Making the Right Choice in Bangkok Real Estate
When foreigner's invest in Bangkok real estate, they must to know which location is right for them and why? Buying property in Bangkok, or elsewhere in Thailand, is a huge decision and likely to be a one-off purchase for most people. Therefore, it's important that both the choice of property and its price are right.
What type of real estate should I go for? This is a commonly asked question by new investors. In this article we look at options open to foreigners wishing to buy property in the Thai capital.
Investing in a Bangkok Condominium
Without doubt, the most popular choice of property investment for non-Thai nationals is the condominium, namely for the reasons outlined in Thailand's Condominium Act of 1979.
This law greatly simplifies the purchase of condos in Thailand, making it easily the most prevalent format for foreigners wishing to invest in Thai property. The three other main advantages of investing in a Bangkok condominium are:
Reduced maintenance costs Access to communal facilities such as swimming pools, security and fitness studios Close proximity to the BTS or MRT stations; something that greatly increases the chances of selling or renting a property
Next we look at the difference between Thai apartments and condominiums.
Apartment or Condominium?
In Thai real estate terms, there is a distinct difference between an apartment and a condominium purchase. In many western countries, the word 'apartment' simply represents a one-off unit inside a building housing other similar units. In Thailand, however, buying an apartment refers to the purchase of an entire building and all of its units.
Anyone living in a Bangkok apartment is renting a unit from a landlord (often a registered company) who owns the whole building and rents out the units individually. Obviously very few foreigners buy apartment blocks in Bangkok, unless they are real estate magnates capitalizing in large projects.
Investing in Bangkok Townhouses
It is also possible for non-nationals to purchase a townhouse คอนโดมือสอง in Bangkok, or anywhere else in the Kingdom, but to own it outright is a little more complicated than the more simplistic condo purchase. If you are a foreigner looking to invest in a Bangkok townhouse, then you will most likely opt to form a Thai company to purchase that property for you.
Thai law states that a townhouse is 'grounded,' and where foreigners are concerned this creates land ownership issues. At the time of writing, non-Thai nationals cannot own land outright in Thailand, but they can own up to 49% of a Thai limited company. So, providing that company if legally registered, it can own grounded property.
The purchase of a townhouse in Bangkok can be an excellent investment as it offers great value for money compared to comparable property in other major capitals around the world. Brand new houses are very well built and can be bought for as little as THB 20 000/ sqm (US$ 650/ sqm),
Many of the new town house developments in and around Greater Bangkok offer a number of appealing advantages to expat investors, including:
More rooms/living space Residing in a secure gated neighbourhood A more community-orientated lifestyle Quieter (away from the noise of traffic) Communal facilities such as gardens, swimming pools and fitness areas Cost savings on utility bills 24hr security
Foreigners also have the option to purchase detached houses, including the land they sit on.
Investing in a Bangkok Detached House
The same legal aspects of purchasing a townhouse in Bangkok apply to the acquisitions of detached houses too, namely, negotiating the legal technicalities involved with foreigners wanting to invest in 'grounded' property. This means the formation of a Thai registered company will be necessary so that the property can be purchased through the business.
So, capitalizing in all types of Bangkok real estate is indeed possible for the foreign investor.
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