Real estate in Thailand is a good investment, so it makes sense that you’d want to take advantage of this opportunity. However, there are some things you should know before signing on the dotted line.
Buying Vs. Renting
Regarding real estate, there are two main types of ownership: freehold and leasehold. Freehold property is owned by the person who purchased it—the homeowner. On the other hand, a leasehold property is not owned by you but rather by someone else.
You have the right to use it for a certain period and then must return it after it expires. In most cases, leasehold properties are cheaper than freehold properties because they require less maintenance and often come with fewer taxes.
Check The Developer’s Reputation
Check the developer’s reputation. A good developer meets deadlines and budgets. If they lack this experience, they may ruin your project. Verify the developer’s finances. Check whether the company has legal issues or can complete your assignment.
To avoid such issues, it’s better to check out on developer’s company before signing up. Always go for trustworthy and well-established companies. Grand Unity is one such company that’s been in the market for 20 yrs.
Hidden Costs
Thai property isn’t merely the purchase price. Extra costs include:
- Transfer fee – When you sign for a property, your bank charges 1% of its worth. 100,000 baht will buy a 10-million-baht mansion.
- The land title deed registration – Unknown land is useless. Your lawyer must submit paperwork, including a 500-baht application, to get legal title deeds. Depending on the local government, this can take six weeks to three months.
Land Title Deeds
Thailand needs land titles, and land title papers can secure loans and other financial transactions. Land Department deeds cost 50 to 300 THB. The seller should hold the land title deed before selling to you. Therefore they’ll likely transfer it.
30-year land deeds are renewed every ten years (for a fee).
The Cost Of Buying Property In Thailand
Thailand’s property values depend on location and type. Whether the house is new or remodeled affects the price—$ 100 per square meter for a 1-bedroom apartment, $1,000 for restored penthouses. If you buy land and build yourself, expenses will be cheaper, but many factors affect this figure.
Thailand’s Property Sales FX Controls
- Thailand controls foreign-exchange sales.
- Foreign currencies can’t be exchanged for baht in Thailand.
To acquire Thai real estate, you’ll need Thai Baht cash or a Thai Baht mortgage loan so the seller may transfer ownership after receiving payment from your overseas bank account or wire transfer services like TransferWise.
Conclusion
Buying real estate in Thailand can be an enriching experience. It’s an investment, but it’s also a place you can call home. If you’re looking to invest in property or retire abroad, Thailand may be the perfect place for you!
