Sunday, 18 March 2018
Post your listing on Realty Times
This Old House - Do-it-Yourself

7 Things to Avoid When Buying Property in Thailand as a Foreigner

Written by Posted On Sunday, 13 August 2017 03:40

Investing in property in Thailand is a good bet. Tourist numbers are on a steady climb and the country is one of the top 10 sectors for travel and tourism growth around the world. This makes the real estate market a healthy target to explore.

Before you dive into this distinct real estate market, there are a few items, issues and areas to be aware of as you traverse the profitable properties that pepper Thailand. We’ve found some common pitfalls that can become major headaches for investors new to the country and its workings. Educate yourself before you begin your investment journey for a vacation rental or dream home and you’ll have a more enjoyable ride through the rocking real estate market.

Not Completing a Thorough Title Search

Once you’ve found a property that you wish to purchase, you must do a due diligence check and thorough title search. The Land Department will have the title and important information, such as if the seller has full rights to the land they are selling and if there are any outstanding debts, leases, liens or mortgages on the property that have yet to be completely settled.

Not Checking Area Compliance

Aside from the title, makes sure to go one step further and investigate if the property is in compliance with zoning and environmental regulations. A smaller region, such as Koh Samui, may have very specific regulations that you’ll need to thoroughly understand before making a decision to purchase the property.

Not Using a Good Real Estate Agent

Once you have thoroughly researched the property you hope to purchase, you will realize that having a strong network of experienced real estate specialists in your arena will help you to make the smartest investment choice and navigate the often perplexing Thailand s property laws. Employ a competent Thai estate agent and eventually a Thailand property consultant. A knowledgeable realtor can assist you with the local customs and specific areas across the country. They can also save you time as you try to find the best property for your needs.

Not Understanding the Deposit Specifics

A good real estate agent will assist you in the important process of filling out the paperwork for your deposit once you have located a property that satisfies all your wants. The deposit will show your good faith to the seller, however you’ll also want to ensure that you have some fallbacks in case something happens that makes you want to pull out of the project. Deposit agreement wording can be tricky and it is highly recommended that you have a Thai legal or real estate professional assist you with this important documentation.

Acting Without Representation

Walking into negotiations as a foreigner has its drawbacks. A good Thai property lawyer will understand the nuances of the country’s legal system and know the idioms of the local language. Thailand s property laws can be confusing. A Thai consideration that can truly be problematic for non-nationals to understand and work around is that they can’t actually own the land as a foreigner, only the structure. This is why there is such an accumulation of condos and apartment buildings by foreign investors. A well-versed Thai lawyer can help you to navigate through the process of buying land through a Thai leasehold or limited company.

Not Hiring a Property Consultant

A skilled Thailand property consultant can assist you with the country’s rules and regulations on a consistent basis as well as quickly confer with you on any issues that arise. A good property adviser is a lifesaver for many reasons. They can acts as a de facto landlord and give you support when you need it most.

Make sure you have a network of experienced professionals when you invest in Thailand real estate, from a lawyer to a property adviser, and you will traverse the unknowns with ease.

Confining Your Search

If you are unfamiliar with Thailand, you may end up concentrating on only those areas that you are used to, such as Bangkok. This is a big blunder made by many investors. Thailand boasts many areas that are unique and interesting, such as Pattaya with its modern amenities and stunning beaches and Chiang Mai, with its striking views and diverse opportunities for dining, entertainment and sightseeing.

Buying property in Thailand as a foreigner is an exciting endeavor. From bustling modern cities to hushed, lush towns tucked away in the picturesque hills of Northern Thailand, the charming country is a collage of choices for a savvy investor. If you understand what can trip you up, you’ll have a smoother journey throughout this process.

Rate this item
(0 votes)
Sarah Smith

Sarah works with many real estate business owner to upskill their current license to further their employment prospects.

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.