04 Apr 2023
PhuketProperty.com; When it comes to property ownership in Phuket, Thailand, there are two fees that buyers should be aware of: common area management fees and sinking funds. These fees are typically paid by owners of condominiums or apartments, but may also apply to other types of properties that are part of a larger development or community.
Common Area Management Fees:
Common area management fees are charges that are levied by the developer or management company responsible for maintaining the common areas of a development or community. These fees are typically used to cover the costs of maintaining and repairing shared facilities, such as swimming pools, gyms, gardens, parking lots, elevators, and security systems.
The amount of common area management fees charged can vary depending on a number of factors, such as the size of the development or community, the number of units or properties within the development, the level of maintenance required, and the types of amenities provided. In Phuket, common area management fees typically range from around 30 to 60 Thai baht per square meter per month.
Common area management fees are usually paid on a monthly or quarterly basis, and are usually calculated based on the size of the unit or property. For example, if the monthly common area management fee is 50 Thai baht per square meter, and the unit is 100 square meters, the owner would be required to pay 5,000 Thai baht per month.
Sinking Funds:
Sinking funds are fees that are paid by owners of condominiums or apartments to build up a reserve fund that can be used for major repairs or renovations to the building or common areas. The purpose of a sinking fund is to ensure that there are sufficient funds available to cover unexpected or large-scale maintenance costs, such as repainting the building, replacing the roof, or repairing the elevators.
The amount of sinking fund required can vary depending on a number of factors, such as the age and condition of the building, the type of construction materials used, and the anticipated maintenance costs. In Phuket, sinking funds typically range from around 500 to 1,000 Thai baht per square meter.
Sinking funds are usually paid as a lump sum when the property is purchased, and are typically calculated based on the size of the unit or property. For example, if the sinking fund is 800 Thai baht per square meter, and the unit is 100 square meters, the owner would be required to pay 80,000 Thai baht upfront.
It's important to note that sinking funds are not the same as common area management fees. While common area management fees are used to cover ongoing maintenance and repair costs, sinking funds are used to build up a reserve fund for future expenses.
In conclusion, common area management fees and sinking funds are two fees that buyers of properties in Phuket should be aware of. Common area management fees are charges that are levied by the developer or management company responsible for maintaining the common areas of a development or community, while sinking funds are fees that are paid by owners to build up a reserve fund for major repairs or renovations. While the exact amount of these fees can vary depending on a number of factors, buyers should always ensure that they understand the fees associated with their property before making a purchase.