Yes, foreigners are allowed to buy property in Thailand, but there are restrictions on the type of property and ownership. Foreigners are generally not allowed to own land, but they can own condominiums if the gross floor area of the condominium building is more than 51% owned by Thais (i.e. the maximum foreign ownership is 49%). Foreigners are generally not allowed to own landed properties in Thailand. Foreign ownership of landed properties, including houses and villas, is restricted by the Thai Land Code. However, foreigners can lease land for a long-term period of up to 30 years, with the option to renew.
It is important to note that these rules and regulations can change, so it’s advisable to seek legal advice before buying property in Thailand.
As a foreigner, it is possible to obtain a clean title to a property in Thailand, but it is important to exercise caution and thoroughly research the property and the seller before making a purchase.
A clean title refers to a property ownership certificate that is free of any encumbrances or legal disputes. When buying a property in Thailand, it is important to conduct a title search and ensure that the property is registered and has a clear ownership history.
However, even with a clean title, there have been instances of fraudulent property sales, so it is important to seek the advice of a qualified real estate lawyer and conduct due diligence before making a purchase. This can include checking the authenticity of the ownership papers, verifying the identity of the seller, and checking for any outstanding debts or legal disputes related to the property.
In summary, it is possible for a foreigner to obtain a clean title to a property in Thailand, but it is advisable to take all necessary precautions to protect your investment.
You do not yet own the Bangkok condominium when the property is not yet completed. The property is held under a master title until it is completed and the developer has applied to the land department for individual condominium titles for the owners. You can only make a will on the property title deed thus you will need to first wait for the property to be completed and title handed over to you.
Questions: Are The Local Thais Buying Properties For Investment In Bangkok?
Answer: Yes. The local Thais do buy properties for investment in Bangkok. There are many wealthy Thais who park their wealth in properties as a hedge against inflation. In some high-end condominiums, you might be surprised that more than half of the owners are actually the Thais, contrary to popular belief that the high-end condominiums in Bangkok are all being bought by the rich Chinese.
Question: How Do I Will My Bangkok Property To My Beneficiaries?
Answer:
You will need to create a Will to pass the property to your intended beneficiaries. For the Will to be valid, it has to be drafted in accordance with the Thai Laws, or else you run the risk of having the Will nulled and voided. When that happens, your assets will be distributed in accordance with the intestate succession act. Probate will come in and it is a very expensive and lengthy process.
As such, we strongly recommend that you have a Will in place for your property and consider engaging a competent lawyer in Bangkok. The Will once drafted needs to be lodged with the District Office in Bangkok.
For our clients, we will assist them with the drafting and lodging of the Will in Thailand.
Question: Can I Make Money Investing In Condo Near Future BTS or MRT Stations?
Answer:
It is not guaranteed that buying a condominium near future BTS or MRT station will give capital appreciation in the future. In this video, the question we had from the viewer was investing in an upcoming BTS station that is rather far away. In fact, it will take 50 minutes to travel from Siam BTS.
Developers like to sell the story of potential price growth investing next to future train stations. Bangkok, however, is multiple times the size of Singapore and Hongkong. Not all BTS and MRT stations are created equal.
Investors are still encouraged to get the best possible location with their budget. That means not straying too far away from core central Bangkok. Make sure the neighborhood is supported by commercial activities as they are the drivers for urban development as well as real demand from expatriate tenants.
Question: How Do I Transfer Money Out Of Bangkok After Selling My Property?
Answer:
When purchasing property in Bangkok, the right way to transfer money and make payment is to go through your own country’s bank account and do a telegraphic transfer.
When you manage to sell your Bangkok property, the sales proceeds will go to your designated bank account in Bangkok. In actual fact, transferring money out of Bangkok to your home country is a lot easier than transferring money into Bangkok.
For example, individuals with a Bangkok Bank account can even transfer money back to their home country via internet banking using Bangkok Bank’s mobile app. It is a fast and seamless procedure.
Generally, there are no restrictions for transferring money out of Bangkok.
We got this question because some of our viewers on our YouTube channel have been seeing our videos about The LINE Phahonyothin Park by Sansiri.
Chatuchak is well known for its weekend market. However, it is also a developing area close to the upcoming Bang Sue Grand Station. The area is developing and there are many offices in the vicinity. There are broadcasting and TV stations nearby and there is a Department of Transport Building and Securities and Exchange Commission in the area. Just further up north from Chatuchak is Phahon Yothin and Ladprao. This area is currently very popular with local Thais. Central Plaza Ladprao is the largest Central Plaza in Bangkok. Union Mall is located just opposite Phahon Yothin MRT Station.
The growth in the area should be driven by the upcoming Bangsue area. Sansiri has another project, The LINE Wongsawang which is west of Bangsue. We find that the area east of Bangsue, the Ladprao, Phahon Yothin and Chatuchak area, is more vibrant and progressing much faster. There are shopping malls, business offices and a lot of commercial activities in this area. This is the reason why we did not promote The LINE Wongsawang but we are taking a more positive stance to The LINE Phahonyothin Park. Also, another project which we previously dealt with, Maru Ladprao, was sold out in a couple of months after it was released.
Here is a walk which we took from Phahon Yothin MRT Station to Central Ladprao.
Looking at online listings, the one bedroom units range from monthly rents from about THB17,500 to about THB25,000. There are some that are asking for about THB30,000 for a one bedroom unit but we do think that that might be a bit of a stretch. As always, we will advise clients to be familiar with the popular online listing portals to take a look at the commanding rents at this current moment to better understand the type of yield that you will be receiving down the road.
Kevin did a review on The LINE Phahonyothin Park and he touched on the surrounding area pretty well. You can view the video here:
Question: Why Thailand Is A Better Investment Destination Compared To Others in S.E.A
Answer:
Here at Invest Bangkok Property, we never stated that Bangkok was the best property investment that investors could make in South East Asia or even the world.
It is not our job to convince you that Bangkok is the best possible investment destination. And you will always hear of promises of higher returns or yields from other countries such as Vietnam or Cambodia.
There is no sure way to know which investment returns will yield you the highest returns. For us, we are most comfortable putting our monies in Bangkok apart from Singapore.
If you think likewise, our Invest Bangkok Property Portal will help you decide where are the good places to invest in Bangkok.
We have personally bought properties in Bangkok and made money from it. But do take note that there are also people who have lost money investing in Bangkok properties. Likewise for counties like Malaysia or Vietnam.
We chose Bangkok because we are familiar with the Bangkok property market. It is a nice place to stay and Bangkok attracts a lot of tourists and people wanting to live and work here. We personally know of a lot of friends who have come over to Bangkok to do business as well. By speaking with them, we further understand the pull of Bangkok as well as the potential this place has to offer.
There is no end to comparison but if you also see potential in Bangkok as we do, we are here to help you choose a good property to invest in.
We do not advocate putting all your eggs into one basket but we do strongly encourage that you consider Bangkok as a possible investment destination.
The Chinese property investors make up the most number of buyers for Thai property. Popular online Chinese real estate portal Juwai.com stated that Thailand was the most popular country in the world when it comes to inquiries from potential real estate buyers in 2018. Thailand was sixth in 2016. The total amount of money that the Chinese invested in Thailand property in 2018 was USD 2.3 billion.
A few things to take note:
The demand for Thai property mainly comes from the Chinese seeing Thailand, and mainly Bangkok, as key in its One Belt One Road plan.
Most Chinese buyers are unconcerned about the outcome from the upcoming election.
The end of military rule is likely to improve investor sentiment. Trade deals were stalled during military rule. For example, talks with the European Union should resume once a democratic government is elected.
Beijing’s trade dispute with the U.S. should increase foreign direct investment from mainland China and Hong Kong.
Here is a useful news article from CNBC which we referenced from:
Question: Is Phayathai The Next Investment Hotspot?
Answer:
Phayathai has been a location that has been under the radar until last year when 2 major launches in Phayathai got more investors to notice. The 2 projects were XT Phayathai by Sansiri and Park Origin Phayathai.
Phayathai is only 2 BTS stations away from Siam, the main shopping belt in central Bangkok. If being close to the core city centre is what you want and you do not wish to pay over THB300,000 per square meter, Phayathai is definitely a location you can consider.
Another advantage Phayathai has is that it is the interchange between the Sukhumvit BTS Line and the Airport Rail Link which brings you to Suvarnabhumi Airport. The Airport Rail Link is to be further extended, bringing commuters to Rayong, which is part of the Eastern Economic Corridor, a massive industrial project driven by the Thai Government.
Another reason to consider Phayathai is at this point of writing, given the prices of properties in Phayathai versus the rent, property owners are getting a rather attractive yield. The proximity to the city centre would also help in getting a fast turnover for your empty units.
Question: What Are The Key Factors Driving Bangkok Condo Property Prices?
Answer:
The influx of Chinese Buyers
In recent years, you would have noticed that there are more and more Mainland Chinese buying properties in Bangkok. And we reckon this is probably just the tip of the iceberg.
A lot of the major Thai developers have still not yet made the effort to penetrate the Chinese market.
You may also notice that the number of Chinese tourists to Bangkok is growing year by year. A good number of them are actually in Bangkok to do business. Eventually, they may also consider buying a property in Bangkok as a 2nd home or for investment.
As Thailand is an important jigsaw puzzle piece for China’s One Belt One Road initiative, you can expect more Chinese investors to hone in on the properties in Bangkok.
Big Scale Infrastructure Expansion By The Thai Government
The Thai Government has commissioned the construction and expansion to the existing rail network in Bangkok. This is a massive project that will eventually double or triple the number of stations Bangkok has now.
Notably, some mega projects include the Bangsue Grand Station, which will be the main interchange for all the different rail lines as well as the terminal for the high-speed rail that will link to China.
Not forgetting also the Eastern Economic Corridor, a USD 45 billion project that aims to industrialize the eastern seaboard of Thailand.
The Rise Of The Upper Middle-Class Thais
Another observation we have is that if you were to visit mega malls like Siam Paragon or Central World, you will actually realize that a lot of the people spending money there are the local Thais themselves.
As the country grew, the upper-middle-class Thais do have a lot more disposable income compared to several years back. Their lifestyle is also changing, such that a lot of them are now looking to stay in good quality condominiums within the city. Whenever a new project launches in central Bangkok, we do also get a lot of interests from the local Thais.
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Whilst the prices are currently on an uptrend, it would be prudent to note that it is not realistic to assume property prices will forever keep running up in a straight line. Same as the Singapore, Hongkong, China or London property market, a correction is always inevitable.
Thus when we recommend Bangkok property to our clients, we would only choose projects that are of good locations and from reputable developers. This is because we always try to mitigate the downside for our clients.
Question: How Do I Pay Monthly Maintenance And Utility Bill For My Bangkok Condo?
Answer:
You as the property owner will be billed for electricity and water monthly. The bill will be dropped inside your letterbox.
There are 2 ways to go about paying your utility bills.
Set up a GIRO account so the bills are automatically deducted from your bank account monthly.
Engaged the help of the juristic person to help pay for your bill monthly.
The 2nd option is commonly used by a lot of property owners. The juristic person will help you retrieve the utility bills from the letterbox and pay on your behalf. In order for that to happen, you will first need to deposit a certain amount of monies with the juristic office so they can use this money to help pay your utility bills.
Do note that they will only help you with your electricity and water bills. Should you require their help to pay for other bills such as the internet, you will have to make known to them.
A small administrative fee may be chargeable for this service. It will vary from condo to condo.
