Consider the Condo Purchase for foreigners before you buy. Foreigners can buy up to 49% of the condo units in a building anywhere in Thailand, but are not allowed to purchase landed property directly. Only leasehold landed property can be acquired, but for up to 30 years lease.
Condo Purchase for Foreigners
Most foreign buyers are buying new, buying off-plan developments and the process for purchasing is direct. Upon choosing which condominium to purchase, the buyer will be required to pay a booking fee. The buyer will then be asked to pay a 10% deposit within 7 to 14 days. The buyer will then be sent a sales and purchase agreement which usually takes around a month. Around 30 to 45 days after the booking has been paid, the buyer will be prompted to sign the purchase agreement and pay another 10%. All payments should be made in HK dollars or in US dollars to comply with Thailand’s laws on foreign exchange.
Foreigners can avail mortgages when buying Thai property from international banks such as ICBC, UOB and Bank of China. Applications are made in Bangkok but these banks administer mortgages from branches in Singapore because funds need to come from overseas. Applications should be made a month or two prior the drawdown, and banks should have a list of the requirements available online or in either of the offices. Loan repayments can later on be made using Thai currency thru the bank’s offices in Thailand. The Condo Purchase for foreigners should be explained to you by a property lawyer.
There could be a risk in buying property before completion, and there have been numerous cases where a project has fallen through. Either the creditors have denied lending money for the final stages of the building or sometimes one of the shareholders just ran away leaving a big problem. Although these occurrences are very rare, it is advised to be extra careful as to whom you do business with.
Almost all property developers in Bangkok who are selling to foreign investors are publicly listed companies with good history and healthy bank balances. Some of these developers partnered with Japanese real estate companies, and in the years of selling properties overseas, there has not been any developer who failed to meet the terms of the sales and purchase agreement. Before you consider a condo purchase for foreigners speak to an attorney in Thailand.