Buying a condominium in Thailand for foreigners would be the easiest and simplest process to invest in real estate. Under the 1979 Thailand Condominium Act, foreign nationals are allowed to own condominiums anywhere in Thailand, provided that the whole building has not yet exceeded its 49% foreign quota. Condominiums in Thailand designate 49% of its units for sale to foreigners in order to maintain the majority of the building owned by Thai people.
Buying a Condominium in Thailand
There are some stipulations concerning the financial aspect, and majority of Thai banks do not lend money to foreigners. Even foreigners who have employment history or marriage certificates from Thailand are struggling to get financing from Thai banks to purchase a certain property. Although a few of these foreigners, with some history in Thailand, have somewhat succeeded with a lot of perseverance. It is a risk to take, being consistent and persistent until you get it, as others may say.
Some expats who have already gotten married and starting a small family would prefer something larger than a condominium, and some opt to buy townhouses or detached houses. Providing the buyer two or more levels, with more rooms and space suitable for young children and pets. Much different from condominiums, which is covered by the Thailand Condominium Act of 1979, detached houses are “landed” which means it contains an area of land around them. Always take proper advice when buying a Condominium in Thailand.
Foreigners are not allowed to own Thai land, and is left with two options when buying detached houses:
- The foreigner or foreign investor must make sure that he has a stable and solid relationship with their Thai spouse or partner. Therefore purchasing the property under the Thai person’s name 100%, also opening up options for bank financing by the Thai Banks.
- Foreign investors are given the option to start their own company, which only allows them to own 49% of the shares. But considering that the other 51% is owned by 7 or more locals who are mostly not given any voting rights or knowledge of each other, it would mean that the company is mostly controlled by the foreign investors. The purchase of the property can be placed under the umbrella of the company.
The above mentioned system actually works and the savvy foreign investor can perform buying and selling of real estate regularly in Thailand. Foreigners have been purchasing property in Thailand or those who are buying a condominium in Thailand, for the last three decades, and more are investing in Thai real estate each year. This clears the fact that all these would not be possible if the foreigners are being unfairly handled of their money by Thai laws. This is a good thing for investing in Thai real estates.