Thailand is a wonderful place surrounded by beautiful beaches, kind people and pleasant weather or can be called a tropical paradise on earth. Therefore, the decision for buying property in Thailand will be one of the best decisions.
On the same side, buying property without proper knowledge can prove to be a great headache for new investors. Because buyers who are about to purchase real estate is faced with two options for ownership. Like, whether it is foreign property or still under Thai ownership that cannot be transferred. So, we have framed this write-up with 9 tips to know before buying property in Thailand.
1. Go with Strategy
Before going to buy property, decide your purpose of investment. Like, whether it is for spending a vacation, renting or seeking a place after retirement. Based on your requirement your house may vary, similarly the budget too. For example, if it a holiday home, the best place will be near the beaches or from where you can enjoy natural beauty from the window to walk-in distance. For rental purposes look for offices nearby, as you do not meet with the trouble of finding tenants. Similarly, if you are looking for a retirement house, find a place near hospitals, market and malls, where you can easily approach.
Some people choose to go with low price investment. But bear in mind, it is more difficult to sell houses and apartments in the high-density area having a similar size. Because in those areas, supply exceeds demand.
2. Plan as Early as Possible
If you make a plan to buy property, start conducting a search as soon as possible. This will help in finding the best property options and under budget. Therefore, a smart investor looks for projects which are under construction. As there is scope to get a heavy discount from developers. Even some of them offer great offers like lifetime membership in the club, one or two-year free parking, etc. In addition, you get a good scope to barging over your dream property.
3. Buy Carefully
Due to legal restrictions, foreigners can be an owner of a condominium or apartment in Thailand. Therefore, a foreigner can purchase an apartment from their own name. But there is a condition attached that 51% of the building must be owned by Thai people. If you found any apartment selling in Thailand, choose a foreigner quota for buying. As it may cost you less in Thai currency than your own national currency.
4. Check Room Size
While buying, a good deal is to check room-sizes. Because in some areas or typical apartment room sizes are less than idle size i.e 40-50sqm. This leaves no scope to decorate a room in own way. In addition, when there are kids in the family or in the presence of a guest, it is hard to handle things. Even for renting purpose people look for bigger or standard size houses that can meet their basic needs. Keep in mind, if renting is not your agenda, a small studio size accommodation can be a super choice for holiday homes. As there will be less requirement of maintenance.
5. Avoid Crowded Areas
If your aim of buying property is to achieve high recurring income or to enhance capital growth, be sure your selected place must be in low or medium density areas. In these areas, the population is limited and you can win over high price problems also. But, do not forget to consider a place that must be connected to highway networks, or having a great sea view mainly to beaches and other local amenities. These help you to avoid crowded roads and natural always keep people fresh.
6. Check Maintenance cost
Evey building developer charges a fixed amount from property owners as a maintenance fee. This is an amount that you have to pay for using parks, parking, and other infrastructure or expenses comes as maintenance fees. Ask your real estate agent or builder for such an amount. With this, do not forget to look, how they maintain building surroundings, how they manage and what they do when the property is looking tired in a short period. If you are able to find property having maintenance charges between 40-50 Thai bath per sqm. It will be advantageous to go with the deal. Otherwise, look for another property.
7. Look for unexpected fees and charges
While buying property, the investor may need to meet with unexpected property charges. Therefore, check and inspect carefully who is actually eligible to pay all expenses. As these are high cost consuming and can be a burden on your pocket. It’s better if the transfer fee is split into 50-50 between the landlord and developer. For this, it’s good to check the contract carefully and who is responsible to pay and how much!!
8. Hire an Agent
Property buying is not an easy task, especially when you are going to buy property in another country. You will have to deal with lots of complications, like looking for sale property, communicating with the landlord (when he speaks only Thai), price negotiation, preparing and signing the contract and many more!! To deal with such situations, hiring a trustworthy agent can only solve your purpose. He will find your dream property, negotiate with the seller, prepare all documents and even if you want to let out, he can arrange tenant for your property. Agents can provide the best possible information about property market rates and growth. Therefore, you can have an idea for future capital growth
9. Hire a Lawyer
Hiring a lawyer serves with completing all sales and purchase agreements. You can be on the safe side from all legal complications arise from building possession. Otherwise, in the absence of a legal contract, you cannot understand laws and legal rules regarding the possession and responsibilities of owners. Secondly, most contracts are created in the Thai language. Which is hard to understand by people of English speaking countries. Hence, a good lawyer clears you everything about the contract and ensure investor can understand fully.
Being an owner of the property in Thailand is a great deal. It will give you relief that your funds are invested in developing the nation that has chances of income growth. Good Luck with your Purchase!!!
David Lane is working as a Realtor for Thailand Property – Which provides property in Thailand services to clients. Being a realtor, his exceptional knowledge of the market helped him a lot in selling properties all over Thailand. He has a passion for writing and loves to share his real estate related knowledge with people.