One of big dreams for the First Jobbers is inevitable a condominium. When First Jobbers start working for a while and have financial security, they’re likely to buy a property near the office or where it’s more convenient to travel. Therefore, buying a condo is an interesting choice. Here are some tips to buy the first condo for First Jobbers.

Factors for buying the right condominium are as follows.

1. Finding a good choice

The first thing to consider is location. The condo should close to the office or is convenient to travel. If the location has infrastructure development plan with facilities in the future, the project is likely to have higher value and more buying demand, so we can easily sell or rent out our condo when necessary.

Comparison between buying new condo and second-hand condo is important. Good things about the new condo are its brand-new condition and modern, especially flawless common areas. There’re also more alternatives like condos along BTS line which are mostly new projects under construction and completely built. Anyway, the con is price per square meter is more expensive than second-hand condo. And if we choose condo under construction, we won’t see actual room or real view. Besides, common fee of a new condo costs higher.

Good things about second-hand condo are cheap price, save more, and we may unexpectedly find an exceptional one. If we’re lucky, we may get good location with affordable price. This type of condo suits people who have burden or don’t have much money. The disadvantage is second-hand condo may come with old condition and if

2 Financial planning

Before buying a condo, we’ll need to calculate “an ability to loan” by HOME.SCB | ธนาคารไทยพาณิชย์ คำนวณสินเชื่อ so we can check loan amount and consider how much our monthly income and installment balance we need to cover the loan. For example, if our salary is 20,000 baht with 5% annual interest and 30-year installment; refer to the calculation program, our loan amount will be 1.3 MB and monthly installment is 7,000 baht. That program primarily helps us estimate our ability to loan and to pay installment.

Terms and conditions to get loan may differ from preliminary calculation depending on interest rate at that time. Besides, the bank may also consider debt burden of loanee (borrower). The highest monthly installment should not exceed 40% of income. Suppose we firstly get a loan to buy a car, the total amount of car including condo installment should be within 40% of income, and we won’t get full amount of loan for condo. Therefore, it’s wise to think thoroughly before making decision. Don’t make too much loan or buy a condo at too high a price to pay. In the case of financial strain, that condo would later become our heavy burden.

If the condo hasn’t yet finished, we must prepare down payment which normally is about 10%-30% of selling price, plus other expenses on ownership transfer date such as mortgage date at 1% of loan amount, transfer fee at 2% of appraisal price of Department of Lands (most buyers and project owner share half or 1%), duty fee at 0.05% of loan amount including other fee according to Department of Lands and payment to condo project like Sinking Fund, fire insurance premium, annual common fee, etc.

Finally, we have to spare money for room decorations and buying furniture. Apparently, owning a condo requires a great deal of preparation and a good financial plan.

3. Buying from a reliable seller

It’s a must to study the project information. For buying a new condo, we need to consider the developer reputation, proper price and quality, and construction progress. For finished project, well check about the management of project environment and the living area. Suggestion can be requested from real asset consultant or professional agent.

For second-hand condo, we should check room condition, location, neighbors, condo surrounding, and condo’s legal entity. We may call for a service through reliable agent to minimize risk and to make the condo buying process smoothly. The agent helps providing suggestion and handling documents, communicating with organizations, paying, and arranging transfer date.

Buying first condo will be easier if the First Jobbers set a concise financial plan, seek advice from skilled consultant, and get enough information. If they get a condo matches their financial status, they’ll gain a good quality of life; saving time commuting to work, living life conveniently, and having moderately financial burdens. After all, buying condominium will be worth investing as we can rent out or resell it in the future.

Nipaphan Poonsathiensap CFP®, ACC

Freelance Financial Planner, Writer, and Lecturerกร