New properties appear in Thailand every year. The regions that foreigners are most interested in are Phuket, Pattaya, Hua Hin, Rayong. It is there that now you can buy an apartment in a condo or a house at a bargain price. Consider the myths and stereotypes that stop investors and future owners. The article was prepared with the support of the LemanDom real estate agency and its founder Maria Mashkin.
Only a rich person can buy property in Thailand
Gone are the days when a house by the sea was an attribute of only millionaires. The popular resorts of Thailand have facilities in different price categories. So in Phuket they offer apartments at a cost of 45 thousand dollars (3.4 million rubles). It will be a fully furnished studio of 35 sq.m. in the center of the island. And already from 79 thousand dollars (6.1 million rubles) you can buy an apartment within walking distance from the sea. Buyers are offered a two-year installment plan.
Apartment in VIP Karon complex
A foreigner cannot own property in Thailand, all land belongs to the king
If we talk about apartments in condominiums, then foreign citizens can buy them in their full possession. According to the laws of Thailand, units in residential complexes are divided as follows: 49% of the total number of apartments can be given to full foreign ownership, 51% is owned by Thais.
As far as land is concerned, the King of Thailand does not own the beaches or other territory in the resorts. Houses and condominiums are built only on private land. A foreigner or a citizen of Thailand can buy land for their needs, including construction. The purchase scheme has been worked out for a long time. Land for construction, a house or a townhouse is issued to a Thai company, where the owner is a foreigner. Another option is to lease land from the owner for a period of 30 years with a mandatory two-time period. The total is 90 years.
Buying an apartment in Russia is much more profitable and safer than in Thailand
Investing in foreign real estate is a chance to earn income in foreign currency. About the same as a bank deposit in dollars, only the percentage is higher. The Thai baht has been among the ten most stable currencies in the world for several years, which cannot be said about the ruble.
For example, you have 100 thousand dollars. You can put them in the bank and receive annually 1.5-3% per annum. Or buy an apartment in Phuket and earn rental income. Real estate in Thailand rises in price by 1-5% annually. If you choose a guaranteed rental income, it will be more profitable than keeping money in the bank. The income from such a lease is 7-8% per annum, which can be increased to 13-15% under an agreement with the management company. No bank will offer such interest.
Buying an apartment in a Thai new building is safer than in a Russian one, where the construction process can be frozen. There is no equity construction in Thailand. All stages of construction and the deadline for the completion of the object do not depend on the apartments sold. According to the laws of Thailand, all initial contributions made before or during construction are used only for the construction of the object. And you pay most of the cost of the apartment after the completion of the next stage of construction and upon delivery of housing.
It is very difficult and expensive to maintain and manage real estate remotely
If you do not live permanently in Thailand, the management company is ready to take care of all the issues related to the maintenance of an apartment or house. She will pay utility bills, take care of cleaning, changing linen, mowing the garden and other household trifles. The management company also deals with the placement of your apartment or house on booking sites, meeting and seeing off guests.
Utility bills are not that expensive. On average, for an apartment of 35-40 sq.m. per month you need to pay 70-80 dollars. Such an amount will easily pay off in 1-2 days of rent, and annual maintenance in a couple of weeks. In addition, utility bills include a lot of additional services: gym, parking, swimming pool, garden, security, concierge service and more.
The annual property tax in Thailand is very small. On average, you will pay 200-300 baht for every million of the value of your apartment. That is, the tax on a fully owned housing worth 3 million baht needs to be paid only 600 baht (~ $ 20) per year. And this is much lower than in Russia.
The condominiums have a swimming pool, parking, gym
It is better to buy property from a developer without agents, so as not to overpay
Of course, you can always contact the developer directly, bypassing agents. To do this, you will need knowledge of objects, a deep study of their pros and cons. Such a detailed study will take no more than a month. Any developer will say that his object is the best, promise mountains of gold, silent about the pitfalls. The agency will offer several options for your request and tell you all the details so that you are definitely satisfied with the purchase.
Another reason why it is better to contact an agent is the legal side of the transaction. You need to have a good understanding of Thai law, the buying process and be able to check documents in Thai and English. The vast majority of buyers do not have the necessary information. The real estate agency takes care of the legal side of the transaction, verification of documentation and even acceptance of the object. A good agent will advise you on possible taxes and ownership options.
And the main reason to contact an agent is that you do not overpay. In Thailand, agents are paid by the seller – the developer or owner of the property. Agencies enter into contracts and receive prices the same as those of the developer. Sometimes the agent may make a better offer or special payment terms.