What is equivalent exchange? Equivalent exchange is a mechanism in which the owner of the land provides the land to the developer who builds the condominium for example, Condo near BTS Bangkok (คอนโดติดรถไฟฟ้า), and the developer builds the condominium on the provided land. Instead of providing the land to the developer, the land owner will be able to receive the same building occupancy as the valuation of the land provided. For example, if you transfer a quarter of the land value, the land owner can take ownership of a quarter of the building. Developers can get a profit on the sale by selling the remaining three-quarters of the building, and an operating station by operating it. Equivalent exchange can be said to be a mutually beneficial contract method because land owners can get a part of the building at no cost and developers can get profits on sale and operation. However, there are some disadvantages to the equivalent exchange that you should check before making a contract. It is important to compare both the advantages and disadvantages and consider carefully. Precautions for equivalent exchange When proceeding with equivalent exchange, it is important to meet a developer who will respond in good faith. For example, pay attention to whether it will explain to the land owners, including the disadvantages of equivalent exchange, and encourage careful consideration, and whether it will explain the calculation results of the land and building valuations in an easy-to-understand manner. In addition, it is important to consider land utilization other than land sale and equivalent exchange in parallel. Let's compare the profit obtained by equivalent exchange, the profit on sale when selling, the operating profit when using other land, etc., and compare the advantages and disadvantages of each. Asking a sincere developer for an equivalent exchange, and finding out in advance what the appropriate valuation is, will reduce the risk of the equivalent exchange failing. Summary In the equivalent exchange, the owner of the land provides the land, and the developer who provided the land builds the condominium put thecondo for rent bangkok (เช่าคอนโด). Land owners can receive a part of the condominium according to the value of the land, so they can start rental condominium management at no cost. On the other hand, developers can sell the condominiums they have built and earn profits from the sale, so the feature of equivalent exchange is that there are merits on both sides. Equivalent exchange can be said to be suitable for those who want to manage rentals while reducing risk, but it should be noted that it is difficult to determine the ownership ratio because you have to part with the land. You may be fooled by malicious developers, so be sure to understand the advantages, disadvantages, and precautions of equivalent exchange before choosing equivalent exchange.
james cooper at November 20, 2020 at 2:44am PST