Buying a Condo
Thinking about buying a Condo? If you are buying property in Thailand then you will need to understand a number of issues with buying a condo. Yes, foreigners generally can’t own land and you can only be part of the 49% of foreigners who are allowed to own units in a building development. There are however other issues as well such as the money transfer and the fact that you will need to sign a document that you have no claim on the property in your Thai wife’s name. Oh and then there is also the due diligence than needs to be done.
Buying a Condo
Funding your Purchase
If you are going to buy property then you will need to ensure that the money comes from abroad. You will need to show this proof to the Land Office when the property is being transferred. The proof that they will accept is a Foreign Exchange Transaction Certificate. This which is sent to you in Thailand for the exact amount of the property and it should normally also say that it is for the property that you are buying. Rules do change and you should check with a property lawyer in Thailand for more information about this.
Have you told the developer that the property will be in the name of a foreigner so that they can add it to the foreign quota for the development? As you might know that foreigners cannot own more than 49% of the units in a building. If you are buying offplan then you need to make this known to the developer. For a unit that has already been built you will need to ask about this quota again as it might become a problem.
Buying any property in Thailand always needs a due diligence report as it is the least you can do to check and ensure that your investment is going to be worth its while. Has the developer completed and obtain all the needed permits. There was a problem a few years ago in Pattaya. This where questions had been raised about the validity of the Environmental Assessment. This after the property had already been built. This worked out well for the buyers as all the needed paperwork was complete. But it could have ended differently if there was a problem as major changes needed to be done. You also need to ensure that the property developer in Thailand has the needed capital to complete the project as Thailand has many incomplete property developments.
This is always an issue in Asian developments where cheap substandard materials could very well be used or design flaws. A very good example is where they would make a single wall instead of a cavity wall for a sun facing wall. This which heats up the condo during the summer months. What type of materials are being used. There are many good looking kitchens however some do rust within the first 5 years. Is there a list of the materials being used. This and what brands are going to be used for the outfit of the units?
These are all very important when looking at buying property in any country. Thailand is even more unique and why quality really matters is because of the high humidity. Rust may be a problem in your kitchen and bathroom. So the quality of the faucets, sink and other materials become very important. This is Thailand not Kansas after all.