Rentinng and Buying Property in Thailand

You should be aware that anyone can set up as a real estate agent in Thailand there are basically no controls on who can sell or rent properties or how property is sold or rented, you should ask around, check out forums on the net to find an agent with a solid local reputation.
Risk wise it is clear that a condo is a much better bet than land, houses can be purchased but a very good lawyer and real estate agent are needed, condo ownership is far better defined as no land ownership is involved and the only real question is the number of Thai owned units in the development.

Rentals can be located through agents or by just asking around. Houses and apartments for long term are generally at least six months usually a year, option to renew is fairly standard paperwork can usually be in Thai and English. Tenancy agreements are secure and reasonable usually simply worded with no clever ‘small print’.
Two months deposit against damages and unpaid bills is the norm, getting this back can sometimes be frustrating but can usually be resolved, but be prepared to wait 30 to 60 days as that’s how long it could be before all the bills are in, often you can pay 6 or 12 months in cash upfront this may reduce the total monthly cost and reduce your security deposit to a few thousand baht.

Thai houses and condos have an interior and exterior construction pretty much the same as a Southern U.S. or Mediterranean European building with tiled floors throughout. The only noticeable different is a ‘Thai’ kitchen when renting or buying new the kitchen may be extremely sparse to the western eye with no wall units, no cooker/oven possible no sink unit, maybe a two burner cooking unit on a basic stand, or there may be nothing in the kitchen. If these are things you want you will need to provide them the seller or owner will not provide them. You can buy/ rent a property with a western kitchen but the price seems to come at a pretty high premium so providing what you want yourself may be the best option.

When thinking about property in Thailand there are many factors to consider such as your financial situation, your familiarity with the different area’s of Thailand and if you intend to stay in Thailand “forever” or “a couple of years” What kind of lifestyle you would prefer, a Thai , “Farang” or mixed neighborhood how far is it to facilities such as supermarkets, the beach, and so forth. And of course Rent or Buy?

Below are some points to consider.
You need to be very familiar with Thailand and the specific area you are interested in living in and this does not mean you have been hear three times on holiday and know every bar in town, it means you have spent considerable time looking at all aspects of the area such as different neighborhoods, travel options in that area, in town or out of town? And very importantly is the area prone to flooding?
If you are new to any country it would make sense to rent for six months to a year in this way you find out if you like Thailand , the town you have chosen, that particular area , once you have purchased it is a lot harder to change your mind.

Buying Property in Thailand
As things stand at the moment purchase of land by a non Thai is not viable you can own a house but you would need to lease the land that it stands on, many people purchase in the name of a Thai wife or girlfriend, but remember then the house is hers not yours. You need advise from a very good lawyer, we can recommend one.
Purchase of a condo is pretty straight forward as land ownership is not involved basically if less than 49% of the condo units in that development are owned by non Thai nationals you can purchase with money brought in from outside the country. This is pretty straight forward but again use a good lawyer

House Purchase
Thai property law may allow foreigners to own a limited amount of land based on investment of 40 million baht for five consecutive years, provided that the land is used for residential purposes.
Thai Spouse: A Thai spouse of a foreigner may be allowed to buy land or property inThailandin their own name. However the married couple may be asked to sign declarations at the Land Department to state that the property will belong to the Thai spouse, prior to registration. Be aware this may have the effect of waiving of any claim on the land or property by the Non-Thai spouse. This may become problematic in a divorce case as it may be difficult for the Non-Thai spouse to prove that the land was marital property. In this case, a skillfully drafted prenuptial agreement may come in handy to minimise the risk to the non-Thai spouse. Or the Non-Thai spouse can take out a lease contract on the land from their Thai spouse to protect their interests.

Renting Property in Thailand
Rental rates for houses condos in most parts of Thailand are very low, some area’s in the Southern beach resorts can be relatively expensive but still nothing like the equivalent in the Caribbean or California or Greek islands. Bangkok’s upper class areas are also more high priced but nothing like London or New York.Other area’s have some very reasonable and high quality property for a fraction of the cost back home. If you want to live in a non tourist area rentals can be astoundingly cheap. Some examples can be found on our cost of living page.

In theory and law the owner is responsible for repairs, usually excluding very minor ones, but many owners are very resistant to actually paying for anything that they don’t deem absolutely essential, this is one advantage of using an agent to rent a property you can then pass the problem on to the agent if they don’t make repairs you can pay for them yourself and present the bill deducted from your rent.

Property in Thailand can be a good financial investment, occupancy rates of rental condo’s and houses in tourist areas is good if you have the initial funds a small number of properties could provide a decent monthly income easily sufficient to fund a good life style in Thailand with a much better rate of return over an extended period than a bank.