Learn Before Investing in Thai Real Estate
Are you thinking about buying or renting a property in Thailand? In today’s property market one can easily become overwhelmed by the sheer range and volume of investment properties and opportunities on offer in Thailand.
Market research at this stage is a crucial step before deciding to embark on the final decision to invest.
Use a Real Estate Agent
Choose a real estate agent that you can trust to ensure you will receive the best advice before buying. Your Agent will be able to help you (to look after) safeguard your investment and assist you with rental and future sale. You also want your Agent to provide you with a professional after sales service.
Your Real Estate Agent will guide you through developments and developers that will suit your personal needs & requirements and those best to avoid! Your Real Estate Agent’s experience and knowledge will also help them recommend developers with a solid proven track record. It is in your Agent best interest to provide you with the best possible information in order that they may maintain a good future working relationship with you and for future recommendations.
Can foreigners buy a property in Thailand?
Foreigners can buy condominium units under their own name only if the condo unit that they are purchasing has an available foreign quota up to 49% percent of the sellable size of the condominium. 49% is the maximum allocation available to foreign buyers. In case the foreign quota has already reached the 49% in a particular building, foreigners still may able to make purchase a condominium through a leasehold agreement for 30 years. 30 year leasehold contracts do have the possibility and potential to be renewed and rolled over
Note: In some cases, developers are selling a Thai Quota units at a lower price for the reason that it can only be sold to a Thai national or to a Thai registered company.
As an investor in Real Estate, you should look to determine your investment goals when buying a condo. You should decide upon your needs & requirements; capital appreciation, rental yields, lifestyle, personal living or seeking for a future retirement. Low priced units may look the best value as an investment but bear in mind a high-density development of similarly sized maybe more difficult to rent and/or resell. If many similar units flood the market then supply could outstrip market demand lowering yields and re-sale values.
Before buying a condo always check the building management agreement and in particular the maintenance fees. A general rule is that you get what you pay for. Some developments may require a very low maintenance fee or even give you a promotion of 2 years free of maintenance payments but in these instances expect that the property to be poorly maintained.
Expect to pay maintenance fee between THB40-60 per square meter for an adequately maintained building.
Use a Real Estate Lawyer
When buying a property in Thailand is not required to have a lawyer to complete the deal but we do recommend using a real estate lawyer as he will read through the sales and purchase agreement and handle the transfer process and fees.
A good lawyer will explain the contract to you and make sure you understand everything fully.