If you are a foreigner and planning to purchase a property in Thailand then you may have researched online regarding the matter. Majority of these websites tell you that it is possible for a foreigner to purchase a foreign condo unit and it will be theirs as such will be entitled to their name.
You should not stop at this statement alone because there are many things that you should know about buying a condominium in Thailand including Pattaya. These are important legal advices that should be considered before you start property hunting.
- A maximum of 49 per cent of the condominium’s registered area only is allowed to be sold to non-Thai nationals. If you are planning to buy in Bangkok then this part should not be a problem because majority of the buyers and owners of condo units there are Thais. Even those condominium properties that are known to foreigners, it is unusual for foreigners to outnumber the Thai nationals owning parts of the building. You might be wondering why this rule is mandated and this is because most Asian countries are making sure that the foreigners are controlled by allowing only certain numbers and percentage of ownership. In other famous places such as Pattaya, you should make sure that you are still included in the quota of foreign nationals buying units in a freehold agreement.
- It is rare for banks to finance the purchase of the condo units. Thai banks have to go through a lot of hoops and process in order to approve mortgage application of a foreigner thus they are not keen in financing any purchase of properties. Foreigners are especially considered a risky investment because they will have a hard time coming after foreign assets. Meaning majority of the foreigners buying properties are done by cash basis only.
- In the meantime, there is an oversupply when it comes to condo units in Bangkok thus rental yields is lower than usual. If you are thinking of buying a unit as investment thinking that you will get high returns then you should talk with a local real estate agent first to avoid any disappointments.
- Management of the condo is not up to you. If you are looking for a Pattaya condominium for sale then do not expect to have a voice if you are a minority owner. The management still depends on the developer and the management assigned to the particular building.