Currently, the condominium real estate market in Thailand has been growing significantly. Between 2017 and 2018, there were developments in various aspects, including changes in property tax and building regulations. Therefore, it is important to study information thoroughly.
Especially for investors, it is essential to continuously study both the real estate market and target customers. For those starting out or planning to purchase a condo, understanding the buying process and related documentation is crucial. In this article, we will introduce down payments and other essential financial aspects.
Understanding Down Payment and Condo Down Payment
A down payment is the initial lump sum paid when purchasing an item on installment, with the remaining balance paid in installments according to the contract.
A condo down payment refers to the portion paid before applying for a mortgage loan, including payments made before construction completion and additional payments when the condo is ready to transfer.
What is a Balloon Payment and Why is it Important?
A balloon payment is a larger installment that may be 2–3 times higher than regular down payment installments. It is structured differently from normal installments and must be carefully considered to ensure affordability.
How Much is a Condo Down Payment?
Typically, condo down payments range from 5–10% of the property price. For example, a 3 million baht condo may require a down payment of up to 300,000 baht. Nowadays, many developers offer lower down payments to attract buyers and maintain financial liquidity.
Down Payment Period
The installment period depends on the project type. Low-rise condos typically require about 12 months of down payment, while high-rise projects may extend to 24 months. However, construction advancements may shorten completion timelines, though contracts remain fixed. Buyers may choose to pay in installments or make a lump sum payment before transfer.
Steps in Condo Purchase and Down Payment Process
- Selecting a condo by researching location, developer credibility, and facilities
- Booking the unit and negotiating price and promotions
- Finalizing loan details and preparing documents for mortgage approval
- Paying down payment installments as agreed
What Happens if You Cannot Get Loan Approval After Paying Down Payment?
- Negotiate with the developer for possible solutions
- Apply for loans with other banks or review financial eligibility
- Consider switching to a more affordable unit
- Sell the down payment rights to recover funds
Even if the contract states that the down payment may be forfeited, there may still be possibilities to negotiate a refund depending on conditions.
Beyond financial knowledge, choosing the right property is equally important. REAL ASSET offers a wide range of quality developments—from condos near transit lines to houses and townhomes in prime locations—to match your lifestyle and budget.
Explore projects like VIVALDI Bangna, Stories Bangna - Suvarnabhumi, Sense Bangna - Suvarnabhumi, Viranya Bangna - Suvarnabhumi, and A Space Mega 2 to find the perfect home for your future.
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source : estopolis.com
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Question: What is a down payment?
Answer: A down payment is the first lump sum a buyer pays when purchasing an item through installments, while the remaining amount is paid in installments according to the contract.
Question: What is a condo down payment?
Answer: A condo down payment is part of the purchase price paid before applying for a mortgage with a bank. It may be paid while the condominium is under construction or when the completed unit is ready to move in.
Question: What is a balloon payment?
Answer: A balloon payment is a larger installment than a normal down payment installment. According to the source content, it may be about 2–3 times higher than a regular installment, so buyers should check the amount and plan their cash flow in advance.
Question: How much is a typical condo down payment?
Answer: According to the source content, a condo down payment is generally around 5–10% of the project price. For example, a 3-million-baht condominium may require a total down payment of up to about 300,000 baht.
Question: How long is the down payment period for Low-Rise and High-Rise condominiums?
Answer: According to the source content, Low-Rise condominiums often have a down payment period of around 12 installments or 1 year, while High-Rise condominiums may have around 24 months or 2 years.
Question: What should buyers do if they have paid the down payment but their mortgage is rejected?
Answer: Options from the source include negotiating with the developer, applying with another bank, considering a lower-priced unit, or selling the down payment rights. Refund conditions and buyer rights should be checked against the contract and applicable law in each case.
