Things To Know Before You Purchase Property in Thailand
Want to move to the land of smiles? One requirement before becoming a resident here is to purchase property in Thailand. But before you buy a property, you need to know these things first beforehand. Here are the things to know and questions you should ask before buying Thailand real estate.
Things To Know Before You Purchase Property in Thailand
Eligibility to Own a land in Thailand
Does being a resident in Thailand make you eligible to own land in the country? Unfortunately, the answer is now. You can only gain partial ownership of Thailand’s land through various options. One is by leasing property for 30 years or more. Another way is to set up a Thai limited company.
You can only hold up to 49% maximum of company shares. There’s an exemption if you’re a United States citizen, though. US Citizens can have 100% ownership of Thailand’s land titles due to its treaty partnership. The same rule applies to houses, condos, and townhouses.
Thailand Condos Are The Key
Houses may not be suitable for foreigners wanting to own ownership, but not with condos. In fact, most ex-pats choose condos when they purchase property in Thailand. Why? It's because a foreigner can obtain full ownership over a condo or apartment. The 1979 Thailand Condominium Act states a foreigner can own a condo unit as long as the building is 51% Thai owned. As of today, almost 20% of condos in Bangkok are either owned by foreign investors, ex-pats, or residents.
The Financial Aspect
If a condo is your main choice when you purchase property in Thailand, the next step is to determine your loan financing. Most foreigners in Thailand have a hard time applying for a loan to finance their real estate purchase, let alone getting approved. But you can still land a loan financing with some oversea bank as UOB Singapore. Anyway, most of the purchase from foreigners are done without loan, and the different segment of the market allows to find quality property for all budgets.
Perform Diligent Research
As the demand for condos for both ex-pats and tourists shot up in Bangkok, it’s important to conduct diligent research before making a real estate transaction. Make sure that condo developers have a solid reputation when it comes to building properties. If possible, inspect the materials used in constructing condos to make sure it's totally safe and complies with government regulations. You can also ask other condo owners for their reviews to determine if they’re satisfied with their stay. This will give you an assurance that when you purchase property in Thailand, it’s a good investment.
Take Note of Deposits and Terms and Conditions
The moment you choose to purchase property in Thailand, take note of the deposit terms and conditions. Most developers will require you to pay a 10-15% downpayment as deposits. This is to ensure the property is reserved under your name as the whole real estate process unfolds.
The deposit you paid must be deducted to the total contracting price. If you fail to fulfill the provisions of the contract, the seller will retain your deposit. Otherwise, the deposit must be refundable. Make sure these terms are stated clearly on the contract before signing it.
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