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The Thailand real estate market has different types of property to match the demand from different investors. We will take a look at condos and villas in Thailand to help you weigh the options and make an informed decision.
Condos in Thailand
Although there have been plans to make it possible for non-residents in Thailand to own land, Foreigners have not yet been allowed to own land in Thailand. As such, condo units are a popular option for foreigners. A condo unit is the only piece of property that a foreigner can own in their name under a freehold title. There are still rules and regulations with condo ownership in Thailand:
· The condo complex will have no more than 49% of foreign ownership. This means that 51% of the condo complex’s floor area is owned by Thai nationals.
· When purchasing a condo unit, the funds used to pay for the property must be in foreign currency from an overseas bank.
· The condo is bought under a freehold title.
Advantages of buying a condo in Thailand
Condos are open to complete ownership by a foreigner, unlike other types of property where the foreigner owns a maximum of up to 49%
Developers are adding lifestyle components to their projects to accommodate the needs and desires of foreign investors in order to increase sales and restore the Thailand real estate market.
Condos are becoming increasingly popular due to the increase in demand from foreign investors. As such, numerous new developments exist in high-value locations like Bangkok, Hua Hin, Pattaya, and Phuket.
Condos are generally low maintenance for owners as opposed to other types of property because the developers have a juristic person who manages common area maintenance and recreational amenities.
Security is essential, and developers recognize the need for secure living spaces. As such, condo complexes have state-of-the-art security systems which are managed by the best security companies in Thailand.
Disadvantages of buying a condo in Thailand
Condo owners need to abide by rules and regulations in order to live in harmony with their neighbors. These rules and regulations vary significantly from one condo complex to the other, but investors have the option to voice their opinions if they wish to change any rules in an annual co-owner and juristic person meeting. Alternatively, investors can choose a condo unit in a condo complex that has rules and regulations which align with their lifestyle.
There are HOA fees that are required to be paid for maintenance and repairs. While they are used to ensure that the condo owners are comfortable, it is important to factor them into your budget before settling on a condo in Thailand.
Condos in high-value locations can have a high initial cost due to the high demand for property in these areas.
Visa requirements in Thailand are constantly changing. As such, a foreigner must stay updated with the changing terms to ensure that their stay in Thailand is in accordance with Thai laws.
Villas in Thailand
Compared to condos, villas are more exclusive and spacious. However, owning a villa in Thailand is a bit more complex. Due to the land ownership restrictions in Thailand, foreigners cannot own a villa outright. One can own a villa through a leasehold title which offers a 30-year term with possible extension once the initial period is up. Buying a villa is fairly easy for foreigners, and if a leasehold villa owner wishes to sell the villa, the process is just as simple.
Advantages of buying a villa in Thailand
Buying a freestanding villa affords you the luxury of having a piece of land for outdoor use. You can use this land for a private garden, a pool, or a play area for kids.
A freestanding villa does not have rules and regulations for décor and styling according to your unique taste.
There are more design options for villas, as you can knock down walls or add exterior amenities according to your family's needs and lifestyle.
A private villa has the benefit of making your own rules without worrying about the comfort of your immediate neighbors.
If you wish to sell the villa, it would be easier compared to selling a condo because the demand for freestanding property in Thailand is relatively high.
Disadvantages of buying a villa in Thailand
Villas are more expensive than condos due to the size of the property.
You may need private security even in areas where communities have security personnel on call.
Unlike condos, villas are not in the city centers but in the suburbs and outskirts of Thai towns.
There are numerous options for Hong Kong investors in Thailand. However, it is important to research and review your options with a professional before settling on a particular property.
