Mention Thailand to most people and the first thing that comes to mind are sunny sandy beaches and big smiling faces of the locals. Over the last 20 years, Thailand has become “the Spain of the East” and is visited by more and more tourists each year.
It is estimated that the tourist figures will continue to grow at a rate of 5.3% per annum until 2017. It is mainly because of this as well as the relaxation of foreign property ownership laws that has encouraged many foreign investors to look toward s Thailand when considering their next property investment. Therefore, if you are one of those who is considering purchasing a property in Thailand, here are some tips you should consider before making your final decision.
- Where to Buy– The seaside resort of Pattaya in Chonburi is about 150 km south of Bangkok and is Thailand’s second most visited city (after Bangkok). A few years ago, a typical buyer in Pattaya would be a single male drawn to sin city by its many nightlife spots. This has changed greatly over the last five years as the opening of the Russian, Indian, and Chinese tourist markets have resulted in more families visiting the city. Property prices in Pattaya have reflected this and house prices range between 2 million and 150 million baht. Condominium units start from under 1 million baht all the way up to 140 million baht for some particular luxurious penthouse developments. Many shrewd investors have been buying developments offered by reputable companies on a “off plan” basis where the buyer is offered the unit at a cheaper price than will be available once the project has completed.
The Buying Process – A good registered lawyer is essential at this stage of the purchase, as this will avoid any problems further down the process. The lawyer usually carries out all searches regarding the property in question before a deposit is paid. Once the searches have been completed satisfactorily, the investor usually has to pay a 10% deposit. Once all the documents are ready and the fees and taxes have been fully paid, then the final contract is signed and the deeds are registered.
Buying Costs – The investor normally pays 2% transfer fees, as well as 1% legal fees, and 0.5% stamp duty. If the property is being bought through a Thai registered company then a business tax of 3.3% is also applicable.
