6 Major Problems To Analyse Before Buying Property in Thailand
Buying property in Thailand from abroad not only allows you to protect your savings but also to get a good income.
In recent years, houses for sale in Thailand has become a tidbit for citizens as the volume of investments is growing by leaps and bounds.
Everyone who wants to buy property in Thailand needs to understand the features of the legislation of this state, which prohibits foreigners from clearly owning a land plot in the country.
That is why, buying a house with land or just a land plot will give the buyer more trouble.
Therefore, when buying real estate in Thailand, buyers should consider contacting real estate agencies to help with the purchase and paperwork.
Thailand is distinguished by its hospitality and comfortable climate and due to this reason more and more fellow citizens are thinking about purchasing their housing in this kingdom.
- What is allowed to buy to foreigners?
- What is the cost of agency services and legal support?
- How to check the purity of the transaction?
- What additional costs await a foreign buyer?
In the meantime, some foreign investors do not pay attention to such details and make a decision of buying a property in Thailand.
Don’t worry, this write-up comes up with some reliable information that helps you in buying a property in Thailand.
So, let’s have a look.
Table of Content
Things to Analyse Before Buying Property in Thailand
- Beware Yourself With Thai’s Law
- The Price of the Property
- Type of Property You Want to Purchase
- Condition of the Property
- Go Through All Documents Once
- Payment Transaction
- Wrapping Up!
Things to Analyse Before Buying Property in Thailand
Beware Yourself With Thai’s Law
According to law, a foreigner can acquire a property in Thailand.
However, it should be borne in mind that 49% of apartments can be sold to foreigners in a house, and 51% must be registered with Thai citizens or a Thai company.
This means foreign citizens may not own more than 49% of the total number of all apartments available in the building.
If a foreigner does not have time to buy property from a quota of 49%, then a Thai citizen can issue an apartment from the unused 51% of the living space of an apartment for long-term rent for 30 years with the right of double extension.
As a result, the lease term reaches 90 years.
A foreign buyer can issue a house in full ownership.
But the land under it is listed in a long-term lease for 30 years with the right to double extension.
The Price of the Property
The price of a property for the agent and the developer is the same and fixed.
If the agent offers you a discount on an apartment of more than 20-30 thousand baht, then it is worth considering.
Perhaps you are offered an illiquid asset, or the price was initially artificially high.
Large developers are usually less flexible on discounts but commercial risks with them are much lower.
Therefore, it is recommended that you analyse everything adequately, so you can make a reliable purchase.
It would be good if you evaluate the price by yourself or consider to take help from a trustworthy agent.
Type of Property You Want to Purchase
Villas have their own separate territory and pool.
The price of such houses is determined by the following factors like area, location, type and class of the villa.
In addition, it also makes a difference in price due to installed equipment, furniture and the quality of finishing materials.
The villas are divided into premium, standard and luxury.
Each of them has a standard price.
On the other hand, townhouses resemble villas in many respects.
But they either do not have their own territory or have but a small one.
Apartments are the most common type of property in Thailand, which include 4-7 floors.
As a rule, they consist of 1-2 bedrooms with an area of 35-145 square meters.
The special type of apartment-like penthouse is located on the top floor of the building, which can occupy the entire floor or wing.
So, analyse which type of property you want to purchase and then evaluate accordingly.
Condition of the Property
The buyer can use the assistance of a lawyer to investigate the condition of the property and the purity of the transaction.
Typically, law firms offer the following services:
- Checking the condition of property like its window, doors, yards, roofs, etc;
- Checking the contract, making changes, negotiating terms with the seller;
- Registration of the transaction in the land department;
Usually, a full legal audit of real estate is carried out only when concluding transactions with secondary housing.
At the expense of the buyer, it can be carried out both before making a reservation deposit, which depends on the agreements of the parties.
Go Through All Documents Once
Registration of a Thai legal entity will require perfect execution of all necessary documents since the guarantee of effective control and use of the organisation depends on you.
After checking the authenticity of the documents, the buyer pays the seller a deposit.
Further, the buyer begins to transfer the full amount necessary for the purchase of a real estate in Thailand from abroad.
Please note that all documents must be in English, with signatures of both parties and the seal of the developer.
Make sure the copies of identification documents and real estate documents are attached to the contract.
When purchasing an object in the primary market, the buyer transfers the funds by bank transfer under an agreement on the details of the developer in Thailand.
Money can come from the buyer’s account opened in any country.
The transfer is allowed from a legal entity registered in any country in which the buyer is from.
If the transaction takes place in the secondary market, usually the buyer opens an account with a Thai bank and transfers funds from another country to it.
At the time of registration in the land, the department provides the seller with a written cheque for the required amount.
In conclusion, if you want to buy housing in Thailand exclusively, then it is recommended that you take help.
It can be from a real estate agent in Bangkok or other countries,
Make sure their services are reliable and also help you in making a rightful decision.
Only the agent knows all the subtleties of processing transactions.
Make sure the agents are
- aware of the various nuances of different objects
- understand the reliability of developers
- analyse which objects will be beneficial for different types of investments
- and also provide legal support.
Author Bio: David Lane is working as a Realtor for Thailand Property .
Which provides commercial, residential and other Bangkok Property services to foreign clients.
Being a realtor, his exceptional knowledge of the market helped him a lot in selling properties all over Thailand.
He has a passion for writing and loves to share his real estate related knowledge with people.