Are you thinking about buying a holiday property abroad? Many tourists dream of buying property with sea view in Thailand, but it’s understandable to feel like such a purchase will always be a dream. However, if you like the idea of turning it into a reality, you need to know the key points and trust the professionals.
Features of purchasing property in Thailand
Thailand entices foreign investors for lots of reasons. A sturdy economy, a stable state, expanded infrastructure, and a seaside location are all key benefits. Every year, more foreigners invest and become owners of villas and flats in Thailand; Phuket, Koh Samui, Pattaya and Hua Hin are all popular locations.
In Thailand, there are no additional incentives to buy land. Foreigners are not given a credit scheme, as in Europe or America. However, there tends to be no sharp jumps and collapses in property costs.
Real estate in Thailand is a promising asset. You can rent out your property when you’re not using it to generate a regular income.
When looking to buy property in Thailand, it’s a good idea to use an estate agent who is familiar with the country’s legislation and processes. You should also consider using a lawyer who is familiar with Thai law when reviewing the investment contract.
When you contact an agent, be specific about your request. Think carefully about the following questions:
- What is your budget?
- How many bedrooms do you need?
- Which location suits you?
- What type of property are you interested in?
- What is the goal of the investment: permanent residence or simply investment?
The agent will be able to provide a shortlist of several properties from different developers. They should also outline the pros and cons of each, and help with negotiations. You will benefit from their knowledge and understanding of the region, so make sure you use their expertise. You can use the services of Thailand-Real.Estate to get more details about properties.
In Thailand, you can buy a flat or a villa under construction. When buying a property under construction, you receive additional income from investing money at the initial stage of construction. At the current pace of construction, the period from zero to full readiness is approximately 18 months.
One of the advantages of buying a home in a resort is the ability to rent out the property to achieve a return on your investment. This can be done through a project management company, or on your own. Real estate cost charts and rental prices often do not follow parallel courses. When real estate prices fall, the rent cost goes up, which smooths out the risks for the investor.
Registration of real estate and payment
The procedure for registering the asset of real estate is simple. After choosing a property to buy, you pay a deposit. The normal deposit payment of ฿30,000-150,000 is usually paid at the developer’s office in cash or by bank transfer.
The next stage is the execution and signing of a contract with the developer. Payment of the first instalment comes next, after which the contract comes into force. The initial payment is usually about 10-50% of the value of the apartment.
After paying the deposit and the first planned payment, a payment schedule is drawn up. This can be monthly, quarterly, or tied to different stages of construction. The final and last payment is usually 10-30% of the property’s value.
The sales contract is signed in Thai or English. It usually contains the following information:
- Buyer and seller details;
- Property description;
- Prepayment amount;
- Terms of the contract;
- Procedure for paying taxes on the transaction.
Prepayment is a pledge of payment under the contract, and confirmation of the buyer’s intention. If the payment of the property’s value under the contract does not occur, the prepayment is not refundable.
The terms for fulfiling all obligations under the contract, payment of the cost of the property, and transfer of property is determined individually. The last payment is often paid when registering the rights of ownership of the property in the name of the new owner directly at the Land Department. After the transaction is complete the customer accepts a chanot, ,this is a certificate of land ownership in Thailand.
Purchasing real estate on the secondary market is somewhat different and, as a rule, less popular due to the lack of instalment payments in most cases.