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1. Can you give me practical advice on the best way to buy property? |
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There are a number of possibilities. Somphob & Associates, will be able to advise you on the best solution for your needs:
- Leasehold: Thai law allows a maximum lease period of 30 years, with the possibility to extend for a further 30+30 years. At the end of each term, both parties must register the renewal with the Land Department and pay government fees, including stamp duty. This gives the lessee "ownership" of the land. The downside is that the Lessor may not wish to renew, or the law may change to your detriment in the future. Any capital you invest into leased property is therefore liable to be lost. In addition, leased land is not easy to trade.
- Nominee: You can nominate a Thai to own the property for you. Definitely not recommended.
- Nominee with a mortgage: You can lend the price of the property to a Thai under a legally executed mortgage or loan agreement. There is a small fee payable at the Land Office to register it. The advantage to this is that the nominee cannot sell the property until the mortgage or loan has been repaid in full. Your lawyers should also set up a Last Will & Testament when they set up this type of transaction so that if the foreigner dies first the mortgage or loan is discharged in full and the Thai can inherit the property. If the Thai nominee dies first the foreigner can inherit the land, but must sell it to a Thai within 12 months. Foreigners buying property in Thailand should always write a new will to avoid any future problems for the Executors and Beneficiaries.
- Freehold: Foreigners can buy and own condominiums Freehold, giving you full ownership rights to buy, sell, trade and bequeath your condominium. However, the law states that foreigners may only own up to 49% of any condominium building. So make sure your lawyer checks this before buying a property. The seller must also provide a document from the Juristic management office stating that the condominium is free from all debts.
- Company Ownership: A highly recommended way to buy and own property is by setting up a company when buying a house, land, or other property that is not a condominium. An experienced real estate lawyer can help you do this and ensure that you control the property without interference from your nominee Thai partners.
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2. What is a condominium? What is an apartment? |
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A condominium is like a flat (apartment) you can own in common with other owners of units within a high-rise with complete facilities. This means that each tenant is a shareholder in the building and they pay a monthly management fee based on the square meter size of their apartment to maintain the building and public areas.
Foreigners may own a condominium freehold; with full rights of ownership.
An apartment is a building owned by one owner who lets out units within the building on a short or long-term basis. |
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3. How fast can I find somewhere to live? |
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This depends on how much effort you are prepared to put into the search with your real estate agent. Search through the internet and email some and then see what responses you get. Choose the ones that respond quickly offering to help.
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4. What about schooling for the children? |
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Thailand boasts some of the best international schools in the region in all the most highly populated centers like Bangkok, Pattaya, Chiang Mai, and Phuket. Fees are high, but so are their teaching standards. In addition, there are some excellent private Thai schools. Your agent will tell you which schools are located in the area you would like to live.
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5. What is the minimum rental contract, and what are the terms and conditions? |
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Most rental periods are for one year, although some shorter terms are available. In most cases you will need to pay a 2 month deposit, and one month rental in advance when you sign the contract. Sometimes, especially for longer contracts, the landlord may require 3 months deposit. The deposit is refundable when you move out, although the landlord may deduct expenses for any damage to the property during your tenancy. |
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6. I'm moving to Thailand, which is a completely new country with different customs. How can I make the move as easy and pain-free as possbile? |
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If you plan to stay here for more than 1 year and you have never been here before, we recommend you take a cross-cultural seminar that will explain the many strange and different things you will encounter in your daily life. |
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