Choose a condo that suits your salary base.
Last updated: 3 Aug 2025
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While a home is a dream for most people, in today's fast-paced work environment, condominiums are another popular form of housing. They offer comprehensive amenities, are easy to travel to, and are easier to maintain. However, condo prices are significantly higher than before due to several factors, including location and rising demand. Therefore, when choosing a condo, it's important to choose one that fits your salary, ensures you can afford the installment payments, and doesn't burden you with too much of a burden that could ruin your life. The principles for choosing a condo that's right for your salary are as follows:
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1. Calculate the maximum loan amount you can apply for.
Of course, when purchasing a condo, most people apply for a bank loan. Therefore, you need to assess how much your salary can afford. Banks typically approve a maximum loan amount of approximately 40-50 times your salary. Therefore, if you earn 40,000 baht, you'll be able to apply for a loan of approximately 1.6-2 million baht. This means that a condo you should purchase with a 40,000 baht salary would be within the approved loan amount.
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2. Calculate Your Monthly Repayment Amount
Once you've received the approved loan amount you expect to apply for, the next step is to calculate your monthly repayment amount to determine whether you can afford the payments. Typically, the median condo repayment is approximately 7,000 baht per 1 million baht. This means that if your condo is valued at 1 million baht, you'll need to pay 7,000 baht per month. If your condo is valued at 2 million baht, you'll need to pay 14,000 baht per month. A simple formula for calculating your condo repayment amount is: 7,000 x condo price ÷ 1,000,000 baht.
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3. Calculate Your Actual Repayment Amount
7,000 baht per 1 million baht is a rough estimate to help you assess your ability to afford the repayments. If your condo is valued at 2 million baht, you'll need to pay approximately 14,000 baht per month. If you earn 40,000 baht, this might seem like enough to cover the payments without any problems. However, in reality, even if you can afford the payments, you may not have enough money left over for expenses. Remember, in our daily lives, we may have other debts that need to be paid, such as mobile phone installments and car installments. Therefore, calculating our ability to repay requires careful consideration, including other debts that need to be repaid. The ideal repayment threshold for a condo installment should not exceed 40%
of income. When combined with other debts, the formula for calculating appropriate repayment capacity is: Salary x 40% Existing Debt = Repayment Capacity.
For example, Mr. A earns 40,000 baht and purchases a 2 million baht condo. He also has 10,000 baht per month for a big bike installment. Therefore, Mr. A's monthly repayment capacity is 40,000 x 40% - 10,000 = 6,000 baht. With a monthly condo installment of 14,000 baht, a 2 million baht condo may be too high for Mr. A, as it may leave insufficient funds for daily expenses such as food, gas, water, electricity, phone, internet, etc.
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In reality, Applying for a condo loan may result in a credit limit of 40-50 times higher, depending on the borrower's occupation and credit history. However, even a higher loan amount doesn't mean you can purchase a high-priced condo without worry. Repayment capacity must be carefully considered. Don't overpay. Repayment capacity should be comfortable. We never know when an emergency may arise, such as illness, accident, or job loss. Maintaining a comfortable repayment schedule and having enough money left over each month is the most appropriate approach. Therefore, when choosing a condo that fits your salary base, carefully consider your financial capabilities and carefully consider your own financial capabilities for a happy life.
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Thank you for the great information from REIC.
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1. Calculate the maximum loan amount you can apply for.
Of course, when purchasing a condo, most people apply for a bank loan. Therefore, you need to assess how much your salary can afford. Banks typically approve a maximum loan amount of approximately 40-50 times your salary. Therefore, if you earn 40,000 baht, you'll be able to apply for a loan of approximately 1.6-2 million baht. This means that a condo you should purchase with a 40,000 baht salary would be within the approved loan amount.
__________________________________________
2. Calculate Your Monthly Repayment Amount
Once you've received the approved loan amount you expect to apply for, the next step is to calculate your monthly repayment amount to determine whether you can afford the payments. Typically, the median condo repayment is approximately 7,000 baht per 1 million baht. This means that if your condo is valued at 1 million baht, you'll need to pay 7,000 baht per month. If your condo is valued at 2 million baht, you'll need to pay 14,000 baht per month. A simple formula for calculating your condo repayment amount is: 7,000 x condo price ÷ 1,000,000 baht.
__________________________________________
3. Calculate Your Actual Repayment Amount
7,000 baht per 1 million baht is a rough estimate to help you assess your ability to afford the repayments. If your condo is valued at 2 million baht, you'll need to pay approximately 14,000 baht per month. If you earn 40,000 baht, this might seem like enough to cover the payments without any problems. However, in reality, even if you can afford the payments, you may not have enough money left over for expenses. Remember, in our daily lives, we may have other debts that need to be paid, such as mobile phone installments and car installments. Therefore, calculating our ability to repay requires careful consideration, including other debts that need to be repaid. The ideal repayment threshold for a condo installment should not exceed 40%
of income. When combined with other debts, the formula for calculating appropriate repayment capacity is: Salary x 40% Existing Debt = Repayment Capacity.
For example, Mr. A earns 40,000 baht and purchases a 2 million baht condo. He also has 10,000 baht per month for a big bike installment. Therefore, Mr. A's monthly repayment capacity is 40,000 x 40% - 10,000 = 6,000 baht. With a monthly condo installment of 14,000 baht, a 2 million baht condo may be too high for Mr. A, as it may leave insufficient funds for daily expenses such as food, gas, water, electricity, phone, internet, etc.
__________________________________________
In reality, Applying for a condo loan may result in a credit limit of 40-50 times higher, depending on the borrower's occupation and credit history. However, even a higher loan amount doesn't mean you can purchase a high-priced condo without worry. Repayment capacity must be carefully considered. Don't overpay. Repayment capacity should be comfortable. We never know when an emergency may arise, such as illness, accident, or job loss. Maintaining a comfortable repayment schedule and having enough money left over each month is the most appropriate approach. Therefore, when choosing a condo that fits your salary base, carefully consider your financial capabilities and carefully consider your own financial capabilities for a happy life.
__________________________________________
Thank you for the great information from REIC.
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