Bangkok is one of the largest metropolitan hubs in the world and is growing rapidly year after year because many choose buying real estate in Bangkok for investment. This city offers beautiful scenery and work, and everything is missing. It is a wonderful city to live in.
Why choose Bangkok
Bangkok is rapidly developing along with improving infrastructure and rising living standards. Luxury condominiums cost 3 times less than in Hong Kong or Singapore, so more and more professionals are moving to this city. For most, the issue of renting a property is a priority. The standard of living here is very high: shopping in boutiques, nightlife, restaurants, and entertainment. Staff costs are low, so many families can hire housekeepers, babysitters, and drivers.
Residential property in Bangkok is mainly divided into apartments in condominiums in the central areas and townhouses and villas in the green suburbs. The city center is experiencing a construction boom of super condominium projects, offering a very high standard of living with a reasonable investment. Central property prices are naturally higher and generate more rental income than properties in rural areas, which, however, make good money from tourists and expats. Thus, Bangkok has the advantage of having a brisk rental market and a good return on investment.
Purchasing property in Thailand
According to Thai law, foreigners are restricted from purchasing land but can buy objects on the land.
For a foreigner, there are 2 methods to purchase a land plot for construction:
1) In a long-term lease for 30 years with the right to further prolongation. Because the property is located on a land plot, ownership of this plot is automatically secured. The landlord cannot use the property after the lease expires because the property is separated from the land.
2) If a foreigner is accomplishing business, you can register a limited liability company and record the land in full ownership. In this case, the proprietor is not an individual but a firm.
Buying a house
A foreign investor can purchase a house in full ownership and enter into a long-term lease on the land on which this building is located. In addition to the right to buy land (which can be exercised if the law governing the ownership of a foreign person alters or a Thai citizen or a company registered in Thailand takes over the ownership), the genuine ownership of the property will remain while remaining within the laws of Thailand.
Buying a building project
Foreigners can own building projects built on the land in Thailand. The owners of construction projects have created a special legal system that lets the customer have the property.
Corporate Property Ownership
Thai corporate system is equivalent to UK typical regulation. Thai law permits various corporations, associations, and other lawful commodities to be registered. Commodities in Thailand owned primarily by Thais are treated as Thai citizens and, thus, eligible to own property in Thailand. The most prevalent condition of corporate land ownership is the LLC.
Control of a LLC
Thai law supplies for the issuance of classified claims differing in status. LLC claims can be split into common claims when the holder of 1 share is allowed to 1 vote, and select claims, each of which entitles to 10 votes. Most common shares are issued to Thais, while best shares are given to foreigners. This permits foreign minority shareholders to own more occasional shares but retain firm management via voting privileges.
During construction, the Thai partner will invest in standard stock, while owners own the preferred stock. Each purchaser acquires one equal pro rata share of preferred shares in LLC. Once the investment amount has been agreed upon, the buyer will own the villa, as well as an equivalent share of the shares and a long-term lease contract.
Buying an apartment in a condominium
The simplest kind of transaction is buying a flat in a condominium. According to the law, foreign citizens can own no more than 49% of an apartment building, although, in some condominiums, 100% of the housing is wholly owned by foreigners. An important requirement for obtaining ownership is to ensure that funds for the investment in foreign currency are transferred from abroad and registered with a Thai bank. A foreign citizen can acquire such real estate in full right.
Inquiry at the Land Registry
Before making a transaction, foreign citizens are strongly advised to additionally check whether the apartments are registered with the Land Department.
Checking the condition of the object
Before buying a secondary home, it is imperative to conduct a complete check of the object’s condition.
Property tax does not involve to property operated for personal residential goals. A price is charged on the transfer of ownership. The main acquisition prices are as follows: transfer fee – 2%, stamp duty – 3.3%, business tax – 0.1%, income tax (Thai match of revenue tax on the sale of property – variable interest rate). Most tasks are set close to the state-appraised value of the property, which, in turn, is always significantly lower than the market value. It is difficult to estimate the exact expense of taxes and fees, and approximately it will be 2-3% of the property’s market value. As a rule, these costs are divided between the seller and the buyer.
Is it secure to buy property in Thailand?
When purchasing property by a foreign citizens are extremely recommended to pursue respected attorneys and business consultants, conduct due persistence, and properly draft a long-term lease. In this case, your assets will be covered like everywhere else. To get more information about property in Thailand use the service of Thailand-Real.Estate.