Frequently Asked Questions
Can foreigners own condominiums in Thailand?
Yes, foreigners can own condominiums in Thailand outright, as long as the foreign ownership quota in the condominium building has not been reached (maximum 49% of the total unit space can be owned by foreigners).
What is the process for buying a property in Thailand as a foreigner?
1. First, you need to choose a suitable property. You can obtain extensive property listings through a real estate agent, who can recommend suitable properties for you.
2. Sign the booking agreement and make a deposit (usually about 10% of the purchase price).
Once you've found the right property, you can pay a reservation deposit to secure it. At this stage, the agent can assist in negotiating the price with the developer to get a better deal. This can be done remotely.
3. Signing the Purchase Agreement
After paying the reservation deposit, you'll sign a purchase agreement with the developer. The agent will help review this agreement to ensure its terms are favorable to you. This can be done remotely.
4. Making a down payment or paying the entire amount.
According to the terms of the contract, you will be required to make a down payment or full payment on a specified date. The agent can provide advice on payment methods and terms. Usually at least 30% of the property value. This can be done remotely.
5. Loan security
If you need financing, you can approach Thai banks or other financial institutions to obtain a loan. An agent can help you through the loan application process by providing you and the bank with the necessary documents and information. This can be done remotely.
Here are the possible options for credit institutions:
UOB (United Overseas Bank) Singapore's UOB offers an international lending program that allows you to get a loan for real estate in Malaysia, Japan, Australia, the UK and Thailand. In Thailand, you can apply for a loan, but it can only be used to purchase vacant apartments worth between THB 3 million and THB 50 million. UOB will give you up to 70% of the purchase price, with the remaining 30% to be covered by you.
MBK Guarantee Thailand's MBK Guarantee can provide financing to international clients, although the terms are slightly different from UOB. The MBK Guarantee will only cover 50% of the property price, which means you will need to pay the remaining 50% as a deposit. The minimum loan amount is THB 1 million and repayment terms range from one to ten years. The company only considers loan applications from persons who will be no more than 70 years old by the end of the contract term.
6. Paying the Remaining Amount
Before the property is handed over, you'll need to pay the remaining amount as per the agreement. The agent can advise on payment methods and timings. Pay the remaining balance and complete the transfer of ownership at the Land Department or the Condominium Juristic Person Office. This can also be done remotely.
2. Sign the booking agreement and make a deposit (usually about 10% of the purchase price).
Once you've found the right property, you can pay a reservation deposit to secure it. At this stage, the agent can assist in negotiating the price with the developer to get a better deal. This can be done remotely.
3. Signing the Purchase Agreement
After paying the reservation deposit, you'll sign a purchase agreement with the developer. The agent will help review this agreement to ensure its terms are favorable to you. This can be done remotely.
4. Making a down payment or paying the entire amount.
According to the terms of the contract, you will be required to make a down payment or full payment on a specified date. The agent can provide advice on payment methods and terms. Usually at least 30% of the property value. This can be done remotely.
5. Loan security
If you need financing, you can approach Thai banks or other financial institutions to obtain a loan. An agent can help you through the loan application process by providing you and the bank with the necessary documents and information. This can be done remotely.
Here are the possible options for credit institutions:
UOB (United Overseas Bank) Singapore's UOB offers an international lending program that allows you to get a loan for real estate in Malaysia, Japan, Australia, the UK and Thailand. In Thailand, you can apply for a loan, but it can only be used to purchase vacant apartments worth between THB 3 million and THB 50 million. UOB will give you up to 70% of the purchase price, with the remaining 30% to be covered by you.
MBK Guarantee Thailand's MBK Guarantee can provide financing to international clients, although the terms are slightly different from UOB. The MBK Guarantee will only cover 50% of the property price, which means you will need to pay the remaining 50% as a deposit. The minimum loan amount is THB 1 million and repayment terms range from one to ten years. The company only considers loan applications from persons who will be no more than 70 years old by the end of the contract term.
6. Paying the Remaining Amount
Before the property is handed over, you'll need to pay the remaining amount as per the agreement. The agent can advise on payment methods and timings. Pay the remaining balance and complete the transfer of ownership at the Land Department or the Condominium Juristic Person Office. This can also be done remotely.
Is a lawyer necessary during the purchase process?
New Condominium
Role of Agents: When buying a new condominium, agents can provide you with the latest project information on the market, help you filter out condos that meet your requirements, and assist in negotiations with developers. They typically have an in-depth understanding of the local real estate market and can advise you on prices, locations, and the reputation of developers.
Role of Lawyers: While it's not strictly necessary to have a lawyer when buying a new condo, if you want to ensure there are no unfavorable terms in the contract or want to understand legal matters related to buying, you might consider consulting one.
Resale Condominium
Role of Agents: The role of agents becomes even more crucial when purchasing a resale condominium. They can help you find available condos for sale, assist in negotiations with the seller, and ensure the transaction process goes smoothly. Agents can also provide historical information about the condo, such as previous owners and the maintenance status.
Role of Lawyers: When buying a resale condo, lawyers can assist in conducting a title search to ensure there are no legal disputes or outstanding debts associated with the condo.
Role of Agents: When buying a new condominium, agents can provide you with the latest project information on the market, help you filter out condos that meet your requirements, and assist in negotiations with developers. They typically have an in-depth understanding of the local real estate market and can advise you on prices, locations, and the reputation of developers.
Role of Lawyers: While it's not strictly necessary to have a lawyer when buying a new condo, if you want to ensure there are no unfavorable terms in the contract or want to understand legal matters related to buying, you might consider consulting one.
Resale Condominium
Role of Agents: The role of agents becomes even more crucial when purchasing a resale condominium. They can help you find available condos for sale, assist in negotiations with the seller, and ensure the transaction process goes smoothly. Agents can also provide historical information about the condo, such as previous owners and the maintenance status.
Role of Lawyers: When buying a resale condo, lawyers can assist in conducting a title search to ensure there are no legal disputes or outstanding debts associated with the condo.
How much I need pay for agent during the purchase process?
Indeed, the real estate commission structure in Thailand differs from some other countries. In Thailand, when it comes to new condominiums or real estate projects, agents typically do not charge buyers a commission. Instead, they receive their commission from the developers or the project's sales side. This is because developers or sellers view agents as a channel to bring potential buyers, and hence, are willing to pay a commission to incentivize agents to promote their projects.
For the resale market, agents might earn their commission from the seller since they assist in connecting them with a buyer and facilitating the transaction. In such cases, buyers usually aren't required to pay any agency fee.
Despite not charging buyers, agents in Thailand are still committed to providing comprehensive services to them. This includes understanding the buyer's requirements, shortlisting suitable properties, arranging viewings, and assisting in the negotiation and transaction process. Their primary goal is to ensure that buyers have a seamless and satisfactory property purchasing experience.
However, whether you're a buyer or a seller, it's always recommended to clarify all fee and commission details with the agent before collaborating to avoid misunderstandings or disputes later on.
For the resale market, agents might earn their commission from the seller since they assist in connecting them with a buyer and facilitating the transaction. In such cases, buyers usually aren't required to pay any agency fee.
Despite not charging buyers, agents in Thailand are still committed to providing comprehensive services to them. This includes understanding the buyer's requirements, shortlisting suitable properties, arranging viewings, and assisting in the negotiation and transaction process. Their primary goal is to ensure that buyers have a seamless and satisfactory property purchasing experience.
However, whether you're a buyer or a seller, it's always recommended to clarify all fee and commission details with the agent before collaborating to avoid misunderstandings or disputes later on.
The cost of utilities in Thailand?
The cost of utilities in Thailand can vary based on the location, type of property, and individual usage. However, I can provide a general overview of the average costs for some of the primary utilities.
Electricity: The cost can range from THB 3.5 to THB 4.5 per unit (kWh) for residential properties. For a typical one-bedroom condo in Bangkok with regular air conditioning use, the monthly bill might range from THB 1,000 (approx. \$28.57 USD) to THB 3,000 (approx. \$85.71 USD).
Water: Water is relatively inexpensive in Thailand. For residential properties, the cost is usually between THB 20 to THB 40 per unit (1,000 liters). A typical monthly water bill for a one-bedroom condo might be around THB 100 (approx. \$2.86 USD) to THB 300 (approx. \$8.57 USD).
Internet: A broadband internet connection with speeds of 30-100 Mbps can range from THB 500 (approx. \$14.29 USD) to THB 1,500 (approx. \$42.86 USD) per month, depending on the provider and package.
Cable TV: Basic cable packages can start from THB 300 (approx. \$8.57 USD) per month, with premium packages costing upwards of THB 1,000 (approx. \$28.57 USD) per month.
Gas: For cooking, the cost of a 15kg LPG cylinder is around THB 350 (approx. \$10 USD) to THB 450 (approx. \$12.86 USD), but this can last for several months depending on usage.
It's essential to note that these are average figures, and actual costs can vary based on individual consumption, the specific location within Thailand (e.g., central Bangkok vs. a rural area), and the current market rates. Always check with local service providers for the most up-to-date pricing.
Electricity: The cost can range from THB 3.5 to THB 4.5 per unit (kWh) for residential properties. For a typical one-bedroom condo in Bangkok with regular air conditioning use, the monthly bill might range from THB 1,000 (approx. \$28.57 USD) to THB 3,000 (approx. \$85.71 USD).
Water: Water is relatively inexpensive in Thailand. For residential properties, the cost is usually between THB 20 to THB 40 per unit (1,000 liters). A typical monthly water bill for a one-bedroom condo might be around THB 100 (approx. \$2.86 USD) to THB 300 (approx. \$8.57 USD).
Internet: A broadband internet connection with speeds of 30-100 Mbps can range from THB 500 (approx. \$14.29 USD) to THB 1,500 (approx. \$42.86 USD) per month, depending on the provider and package.
Cable TV: Basic cable packages can start from THB 300 (approx. \$8.57 USD) per month, with premium packages costing upwards of THB 1,000 (approx. \$28.57 USD) per month.
Gas: For cooking, the cost of a 15kg LPG cylinder is around THB 350 (approx. \$10 USD) to THB 450 (approx. \$12.86 USD), but this can last for several months depending on usage.
It's essential to note that these are average figures, and actual costs can vary based on individual consumption, the specific location within Thailand (e.g., central Bangkok vs. a rural area), and the current market rates. Always check with local service providers for the most up-to-date pricing.