Best '7' Tips for Starting Investing in Thailand Property! If you are planning for buying a real estate property in Thailand, then you must have knowledge of different ways of purchasing an investment property. As you know, every real estate property can increase your capital and secure your economic future. Every investment property gives positive returns. You simply need to remember how proficiently you control your investments. This will decide all the investment which assists you to reach your financial goals. When buying or investing in real estate, every investor must think about regulations and requirements for foreigners. It is important to make thorough research and dig deeper to collect all information and documents that are necessary. Yes, Thailand's property market also ranks as one of Asia's most popular among foreign investors. Therefore, the number of buyers and lessors from all over the world come here to become a part of Thailand's real estate sector whether they want to work as an expat or want to live here. However, here are the following tips to start investing in Thailand property.
Tips for Start Investing in Thailand Property Requirements for Foreigners to Buy Property in Thailand According to Thailand law , foreigners are not allowed to own land in Thailand. If any foreigner is interested in buying a property, then he/she has two options - either a 30-year leasehold or purchasing the property through a limited company. For setting a Thai limited company, foreigners cannot hold itself or more than half of the company's shares.
The total area of the property split into two parts - 51 % Thai name and 49 % foreign name. The 49 % foreign quota is available in the building while 51 % comes under nationals without any restriction. It is recommended to visit and see the properties.
Chose Right Property If you are searching for obtaining an investment property, then you need to pick the right investment property. It is also recommended that the right investment contains regular cash flow and less maintenance. If you are investing in Thailand property, then you need to know that cash flow is the most required thing of the investment property.
While investing in any property, every property investor must know that income is the ruler of running investment property. It will provide you with relevant returns to your acquiring property to investment property. The property will produce positive income and be less maintained at all over the time period.
Look up at Finance Options Foreigners find it difficult to secure financing in Thai banks. In Thailand, there are currently 2 banks (UOB and ICBC) that could provide financing. When you contact these banks, they will coordinate with their office to continue with the transferring of funds into your bank account in Thailand with the directive of buying a property in Thailand.
So, it would be better to consider buying real estate with cash or obtaining a refinancing of your current property in your own country. In any case, if the property is going to be under a foreigner's name, the money has to come from overseas. Or, if you work in Thailand or receive a loan from the Thai bank, then you will have to bring the fund in from abroad and the loan will end up being in a foreign currency.
Requirements of Necessary Documents The following documents are necessary when it comes to purchasing a Thailand property. Look up at the following:
You must have a copy of a passport. Foreigners must have to endorse the Sale and Purchase contract in Thai or English. Foreigners who are eligible to purchase a property must present proof to the Department of Lands that the funds have been released from overseas in foreign currency. Without such proof, the Department of Lands will not register the transfer of ownership to the foreign buyer.
Know More about Property While buying a property in Thailand, local knowledge, investigation, and experience are necessary. If you are willing and able to come and view properties in Thailand, it is imperative to check every project on offer with your own eyes.
With years of experience, an investor needs to measure every aspect of the property and its location in order to find the right property. They need to do thorough due diligence on all projects before putting them to market and ensure that your offers achieve an international standard of expectation on quality. In Thailand, there are several buildings that offer a 2-year warranty for the interior of your unit and the sinking fund protects all the owners for the future.
Deposits on Thailand Property Generally, the deposits are non-refundable but it all depends on the project. In some cases, deposits are taken to hold units in a pre-launch sale before the price is released. When the price is released on launch day the buyer has the choice to continue with contract payment or have his booking fee refunded. Once the project is completed, 10 % to 20 % of the deposit required.
This will then deduct from the total purchase price. In case, if you fail to settle the payment, the seller or developer retains the deposit. If the seller fails to keep up their side of the bargain, then the deposit is refundable. Ensure that these conditions are written in terms of the agreement and retain a receipt of the transaction. A statutory protection option available for buyers, where the developer cannot forfeit the above in the event the developer goes bankrupt.
Hire a Good Property Agent A property manager is proficient in his field and knows all the laws of property management. A good agent will let you know when you will purchase a property. The agent knows how to negotiate with the dealer and provide the best services to them. It is necessary to inform your rental agent your intended dates for your stay in advance.
Some projects offer rent guarantees, whereby they take control of your property and guarantee you a yearly rate for a fixed number of years. Sometimes, they will offer a few weeks allowance per year for the owner as a part of the scheme.
Bottom Line If you are looking to obtain the best properties and investment opportunities in Thailand, then you must take into consideration the above-mentioned points. Therefore, it is recommended to hire a professional and experienced agent for choosing a reliable property. The property tax and the foreign buying guide are subject to change. So, it is always advisable to check with the local property agents or lawyers for the latest updates.