For people who have to suffer through cold climates during their year, the Kingdom of Thailand seems like paradise. The country boasts a tropical climate all year round, providing an ideal atmosphere in which to enjoy its natural beauty. This includes beautiful beaches, turquoise seas, and jungles. Many visitors wish that they do not have to leave at the end of their trip, and plenty come back to stay permanently. Finding a home there is not hard because property in Thailand is far cheaper than it is in larger economies.
However, buying property is never just plain sailing. Smart buyers should take time to research the process, laws, and regulations for buying property in Thailand just as they would do with any other large investment. There could be serious consequences if they do not.
This article lists some of the essential things you should think about before you buy property in Thailand.
- Who really owns it
Foreigners are not allowed to own land under their own name in Thailand. This obviously creates complications when it comes to buying a house. Yet, many foreigners do own houses there. The law allows for two routes to ownership.
The first is to lease the land from a Thai citizen. The leases last for 30 years and are renewable twice. The second is to set up a Thai limited company and purchase the property through that. Real estate agents such as Sunway Estates can advise you during this process.
- Condos are easier by comparison
The land ownership issue outlined above only affects the purchase of buildings such as houses. It does not have any impact on units inside a building, including apartments and condos. Foreigners can be 100% owners of these. The only restriction is that the maximum percentage of units inside a building or project that can be foreigner-owned is 49%.
The market for condos in Thailand is typically larger and more liquid than it is for houses. The same goes for the rental demand. Purchasing a condo in Bangkok or other major cities is a popular choice if you are seeking units to rent out rather than live in.
- Finance can be challenging
The Thai banking system is notoriously tricky to navigate. Even the largest banking groups in the country leave many decisions up to individual branches or members of staff rather than insisting on the consistent application of their policies. This means that even though a bank does not have any policy prohibiting foreigners from getting a mortgage, particular branches may still refuse you.
However, it is not impossible to find financing. There are also things you can do to help your chances. These include being a resident, being employed in the country, and being the spouse of a Thai citizen.
Conclusion
Thailand has many qualities that make it an attractive place to live, but buying your own home can be complicated. However, making yourself aware of the major issues with owning property in Thailand means that you can start taking steps to handle them. Prepare as best you can to apply for financing for your purchase, and make sure if you are not choosing a condo that the land your property is built on is legally secure.
