What are the pros and cons of buying a house with a down payment?
Last updated: 3 Aug 2025
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Buying a house with an installment payment means buying a house that's not yet completed or is in the pre-sale phase. Condos also offer installment payments. The down payment is an abbreviation for the English word "down payment." It refers to the initial amount the buyer must pay to the seller as specified. The larger the down payment, the lower the loan amount, resulting in a lighter installment payment. However, for those without a large lump sum, installment payments are a viable solution, making it easier to buy a home.
Advantages of Buying a House with an Installment Payment
The key advantage of buying a house with an installment payment or condo with an installment payment is the lack of a lump sum payment. For example, if the down payment is 200,000 baht, buying with an installment payment means you don't have to pay the full amount, but can pay the installments over the period specified by the seller. This reduces the cost of living. This makes it ideal for those with low incomes, those without a lump sum, or those who don't want to draw on large savings. Most houses or condos that can be purchased with an installment payment are currently under construction or during the pre-sale phase, when prices are lower than when the construction is complete. For this reason, Buying a house with a down payment allows us to get a house or condo at a price lower than the actual full price. Furthermore, once we pay the full down payment according to the terms and conditions, the loan amount will be reduced, which will ease our mortgage payments.
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Disadvantages of Buying a House with a Down Payment
The downside of buying a house with a down payment, including buying a condo with a down payment, is that it carries risks. These risks include the risk of not being approved for a loan. Since down payments are made directly to the seller or project, not to the bank, there is no detailed assessment to determine whether the loan will be approved. If the down payment is paid and the loan is not approved, it is important to review the terms and conditions to determine whether the down payment is refundable. Even if the down payment is refundable, the process can be time-consuming. Another potential risk is that the house is not completed or construction is suspended for whatever reason, legally. This could result in the loss of the down payment or the need to file a lawsuit to recover the money. Therefore, before deciding to buy a house with a down payment, it is important to carefully read the contract, details, conditions, and consider the credibility and stability of the project and seller to minimize potential risks.
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In summary, buying a home with an installment plan has both advantages and disadvantages. It requires careful research and consideration. Especially since installment plans are an option for those who want a home but have low incomes and limited savings, installment plans pose significant risks for buyers who lack sufficient financial discipline. Even if the down payment is smooth, if the loan application is ultimately rejected due to insufficient financial status, it will lead to further headaches and ultimately lead to the loss of your dream home.
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Source: REIC
Advantages of Buying a House with an Installment Payment
The key advantage of buying a house with an installment payment or condo with an installment payment is the lack of a lump sum payment. For example, if the down payment is 200,000 baht, buying with an installment payment means you don't have to pay the full amount, but can pay the installments over the period specified by the seller. This reduces the cost of living. This makes it ideal for those with low incomes, those without a lump sum, or those who don't want to draw on large savings. Most houses or condos that can be purchased with an installment payment are currently under construction or during the pre-sale phase, when prices are lower than when the construction is complete. For this reason, Buying a house with a down payment allows us to get a house or condo at a price lower than the actual full price. Furthermore, once we pay the full down payment according to the terms and conditions, the loan amount will be reduced, which will ease our mortgage payments.
___________________________________________
Disadvantages of Buying a House with a Down Payment
The downside of buying a house with a down payment, including buying a condo with a down payment, is that it carries risks. These risks include the risk of not being approved for a loan. Since down payments are made directly to the seller or project, not to the bank, there is no detailed assessment to determine whether the loan will be approved. If the down payment is paid and the loan is not approved, it is important to review the terms and conditions to determine whether the down payment is refundable. Even if the down payment is refundable, the process can be time-consuming. Another potential risk is that the house is not completed or construction is suspended for whatever reason, legally. This could result in the loss of the down payment or the need to file a lawsuit to recover the money. Therefore, before deciding to buy a house with a down payment, it is important to carefully read the contract, details, conditions, and consider the credibility and stability of the project and seller to minimize potential risks.
___________________________________________
In summary, buying a home with an installment plan has both advantages and disadvantages. It requires careful research and consideration. Especially since installment plans are an option for those who want a home but have low incomes and limited savings, installment plans pose significant risks for buyers who lack sufficient financial discipline. Even if the down payment is smooth, if the loan application is ultimately rejected due to insufficient financial status, it will lead to further headaches and ultimately lead to the loss of your dream home.
___________________________________________
Source: REIC
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