Renting Before Buying
If you are looking to buy a condo or house then certainly they are some tempting properties on offer in Pattaya but it may be worth trying before you buy, especially if you are planning to live in the residence yourself.
The best way to do this is to rent before purchasing with a view to testing out all aspects of living in the area.
Although it is quite easy to rent a nearby property to check out the neighborhood or project, clearly the best property to test out on a rental basis would be the actual one that you would be interested to buy. Fortunately a number of owners are open to this possibility, especially if the property in question is being offered both for sale and for rent.
This approach would allow you to test exactly the place you plan to but allowing you to verify that the property functions correctly, and also that the area is suitable for you to reside in.
The success of this approach lies in the details. First it would be important to ensure that the place will be offered for sale at anytime during the agreed rental term, assuming of course all is well with property. Terms of the potential sale (i.e. price and included inventory) should be negotiated with the owner at the same time as the terms of the rental agreement.
The idea would be to secure an ‘option’ to buy the property at a given price under agreed conditions and for this option to be available during the rental term, expiring on or near to the last date the term.
Then the agreement to rent the property, and the purchase option agreement can remain distinct from each other. This would allow you to purchase the place on pre agreed terms, (if you exercised your option to), but it would be your call as to whether you wanted to or not. For the owner the agreement would less flexible for him or her. The owner would be obliged to sell to you at the agreed terms should you wish to purchase during the time that the option is in force.
This is much like a stock option or an option to buy futures. The elements are the strike price
, (agreed purchase price), and expiration date, (The date when the option provided to the buyer expires).
For the rental part of the arrangement, the length of the rental period would need to be considered. An owner who is looking to sell will likely wish to have the sale tied up relatively quickly. In any case it will be a fair point that the amount of time needed to verify that the property and area surrounding it is all OK should be relatively short. Look to agree a 2 or 3 month rental period since this is in keeping with the time that a sale can take to tie up anyway.
It may be possible to have the rent already paid put towards the final buy price, but in reality since the owner is already accommodating the arrangement, and since the amount of rental will be relatively small compared to the purchase price, it is fair that the rental paid be kept by the owner.
As for the payment of a deposit towards the purchase price and the time at which this takes place, it would be prudent to make the completion of any purchase match the date of the end of the rental period. Thus a deposit that is being paid in advance should be paid prior to the end of the rental term to allow completion to occur on time. It could also be sensible to have the option expire a week or two before the end of the rental term otherwise the option will be in force very late, leading to the purchase completing late too.
As for what things to check for during the rental period within the property, these can include the function of all items in the property, structural integrity of the building and of internal walls etc., quality of fittings and noise insulation from neighbors and outside.
For checks within the project it will be worth checking the response time of the management team, the day-to-day management of services and the upkeep of common areas etc. For things such as the Juristic person’s standing, accounting and other financial matters, these can be checked without having to stay in the property!
Outside of the project itself, things to check for are ease of access, the lack of, (or otherwise) of traffic jams and the proximity of conveniences such as supermarkets and restaurants etc. Of course you may wish to check for the proximity of inconveniences such as open-air nightclubs that may cause a disturbance or for industrial complexes nearby. Another thing to check for is the susceptibility to the place for power cuts or water shortages. These may be due to something in the project or in the wider area outside.
With all the above in mind the rental periods indicated would be plenty to conduct all these checks to a satisfactory conclusion.
Renting before buying can be very valuable for someone looking to buy his or her dream home in an unfamiliar area. It is not that commonly available but it is worth asking to see if the possibility of such an arrangement can be put in place. Although this method may impede the ability to get a deep discount on the price, (if not only for the fact that a quick sale will not be forthcoming), for those who wish to be sure about all the aspects of the property it may be a small price to pay for peace of mind!