As with everywhere else in the world, you will need to follow certain practices and adhere to the rules when you buy a house in Thailand. Here we look at the basics you need to know when it comes to making a property investment in the country.
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What kind of house can you buy in Thailand?
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What are the rules of owning a house in Thailand?
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How to finance your property investment?
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How much does a house cost in Thailand?
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What is the process of buying a house or a villa?
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Can I easily re-sale my house in Thailand?
What kind of house can you buy in Thailand?
In addition to condos, foreigners in Thailand can also purchase houses, villas or townhouses.
- Standard houses in Thailand are usually detached or semi-detached buildings.
- Townhouses differ from houses in that, they are a single house in a row of houses, much like a British terrace.
These properties will also often be used as a business such as a store, a salon, or even offices.
- Villas are a more exclusive type of house and will often have a private pool and they tend to be located within gated complexes.
All types can be found in ‘villages’, or ‘Moo-baans’ (หมู่บ้าน). These tend to be popular, partly because these villages have guarded secure entrances.
What are the rules of owning a house in Thailand?
If you buy a house in Thailand as a foreigner, you can own the building itself outright.
However, you are not permitted to own the land that the house is located on, but you can own a leasehold to the land for up to 30 years at a time, according to the Thai property ownership laws.
A title deed or ‘chanote’ (โฉนดที่ดิน), is the official certificate of land ownership. The deed contains all details of the land in question. This is often confused with the Tabien Baan (ทะเบียนบ้าน), but the Tabien Baan is a document that confirms residence rather than ownership.
For a house to be transferred, both parties will need to speak with the local land office and present the required documents. A notification form will be publicly published in case somebody has an objection to the transfer. Once the 30 days is up, the process can be completed.
Note that it is particularly important to use a reputable real estate lawyer when buying a house in Thailand as a foreigner. The Thai property market is full of potential trapdoors and you will need the assistance of an experienced expert to help steer you clear of the pitfalls.
The entire process to purchase a house will usually take between 30 and 60 days from the onset of proceedings.
How to finance your property investment?
When you buy a house in Thailand, it is possible to get a loan from a local bank, to purchase your new home.
Obviously, you will need to meet certain criteria to be qualified by Thai banks, while some international institutions can also give loans for Thai property purchases.
To qualify for a loan, a foreigner will need to produce documents that demonstrate they have a reliable job. This typically includes documents like a work permit, payslips, and documents from their employer to establish their job security.
The foreigner will also need to demonstrate a monthly income that is at least 3 times the monthly repayment amount. The buyer’s age and the repayment period can also not be more than 6o years when the two are added together.
How much does a house cost in Thailand?
Thailand house prices are typically a lot more affordable than they are in many other parts of the world. Below is a comparison of house prices per square meter of properties that cover 120 square meters:
- Thailand: $5,266
- Hong Kong: $28,570
- United States: $17,191
- United Kingdom: $21,179
The housing market in Koh Samui is one that offers lots of potential in terms of return on investment. This is because of factors that include demand because of the island’s popularity, limited availability of desirable land, limitations on development on the island, and an enjoyable lifestyle.
On Koh Samui, in September 2020, buying a house cost just under 65,000 Baht (about 2,100 USD) per square meter, for properties that are not located near the shores. Near the beaches, properties will be in greater demand and will therefore cost more than the average. The typical rental yield for houses in Koh Samui is around 4-5%.
If you are interested in investing in Thailand, visit our houses and villas for sale in Koh Samui.
What is the process of buying a house or a villa?
If you are buying a house or a villa, you should first speak with a reputable real estate agent.
It is possible to purchase privately but a real estate agent will help protect you by offering sound advice on the local market, Thai property laws, and house prices. Also, you should hire the services of a real estate lawyer, to ensure that your investment is secured.
If you are purchasing a house that has already been built, you can usually expect everything to complete within 30 to 60 days.
Can I easily re-sale my house in Thailand?
The process of selling a property in Thailand is relatively straight forward.
You can do so privately by advertising on the internet and elsewhere, but it is probably better to use an estate agent. An estate agent will help to sell your house quicker, and they will also do a lot of the other work for you.
How quickly or otherwise it takes you to get a buyer will depend largely on where the property is. If your house is located in a high-demand market like Koh Samui then you are likely to find a buyer for your house relatively quickly.