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What are the benefits and pitfalls of purchasing property in Thailand as a foreigner?
Thailand property ownershipProperty purchaseForeigners buying propertyThai visa and propertyLeasehold propertyRental vs. purchasingLong-term residenceReal estate advice
Apr 28, 2023
3 years ago
Linz ************
ORIGINAL POSTERHello one and all π
Would really appreciate your views on purchasing a property in Thailand, namely a villa to be used as our own forever home
If we find a rental villa that is as near to perfect for our needs (location/ lovely immediate area, good transportation network, pleasant local community etc) if we were to rent it every year, itβs fair to say the rental costs will increase (potentially each year)
Add the cost of renting for say 25 years, it soon adds up, then add into the equation the owners could tell us to leave at short notice
Purchasing such a property should give us some security and long term could (I think hence asking) work out a lot cheaper
Other than than in years to come your visa being revoked/ refused is there anything else I should consider. I know as foreigners we are not allowed to own the land so I guess it would be a leasehold arrangement οΏΌ
We are not the sort of people who want to keep moving, once we have found an area we love, we typically settle long term (current home 30 years)
So, please, what are the benefits and pitfalls of purchasing a property in Thailand
Thank you
Would really appreciate your views on purchasing a property in Thailand, namely a villa to be used as our own forever home
If we find a rental villa that is as near to perfect for our needs (location/ lovely immediate area, good transportation network, pleasant local community etc) if we were to rent it every year, itβs fair to say the rental costs will increase (potentially each year)
Add the cost of renting for say 25 years, it soon adds up, then add into the equation the owners could tell us to leave at short notice
Purchasing such a property should give us some security and long term could (I think hence asking) work out a lot cheaper
Other than than in years to come your visa being revoked/ refused is there anything else I should consider. I know as foreigners we are not allowed to own the land so I guess it would be a leasehold arrangement οΏΌ
We are not the sort of people who want to keep moving, once we have found an area we love, we typically settle long term (current home 30 years)
So, please, what are the benefits and pitfalls of purchasing a property in Thailand
Thank you
TLDR : Answer Summary
The discussion revolves around the pros and cons of purchasing a property (like a villa) in Thailand for personal use, specifically for expats. Some commenters point out that foreigners cannot own land outright but can own a condo if less than 49% of the building is foreign-owned. Others caution against buying due to potential financial pitfalls, such as poor construction quality, maintenance costs, and legal challenges. Renting initially is often recommended to test the desired area, providing flexibility without long-term commitment. Additionally, many emphasize the need for thorough research on local legal conditions and property market trends before making a purchase.
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Russell *******
I think annual repairs will eat away any profit. Keep your freedom and remember you have retired and stress should be the last thing want.
BΓ€ ****
Make sure you buy the first place you see, donβt waste your time running around.
David **********
Yes long leasing is a good way to secure use of a property. I will send you a message.
Oliver ********
Buying a house here is generally more like buying a boat in a Western country - it will most likely depreciate in value over time because it isn't built to last and/or because the community in which it's located will become ghost town after a new one opens down the road with a bigger pool (as well as the risks related to the legal system in a developing country where corruption is widespread and coups happen every decade or so).
You better buy property in a Western country with a stable economy and robust legal system, rent it out, and use the rental income to rent a home here - then every few years, you can move into the new home with new furniture and new electronics in a community with new facilities (including a bigger pool) and not need to worry about whether the next military coup will come with a government who decides to have your house.
You better buy property in a Western country with a stable economy and robust legal system, rent it out, and use the rental income to rent a home here - then every few years, you can move into the new home with new furniture and new electronics in a community with new facilities (including a bigger pool) and not need to worry about whether the next military coup will come with a government who decides to have your house.
Linz ************
ORIGINAL POSTER@Oliver *******
thank you ππΌππΌππΌππΌReply to
Linz ************
Reply
Tammy ************
Where do you want to buy?
Linz ************
ORIGINAL POSTER@Tammy ***********
looking at numerous areas, first criteria is within reasonable access to International Airport Pattaya and itβs suburbs, possibly Hau Hin, that sort of areaππΌ
Tammy ************
@Linz ***********
Ban Chang , Rayong is 35 minutes outside of Pattaya has beaches and Utapoe airport is 10 minutes away . Ban Chang is growing and has lots of expats. We just build our house 2 years ago . Has everything you need plus itβs close enough to Pattaya and You can get to Bangkok on the Motor way in 2 hours .Reply to
Tammy ************
Reply
Alex *******
The build quality is frequently quite poor. So wonders would pretty much need to happen for you to be able to use the property for your stated 30 years
Luc ************
Just rent so you are not obliged to stay in the same area for the rest of your life.
Steve *******
You'll probably have to live in it for at least 30 years to make it more financially viable than renting, and that doesn't even include maintenance and repairs, something you dont have to worry about if you rent!
Ruth *******
@Steve ******
I donβt know about that. Iβve been reading about numerous landlords trying to stick tenants with repair costs. Yes, they should not need to worry about repairs, but thereβs a level of control with ownership.Steve *******
@Ruth ******
There's a level of control renting, it's called a rental agreement. You'll be far better off financially if you rent.Linz ************
ORIGINAL POSTER@Steve ******
but are we? No Seriously are we?Paying 40,000thb per month for rental, pay that over say 25 years, then add in rental increases, Iβm trying to work out if the initial outlay to buy a property could work our better in the long run
Steve *******
@Linz ***********
Do the math. Plus you can walk away hassle free from a rental. It could take years to sell a property and you probably never recoup your money.Linz ************
ORIGINAL POSTER@Steve ******
thank youReply to
Linz ************
Reply
Steve *******
The main pitfall is as you've already stated. You DONT own the land and therefore you're restricted as to what you can do with it.
Bennett ********
We own a condo - in the building we had been renting in. It's an older building, with solid construction. I think the smartest thing is to rent first & see what's available to purchase in the areas that you like. Some buildings may be as others described here, poorly constructed, falling apart. (Newer ones tend to be that way.) Others may be better. Also - we did not buy a condo to make a profit, we bought it to live in. So not overly concerned with how much, if at all, it appreciates in value over the years. We're in Bangkok, the price was very reasonable compared with most major cities around the world.
Linz ************
ORIGINAL POSTER@Bennett *******
thank youReply to
Linz ************
Reply
Danny *******
Been here 15 years as an owner and renter. Much, much safer to rent. If you must buy find a different country.
David *********
@Danny ******
perfect answer and advice .Linz ************
ORIGINAL POSTER@David ********
agreedππΌReply to
Linz ************
Reply
Linz ************
ORIGINAL POSTER@Danny ******
safer in what way please?Linz ************
ORIGINAL POSTERAwesome, thank you ππΌππΌππΌ
Danny *******
@Linz ***********
If anything goes wrong, and you are renters, you have much less invested and you can easily walk away. If you are an owner and lease your land many problems can come up and the civil courts are of little help, especially to foreigners.Reply to
Danny *******
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Phillip ***********
@Danny ******
excellent adviceReply to
Phillip ***********
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Nick ************
I would rent to start and make certain it is a place you love. If it is, then buy there but if it isn't move on with no trouble having to sell. Just my thoughts. I don't know your circumstances but you could almost certainly rent a place much better than you could afford to buy.
John ********
If you do buy a house the money has to come from outside of Thailand
Linz ************
ORIGINAL POSTER@John *******
yes it would ππΌReply to
Linz ************
Reply
John ********
You will lose your money
I have a friend who has bought a lovely house in Thailand or so he thought it was a good deal
Until he moved in now I would like to point out that it was a new house for
Anyway as I saying within the first month things started to go wrong and the fittings were faulty the swimming pool had a leak the painting was coming off the walls
He never stopped working the walls of his house started to crack, so you can get a good idea of how the house was built
I have a friend who has bought a lovely house in Thailand or so he thought it was a good deal
Until he moved in now I would like to point out that it was a new house for
*****
00 thb Anyway as I saying within the first month things started to go wrong and the fittings were faulty the swimming pool had a leak the painting was coming off the walls
He never stopped working the walls of his house started to crack, so you can get a good idea of how the house was built
Michael ********
@John *******
Again people need to do research and have a usufruct and a memorandom of agreement to get covered legally. Most of the farangs i have seen lose houses had wifes that were "just the cashier" at the bar and got married too quickly thinking with the lower head not the upper one. Research it simple, peoples IQ seems to lower when they decide to move to ThailandJames **********
@John *******
Is Thailand any different to other countries with theses matters? Not reallyJohn ********
@James *********
what you will find that the house is 90% concreteReply to
John ********
Reply
Linz ************
ORIGINAL POSTER@John *******
wow, that sounds horrific, we would not look at buying a property less than 5 years old either here in the UK or anywhere else for exactly the same reasons, then the new build settle, sort the teething issues out and then purchase ππΌHarsh lesson for your friend to learn sadly π
John ********
@Linz ***********
I can tell you now that you will have just as much trouble with any house you buy in ThailandLindsey **********
@John *******
well I have built and lived in 3 houses here over the last 15 years and had no troubles like you mentionJohn ********
@Lindsey *********
please note that you have said that you have built a house or did you mean you were there to see the house been builtReply to
John ********
Reply
Michael ********
@John *******
research should always be done when making a purchase or building something. Not just in ThailandJohn ********
@Michael *******
yes I'm sure that you are right about it But I am only sharing my experience
I understand that a lot of people have been robbed and cannot do anything about it here in Thailand
Michael ********
@John *******
you may be robbed is better than you will be robbed.I have two houses and a condo i have had no major problems.
John ********
@Michael *******
I'm very happy for you I have some very bad stories about the thai people and thai wife's that have robbed her husband in Thailand and can't do anything about it as the law is in favour of the thai people
Michael ********
@John *******
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John *********
@John *******
Funny that ;-)Reply to
John *********
Reply
Richard ********
********************************************************************
Linz ************
ORIGINAL POSTER@Richard *******
awesome, thank you ππΌReply to
Linz ************
Reply
Alistair **********
There are some loopholes people use to buy property. I don't have much knowledge on the legality of them so won't comment on that aspect.
It depends where you are looking to buy. There are areas in Thailand where property does increase in value, but there's a lot (or most) areas where there hasn't really been much increase in value or had minimal growth. It's also extremely hard to sell property here.
You can't borrow cheap money to purchase a property either, so it's a larger initial outlay. You need to compare this to the 8-12% you could get investing in shares for example. Again depends where you are wanting to live, but in Bangkok the rental yields are likely to be 3-5% for example.
It depends where you are looking to buy. There are areas in Thailand where property does increase in value, but there's a lot (or most) areas where there hasn't really been much increase in value or had minimal growth. It's also extremely hard to sell property here.
You can't borrow cheap money to purchase a property either, so it's a larger initial outlay. You need to compare this to the 8-12% you could get investing in shares for example. Again depends where you are wanting to live, but in Bangkok the rental yields are likely to be 3-5% for example.
Dave *********
@Alistair *********
8-12% on your shares. You are doing well! :)Linz ************
ORIGINAL POSTER@Alistair *********
not necessarily hoping for the value to increase over time, the fact it will save any additional rental costs each year is enough to tempt us, thank you for responding ππΌAlistair **********
@Linz ***********
value increasing allows you the opportunity to sell and move if need be. If buying somewhere value doesn't increase or drops, you'll be selling at a bigger loss than the original goal of saving money on rent.Say a 300k property with 4% rental yield is 12k/yr vs a conservative 8% share return is 24k/yr. You'd be 12k better off investing your cash than buying in that situation.
Run the numbers to evaluate what is best for you
Reply to
Alistair **********
Reply
John *************
I know a lot of foreign couples here in Phuket who "own" their houses. There are ways to do it. Best to contact several law offices and real estate companies to get as many opinions as you can on this. Where there's a will there's a way and yes, if you're going to stay put it's best if you own it. Not only for appreciation but also so you can do what you want to it and not have to argue with a landlord every time you want to make a change.
Carl ***********
@John ************
only way 8s to make a false Co. Which is illegal or to actually have a business here? Is that correct?Linz ************
ORIGINAL POSTER@John ************
thank you ππΌReply to
Linz ************
Reply
Jeffrey ************
Best do some research on visa's and property ownership for foreigners in Thailand.
Linz ************
ORIGINAL POSTER@Jeffrey ***********
will do and thank youReply to
Linz ************
Reply
Duncan *******
Dont.
Linz ************
ORIGINAL POSTER@Duncan ******
nice and to the point ππΌDuncan *******
@Linz ***********
Other than you're a Kiwi, I can't work out much about you. But I can tell you this - real estate doesn't work the same here in the Land of Smiles as it does in NZ and Aus. Tread with severe caution and whatever you do, don't invest in Phuket.Reply to
Duncan *******
Reply
Val **********
You are correct you cannot own land as foreign individual's, however, you can own condo outright provided the block does not have more than 49% foreignownership. We have owned a condo in Bangkok for over 11 years now. Please feel free to dm me should you have any further questions.
Linz ************
ORIGINAL POSTER@Val *********
struggle with DMs unfortunately but thank you for the offer ππΌππΌππΌππΌVal **********
@Linz ***********
a good article, check out "buying a condo in Thailand " for foreigners. On Siam Legal website.Linz ************
ORIGINAL POSTER@Val *********
will do ππΌReply to
Linz ************
Reply
Jared **********
@Val *********
how is that 49% maintained over the years with people buying/selling? Sounds like it can make things a bit sillyVal **********
@Jared *********
it would be the first question you would ask when buying a condo. As mentioned above the jurisdiction of the building keeps track of foreign ownership. You would double check this with the Land Department. Once you have purchased as foreigner you can then sell with foreign ownership.Michael ********
@Jared *********
it goes through juristic of building before any salesJared **********
@Michael *******
so if a building was exactly *****
and a thai wanted to sell, they couldnβt sell to a foreigner?Or would it be like if there were 100 units you could have 49 owned by foreigners and the rest (theoretically) empty, active or allotted i guess is the distinction iβm lacking
Michael ********
@Jared *********
but i am sure mistakes probably get madeJared **********
@Michael *******
yea i understand the core of the idea but in actual practice it seems incredibly flawed, not that that has ever stopped this wonderful before lolBrandon ************
@Jared *********
if someone screws up your purchase will be voided if it was over the 49% when it's discoveredMichael ********
@Jared *********
Yes thats correct with first and i guess with second as well as been to couple of condos at launches and they tell you how many units can be foriegn owned. So they could sell foriegn 49 % and then all rest would have to be sold to Thais onlyBob **********
@Jared *********
you would need to buy in a company name but the company must be *****
%Reply to
Bob **********
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