4 Things to Know When Considering Buying a Condo in Thailand
Thailand is a wonderful place to live. From the gorgeous natural scenery to the delicious cuisine to the excitement of Thailand’s capital city of Bangkok, there are plenty of different reasons to be drawn to live in Thailand. Whether you plan on moving to the heart of the action in Bangkok, the quieter, more relaxed area of Hua Hin, or another area of Thailand, you certainly won’t regret it. When it comes to actually buying property in Thailand, a popular choice among international movers is condominiums.
Condominiums, just like in more Western areas, are known for their convenience and affordability in Thailand. They are a great option for people looking to move to Thailand permanently, semi-permanently or for a vacation home. However, there are a few important things to understand before you throw down your hard-earned money on any kind of property in Thailand, but especially a condominium. Check out our four need-to-know tips on purchasing a condo in Thailand.
1. You Can Purchase a Condo as an International Resident
Every country has its own rules for who can purchase property, and Thailand is no exception. One of the great things about Thailand is that it allows people from out of the country to purchase property, but there are a few stipulations that accompany this privilege. If you are purchasing a condominium, a minimum of 51% of the other condos in the building must be purchased and owned by Thai nationals.
It is important to note that you cannot own physical land in Thailand. You can own the house, condo or other property that sits on top of the land, but you must lease the land underneath it. Thailand allows for long leases, up to thirty years, that you can renew twice, giving owners a total of 90 years to enjoy the property. This isn’t usually an issue when purchasing a condo, but if you ever ran into a standalone condo or wanted to upgrade to a house during your time in Thailand, it’s good information to keep in your back pocket.
2. You May Have to Choose Between Size and Convenience
It’s a typical problem all around the world: you might find the perfect condo with just the right amount of space for you and your roommates or family. However, the condo is a pretty far distance from the bus station, train station or other mode of necessary transportation. If you try to move closer to one of these stops, you may notice the prices going up.
While Thailand is an amazing place to live, remember to keep your expectations realistic. Be prepared to sacrifice one desire for another one. If you go into the property purchasing experience with patience and a level head, you’ll be able to find a property that succeeds your satisfaction.
3. You’ll Need a Reputable Lawyer
When international movers purchase property in Thailand, it is strongly recommended that you hire a good lawyer to help you through the process. Lawyers are required for purchasing houses, but they are not required for purchasing condos. However, when you’re dealing with a market that is brand new to you, it’s smart to consult someone who can help you through the jargon and keep the process of purchasing your condo nice and smooth. You should always consult a registered lawyer when possible before signing any binding documents.
4. Foreigners Cannot Take Out Mortgages in Thailand
Not everyone who’s interested in moving to Thailand has money to burn. Thankfully, the market understands that, and there are ways that expats can own property without getting a mortgage, which cannot be acquired. There are two ways you can buy property: either your developer will offer direct financing, or you get a mortgage through your bank in your home country. Buying an international property is a big financial decision, but with the right support, it is definitely doable.
There’s plenty to consider when it comes to purchasing a condo in Thailand, but don’t let the information above overwhelm you. Going in prepared with legal aid, financial planning and realistic expectations will make purchasing property simple, no matter what.
If you’re interested in finding out more about Thailand’s real estate market, check out a local property partner website. At Hua Hin Property Partner, we not only have listings for available condos, apartments and other properties, but also resources, like a handy property buyer’s guide, for those looking to move to Thailand.