How to buy a Condo in Thailand for foreigner?
Many people probably already know that in Thailand we, foreigners, are welcome to own Thai Real Estate as condominium or apartment. It’s no surprise that this type of residence is ever-popular. All the big developers are competing to buy land in every corner of Bangkok and major cities to build the perfect property. It’s not just Thai people, but our Bangkok is also a destination for foreigners. Especially the latest popularity is the group of retired foreigners.
Today, Property 101 Thailand would like to present information that foreigners should know if they are interested in buying a condo in Thailand. Let’s see how to start!
1. Learn and explore the location
Many times, condominiums will tempt us with a building style, designed common area, especially attractive prices or promotions. That’s very worthwhile. But the very important or necessary thing is the Location. Whether Thai or foreign was well aware that this matter was considered the first important factor. How does foreigner think? Let’s go into the little deeper details. That’s why location is something you need to pay more attention to than other Thai people.
First of all, most foreigners do not drive their own cars in Thailand. It’s not easy to get a driver’s license and understand traffic routes with various Thai signs. So, the most popular way is to travel by sky train, subway, or various public transportation. That can help you travel with ease take care of yourself. It also saves a lot of living expenses.
Location is something you need to pay more attention to than other Thai people
Not just travel, but the area of eatery that are really used in daily life is no less important. At least there is a supermarket or a small shopping mall. To be able to buy some food that is close to the familiar style with your origin, it is considered to be the second necessity. Of course, the foreigners praised the delicious Thai food and always ranked on top. But it might not be the daily food of foreigners who can eat every meal like real Thai people. Otherwise, China Town at Yaowarat, Japanese Town at Sukhumvit, or Korean Town at Asoke would not have happened. Therefore, don’t overlook it.
Next in the matter of location. What foreigners look for is a place that provides security, both to life and property which means to everyone both Thai and foreigners. In term of the language barrier, it will be an important factor that foreigners will be completely disadvantaged to local people. In order to ask for help, report or complain in any way. So in a residential area, it should enhance your quality of life, in the heart of the city or may be a suburb where prosperity can reach. Not a homeless or drug community. Even those land or housing is cheaper, but it’s not worth the risk either.
And finally, more concerned of retired foreigners who are looking for Thailand as a life destination. You may need to add a little more options of nearby hospitals. Finding convenient traffic routes, alleys and shortcuts to get quick arrival at the hospital. For the level of the hospital, it depends on the individual wealth of each person.
When that location meets the needs of all dimensions of living, it can be considered that it passed the first checklist.
2. Check the Foreign Ownership Ratio or Foreign Quota
Whether buying first-hand units directly from project developers or buying second-hand from general sellers must check the ownership ratio. Be noted that the opportunity of foreign quota holding no more than 49% of the first-hand project is more advantageous. Because, whether or not the quota is full depends on the time of ownership transfer. If you transfer quickly, it can be considered that you get that foreign quota before other foreign buyers. You can check the available ratio from Project Salespersons before booking, sign a contract and transfer ownership.
As for second-hand condo units or projects that have been sold and transferred for a while The proportion of foreigners is relatively stable. If you see a lot of foreign residents in that building, most of them are renter with yearly contract. In this case, let check with that condominium juristic person. Make sure there is still some quota left before deciding to reserve the unit.
For the seaside vacation condo like Pattaya, Phuket, which is popular and trendy in worldwide. It’s surely that the ratio of foreign ownership will expire quickly due to the popularity of the world’s largest cities.
3. Financial Plan for Thai Real Estate
Once you have a first idea of the location and the project in your mind, it’s time to look at the money in your pocket. Starting from the price per square meter of the room is reasonable with market price, also how big of the room size is. How much will the direction of growth increase of that location? Specification of room decoration, furniture, items you will receive as its brand new or deteriorated condition, common area fee, annual insurance fee, repair costs after the project’s warranty expires. Simply say that what maintenance costs after this, are all expenses that must be reserved sufficiently.
For purchasing rules of foreign buyer, you must only transfer foreign currency to buy real estate equivalent to the condo price (Read more details) Another incurred cost is the bank fee and the currency exchange difference. But any care after this, you can pay in Thai Baht as usual. Even though foreigners, who buy real estate in Thailand, pay the cost more than Thai people but still cheaper than other countries in the same quality. Therefore, it is necessary to fully understand this matter first.
For any future resale that may occur. The processes are not much different from buying. But what you should know is that financial documents are important things that every foreign buyer must keep it well since the first day of purchasing. To show to the government officer on the day of resale this condominium again.
Thai Real Estate's still cheaper than other countries in the same quality
4. Property Insurance
Practically, foreigners attend to have a property insurance in case of unexpected accidents. It is prudent that residents should realize the loss and damage to their property. due to fire, lightning, explosion, water, vehicle damage, threat from theft, threat from outsiders and other disasters. Nowadays, there are many insurance companies providing services in Thailand. They offer a range of protections according to your needs. So as soon as you purchase any condos, insurance should be an immediate effective.
5. Choose an experienced and professional agent
Property 101 Thailand explains the principle of necessity from the beginning. But in reality, to learn and understand to that city is not an easy thing to do quickly. The biggest obstacle is the language barrier and each process of each department; government, banks, juristic persons.
So, using the service of an agent who specializes in real estate with professional care and complete the cycle from start to finish. It will save your time and manage the value of a place to stay whether to live or invest.
Let us take care of you