Can a foreigner buy a condo in Thailand?
You are probably wondering if it is possible to own a condo in Thailand as an expat? Foreigners cannot directly own a land in Thailand, nor a grounded freehold house, but they can however legally own a condo. A condo building can sell 49 out of every 100 units to foreigners under the law of the 1979 Condominium Act. Owning a condo in Thailand is without a lease and is timeless. In other words, it is yours forever.
Buying a condo in Chiang Mai is the easiest and best way to invest in real estate. As a factual example, around 20% of all freehold properties in Bangkok are currently owned by foreigners. Be careful thought to not fall into traps if you are investing. Buying a condo for yourself and living in it, and buying a condo as an investment are 2 complete different games!
What document do you need for buying a condo in Thailand?
Simple, there will be the contract, and the FET forms or Foreign Exchange Transfer forms. These are simply the legal proof of the money transfers from your home country to Thailand. The latter is needed since all condos bought and paid by a foreigner has to be paid in the foreign currency only! And obviously you will need the usual stuff VISA, Passport, Work permit (if you have one) etc.
Is it possible for a foreigner to get a loan in Thailand?
The quick answer is no, unless you have a Work Permit. In order for a foreigner to be eligible for a loan in Thailand, the latter has to have been working in Thailand for at least 1 year. The total income has to be at least 3 times higher than each loan instalment. Your job has to be stable and secure and you need to pass a credit check on top of showing some official documents proving that everything is legit. Some banks like Bangkok Bank’s Singapore and UOB offer international loan plans for foreigners.
How do I pay my condo in Thailand?
As a foreigner, you will have to either push with a Thai bank to open an account, or get the money from oversea, from a bank in your home country. In any cases, it is better to proceed this way since the money that will pay for the condo unit has to be in a foreign currency. Don’t be scared to come ask us any questions since we are used to work with the Thai banks on our law branch side, we will be able to help you out!
Should I put the condo under the name of my Thai wife or Thai husband?
If you are having trouble with the payment requirements in Thailand, the answer is most likely yes, since it makes the whole process much easier. Thais can easily get a loan if they make a salary of at least 15k baht a month. For bigger loans however you will need a lot more salary than that so things can quickly become complicated again . Also, your partner will have full rights to the condo, even if he or she didn’t pay one penny on it. So you need to be in a stable relationship before doing any big moves.
How much is the deposit on a condo and what about a delay/cancellation?
The deposit on condos can be a tricky part. For a 2 million baht condo you can expect a 50k+ average deposit for example. If it’s a new building still in construction, be sure to check all the clauses in the construction contract that explains what happens if there is a delay or a cancellation in the plan. For a mid-size project you have to expect at least 15 months for the construction to completely finish. Prepare your plans accordingly.