It may be assumed that now is not the right time to buy property in Thailand, but this is not the case.
If there is an opportunity, savings, and desire, then real estate in Thailand – a house or an apartment, can be a profitable investment.
Is it worth buying an apartment in Pattaya or Phuket, in any other resort, or is renting more profitable? This question everyone decides for himself, as an investment – why not. Suppose you are even at the stage of interest in real estate. In that case, you probably have a lot of questions about how a deal to buy an apartment is formalized in Pattaya, how to transfer money to buy an apartment or a house, who to contact, where to start, which is better to buy an apartment in a house under construction or already finished? What are flat prices in Pattaya? Can foreigners own property in Thailand?
Therefore, after talking with real estate agents, this article was written. It will be exciting and useful to you.
Real estate in Thailand – how to buy an apartment in Pattaya, where to start?
We asked realtors about how buying an apartment in Pattaya is more profitable, and we will describe their opinion, along with comments.
Where to start buying or at least just choosing an apartment in Thailand? The article is about Pattaya, so let’s take that as a starting point.
The tips below will also be relevant for buying property in Phuket, Bangkok, and anywhere in Thailand, so the order is the same.
The first thing a buyer should do is decide on a budget. It would seem that this is so obvious, but not to everyone.
Sometimes people ask for an apartment with a budget of up to 1,500,000 baht, for example. But willing to spend all 5,000,000 baht. Why are they doing that? They think, what if 1,500,000 they will be offered the same as 5,000,000?
As a result – you wasted your time and the realtor’s time and the need for the right option.
It is not necessary to do so. Voice your real budget, and they will pick up a property in Thailand for you, inspecting which you will understand what you can get for their money.
Features of buying property in Thailand
Restriction of property rights. The first feature that our compatriots face when buying property in Thailand is that foreign citizens can not acquire full ownership of all property in the kingdom.
There are two main forms of ownership in Thailand:
- full ownership (Freehold),
- long-term lease (Leasehold).
The long-term lease agreement is concluded for 30 years with the possibility of renewal two times, so the term of real estate ownership is 90 years. In recent years, Leasehold real estate has received more and more attention from foreign buyers, as the price of such properties is usually 20-30% lower than those sold in full ownership.
Ownership by foreigners of no more than 49% of the area of the residential complex. Another feature of buying real estate in Thailand is the restriction on foreign ownership of the area of any property – up to 49%. That is when building a new residential complex or a complex of villas, the developer can sell 49% of the total living space to foreigners, and the remaining 51% must belong to the citizens of the Kingdom of Thailand.
If in a residential complex, 49% percent has already been sold to foreigners, then the apartment or villa that the buyer likes can only be issued on a long-term lease (Leasehold).
The impossibility of buying land. It is also worth noting that under the laws of Thailand, a foreign citizen cannot acquire a land plot as property. Those Land, in principle, cannot be owned by foreigners. Thus, villas and houses are designed in a mixed form:
- the building is in full ownership,
- land plot – in the form of a Leasehold, i.e., for a long-term lease.
There are also ways to circumvent this rule – opening a legal entity in the Kingdom of Thailand and acquiring an object for a legal entity. But, again, when the company opens, a potential real estate buyer must own 49% of the shares, and one or more Thai citizens must own 51%.
It is better to buy real estate from agents
Of course, you can always contact the developer directly, bypassing agents. To do this, you will need knowledge of objects and a deep study of their pros and cons. Such a detailed study will take up to a month. Any developer will say that his object is the best, promising mountains of gold, and be silent about the pitfalls. The agency will offer several options for your request and tell you all the details to satisfy you with the purchase.
Another reason it is better to contact an agent is the legal side of the transaction. You need to have a good understanding of Thai law and the buying process and be able to check documents in Thai and English. The vast majority of buyers do not have the necessary information. The real estate agent takes care of the transaction’s legal side, documentation verification, and even the object’s acceptance. A good agent will advise you on possible taxes and ownership options.
And the main reason to contact an agent is that you do not overpay. In Thailand, agents are paid by the seller – the developer or owner of the property. Agencies enter into contracts and receive prices the same as the developers. Sometimes the agent may make a better offer or special payment terms.
Buying a home in Thailand can be seen as an investment in the future. In this case, you can only do this with a competent agent. The entire buying process takes place remotely.
Real estate aggregator Thailand-Real.Estate offers you a free consultation, complete registration, and transaction remotely.