Purchasing real estate in Bangkok, as a primary home or rental place, can be an exciting experience. It can also be an absolute nightmare, depending on when, where and how you buy. Like any major life decision, you need to go in with eyes wide open and do your research in advance.
A proper investment plan is essential. To help you avoid the pitfalls of the Bangkok real estate sector, we have put together this quick property-buying guide with five key things to consider. So, without further ado, let’s jump on it and look at the critical areas of the top property market in Thailand.
Study your reasons
First and foremost, you need to know why you are investing. Be clear about your reasons behind purchasing an investment property in Thailand. Will the property serve as a permanent home, holiday abode or rental vehicle?
Once you know why you want to buy a property, you can decide on the crucial purchasing factors: budget, location (neighbourhood, public transport), styles, facilities, services and so forth.
Be aware of regulations
As you are buying a property in a foreign land, understand that the rules and regulations surrounding the transaction will likely be different from those in your home country.
The key difference is that foreigners cannot own land in Thailand as an individual, only as part of a Thai company or via a 30-year leasehold. Alternatively, a freehold condominium can be easily purchased when the building has 51% Thai majority ownership.
Look to the future
If you are looking to invest in the Thai property, you must choose a location with the most advanced infrastructure. While long-term popular areas like Sukhumvit, Ari, Lumphini and Sathorn are still flourishing financially and offer a solid investment choice.
Do not overlook newer areas too. For example, with the city expanding both its MRT and BTS lines, new prime areas of development are fast opening up.
Consider all aspects
Cost of living and maintenance are two important factors to consider before you invest in the Bangkok real estate sector. Buying a property is only step 1; living and maintaining a property for years or decades to come is another story.
Before deciding on your purchase, take time to talk to both locals and expats about their experience owning a Thai property; they can give you the low-down on all the possible expenses (maintenance, tax, HOA fees, etc.) you’ll incur as an owner.
Look under the hood
Whether you are buying to invest or live, you must consider what “lifestyle” a person or family it the property will have. For example, if you are going to buy a large four-bedroom penthouse and want to attract an expatriate family as renters, have you looked into what schools, parks, hospitals, transport and entertainment options are in the area?
What about coveted in-house facilities, does the property have a gym, pool, games room, library and garden? You have to consider whether the property will suit your needs and/or those of a renter, or perhaps you won’t be able to get the rental income you require to pay off your mortgage.