Hello World! Welcome Friends! With its tropical climate, year-round sunshine, and some of the finest beaches and national parks in the world, it is no surprise that many people are attracted to Thailand as a place to purchase property. Real estate in the kingdom is generally a lot more affordable than in many Western countries too.
However, as they should when making a large investment anywhere, sensible buyers of Thai properties need to carefully consider the process, laws, and regulations involved before making a purchase. Overlooking them can lead to serious complications.
These are the essential things you need to consider if you’re thinking about buying in Thailand.
1. Ownership Structure
Thai law prohibits most foreigners from owning land under their own name. This does not mean that foreigners don’t effectively own it, but they typically do so under one of two ownership structures.
The first is leasing the land on a 30-year contract from a Thai citizen. These 30-year leases can be renewed twice, allowing for effective ownership for an entire lifetime. The second option is to purchase the property through a Thai limited company.
2. The Ease of Condos
Condos form a major part of the Bangkok and Pattaya property markets, along with those of other large cities in the country such as Chiang Mai. Foreigners are able to purchase condos in Thailand under their own name.
A maximum of 49% of the condos in any individual building can be owned by foreigners, but this is the only major condition to which condo purchases are subject.
3. Financing Challenges
Foreigners typically face a tough time getting financing from Thai banks. There are things which can help, such as being a resident, marriage to a Thai citizen, and having a job in the country, but it is the bank’s decision. It can even come down to the branch or the manager in charge on the day.
If you have not lived or worked in Thailand for long, it is probably easier to seek financing in your home country.
4. Due Diligence
The Thai property market has boomed in recent years, particularly in the capital, and developers have been racing to complete more and more projects while the going is good. Sometimes, however, it seemed they were in such a rush that standards slipped quite dramatically.
This has made due diligence on the part of buyers even more important. Make sure you do your research. It is even a good idea to speak to residents in nearby places built by the same developer to see if they are happy with the construction quality of their property.
5. Inheritance
It may not be something you wish to think about while you’re enjoying life in Thailand, but you will need a plan for what will happen to your property when you die. Passing Thai property onto your children can be complicated.
It is worth getting wills written up in both Thailand and your home country that detail what you want to happen to the Thai property.
Owning property in Thailand can be a great way to enjoy the country’s many benefits, but only if it is done carefully and after consideration of all the factors outlined above.
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