In Phuket, owning a condo can be an excellent choice for individuals seeking their own property. One significant advantage is that foreign residents can own a condo outright, as foreigners are not allowed to own land directly. Additionally, if the building and its surroundings are well-maintained, condo ownership can be more convenient and cost-effective compared to owning a house.
When considering to buy a property in Phuket, it is important to take into account the ongoing financial commitments beyond the initial purchase price. These expenses, collectively covered by all residents of the building, are necessary for the proper functioning and upkeep of the condo complex.
Common Area Fees
One crucial additional cost is the common area maintenance (CAM) fees. These fees contribute to a fund managed by the building’s management team, which is used for various maintenance tasks and additional services. Examples of these expenses include building upkeep such as cleaning, painting, landscaping, elevator maintenance, and window cleaning. Other shared costs may involve the maintenance and cleaning of amenities like swimming pools, gyms, security services, walkways, access roads, as well as utility bills for common areas like reception spaces, fountains, or shared facilities that require lighting or air conditioning.
Sinking Fund
In addition to CAM fees, condo owners may be required to contribute to a sinking fund. The sinking fund serves as a savings account for the condo complex, typically earmarked for significant maintenance projects or repairs. Unlike CAM fees, sinking fund payments are less frequent and often allocated for unforeseen situations. Owners may make a one-time payment into the sinking fund, occasional payments, or contribute when necessary.
The amount of these fees varies depending on the size of the condo unit and the extent of amenities provided by the building. Typically, condo owners can expect to pay approximately 40-80 baht per square meter annually for CAM fees. Sinking fund requirements can vary greatly, ranging from a one-time payment during the initial purchase to periodic contributions every few years. It’s important to note whether these fees apply only to the first-time buyer or if they are transferable to new owners upon selling the unit.
The appropriate allocation and effective utilization of these funds depend on the management and board of directors overseeing the condo project. Opting for a project that has been established for a few years can provide insights into the quality of management. Remember that quality often corresponds with the associated fees, so very low CAM and sinking fund fees may indicate a lack of care for the building and its surroundings. While most condo owners in Phuket have positive experiences, prospective buyers should exercise caution, thoroughly assess the management, ask comprehensive questions, and speak with current residents before making a decision to proceed with a purchase.
