The bustling city of Bangkok, the tropical island of Phuket, or the world-renowned resort city of Pattaya – do you dream of owning Thailand real estate in these tourist destinations? We’ll give you a few things you need to know before you make a Thailand property investment.
What are the property types in Thailand?
There are two types of Thai property: landed and non-landed properties. Non-landed properties are those that do not come with a specific plot of land. It usually comprises of condominiums or Thailand apartments made by Thailand property developers. While the landed properties are those that include a plot of land plus the property. These include single houses and townhouses.
Foreigners have the freedom to buy and own non-landed Thailand real estate properties. On the other hand, under the provision of Thai laws, landed properties can only be bought by locals or Thai companies. There is, however, a way around it. You have the option of setting up a limited company that has 51% of its shares held by Thai nationals. If you also have a Thai spouse, you can purchase land properties in their name instead.
What are the property titles in Thailand?
This means you have full control over your Thailand real estate investment. As the name suggests, this entitles you to resell or rent the property to others in the future.
2) Leasehold (tenant)
Leasehold titles mean you only own the property for a certain period of time. After a specified deadline, you will need to return the property title to the original owner. Usually, terms of lease last no more than 30 years but it can be renewed after expiration.
Are there quota restrictions for foreign investors in Thailand?
Yes. Overseas investors will have limited trade quota. According to the provisions of the Thai government, 51% of the total area of the Thailand real estate needs to be owned by a Thai local. Foreigners can therefore buy no more than 49% of the total area of the property.
Can I get a property loan?
It was previously difficult for foreigners to make real estate loans in Thai banks, but the situation has improved in recent years. It should be noted that foreign interest rates are higher compared to those for Thai nationals. Local banks can also only offer 70% of the property price for mortgage.
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