Are you looking to settle into the land of smiles? One of the requirements to become an official resident in Thailand is to purchase a property here. But before you purchase the property, you need to be aware of a few tips. Below are some of these tips and the questions you must ask yourself prior to purchasing Thailand real estate.
Does being a resident of Thailand make you eligible to own land in Thailand? Unfortunately it is not the case. In Thailand you cannot own land outright in your own name but can control the ownership of the land via a long lease for a period of 30 years twice renewable or via a Thai limited company.
You are not allowed to hold more than 49% of the shares owned by the company but because you would hold preferential shares, you would hold a majority of the voting rights within the company and have full control of it. There may be some exemption for United States citizens to own land in their name thanks to the treaty partnership between Thailand and the USA but only under certain conditions.
While houses may not be the easiest option for foreigners who want to purchase property in Thailand, condos certainly are a good alternative. In fact, many expats opt for condos when buying property in Thailand. Why? It is because foreigners can acquire full ownership of a condo under the 1979 Thailand Condominium Act stating that a foreigner can own a condominium unit provided the building in which the unit is located is minimum 51 percent Thai owned. As of today, more than 20 percent of condos located in Bangkok are held by foreign investors, expats or residents.
If condos are your primary choice when buying property in Thailand the next thing to do is finding the right financing option. The majority of foreigners living in Thailand are having a difficult time to get loans to finance their real estate purchase. However you could, under certain illegibility criteria, receive a property loan through an overseas bank such like UOB Singapore. Having said that, the majority of purchases by foreigners in Thailand are made cash, without loans. The diverse types of properties available on the market at wide price ranges will make your choice easier.
Once we have found a property of our liking, it is essential to conduct a thorough due diligence prior to entering into a sales and purchase agreement. Make sure that the developers have a good reputation and a solid background in the construction of residential buildings. If possible, examine the building materials to ensure it is safe and complies with the laws of the country. You may also request other condo owners to provide their feedback to see if they are happy with their experience of owning property in the building. This will give you peace of mind before purchasing property in Thailand.
When you decide to purchase a property in Thailand make sure you know the terms and conditions of your deposit. The majority of developers will require between 10 and 30% down as a deposit. The property is then taken off the market until the ownership is transferred to your name.
The deposit you have paid is to be deducted from the total amount due to the seller. If you fail to comply with the terms of the contract and default as a result, the seller will keep your deposit. If it is the other way around, the deposit will be refunded to you. Check that these terms are clearly stated in the contract prior to signing it.
Contact our experienced real estate agents now in order to start your property purchase process in Thailand!