What can you buy in Thailand for investment?
To buy property with sea view in Thailand is the dream of many. This country lures numerous people: of its climate, pace of life, quality of life, convenience, safety, and level of medicine. Which apartment to choose: finished or under construction?
The real estate market in Thailand is oversaturated by available options. You can find an object for every taste and budget. Most foreign customers like flats to villas and private homes due to the ban on foreign ownership of land. When purchasing an apartment, the rights of a foreigner to property do not differ from the rights of residents. However, it is worth remembering that foreigners can own no more than 49% of the total area of the house. When purchasing a flat from a developer, he manages keeping with the percentage; nevertheless, when purchasing a secondary flat, it is better to check compliance with the standards yourself.
Flats from developers are divided into finished and under construction. Objects under construction can frighten inexperienced investors; an apartment cannot be viewed and evaluated personally. You need to trust the plans of the creator. There is always the option of purchasing a second home. Evaluate the pros of every opportunity.
Purchasing an apartment under construction
- flats under construction are more affordable than finished ones;
- developers supply installments for the construction period (including for foreign customers), usually, the first installment is 20-30% of the cost;
- most developers offer some design options for completing; at the construction phase, you can choose the design yourself;
- a new apartment and house will not require repairs longer;
- there is a danger that the developer may go bankrupt, or construction may not be completed for other reasons;
- the finished project may differ from the supplied method.
Buying a finished apartment from a developer
- you can personally visit the flat and see it before purchasing;
- a new flat and house will not require repairs longer;
- you can get a discount from the creator or installment options;
- you can not choose the design of the apartment yourself.
Buying a secondary apartment
- you can’t choose the design of the apartment yourself. Most likely, it will be necessary to make repairs;
- you can personally visit the apartment and see it before buying;
- the house itself and communications may be old, repair and replacement may be required;
- resale property is more affordable than new;
- areas with previously built houses have a more developed infrastructure.
Can foreigners purchase property in Thailand?
Yes. In condominium facilities, developers can sell up to 49% of the flats to foreigners on the property rights. The remaining 51% should be owned by either Thai citizens or Thai businesses, in which foreigners can own up to 49% of the claims.
That is why developers offer various costs and price periods for the same projects. It relies on whether the flat is being purchased under “foreign ownership” or “Thai firm ownership”.
This just involves to flats in flat constructions. Foreigners can only purchase villas and other kinds of real estate on private land through a firm registered in Thailand because citizens of other countries usually do not have the right to own local land.
Is it safe to buy a property through a company?
Also yes. In fact, most of the villas in Thailand’s popular tourist areas are owned by foreigners who have been using this buying method for decades. And rarely they faced difficulties on this basis.
However, it is important to use an independent lawyer’s services to ensure that the company intended to own the property is properly set up and can give the foreign buyer full control over part of its assets (i.e., the property).
What taxes do you require to pay when purchasing property in Thailand?
In the case of the purchase of off-plan real estate, three taxes must be paid to the Land Department, the sum of which is 5.8%:
- transfer fee of 2%;
- a certain business tax of 3.3%;
- stamp obligation of 0.5%.
Taxes are shared between the customer and dealer. Large construction companies distribute them in their own way. Therefore, the actual amount of taxes the customer pays may range from a min of 1% to a max of 5.8%.
After acquiring real estate, annual management costs in Thailand are not paid. The only additional prices will be the care fee for the construction and any utilities the owner uses.
Assistance in purchasing property
Thailand-Real.Estate experts will assist you discover the ideal property in Thailand. They will tell you which developers you can rely and which flat is better to choose. Managers will tell you everything about promotions and great deals and will not let you get confused in Thai law. They will point you to the best sales. Contact Thailand-Real.Estate today and begin your quest for the excellent home.