Important Things to Know About Investing in Thailand Real Estate
Thailand Property Buying Guide
To invest in real estate in Thailand, you only need a passport to buy a house. The following are the instructions for buying a house, simple steps, and easy purchase of Thai real estate.
Can foreigners buy property in Thailand?
This is probably the most common question asked by foreigners who either want to live permanently in Thailand or invest in Thai real estate. According to the Condominium Act of 1979 (Condominium Act, BE 2522), foreigners are allowed to purchase and own 49% of the total area of condominium units on a freehold basis. Purchasing a “freehold title” allows foreigners to permanently own the property autonomy under their name, and can rent or sell the property at any time. On the other hand, buying a “leasehold” limits the ownership of the property by foreigners, usually for a maximum registered lease term of 30 years, as stipulated in the contract. Hence, buying a freehold condominium is ideal for those long-term investors looking for 100% ownership.
1. Check the house and choose a house
It is the first time for new investors or new investors who do not have the energy to go to Thailand for investigation, we recommend that you first understand the current situation of the Thai real estate market through local consultants. Real estate consultants know the local market very well, and have a very correct understanding of housing sources and prices. They can not only help you do market research and analysis, but more importantly, they can recommend the most suitable properties for you. Local real estate consultants can also help you a lot with the application process, follow-up procedures, and rental properties. After you have a comprehensive understanding of the real estate market in Thailand, you can lock in your favorite real estate. After choosing a house, the next step is to go through the house purchase procedures.
After the house is selected, a letter of intent for house purchase will be signed to determine the specific building number, sales price, and payment time for the house, and pay the reservation fee according to the agreement. Ordinary apartments are usually about 50,000 to 100,000 baht. The Thai developer then reserves the property for you and begins preparing the purchase contract.
3. Formal contract signing and payment of down payment
The home purchase contract is delivered to you for review and signature. If there is no objection to the terms of the contract, a copy must be returned (possibly by email) after signing. This is followed by a down payment, usually 10%-30% of the purchase price. If you are buying a pre-sale house, you need to pay an interim payment during the construction of the property, usually 30% to 40% of the purchase price. (Remittance can be made directly to the developer’s account; it is also possible to open a local bank account of the buyer in a Thai bank and remit the purchase money to Thailand)
4. Pay the final payment
Once the off-plan housing project is completed, you must pay the final purchase price when you receive the keys to your new home, usually 50% to 60% of the purchase price. If you are buying a new existing house, you have to pay the balance when you sign the contract and deliver it.
Buyers bring their passports, bank remittance certificates and checks to the Land Office for transfer. Under normal circumstances, developers or agents can be entrusted to handle it on their behalf, and all procedures for real estate transfer in Thailand can generally be completed within 1 day.
6. Occupancy, rental, resale
The real estate in Thailand is all finely decorated. After the transfer procedures are completed, the house can be ready to move in at any time if it is used for its own use; for investors who want to rent out the property to obtain income, it can also be rented out; and if you choose to participate in the rental guarantee plan provided by the developer, Then you just wait to collect a fixed rental income every year.
When investors buy properties overseas, it is very necessary to be familiar with local laws and regulations and the process of buying houses. If you have any questions after reading the above process of buying a house, please contact our professionals directly, and we will be happy to explain everything to you.