Legal updates, insights, and opinions on laws and law suits in Thailand written by our lawyers. This means that you have to wait considerable time, years even before your purchase is completed. For residential property, only the first sale is subject to 27% Value Added Tax (VAT). 2) What payment plan is offered? There are many variables involved when evaluating the price. The main issue is real estate, but similar laws cover other items. By Sarah Davidson For Thisismoney.co.uk. These are the most commons risks associated with property investment. Find 7151 listing of Properties for sale in Phuket. Buying a rental property is an effective way to generate income before or during retirement. Look no further for Thailand property and real estate with over 4,000 property listings, new property developments, houses, villas, condos, apartments, land plots and long term and holiday villa rentals in Phuket, Bangkok, Pattaya, Hua Hin, Koh Samui, Krabi and Chiang Mai. to BTS, Villa in Thailand for Sale | Botanica Modern Loft, Must See Extraordinary Samsara Estate Sea View Villa Sale, Look At This Luxury Two Bedroom Bang Tao Pool Villa for Sale. These developers do vary in size and experience. Condominium Freehold Titles simply called “condos”. Be diligent in your investigation. There are several factors you need to consider to avoid any risk when buying your property. Mistakes To Avoid When Selling Your Real Estate Properties ... 9 Trade Secrets Real Estate Agents Use When Handling Property – Secret 5 Is Important To Be Aware About. Property in Thailand may yet be a canny move. Foreigners cannot buy land in Thailand, only condominium units and apartments. Waterfront property is unlike any other type of property. Be sure to retain a receipt and terms of agreement in respect of the reservation deposit. This provides you access to the same international standard of business practice as in your home country. However, in the event that you are not going to go through with the purchase, it is the Seller's right to retain the initial reservation deposit. Estate. You must confirm your email address before we can send you. Visa is required for most foreign nationalities to travel and stay in Thailand for more than 30 days. You are able to find plots of land. Buying Villas Through a Thai Company The most telling benefit of a using an estate agent is that they will act as a conduit between you and the seller. One is to set up a company to purchase the land or a property. To reduce the risks and hurdles when buying real estate in Thailand, you might be better off buying a condo, which is significantly more straightforward and easier. 1) if you purchase your property in a Thai name, your wife, girlfriend, then you are at risk of losing your home if your relationship breaks down. Buying Leasing Property Allow us to guide you through the process, so your buying or leasing process can be as hassle-free as possible. Currently Number 4 … It is strongly recommended that you have a Last Will & Testament prepared in both your home country and in Thailand to include your newly purchased property. Watch fullscreen. If interested in buying, a foreign investor has two options: either a 30-year leasehold or purchasing the property through a limited company. Many foreigners come to Thailand to purchase property for various reasons: for their retirement, as a … If you are considering investing in property in Thailand then you need to ask your lawyer to do a due diligence on the property you are wanting to buy. Buying property in Thailand has many potential pitfalls so remember not to just buy with your heart; buy with your head too. 5 years ago | 1 view. Copyright © 2020 Siam Legal International. This can be a house as well as a commercial property and land. Buying a Condo or apartment An easy option for a foreigner to buy property in Hua Hin is to buy a condominium or apartment. Buying Property in Thailand. I think that to invest in Thailand to buy property is good idea, the key is the location and build quality. This investigation will also verify zoning, environmental and planning codes in the area. If you are considering investing in Thai property, you should note that economically Thailand has been known as the “sick man” of South East Asia and politically it could be considered to be a little unstable, so there are additional risks for investors considering buying property in Thailand to carefully consider. Foreigners cannot make up more than 40% of the condominium´s unit-owners. The greatest advantage of buying second hand is the fact that you know what you're getting. Before you sign any deposit agreement or contract, you should sit down with a Thai property lawyer to discuss the legal process. When choosing a Real Estate agent to assist you, be sure that the agent knows the area and more essential knows about the property. For the Condo Buyer, this thread to date may have also overlooked the cost of monthly Common Area maintenance fees: they range from THB 800 to 1.5k to 3k per month, depending on size of unit. Buying Property in Thailand. Solemnized with or without a Betrothal Ceremony in ritual manner and also through court. This is another risk you have to consider. Buying an international property is a big financial decision, but with the right support, it is definitely doable. Legal Fees: Legal fees for the preparation of the sales contract are negotiable. With the various types of properties in Pattaya, condos are deemed to be the most sought after by investors. In fact it is both. Typically, a good agent will weed out the poor quality units. This is especially true for beach resort communities where there are height limitations closer to the beach. Find Property for sale in Thailand. Apartments can be purchased by foreigners as long as at least 51% of the building is owned by Thais. The property developer's company. Buyers should be aware of the risks before they commit to a property in Bangkok. These include Bangkok, Chiang Mai, Pattaya and Phuket. You should consider a Thai Company to protect yourself. Remember, if you do not flip your investment, you will either have to pay the full amount or face losing the unit. Buying a property in Bangkok does come with certain risks attached to it. Filletgifted. You need to know the correct legal process in Thailand for a foreigner to acquire property. Many foreigners take a chance. At the same time, unit owners share common areas like gyms, swimming pools, BBQ pits, children’s playgrounds, and more. Search. For example, in 2004 just over a third of all homes owned by UK citizens abroad were located outside Europe. Siam Legal has a team of foreign legal professionals from America, Europe and Asia who are committed to extend impeccable service to its foreign clientele. Financial changes in the Exchange Rate may have a considerable impact. Foreigners cannot own land. Buying land or property in Thailand is attractive for investment or business reasons as well as residence or retirement purposes. You can tour the condo, and decide whether you like it. The Thai property market is a closed one. … A foreigner may own a land in Thailand in a name of Thai company (at least 51% of shares are Thai and 49% are foreign). Several areas in Thailand have recently seen a surge in new property developers arriving on the scene to build homes. Risks exist everywhere in life. Basically this means that expats can own a building but not the land on which it stands. Loss of equity. This video by Chaninat & Leeds law firm discusses how there are many risks with buying a condo such as misrepresentation, and property fraud. You are buying property in Thailand as a foreigner and you need to know the correct legal process for you to acquire the property. An exciting opportunity or a legal minefield? However, they can own and control: 2. People are so fixated on owning a property that they overlook the risks and opportunity costs. Here are the top 10 tips for how you can make your waterfront property buying experience more successful: 1. Yes, right now when you are looking at your investment, the project looks fantastic. The title search will trace the land to its first possession, as well as checking for any encumbrances such as liens, leases or mortgages on the title. Then the next problem is how to find a reputable property agent as anyone can be a property agent in Thailand as the industry is unregulated and no licenses are required or available. Apartments can be purchased by foreigners as long as at least 51% of the building is owned by Thais. It is not a pleasant thought to think of your demise; however you should plan in advance regarding your estate so the affairs are in order in the unfortunate event of your passing. 1) First, you need to consider the stability and financial track record of the company building the project. Compared to western values, property prices in Thailand are very low. All rights reserved. Buying Phuket Property Off-Plan The most obvious benefit of buying off-plan is the significant discount off the purchase price offered to anyone buying early. You will need a local expert who is experienced in real estate transactions in the local area that you intend to make your purchase. Exit clauses can be items of fundamental importance such as 'subject to clear title' or 'subject to a new title deed being issued' and so on. A question people often forget to ask. Investing in Thailand is no different. Unless you specifically draft an "exit" clause in the deposit agreement, for example "subject to a clear title" or "subject to agreement on contract terms," the money deposited is non-refundable. ... You have more than enough to live quite well of the monthly pension, so there is no need to go risk your savings in property investments in Thailand. 18th Floor, Unit 1806 Two Pacific Place, 142 Sukhumvit Rd, Khlong Toei, Bangkok 10110, Thailand, freehold, nor sor 3 gor, nor sor 3, possessory right. The sale of land is also VAT-chargeable. 9. We will list the risk of buying each type of property in Thailand below. “The Essential Guide to Buying Property in Thailand” is the definitive guide for buying resort property in Thailand. This is normally a nominal amount of 10-15% of the purchase price. Buying property in Thailand. Bangkok is the largest metropolitan area, with an estimated population of 9.27 million. Be sure to take your time, don’t rush into any agreement no matter how attractive it may be. This enables us to protect you from the common pitfalls of buying and renting property abroad and help minimize your risks in buying, selling, and renting property. Payment terms and risks when buying pre-construction. The property ownership laws of Thailand are somewhat nationalistic, whereby foreign individuals can legitimately secure property only in certain ways. We have property lawyers who can guide you through the often-complex property laws in Thailand making the buying process easier while minimizing your risks. Required fields are marked *. Search for real estate and find the latest listings of Thailand Property for sale. Guide On Real Estate Buying Tips. There are two types of property available here in Thailand. When you purchase shares of a listed company in the stock market or a mutual fund you will generally research the profile and performance of the company or fund. In recent times Thailand has emerged as one of Asia’s property hotspots. Our property specialists are not only able to find the right property for you, we can help you through each step of the buying process. Property Law: Risks of Buying a Condo in Thailand… What Are The Risks When Buying A Property In Bangkok? Evaluating the expected income, the expenses, the return, and the rewards and risks that come with the property can help you make the most of your investment. Thailand's economy is the second-largest in Southeast Asia (after Indonesia), but its per capita income is ranked fourth in the region, after Singapore, Brunei, and Malaysia. This can be done as a Thai Limited Company or a registered Thai Partnership. The Thai property market is a closed one. Off Plan and completed. This may be risky unless you are familiar with the country, the language and its legal system. Investors and homebuyers can follow these 3 simple rules: 1. But there's a lot to consider before proceeding. However, this is not guaranteed, and you at risk if the answer is no! This may affect how the final project looks. Your information is safe and will never be shared. Another easy option is to lease an apartment or piece of land. … For the many people who have enjoyed reaping significant financial rewards, there are as many who have also made substantial loses. Our firm can guide you through the legal process. Vauban Real Estate Thailand aims to make buying a condominium in Thailand a straightforward process.But It helps to be aware in advance of some of the legal requirements – especially if you are looking to make a freehold purchase (see step 5). Although Thailand is a place of great nautral beauty, there are risks that come with real estate acquisition; particularly in Thailand. Sellers and agents obviously want to sell properties. A significant risk of buying property in Thailand is lack of communication, make sure you know exactly how your investment is doing. However, it can also be more complicated to buy than land-locked real estate. Think about it: you may not really know the community and it would be wise to find someone who has in-depth knowledge and experience with the property market. Failure to conduct this step is a grave error and could be fatal to your plans to build your dream house on that wonderful piece of property. I invested in a freehold condominium in central Bangkok. Thailand has very well-known laws governing foreign ownership of landed property, laws which essentially forbid titling any land in the name of a foreigner. In return, the seller or agent will reserve the property for you and begin the process of drafting the contracts for the acquisition. Thailand has been listed amongst the top 10 most dangerous places to drive in the world for the last decade. A widespread practice and one that is often used to convince you to invest is to flip your purchase. A comprehensive examination of title deed recorded at the Land Department should be done prior to placing on a deposit or signing of a reservation agreement. It carries a unique beauty and versatility since you’re getting land and water at the same time. Rest-assured, buying property in Thailand is straightforward and the laws are easy to follow and understand. 4) A risk you face is that designs may change during the construction. Buying a condo in Thailand … the building is yet to be completed. In Conclusion There’s plenty to consider when it comes to purchasing a condo in Thailand, but don’t let the information above overwhelm you. It is recommended to check their previous projects for the quality of their work and ask questions from people who have purchased from them before. We have property lawyers who can guide you through the often-complex property laws in Thailand making the buying process easier while minimizing your risks. The last thing you want to do is cause additional stress to your family during this period. How to budget to buy property in Thailand Mortgage. New Zealand has done this in 2017. Buying Off-plan. Legal fees are generally around 1% of the property value. The Condominium Act of Thailand (2008) allows non-Thai nationals to purchase up to 49% of the condos in a development and this kind of purchase is regarded as freehold. Typically upon the death of a foreigner in Thailand, the government officer will ask the family for a copy of a Will or they will seek the deceased person's lawyer or executor for this document. There’s always someone who wants to separate a fool from his money, and it’s never easy to negotiate different rules and laws in a foreign country. In this video, we will discuss the various risks associated with investing in Bangkok properties. Property Asia is fast becoming a leading property website portal in Thailand. Keep that money around as a nice safety net or any emergencies. You should check with the previous buyers to see if they are satisfied with the quality and time frame of the construction. If you are not legally established in Thailand and following procedures, then you will take risks. Yes, there may be a story that the owner wants to return to their mother country or work commitments etc. OFF PLAN CONDOMINIUM – HOUSES Stop foreigners buying property? We respect your privacy. For further information on frauds, scams, personal and asset security, intellectual property protection and other business risks please visit Austrade’s page on legal issues. If property investment is on your agenda, then you need to read our FREE, Your email address will not be published. Buying a Condo in Thailand Foreigners often prefer to buy condos in places like Bangkok and Phuket as the buying process is easier. Property in Thailand may yet be a … Buying land or property in Thailand is attractive for investment or business reasons as well as residence or retirement purposes. This is a rather common practice on the island, and it is possible for a development to sell out before the first brick is laid, especially in a buoyant market. Have they completed other projects before successfully? In general, you may wish to check the prices of adjoining projects in the surrounding area and that would give you a fairly good idea whether you are paying too much for your property. Prices are low and many have bought despite the risks. Check if the property has a Transfer Option included in the existing property contract before parting with money. With very, very few exceptions, it best to accept this as fact: if you are a foreigner, you are not allowed to own land in Thailand. Foreigners are not allowed to own land in Thailand by law. It is highly recommended that you have a separate Will for your assets in Thailand. The main issue is real estate, but similar laws cover other items. It is often possible for individuals to purchase a property in Thailand without the services of a local law firm. Risks of buying property in Thailand. They have the resources, experience and expertise in completing construction projects on time. Our property specialists are not only able to find the right property for you, we can help you through each step of the buying process. Dedicated to working alongside reputable Real Estate agents in Thailand, Property Asia is committed to providing a first class service helping people ﬁnd properties to rent, buy and sell at affordable prices. You should plan for this accordingly in your plot selection. The agent knows how to communicate in Thai and they're familiar with the location and the general geographical area. Best place to buy property in Thailand. This may affect how the final project looks. Sometimes they cause harm to our person, sometimes they harm our health, and sometimes they can harm our wallets. Thailand Property makes finding a property easy by providing wide range of properties for sale in Phuket with photos, videos, virtual-tour, affordability check & … Prices are low and many have bought despite the risks. Hence even before the handover of the property you, will have an asset to consider for your estate planning. The property ownership laws of Thailand are somewhat nationalistic, whereby foreign individuals can legitimately secure property only in certain ways. Seek assistance from Legal companies and solicitors. This is a rather common practice on the island, and it is possible for a development to sell out before the first brick is laid, especially in a buoyant market. Foreigners are subject to some restrictions when it comes to buying property in Thailand. Buyers should be aware of the risks before they commit to a property in Bangkok. Thailand is fast becoming a destination of choice as a location for a second home. What will be the final payment due? This is the big one. This is because property markets are affected by so many variables. When it comes time to think about buying property in an overseas location like Belize, it’s normal to be cautious. You will know them by the fruits of their labour. Comparing what you get there with Thailand will be sobering, and ensure that you are buying in Thailand for the right reasons, if you do.Don't Forget Fees. There are options to renew the lease and extend this for a further 60 or 90 years. However, these developers do tend to offer much better prices and are more flexible in their approach to cater to your needs. It's the main reason why people outside of Japan cannot understand the situation here, and people in Japan can't understand the real estate situation elsewhere. 4) A risk you face is that designs may change during the construction. Property in Thailand may yet be a canny move. Look at the level of investment over the period of time it will take to complete the building. Buying property in Hua Hin can be risky. While Thailand is by far one of the most popular options that foreigners have when buying property overseas, the market has been impacted hard due to the COVID-19 pandemic. All too often people get carried away with the romantic idea of a property in Thailand and overlook certain important details. They can show you many quality properties in their inventory based on your needs and desires. It is important to know the market and manage the potential risk which may be involved in any transactions. 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