David Henry
Thailand is a preferred holiday destination in South East Asia which also makes it an ideal location for real estate investment. Foreigners from all over the world want to buy property in Thailand as the tropical paradise has something to offer everyone.
If you are thinking of buying Thailand property you must be conversant with the Thai rules to make your property purchase flawless. According to Thai laws a foreigner is not allowed to own land in Thailand. If you seriously want to invest in Thailand houses then there are two options. First option is to lease out the property for thirty years and renew the lease every thirty years. If you choose this option you have to ensure that property has a genuine title. The other option you can use is to set up a limited company in Thailand. In this option a foreigner cannot own more than fifty percent of a limited company so you have to look for a Thai citizen as a partner who will own fifty percent of the company. However this law is not applicable to U.S. citizens as U.S. has a treaty with Thai government which allows its citizens to have full ownership.
Since there are several restrictions of owning land by foreigners in Thailand, most outsiders prefer to buy a condominium as the law allows a foreigner to outright purchase a condominium. According to the 1979 Thailand Condominium Act, a foreigner can own a 100% of the condo as long as the building is owned 51% by a Thai citizen. Thus, in Thailand, 49% of the units are usually designated for sale to anyone. In Bangkok, about 20% of all condos are owned by foreign residents or investors in the country. Also note foreigners owning a condo in Thailand don’t have to pay property tax. Land and house tax don’t apply to condominium owners. Once you decide to buy a property in Thailand, hire the services of a competent lawyer who can guide you about the legalities and documentation involved in the process. A good lawyer will explain you about the real estate taxation in Thailand which will help you in planning your finances.
Location of the property in Thailand must be taken into consideration and basic amenities such as public transport, schools, hospitals, shopping areas, restaurants should be within easy reach. You must ensure that your real estate investment in Thailand is viable in the long term. If you are looking for good return on investment then you must negotiate hard and buy a property in a location which is going to appreciate in the coming years. According to Thai law, foreigners can own homes in their own name as long as they apply for the proper permits. They can also enter into long term lease agreement with Thai landowners. Once you enter into one of these long term leases you can then apply to build your own home or purchase one that is already on the land. It is wiser to rent a property in Thailand before you decide to invest in real estate here. This way you will get accustomed to Thai lifestyle and get further insight into what kind of property you would eventually like to buy in Thailand.
