Thailand Real Estate Foreign Ownership
Purchasing property abroad can be a complex process. It is essential to do your due diligence and enlist the right support on the ground.
Unlike the US, foreigners are prohibited from owning land outright in Thailand. This means that when looking for a house or villa you must apply for a land lease.
Condominiums in Thailand can offer a modern lifestyle and an investment opportunity. With a newer condominium, you can enjoy amenities like rooftop infinity pools and fitness centers. Depending on location, you can also experience panoramic views of the city.
When buying a condo, make sure to read the condo rules and regulations thoroughly. This will help you avoid surprises at the settlement table. Also, you will need to enlist the services of a property lawyer who is versed in Thai law.
For those looking to invest, you can find bargains in the smaller condo segment due to an oversupply of units in new developments. This can result in prices that are up to 25% below market value. As tourism returns, these investments are expected to provide a steady rental income.
The price per square meter is an important indicator to consider when purchasing a condo in Thailand. Depending on where you want to buy it can vary, but for an entry level property you can expect to pay around 70,000 baht per sq m.
Foreigners can only own a maximum of 49 percent of a condominium building in the country. However, this does not prohibit foreigners from investing in condotel hotels which are hybrids of a condominium and a hotel.
Buying a condo in Thailand is a simple process, but it is important to understand the laws and processes. It is also crucial to have a lawyer on hand who can explain the contracts and help with any disputes.
Several condo builders operate in the Thai market, including Supalai and Ananda. Each has a different focus and offers different styles of condominiums. The Ideo brand of condominiums, for example, is a good option for those who want to be close to public transport. Their buildings are located near major stations such as the Lat Phrao, Rama 9, and Thong Lor stations.
Investing in luxury residences provides the opportunity to earn a recurring passive income. Many investors seek this type of property due to a need for a temporary business relocation, or inheriting a family home that they don’t wish to sell for sentimental reasons.
Those who are looking to own their own piece of Thailand may want to consider the option of purchasing a freehold house. According to CBRE, foreign demand for single houses in prime locations has risen significantly.
SET-listed developer Singha Estate Plc has established itself as the leader in Thailand’s superluxury real estate market. Their projects are designed to meet the needs of upper-end customers by focusing on impeccable quality standards and a deep understanding of their genuine residential preferences. One of their latest offerings is Banyan Tree Residences, a luxury riverfront development that promises 5-star-worthy hotel services and state-of-the-art amenities. Guests will also be treated to local river life and heritage at this high-end community.
Although Thailand’s leasehold system differs from other countries where foreigners are able to purchase freehold properties, a 30-year lease is the maximum allowed and when it expires control of the land reverts back to the owner. For this reason, it is recommended that buyers seek local estate agents to find out more about property and land options and enlist legal support to avoid any issues that could arise.
For those that want to acquire a freehold property in Thailand, the best option is to buy into a Thai company as this offers protections for owners when it comes to sale transfers. The company can also be used to renew the lease for owners when it expires. This method is preferred by many as it does not have any time restrictions on ownership and enables the owner to sell or mortgage their property and pass on a condominium unit to heirs. It is important to note that the overall property tax burden is lower for freehold than leasehold in Thailand compared to other nations and the owner also has the right to vote in general meetings.