Q & A Thailand
Q & A Thailand
How to buy an apartment in Thailand?
Thailand offers numerous attractive, high quality and relatively inexpensive - comparing to Europe or the US - real estate projects that have seduced in recent years more and more demanding foreign investors. But to acquire a property in Thailand, best is to perfectly know local rules and have the right team by your side to assist you with all the legal and administrative aspects for this type of investment. Depending on the neighborhood, the average price for newly built unit is around 80,000 to 100,000 THB or €1,800 to €3,000 per m2 /sq ft.
1. Legal assistance
There are no notaries in Thailand, at least in the French Napoleonic sense of the term. It is thus highly advised to seek legal counseling when dealing with a real estate transaction. You can easily find in Thailand professionals who speak your own language and can help you through the acquisition process. During the first appointment, you will obtain more information on the buying process, transfer fees, taxes and resale of your property for example.
2. Opening a bank account in Thailand
To purchase an apartment in your own name, it is best to possess a personal bank account in a Thai bank in order to facilitate all payments and most importantly to obtain all required bank certificates for the transfer of the property deed.
3. Selecting the apartment
Once all legal matters have been addressed, you can let your trusted real estate agent define the perfect property for you based on your own criteria and ideal location to start the visits as soon as possible.
4. Negotiating and sale’s agreement
When the right property has been found, your real estate agent – who is your direct intermediary - will on your behalf submit a purchasing price to the owner. Our role is to ensure you get the best price and fair value for your offer. The amount of the negotiation varies according to the property (old or recent) and fluctuates around 3%. After the offer on a sale’s price has been accepted, the real estate agent, with your legal counselor, will verify the following elements:
> The owner’s identity as recorded on the property’s deed registered to the zoning department
> The potential burdens on the property’s deed
> The allowed quota of foreign owned units in the building
> The taxes to be paid during the transaction
> If the owner is up to date with all HOA fees
Then, it is necessary to draft a sale’s agreement in which the payment method, the sharing of the transfer fees and any other agreement made between the buyer and the seller, have been agreed upon. In case of a sales’ agreement, it is expected that the buyer makes a security deposit of 3% to 5% of the selling price on the day of the signature in order to “book” the property. If the buyer feels more comfortable, then his/her lawyer can verify payments’ transfer between the two parties. The lawyer can also represent the buyer at the zoning department on the day of the transfer of the property’s deed.
5. Funds transfer
During a first acquisition and if the buyer doesn’t have a Thai permanent residency permit, funds have to imperatively be coming from abroad. Once funds have been credited on a Thai bank account, it is necessary to ask your bank for a "Foreign Exchange Transaction Form" (or previously known as "Tor Tor 3"). This document allows you to register the property under your own name to the Thai zoning department. This document will also be useful for the resale of the property in order to justify the repatriation of the funds abroad. Please note that each transfer for such an acquisition must be made for an amount above 50,000 USD in order to obtain the “Foreign Exchange Transaction Form”.
6. Transfer of the property deed
The transaction and the last payment take place at the Thai zoning department, for which it is advised to prepare a bank check. It generally takes half a day for this last step of the process as the buyer can mandate his/her real estate agent or lawyer to represent him/her.
7. Moving in: remodeling/refurbishing of your apartment
Once you have purchased your property, you might be looking to remodel or refurbish it. You might also be looking for good housekeeping or a nanny for your children. We can recommend you trustworthy and experienced professionals who will make you and your family feel even more at home.
How easy it is to rent or buy a property in Thailand?
To buy or rent an apartment in Europe is quite strenuous: comparing real estate ads, visiting properties in groups, filling out numerous forms and providing the right financial warranties and then waiting for a positive outcome or starting over if your application is rejected. Furthermore, prices in major European capitals are on a constant rise for small and poorly maintained flats. For example, in Paris, the square meter price is around €7,000 while in Bangkok, it is around ?100,000 (€2,300/$3,300) for a unit in new building with a pool, a gym, and a sauna…
In the “land of smiles”, the real estate market is really attractive and the requirements to buy or rent an apartment or a condo are easier. Welcome to Thailand where more than 8,000 French and over 15,000 American expats have been seduced by the quality of life, the strong purchasing power and the amazing tropical climate.
In Thailand, the buyer and the tenant have no fee to pay the real estate agency. For a rental, the moving-in can be really fast. You just need to provide the following:
- A copy of your passport
- The lease contract duly filled out (the real estate agency will help you with that)
- A security deposit equivalent to a two-month rent
- A month rent in advance
- Being present during the inventory inspection
The rent price in Bangkok is usually determined by the location (how close to the city center, the business district or public transportation), the size of the unit, the number of rooms, if the property is furnished or not, the duration of the contract, the year in which the building was built and its category. You should maybe consider a service apartment if you are planning to stay less than 12 months in Bangkok.
You will note that monthly maintenance costs (electricity & water) are not included in the rent: roughly ?20/cubic meter for water. The electric bill is roughly ?3.5/unit for a condo (individually rented) and ?6/unit for an “apartment” (a group of rentals owned by a family or company). The owner will pay the HOA fees.
For a good Internet connection, you should be paying ?1,000/month (€20/$30). In Thailand, most rentals are furnished: bed, table, chairs, coach, desk, wardrobe, TV, kitchen appliances…but for those who wish to bring their own furniture, some residences propose unfurnished options. Also, pets are not always welcomed in flats.
For a purchase, you need a solid month before you can own a property. It is not a notary but a lawyer who will take care of most of the procedures.
In Thailand, there are a variety of properties available for rent or purchase, for all types of budget and needs, from studios, to condos, apartments, villas or luxury houses with a private pool, a gym, a sauna, 24 hour security onsite, parking spaces…So do not hesitate to contact us if you are looking to rent or buy a property in Thailand. We will gladly assist you from start to finish!
How to obtain a student visa in Thailand?
In order to obtain the Educational Visa, category ED, the student must provide the Thai Embassy the following documents:
- A formal acceptance letter from the university he or she has applied to
- A valid passport (no less than 6 months)
- Four ID photos (5 x 6 cm)
- A duly filled out visa request form
- 2000 Baht for processing fees
Obtaining the “single entry visa” will give you the right to study in Thailand for one year, on condition that you renew your visa every three months at the Immigration Bureau for 1900 Baht.
The administrative procedures to obtain a student visa must be done in your country of origin/residence at to the Thai Consulate before leaving for Thailand.
Regarding the “multiple entries visa” (5000 Baht), the student must leave Thailand every three months to get his or her visa automatically renewed or has to go to the Immigration Bureau to get it extended for a year.
Some students who had forgotten to renew their visa every three months, have found themselves residing illegally in Thailand and upon leaving the country, had to pay a hefty penalty fee.
Once registered to their university of choice and with a legal student visa in hands, the student only needs to find a place to call home for the duration of his or her stay in the land of smiles. Kijner & Sons International Realty can help you with finding the perfect rental here in Thailand. Just send us an email at info@kijner.com.
For more legal information on visas or residency status in Thailand, contact Law Solutions.
Can I move to Thailand with my pets?
To learn more about importation, exportation and transit of live animals, please visit Thailand's Department of Livestock Development by clicking here.
To know more about the requirements for the importation of dogs and cats into the Kingdom of Thailand, click here.
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Source: Information courtesy of Kijner & Sons International Realty’s partner in Thailand.
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Disclaimer: Information and data as of May 2011, not binding and likely to be modified without prior notice. Please see a licensed and certified professional and seek legal counseling should you wish to invest in Thailand.
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