Do you want to buy a condo, a villa, or a house in Thailand after a wonderful vacation? Maybe you are looking for such opportunities to find a suitable property according to your needs? Maybe you choose a property, but are not aware of Thailand regulations? Then worry not and follow up this guide for securing your property!
Thailand is known as a beautiful vacation paradise, where you can enjoy your getaway dreams with stunning beaches, historic sights and an attractive, cultural melting-pot. But along with this, Thailand’s property market is also competitive, which is an attractive target for those looking to invest in real estate. With the steady growth of tourism, an increasing number of investors are interested in buying properties and then renting them out for income.
As home to a rich and elegant culture, Thailand provides travellers with a true sense of mystery and wonder of comfort. This place is one of the biggest selling points for foreigners that want to purchase property here. However, it is also important to know all of the facts while considering buying a property in Thailand. In addition, there are some strict and distinctly Thai rules and regulations when it comes to purchasing real estate in Thailand, especially for foreigners. So, let’s have a look at the important things that are necessary to consider buying a Thailand property.
Table of Content
Things to Consider While Purchasing Property in Thailand
- Choose a Reliable Property Agent in Thailand
- Do a Tile Investigation
- Understand the Deposit Facility
- Be Aware of the Rules and Regulations of Thailand Property Investment
- Requirements of Getting a Loan
- Price Check
Things to Consider While Purchasing Property in Thailand
Choose a Reliable Property Agent in Thailand
For purchasing a property in Thailand, it is necessary to hire an expert for local assistance. Such experts are experienced and know everything about properties. Moreover, they are also familiar with the locations (which geographical area is perfect for buying property). These professional agents are experts and save valuable time in selecting and showing the property in your negotiated price that meets your preferences.
If you purchase directly from the owner, then it may cost you high as compared to buying a property in Thailand from an agent. A quality property for sale in Thailand is generally offered at a fixed price by the seller. The best benefit of using a property agent is that they will work as mediocre between you and the seller. They will also act on your support to symbolise your best interests during the entire process.
Do a Tile Investigation
A comprehensive examination of title at the Land Department must be necessary for protecting yourself from any fraud or threat. It is a wise decision to verify that the seller has a clear and legal title of the land before you enter into a contractual agreement. The title search will trace the land to its territory and settlement.
It will exhibit any registered interests on the land such as mortgage or liens. In addition, doing such an investigation will also access your property like the residential zoning, environmental and planning codes applicable in the area. Therefore, it is a good idea to make sure that you can develop a construction on the land.
Understand the Deposit Facility
After consulting with the right property developers, sellers, and agents, you may receive a perfect condo house or property. In this case, you have to first put down an earnest deposit holding the property until the rest of the process opens. While the property is reserved in your name, the seller or agent will enlist the contracts for the further transaction.
In Thailand, the deposit generally starts up for about 10-15% of the purchase price. This amount will then be deducted from the total purchase price. If you fail to follow the proper step from your side of the deal, then the seller holds the deposit. But, if it is happening from the seller’s side and fails to keep up their side of the bargain, then the deposit is refundable. Therefore, it is essential to stay aware of conditions that are writing in terms of the agreement and keep a receipt of the transaction.
Be Aware of the Rules and Regulations of Thailand Property Investment
Before the purchase, you must be aware of some rules and regulations of Thailand. Rules are different for foreigners than those who belong to this home country. Basically, foreigners are not allowed to directly purchase land in Thailand. Thailand law prohibits foreigners from owning land in their own name, but there are alternatives available for them for successful land acquisition.
These most common are to set up your own Thai Limited Company and to enter into a long term leasehold with the Landowner. Another most cases involved to buy a property in Thailand is to marry a Thia citizen in which Thai purchases the land and stipulates a lease with the foreigner.
Requirements of Getting a Loan
There are a few requirements in regard to financing while purchasing a condo in Thailand. If you did not secure your financing in Thai banks and as a foreigner, you live in Thailand for a number of years with proper work history, work permits, marriage license etc, then it is not possible to receive enough backing from a bank for buying a property.
But, if you do not have a history of living or working in Thailand, then it would be better for you to consider getting a loan from your country. In this case, the money comes from overseas if the property is going to be under a foreigner’s name. A Thai bank can bring the money in from abroad if you get a mortgage from any such bank in Thailand. And, then your loan will end up being in foreign currency like US Dollars or Euros.
If you are trying to buy a property in Thailand, then you will definitely have to do thorough research on the prices of properties and cross-reference them with your target property. If you are thinking that the property is overvalued relative to current market conditions, then you should discuss it with your realtor and real estate agency.
In case, if you have evidence of the property that is overvalued, then the real estate agent will typically present you with enough support to renegotiate the price. In addition, it is recommended to make an estimation of your rental income and then compare it to the amount that you pay for the property. Make sure your investment must have a good yield after taking this into account.
While entering into the real estate market regarding purchasing a property in Thailand. Do not forget to consider all pros and cons to prevent yourself from any fraud. It is advisable to hire an experienced and professional real estate agent to know more about the market. And keep yourself up-to-date with the property prices. The more you focus on the prices, location and rules. The more likely you have the chances to obtain the right property at affordable prices. Do not forget to read the contract or term and conditions before signing it.