounding environment.
Another advantage of buying an abandoned house is the opportunity to see the neighbors and surrounding environment. You can inspect the property at different times of the day—morning, noon, evening, and night—to see if it's isolated or a hotspot.

Furthermore, you can observe the neighbors, their activities, and their living habits before deciding to buy and live next door. You can also discreetly ask neighbors about any problems or precautions you should take before purchasing the abandoned house.

__________________________________________

Disadvantages of Buying an Abandoned House:

1. Bad History
Why would a house that has been previously inhabited become dilapidated? Therefore, it's crucial to check the history of the house before moving in – who lived there before, where the previous owners went – ​​to make an informed decision and ensure peace of mind when buying an abandoned house. A house with a bad history, such as a murder site or a construction worker's death in an accident (like the legendary haunted house with red staircases), can be problematic.

2. Complicated Procedure
Buying an abandoned house is relatively complicated compared to buying a new or resale house. This includes finding the previous owner, which often requires inquiry, or dealing with the Land Department.

3. Structural Deterioration
It's not just the exterior of an abandoned house that needs inspection; the structure is also vital. Careful consideration of the pillars, beams, and walls is necessary to ensure their condition and prevent subsidence. Having an expert inspect the structure is essential for safety.

4. Repair Costs
Abandoned houses deteriorate over time. If the previous owner neglected maintenance, the house may become even more dilapidated. Therefore, purchasing an abandoned house often involves significant repair costs. New homeowners should therefore budget for renovations, repairs, or remodeling of an abandoned house to make it ready for occupancy.

5. Decoration Costs
Since the house has already been renovated, there are still decoration costs and new furniture to be paid for. However, if you have a limited budget, you can decorate the interior of the house economically using these 9 methods you can do yourself.

__________________________________________

It can be seen that abandoned houses have both advantages and disadvantages. Before buying an abandoned house, you should compare these pros and cons. If, after assessment, it's not worthwhile, complicated, time-consuming, and you're worried about exceeding your budget, there are now affordable housing developments and second-hand houses in attractive locations as another option.

__________________________________________

Thanks for the helpful information from DD Property.