How to purchase a condominium in Thailand?
Many foreigners who want to invest in property in Thailand will decide on a condominium purchase as the best investment choice. There are rules and regulations involved, however, this guide has the basic information needed to help a foreigner to buy a condo in the “land of smiles”.
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What is a condominium?
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What are the rules for foreigners to own a condominium in Thailand?
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How much does a condominium cost in Thailand?
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What process is involved when buying a condominium in Thailand?
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Can I easily sell my condominium in Thailand?
What is a condominium?
A condominium in Thailand is a building or building complex that contains individual apartments that are privately owned. People often refer to the apartments themselves as a condominium, or a ‘condo’.
Condominiums in Thailand are usually new and modern with many of them having been built recently. The buildings will also often have other amenities available such as restaurants, convenience stores, pools, and gyms.
They are among the most popular types of accommodation for residents and visitors, especially for those who want to invest in the country.
What are the rules for foreigners to own a condominium in Thailand?
Condominiums are among the most popular choice of property purchase for foreigners in Thailand.
This is largely because of the property ownership laws in Thailand that cause restrictions when purchasing other types of properties, and of course, condominiums are convenient places to live.
- From a legal standpoint, it is allowed for foreigners to buy a condo in Thailand. A foreign investor can own the unit until he choose to resell it or pass it on to another person. However, there is a limitation on how many foreigners can purchase a freehold condo in Thailand as the total percentage of units owned by foreigners cannot exceed 49% in any condominium complex.
- When an investor purchases a freehold condominium, the rules and regulations mean he owns the interior of the unit itself, as well as partitioning walls. The owner will also be purchasing a share of the ownership of the common property, which means the complex overall. Owners of a condominium also have a say over the common property with a vote in the condominium association.
When you purchase a freehold condo in Thailand, you will be given an Or Chor 2 (อ.ช.2) document. This is essentially the title deed to your unit and the document provides all the details pertaining to your ownership.
Another criteria to take into consideration is the investment in completed or off-plan properties:
- If you are purchasing an off-plan condo, which means it is still under construction, then you will likely be expected to pay a deposit and monthly instalments while the building is being constructed.
- If you are buying a condo that is already built, you will need to place a deposit first with the remaining amount being paid before the property is registered under your name.
Also, foreign buyers have to purchase with funds that come from outside of Thailand, and it will need to be paid for in foreign currency. The investor will need to be able to demonstrate that the funds are coming from overseas to buy the property.
If you are interested in investing in Thailand, visit our apartments and condos for sale in Koh Samui.
How much does a condominium cost in Thailand?
As with other types of property, the cost of a condo will vary according to a number of factors including the condo size and the location.
At the lower end of the market in Bangkok you can expect to pay below THB 70,000 per square meter and below THB 89,999 in the mid-range. These condos will typically have some facilities but not all the luxuries you might want from a condominium in Thailand, such as a pool.
In Bangkok, these units will tend to be located on the outskirts of the city. However, they will still likely be located within a reasonable distance of a SkyTrain or underground station. Low to medium range units in other towns and cities will tend to be a similar price range even when located more centrally.
The higher end condos will sell for around THB 120,000 per square meter and those at the very top end of the market can sell for more than THB 300,000 per square meter. Condos at the upper end will typically be located in the heart of the city. They will also likely have all the services you can need including restaurants, gyms, pools, saunas, shops, concierge and transportation services.
Prices will be more affordable and places like Koh Samui represents one of the best property market to invest in Thailand.
What process is involved when buying a condominium in Thailand?
In order to purchase a condo in Thailand, you will need the services of a law firm and of a real estate agent to ensure that everything is completed in accordance with the Thai condominium rules and regulations. Your real estate agent will likely be able to recommend a reputable firm to you. You will be expected to provide the necessary documents to complete the purchase.
The time frame can vary, and you are usually given an approximate time to completion on off-plan condos. If you are purchasing a condo that is already built, then the process will usually be completed within 30 days of the initial deposit being paid.
Can I easily sell my condominium in Thailand?
Provided you can find a buyer, the process of reselling a property in Thailand is fairly straight-forward.
You can choose to sell the property privately, but it is usually a good idea to enlist the help of an agency. Agency fees are usually in the region of 3-5% of the amount the condo is sold for.
How easy or difficult it is to find a buyer will vary. In Bangkok, there are many new units available making it harder to sell used units. If the unit is somewhere like Koh Samui, then the unit will be easier to sell because there are fewer units available relatively speaking.