Real estate in Thailand

Real estate in Thailand is a unique combination of exotic beauty, comfort and investment opportunities. The country attracts not only tourists with its beautiful beaches and cultural heritage, but also investors looking to purchase real estate in this tropical paradise.
Thailand offers a variety of accommodation options, from luxurious villas overlooking the ocean to stylish apartments in the city center. The favorable climate, variety of natural beauty and friendly real estate laws make Thailand an attractive destination for second homes or investments.
In addition, the country's steadily growing economy and resilience create favorable conditions for long-term real estate investment. Whether you want to start a tourism business, rent a home or simply enjoy life in the tropics, real estate in Thailand offers unique opportunities that combine the pleasures of life with the potential for investment growth.

Thailand offers a variety of real estate investment opportunities, and the choice of location depends on your preferences, goals and investment strategy. Here are some of the best locations to consider:
Bangkok:
Reasons to invest: Bangkok, the capital of Thailand, is a major business and financial center. It is home to high-end residential developments, commercial real estate and rental properties.
Pattaya:
Reasons to invest: Pattaya attracts tourists and investors with its beautiful beaches and well-developed infrastructure. There are a variety of residential options here, including apartments with sea views.
Phuket:
Reasons to invest: Phuket is a tropical paradise with beautiful beaches and a variety of entertainment options. Investing in tourist rental properties can be a promising option.
Chiang Mai:
Reasons to invest: Chiang Mai attracts visitors with its cultural atmosphere and beautiful nature. Affordable apartments and properties for long-term rental investments can be found here.
Samui:
Reasons to invest: Samui is known for its exotic beaches and resorts. Investing in villas, especially those with sea views, can provide a regular rental income.
Hua Hin:
Reasons to invest: This resort town is close to Bangkok and offers good investment opportunities in residential and commercial properties.
Krabi:
Reasons to invest: Krabi attracts tourists for its picturesque scenery and marine activities. Investments in hotels, restaurants or villas can be promising.

Before deciding to invest, it is important to conduct thorough market research, consider the growth potential and assess the stability of the region. Contacting local real estate agencies and consulting professionals in the field can also be useful steps.

Thailand has relatively strict rules for owning real estate by Asian standards. Due to restrictions, it is not possible to purchase commercial real estate as a private individual. Nevertheless, there are several residential options for foreign private individuals to consider.
Foreign nationals are allowed to purchase up to 49% of apartments in so-called strata projects, which are usually branded condominiums. However, it should be noted that the supply of Strata office space is limited, with only a handful of projects available on the market.
Land ownership is limited for foreigners, making it difficult to purchase villas and plots. Therefore, many foreigners prefer to rent rather than buy land to reduce the administrative burden.
Despite the relatively strict regulations, it is therefore possible to purchase housing in the country, especially apartments in strata projects, and renting land is a very common alternative to owning.

• Leasehold in Thailand: The option to lease land in Thailand is limited to a maximum term of 30 years, which can sometimes be extended up to three times. A lease agreement gives the owner temporary possession of the land in accordance with the contract. At the end of the lease, it is possible to extend or renegotiate the terms, which is often stipulated in the contract.
• Acquiring real estate through a Thai limited liability company: Another option is to form a limited liability company to acquire real estate. However, there are restrictions on foreigners owning more than 49% of the shares in such companies, except for US citizens. The Friendship and Economic Treaty between Thailand and the US allows Americans to own Thai companies outright.
• Buying property with the help of a spouse: Foreigners sometimes use this method by buying land through their Thai spouses. However, it should be borne in mind that the property may be treated as the property of the Thai spouse in the event of a divorce. Buying a condominium can be an easier and safer way of acquiring real estate.
• Buying a condo in Thailand: Foreigners are more likely to opt for condos in places like Bangkok and Phuket as ownership is more favorable and the process is less complicated. Condominiums are usually equipped with modern amenities and offer ownership rights.
• Buying villas: Some foreigners prefer villas in quieter areas near the sea. Villas offer more privacy, potential value appreciation and family-friendly amenities. However, buying villas is more complicated and often requires a lawyer.

Before making a decision, you should thoroughly research all the options, weigh your preferences and risks, and get detailed information and advice from local real estate agents.

If you are planning to buy a property in cash, you can transfer the money to a local bank in Thailand. At first glance, this seems like a fairly straightforward process, but it is worth familiarizing yourself with the steps involved in making a cash transaction beforehand.

Firstly, the foreign currency must be transferred and exchanged into Thai baht before the transaction can be carried out.

The bank will then provide you with a copy of the FET (Form Forum Transaction Form) which contains the following information:

• The amount you are transferring in your chosen foreign currency.
• The amount in Thai Baht after conversion.
• The name of the sender.
• The name of the recipient.
• The purpose of the transaction.

If the FET form is not available, it is possible to provide a credit reference and a letter of guarantee. These documents must contain the same information as the foreign exchange transaction report form.

The completed documents will be submitted to the Land Registry who will carry out the transfer of ownership in your name.

Obtaining a mortgage loan by a foreigner in Thailand used to be a challenge due to numerous restrictions and the process is still difficult.

Preferably, the bank should have branches in both Thailand and Singapore. However, the list of requirements is very extensive and many foreigners do not meet these criteria. Such restrictions are common in developing countries.

The basic requirements for obtaining a loan from a local bank in Thailand include:

• The applicant must be over 20 years old.
• The term of the loan must not exceed 30 years (up to 35 years for permanent employees). The applicant's age and the term of the loan together must not exceed 65 years.
• The maximum loan amount is usually up to 80% of the estimated value of the property.

It should be noted that these are standard requirements that may vary depending on the specific guidelines and conditions of each bank. To fully understand the process and obtain up-to-date information, you should contact the banks directly and find out about the current mortgage loan terms and conditions.

Hiring an estate agent is not essential for locals. Instead, they prefer to buy properties directly from developers or look for second homes through friends or online forums.
In a sense, real estate agents who specialize in selling property in Thailand offer a "western service". Their main aim is to facilitate the buying process for foreign clients who do not speak Thai, for which they charge a commission in the form of a percentage of the selling price.
This is quite normal, especially if you are new to the market and need help. It is important to know that as an investor, you may lose a few percentage points of profit by using the services of Thai real estate agents.
If you need clarity on the transaction process, you should hire a lawyer instead of a real estate agent. You pay a fixed fee to the lawyer instead of giving him a percentage of the purchase amount as commission.
If you are buying a property from a developer, you do not need to worry about an agent or lawyer if the company has a reliable reputation, especially if it is a listed developer listed on the Stock Exchange of Thailand. In this case, the developer will take care of the transfer procedure and other aspects of the transaction themselves.