Unless you have existing savings or are due to receive a pension/investment payout the chances are you will need to enter into some sort of financing arrangement prior to your purchase. The information below will give you the basic guidelines you need to consider when purchasing a property in Thailand.

Please note that the information below are only guidelines, you are strongly urged to take independent legal advice from a source not connected to the developer or property vendor.

Budget

The majority of overseas investors finance the purchase of their home or investment property in Thailand by remortgaging their existing property in their native country and releasing equity to release the required capital. Financing for up to 60% of the total value is available through many Thai Banks. This may vary from bank to bank and from investor to investor, again you are strongly encouraged to seek independent legal/financial advice from a source not connected to the developer or vendor.

If you are considering the purchase of a condominium you will need to show evidence that the funds have been sent into Thailand in foreign currency converted to Thai Baht on arrival from overseas.

The receiving bank should provide you with a Tor Tor Sam 3 Certificate of Remittance, stating that the funds arrived in Thailand for the purpose of buying a condo.

Other things you should factor into your budget include but are not limited to:

1. Income Tax or Withholding Tax
2. Land Transfer Fee
3. Stamp Duty
4. Specific Business Tax (SBT)

You should also investigate any legal costs that you may be liable for.

Location

After ascertaining how much you can afford to spend, the next obvious step would be deciding where you want to live. Once you have decided on a particular area you should research extensively the average property values in your desired location, the internet is a valuable resource in the research part of the process. You should seek local as well as professional advice at this stage as the whole purpose is to gain capital appreciation in the future. As with any property investment anywhere in the world you should look for signs of infrastructure development and improvement, for example rail links and shopping centre development, on the opposite side of the coin you don’t really want to buying an investment property that is directly next to an airports expansion project. In short, leave no stone unturned, careful informed research is everything.

Property Type

According to your budgetary constraints there are a number of property investment options open to you, these include but are not limited to:

1. House – Villa, detached, semi-detached, terraced, shop house.

2. Condominium

Aside from the ever popular beachside villas and detached houses, condominiums are probably the most popular choice for foreign investors, this is because a foreigner can legally own a condominium whereas a house or villa has the ownership of land issue attached to it, and again, you should seek independent legal advice from a specialist.

Whatever your choice is you should research thoroughly and ensure your property has the correct infrastructure surrounding it. Things that appear obvious should also be checked in minute detail before any financial agreement is entered into; the factors for consideration include but are not limited to:

1. Access to your property- if they are not there you will have to pay for an access road or at very least share the cost with any neighbours in the development.
2. Water Supply – check that the water supply is connected and useable..
3. Electricity – You may have to pay for connection to the main supply.

Again, getting the right advice from an independent specialist is of paramount importance – you are strongly recommended to seek professional independent advice.

Having lived in Thailand for nearly 3 years and taken an active interest in the property market I can safely safe that there is no place like it. There are a plethora of good reasons to invest in Thailand rather than any other place on the planet; these reasons include but are not limited to:

1. Price – Thailand is developing rapidly and is fast becoming a magnet for the canny investor, the price of properties whilst increasing still represent the best value anywhere.

2. Legal Restrictions – Whilst there are limits and certain restrictions on foreign properties/Visa requirements in Thailand the processes to attain legal status are relatively hassle free providing the correct processes are followed.

3. Climate – Tropical climate with all year round sun.

4. Quality of life – A foreigner on even the most moderate income in the Western World can live a very comfortable life here.

5. Cost of Living – the cost of living here is significantly less than in the West and you can have all your home comforts here at a fraction of the price.

There are many other reasons aside from the aforementioned points which make Thailand a very attractive destination in which to invest or live, there really is something for everyone. From the tropical islands of the South to the lush countryside of the North to the bustling metropolis of Bangkok there are real bargains to be had everywhere and due to the ever expanding Thai economy are set to rise significantly in the coming years and months. I personally like Thailand because of the ease of which East meets West, although you are in region that is clearly Asia, western goods and amenities are easy and cheap to come by should you require any home comforts. This is not to say the traditional Thai cuisine and culture is not without its merits, the food in Thailand is world renowned with good reason but if you are like me and fancy Fish and chips now and again you can easily get it! Thailand is a very safe country and very suitable for families, couples and singles, you can walk around in Bangkok at anytime night or day and not feel threatened, which is more than I can say for some world capitals. Of course, the country is only as good as its inhabitants and it is true to say that the Thai people are amongst the most hospitable, friendly people anywhere and the Thai ladies, well, if there are more beautiful women on earth I have yet to see them!!

For more detailed information about Thailand and investing in Thailand, please follow the links on the left hand side of the page.