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Thailand Real Estate

The Thailand real estate business has been growing on the back of Thailand's increasing popularity as a retirement destination.

It is no wonder because property in Thailand can be snapped up for an attractive price; Thailand Real Estate 1 foreigners are lured in by the offer of living very comfortably in a great climate on a relatively low income.

New managed Thailand real estate complexes are popping up all over the country making giving a great choice of destinations with some great offers. This all adds up to make Thailand an attractive winter break or retirement home option.

Sounds great, and it is if you avoid some the common mistakes that could leave you without a home!

Use a little common sense and make sure you read as much information on the subject as you can before making any commitment, no matter what the agents tell you. Let’s face it; you wouldn't buy a property in your home country without some careful research and the assistance of a legal expert.

Don't do this!

If you have met a Thai national and you are considering getting married, don't get tempted into buying a property or land in their name unless it is money you may be prepared to lose.

A foreigner cannot actually own Thailand real estate in their own name so it may look like an attractive option to buy land in your Thai partner’s name. No problem there, it's all legal and above board. No problem that is until you are divorced when you have absolutely no rights over the land or house.

I kid you not. We have met people this has actually happened to.

But if you live happily ever after...... that's great, but hold on! One of you must die first; if it your Thai spouse is the first one to leave this mortal coil her relatives can make you homeless and you may lose everything.

Buying a Condominium

Although this is a fairly safe way to buy Thailand Real Estate in Thailand, it is not the most straightforward.

Under Thai law only 49% of condominiums in any complex can be owned by foreign nationals and there are strict processes to follow relating to the transfer of foreign monies into Thailand for this purpose.

You need to know which banks can issue a certificate and which banks can issue a certificate to prove you have followed the correct process as this is required by the Thai government to grant ownership.

If you do not follow the process (you can get guidance from a reputable agent or legal firm) then the purchase will be delayed, or worse you may not be granted ownership by the Thai government.

Having said all that, it is an extremely popular way of buying a secure property in Thailand. Many of the condominiums complexes are extremely well maintained and have their own private grounds and pools.

Leasing

This is the simplest solution as it gives you a claim and rights to Thailand real estate.

Thai law does not recognise your right to re-new the lease, Thailand Real Estate 2 neither does it forbid it, so it would be wise to arrange a separate contract with the Lessor to protect your future security.

You can arrange to get the freehold if there is a change in Thai law or to agree an ongoing lease after the 0 year term is complete.

This is the route we have used to buy our house and it makes us feel quite secure. We cannot stress enough the need for a reputable solicitor and an interpreter who will assist you during the process.

You would not consider deals on real estate in your own country without legal advice so why take the risk in a foreign country?

The Lessor will still be the owner of the land (Probably a "Chanote" being the equivalent of a freehold title document). As part of the agreement, the Chanote should be held by the Lessee (you in this circumstance).

Limited Company

This is the most common solution for foreigners buying Thailand Real Estate, where you as the foreigner will have sole executive officer in a company where there are nominee Thai shareholders.

This entity will give you the right to the land and the property owned by the company. Where no entity exists on a property you will need to get this set up by a reputable law firm or individual with experience in this area.

Research the area you are moving to and speak to other foreign national to get their advice. You will not be the first person to walk on this path. Thailand Real Estate Driveway

When you want to buy a home where the owner already purchased the Real Estate by this method, it may be as simple as them selling their shares in the company to you (via a knowledgeable legal firm of course).

Although this method of acquiring real estate is perfectly acceptable, Thai's are notoriously protective over land ownership with the result that there is always talk of the rules being tightened. However, the Thai government are also aware that foreigners need to feel secure in their investments so new investment does not dry up.

Vacation Investment Program

I won't go into the details here unless you want to give over a million Thai baht to the Thai government, then another 100,000 baht a year to maintain it.

Should you wish to know more about this option and the so called perks you will enjoy from this please contact us. Although it is recognised as being a secure way of owning land (but only for 30 years); we don't know anyone rich enough to make this option worthwhile.

Tax

You can' get away from it. Any legal advisor or agent will be able to tell you the prevailing rate of tax for Registration and Stamp duty which combined tend to hover around 2.5%

Again, we cannot stress enough the need for legal advice on this because there are ways of reducing some tax by agreeing the value of the land sale you register with the tax office.

Make sure you agree with the seller who will be paying what tax before the sale is made.

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