In this blog we briefly outline some of the key considerations for anyone who intends to buy a condominium in Thailand. Firstly we’d just like to point out that when we discuss retiring to Asia with our clients, we strongly suggest that they ‘try before they buy’ no matter where they plan to live. It’s often the case that many people enjoy the freedom to move around the region rather than lock in one location immediately. Having said that, when you find a place you love, then it makes perfect sense to buy yourself a new home.
Whilst the particular focus of this blog is Thailand, many of the points below apply just as much to other locations in South East Asia.
Where to live?
- Do you want to be close to a beach or in the country?
- Do you enjoy the buzz of living near a city, or do you prefer a rural environment?
- Do you need/want to be close to hospitals, transport and entertainment?
- Do you want to be near to an international airport with direct links to Australia?
- Do you want to be in a location where there is a large expat community?
Location, Location, Location.
Yes the old rule of ‘location’ applies, whether you are looking to buy a condo in Thailand, or anywhere else in the region for that matter. For those beautiful tropical island locations, your proximity to the beach and seas views will often dictate cost (and Phuket and Koh Samui) have some of the highest priced property in Thailand. And in city locations, especially Bangkok, it will be access to public transport and top amenities which will drive prices.
Another major element with Thai condo’s is the age of the property. Thai’s have a very strong preference for new properties over those that are getting on with age.
6 Important considerations before buying a condo in Thailand
- Only 49% of the Registrable Area of a condominium can be sold to foreigners. Make sure the condo you are buying conforms to this rule.
- Local Thai Banks often advertise that they will give finance, even potentially to foreigners, but in the end they don’t. have you financing in place and don’t over stretch yourself.
- There is an oversupply of condominiums at the moment, especially in Bangkok and Pattaya/Jomtien. So don’t expect the value of your investment to increase in a hurry. Thai real estate is not the growth engine Australian real estate has been over the past 10 years or so. There is a risk it could depreciate, perhaps significantly.
- You won’t have any say in how the Condo will be managed.
- Take great care not to be sucked in by glossy media brochures, especially if buying off the plan!
- Get good advice about how to structure your purchase. Sometimes it may make sense to buy through a foreign company structure, other times not. And if you are buying with a Thai partner, make sure you have an agreement in place that protects you should the partnership dissolve.
