You may have been thinking of making a complete turnaround in life by buying real estate away from home. You probably want to move from the normal life you have lived, or maybe you just want to invest in property outside your borders. If this is the case, then an expatriate’s life may just be calling on the shoreline of Thailand. The real estate market in Thailand has been growing exponentially at the rate of up to 12 percent per year making it viable market for investment. Before you purchase your preferred property, however, there are a number of things to consider of the Hua Hin real estate market.
The Law States You Cannot Own Land
Under Thai law, it is not permitted for foreigners to own land. This limits your options of owning a property to just the building and not the land that the property is on. Despite this limitation, you are allowed to own land through a 30-year lease that is renewable twice. You also have the leeway of owning property through either a Thai spouse or a limited company, which you are part of. The last way it will be possible to own land is if Thailand changes this law.
Limited Condominium Ownership
The good news is that since condominiums are buildings, you can own them. If you do not mind the limited space and the lack of much privacy, they are perfect for you. There is, however, a clause to this type of Hua Hin real estate. If you are thinking of purchasing condominiums as a large investment, then note that you cannot buy more than 49 percent of the total building units as a foreigner.
Related Costs & Expenses
A purchase of the magnitude of a house comes with enough added costs. Some of the costs to bear in mind when you are considering buying into the Thai property market is the stamp duty, sinking fund, transfer fees, utility charges, withholding taxes, common area fees, and specific business taxes. Some of these costs, like common area fee and service fees, only apply to condominium purchases. Stamp duty is a cost incurred by the seller of the property, while the specific business tax is a cost meted out on anyone who sells a property after holding it for lesser than five years.
After you consider all the legal implications, you will then have to consider the preferences you have, which you cannot downplay either. The property that you have in mind has to be viewed thoroughly before any decisions can be made. In addition, you will need to make a critical analysis of the neighborhood that the property is on, checking that it is in a safe environment.