If you’re interested in buying property in Thailand, it’s important to understand the legal process. The team at Keller Henson is happy to answer any questions you may have regarding this topic.
Thailand is home to a rich culture and offers an east-meets-west balance. Wonder through ancient temples by day and enjoy the city’s vibrant entertainment at night.
1. Consider Your Budget
When buying property in Thailand, you need to consider your budget and lifestyle. This will help you narrow down your options and find the right house for you. You can do this by looking for property prices on the internet or visiting umbrella websites that list many properties at once.
One of the most popular types of property in Thailand for foreigners is apartments and condos. They are often found in tourist destinations and are relatively affordable. However, it’s important to note that they are typically bought on a leasehold basis, rather than freehold. This means that you only own the apartment itself and not the land it sits on. Furthermore, there are usually no ongoing property taxes for condo owners. This is different from the case with freehold properties, where buyers are required to pay property tax annually.
2. Know the Legal Process
The property market in Thailand is less regulated than you might expect so it is best to enlist the services of a local estate agent and lawyer to ensure you aren’t violating any laws. Having local support also helps with structural surveys, and determining the credentials of sellers and project developers.
One thing to consider is whether or not you want a house or condo. While foreigners cannot own land in Thailand, they can purchase condominiums which are governed by the Condominium Act. This allows for individual title deed ownership and shared ownership of common property.
Another consideration is how you plan to finance your property purchase. It can be difficult for foreigners to secure loan financing in Thailand. However, with enough determination and patience, it is possible.
3. Find a Reputable Real Estate Agent
When purchasing property in Thailand, it is essential to find a real estate agent with local expertise. This will help you navigate the legal process and understand the local market. They will also be able to assist with any questions or concerns you may have.
In addition, they will be able to check for any discrepancies between the property’s recorded area and its actual size. This is particularly important for foreigners, who are not accustomed to the metric system in Thailand and can easily get confused.
Lastly, they will ensure that all taxes are paid correctly. This includes land transfer fees, property tax, and government charges. These fees can add up to a significant amount of money, so it is important to understand them before making a purchase.
4. Pay a Deposit
Generally speaking, buyers are required to pay a deposit of 10-15% of the total contracting price. This serves to reserve the property in your name while the real estate process unfolds.
Most people who consider buying property in Thailand do so for either retirement purposes or because they have a long-standing desire to live there. Either way, there is a lot to know before embarking on this journey.
The good news is that it is possible to buy property in Thailand as a foreigner. However, it is important to work with a lawyer who understands the ins and outs of this process. This will help to avoid any misunderstandings that could cost you hundreds of thousands of dollars down the road. For example, many sellers tend to understate the actual area of their property. This can become a problem once the title deed is transferred.
5. Ask Questions
Buying property in Thailand is an exciting prospect, but it’s also important to ask the right questions. This can help ensure that you get the best possible deal on your home and minimize any potential risks.
For instance, it’s important to ask whether or not a title search has been done on the property you’re interested in. This will tell you a lot about the history of the property, and will give you peace of mind that you’re not purchasing a dud.
It’s also a good idea to ask your agent about the local area, and what kind of lifestyle you can expect in the region. This will give you an idea of what to expect from the property, and can help you decide if it’s the right place for you.