Compare Listings

Condo Investment In Thailand Options

Condo Investment In Thailand Options

Condo Investment In Thailand Options

e27.co
e27.co

Buying a condo in Thailand is undeniably the most practical investment in this country for foreigners. The entire purchase process is noted for been relatively uncomplicated, but there are still some important issues you ought to be aware of. To this end, the following are some tips on how to make a condo investment in Thailand if you are tempted to do so.

What are the regulations for buying a condo in Thailand?

The government of Thailand has enacted a law that states foreigners can only own a 49% stake in condominium development properties. Technically speaking, owning property in this nation for foreigners is outlawed, but there are ways of navigating through this legal stipulation. As a foreigner, you can be able to own a condo on either a freehold or leasehold basis. Let’s now take a closer look at these options.

Freehold condo ownership

It is possible to make a condo investment in Thailand on a freehold agreement due to the fact that the property’s title deed doesn’t specify the land registered with the owner’s name. Essentially, land on which condominium units are developed are owned by juristic persons associations, which have been registered with the government. These organizations are required to be composed of a majority of Thai citizens.

Leasehold condo ownership

Alternatively, you can purchase a condo in Thailand under a leasehold agreement. In this arrangement the property continues to remain registered under the Thai owner’s name, but you are allowed to sign a 30, 60 or 90 year lease agreement. This given agreement outlines all the legal obligations as well as concessions which you can invoke if you wish to do so. This includes selling, trading or passing the property to your next of kin.

Leasehold condominium agreements in Thailand are normally renewable, but only at the discretion of the leaseholder. At the end of the stipulated time, you and the leaseholder are expected to file a renewal with the land department. The main drawback of this condo investment in Thailand option is the fact that any capital you decide to invest into the property must be forfeited if the owner declines to renew the lease.

How are condo transactions conducted in Thailand?

In strict accordance to the 1991 Thai condominium act, foreigners who don’t reside in the country and wish to purchase condos are expected to transfer the funds from abroad. What this basically means is that the payment money is required to be transferred into the country as foreign currency. The beneficiary bank that you opt for will then issue a foreign exchange transaction certificate, which you can submit to the lands department upon registering the ownership of the property.

Typically, banks only provide this certificate for transfers that are above US $20,000. For lower sums, they issue a credit note, which with a letter of confirmation can be submitted to the land office upon registration of ownership. In the event of your being unable to open a Thai bank account, you will be obliged to transfer the money straight to the condo developer’s account.

They will then be able to obtain the foreign exchange transaction certificate on your behalf. Lastly, the final payment is required to be made via a cashier cheque, which will be swapped with the title deed on the date fixed for the transfer of ownership. Hope that this article on condo investment in Thailand has been helpful.

img

Angel Real Estate Consultancy

Related posts

DOCUMENTS AND PROCEDURES FOR BUYING A CONDO IN THAILAND

Having plenty of great offers for buying a condo in Thailand, an investor may be puzzled about the...

Continue reading
by Daniel Oliveira

SIX TYPES OF HOUSES IN THAILAND: WHAT MAKES THEM DIFFERENT?

In Thailand there are mainly six types of residential properties available to Thais and...

Continue reading
by Daniel Oliveira

TRENDS AND TIPS TO RENT OUT A CONDO IN BANGKOK

The residential type of condominiums in Thailand is continuingly growing in popularity for more...

Continue reading
by Daniel Oliveira