Like in most countries, foreigners cannot purchase and own properties. However, there is a provision that allows expats to buy and own condo units at a limited capacity. Bangkok, Thailand is one of those countries that allow this buying scheme. In this countries limitation, a foreigner is allowed to own a condo unit to up to 49% of the development of the property. It is considered by expats a more convenient and safer method to invest in condos than in real estate properties.
There a three types of purchases of Condo Units in Bangkok namely:
1. The acquisition of condo units in new projects. There are advantages in buying new condo units like:
- It is a brand new property ownership.
- It has amenities that goes with the purchase like clubhouses, gyms, pools, guarded entrances and exits, and other perks that go with it.
- It will have a potential return on investment.
- The location is accessible.
2. Another type of purchase is by buying resale condo units. The advantages of condos on resale are:
- An existing unit is at hand for checking and no more delays or off specs after a thorough inspection.
- Readily transferable after the closure of sale and its documents are in order.
- Approval after careful inspection on the unit.
- The chance to purchase the condo unit at a much lower price.
3. The purchase of a condo unit for the investor’s investment opportunities and later a potential income in the rental business.
Renting out units has a substantial financial profit in Bangkok as there is a demand for rent. Expert advice is available as there are plenty of real estate agencies willing to serve foreigners. Buyers are taking advantage of these three types of purchase position themselves to gain from these deals.
There are two types of legal ownership of condo units in Bangkok. They are:
- Freehold – this is the most common form of ownership in Bangkok where the expat is allowed to own 49% of the area of the condo unit.
- Leasehold – In Bangkok, there land holdings with a long – term lease of up to 30 years and renewable after for another 30 years and so on. When foreign freehold ownership reaches its cap, it offers leasehold to interested aliens.
How much does a Bangkok condo cost? Regular condos cost start from 1.5 million Baht (£33,000 or $43,000US). The upscale locations start at 15 million Baht (£333,000 or US$433,000) which is located in the vicinities of Sukhumvit and Sathorn estates.
There transaction costs for Condo sales are as follows:
- Transfer Fee – a 2% transfer fee is the payment in the transfer of title. Depending on buyer and seller negotiation, a party can claim the payment, or they can split the bill.
- The sinking fund – To be assured of the future appraisal and maintenance cost of a new condo unit, the buyer pays the fee, depending on the project cost, to the developer.
- Legal fees – Each party pays its legal fees for the transaction.
- The maintenance of the condo unit fees and common area and facilities of management is commonly paid in advance for several months by the owner.
Accounting firms are available to help investors calculate and pay their taxes legally.
After expert advice from experts, it is always wise to invest in real estate. The land does not spoil, and the property appreciates. Bangkok is a tourist destination in Asia. Condo units are properties worth investing in Bangkok.
ABOUT THE AUTHOR
Jeff Caceres is a freelance blogger and a real estate agent who aims to help and guide customers before buying a property. He also helps his fellow real estate agents by giving tips and advice on gaining more clients. You can visit the website at IxactContact to find out how you could gain more customers and leads with this revolutionary Real Estate CRM and Email Marketing system.