The real estate market in Thailand introduces new properties every year. Regions of most interest to foreigners are Phuket, Pattaya, Hua Hin, Rayong. It is now possible to buy an apartment in a condo or house at a bargain price with the help of professional property agencies in Thailand. If you still have doubts about the necessity of buying real estate in the resort area, you may be guided by some prejudices. However, most of them are pure fables and have nothing to do with the real state of things. Let`s consider the myths and stereotypes that stop investors and future owners.
To buy real estate in Thailand you need to be a billionaire
The popular myth of any real estate abroad is that they are available only at a mind-blowing price. Without doubt, such objects exist and even are in high demand among investors. Still, at the popular resorts of Thailand, there are objects in different price categories. For example, Phuket offers apartments at a cost of 6 million baht. This will be a fully furnished studio of 55 sq.m. in the center of the island. And from 12 million baht you can buy an apartment within walking distance of the sea. The installment plans are individually discussed with the developers.
The lands of the island belong to the King
The above-mentioned statement is partially true. The available type of ownership depends on the type of real estate you are going to buy.
– If we talk about apartments in condominiums, foreign nationals can buy them in their full possession.
– According to the laws of Thailand in residential complexes units are divided as follows: 49% of the total number of units can be given to full foreign ownership, 51% are owned by Thais.
– As for the land, the King of Thailand does not own the beaches or other land at the resorts.
– Houses and condominiums are built only on private land.
A foreigner or a Thai citizen can buy land for their needs, including construction. The scheme of purchase has long worked out. The land for the construction, house or townhouse is registered in the Thai company, where the owner is a foreigner. Another option is to rent land from the owner for a period of 30 years with a mandatory period of two times. The total is 90 years.
You will get more profit if your buy real estate in your country
Investing in foreign real estate is a chance to earn income in foreign currency. Approximately like a bank deposit in dollars, only the interest is higher. The opportunity appears even more beneficial as Thai baht is already several years among the ten most stable currencies in the world.
For example, you have 100 thousand dollars. You can put it in a bank and receive an annual interest rate of 1.5-3%. Or buy an apartment in Phuket and get income from renting it out. Real estate in Thailand annually rises in price by 1-5%.
Maintaining and managing a property from a distance is very difficult and expensive
If you do not live permanently in Thailand, a property management company can take care of all the upkeep of the apartment or house. It will pay the utility bills, keep an eye on the cleaning, change the linen, mow the garden and perform other household chores. The management company also deals with the placement of your apartment or house on booking sites, meeting and seeing off guests.
In terms of prices, utilities are not that expensive. On average, you have to pay $70-80 per month for a 35-40 square meter apartment. This amount is easily recouped by 1-2 days of rent, and a year’s worth of maintenance in a couple of weeks.
It is better to buy real estate from a developer without agents, so as not to overpay
Purchase of property in Thailand is possible without any additional help or consultation. But it is important to realize that you will need knowledge of the properties, an in-depth study of their pros and cons, most beneficial locations and the income they can provide. Such a detailed study will take more than one month. Any developer will say that his object is the best, promising the mountains, omitting the pitfalls.
There are several reasons why addressing a real estate agency is a wise decision.
1. In the agency, you will be offered several options at your request and they will tell you all the details to make sure you are satisfied with your purchase. The agents have a huge portfolio of profitable properties and are not interested in some peculiar developer. So, they provide objective information revealing benefits and drawbacks of each object.
2. The legal side of the transaction is guaranteed. You need to be well versed in Thai law, the buying process and be able to check the documents in Thai and English.
3. You will have to overpay. In Thailand, agents are paid by the seller – the developer or owner of the property. Agencies sign contracts and get prices the same as the developer. Sometimes the agent can make a better offer or special payment terms.
4. You will not have to pay for the translation and notary services. Purchase of property with the help of real estate agency includes any additional services for free by default. However, to be on the safe side, it is better to discuss each moment with the agent.
The sphere of real estate in Thailand requires deep investigation. In this case, it will appear a profitable investment and good business. Thailand-Real.Estate provides affordable housing units from famous developers and trusted real estate agencies. Do not hesitate to experience life and business management in a completely different country.