If you’re a local, there isn’t much to think about when comparing these two types of real estate in Thailand. Locals can easily purchase these when they are financially capable. For foreigners, however, it is a different story. One needs to keep in mind more considerations when it comes to choosing between these two real estate properties in Thailand.
We will compare the advantages and the disadvantages of buying a condominium unit and purchasing land or a house-and-lot property in Thailand.
Buying a Condominium
One of the advantages of buying a condominium in Thailand is that it is very easy for you, as a foreigner, to do so. Thai legislation allows for foreigners to have 100% ownership of a condominium unit in the country, without having to set up a company or business in the nation, provided that the allotted percentage of the total number of units in the condominium for foreign ownership has not yet been bought out. You see, while Thai law does allow foreigners to buy condos in the country, majority of the residents or unit owners in the entire project must be local Thais.
However, one disadvantage to being an owner of a Thai condo unit is that it comes with exorbitant fees. These fees are used to for maintenance costs like the security in the project as well as the maintenance for the elevators, the settling of monthly electric bills and other basic services.
Buying House and Lot
Most people, foreigners and locals alike, would prefer buying a lot or a house-and-lot property. This is because owning your own house is a lot more advantageous than buying a pre-furnished condo unit. You can choose the lot area that you want for a lot, and you can design and build the house according to your preferences. However, this is not as easy for foreigners or expatriates in Thailand.
While it is cheaper to buy this kind of real estate in Thailand, as it does not come with the fees associated with condominiums, it is also risky most of the times for foreigners. It is illegal, at this point, for foreigners to own these types of real estate unless they do the following:
Marry a local Thai and purchase the real estate in his or her name
Only locals can buy land in the country. If you are married to a local Thai, you can do so but you have to put the title in her name. It’s not bad and it does what it is needed, but you cannot put the property in your name in the unfortunate event that you and your spouse would have to get an annulment or divorce.
Start a business
If you’re planning to start a company in Thailand, you can purchase real estate by putting it under the name of the company. However, this business needs to be owned partially by locals as well. You can be the single majority stockholder in the company but there should be a number of locals in your board.
There you go. Those are the comparisons that we could make in this article in terms of drawbacks and benefits in purchasing a condominium unit or a lot in Thailand.
