Guide For Buying A Property In Pattaya, Thailand
Especially in today’s (2020) landscape, there is an ever-growing amount of advantages that come with renting a property, as opposed to buying. Certainly, if you’re in a position to buy a property outright, it’s typically the better option, however, for those without the capital to make such an investment, renting is certainly not the worst alternative in the world.
Today, rented accommodation is getting even better, and landlords are raising their game in order to remain competitive.
Renting is typically cheaper than owning, and the bills are more predictable as well. This is great for those of you who prefer stable finances that you can confidently predict. And of course, with lower outgoings, you’ll invariably be able to save money.
In addition to that, renting is more flexible than owning as you can move on to somewhere else relatively quickly without having to faff around. This is especially handy if you A) like to travel and move around a lot, or B) you may have to move around for work.
There is also a lot less hassle renting, as opposed to being an owner because there will be no property maintenance required on your part—most of that will be taken care of by the property owner.
If you’re not overly excited by the prospect of committing to a property for life or you are a newcomer to Pattaya considering your options, then renting a condo or house in Pattaya will be the best option for you. Read on for some handy tips on how to approach it.
It is possible for a foreigner to live permanently in Thailand. The official way would be to obtain permanent residency, but that’s not without its difficulties as there are certain conditions which must be met. We covered some of the changes which made the process for retirees harder here and generally you may want to liaise with one of the top visa companies in Pattaya to make sure you approach the task appropriately. You can also explore retirement visas, or simply working with a non-immigrant visa and permit. There are certainly a number of ways of remaining in Thailand permanently, but prior planning and arranging documentation are needed.
Furnished, Unfurnished, or Part-Furnished – Which is Best?
First of all, whichever option you choose, it will very rarely affect your rental fee (and if so, not by much), thus, deciding on either of the three will largely depend on the longevity of your stay, personal taste, and available budget.
Unfurnished
Some people prefer an unfurnished apartment so that they can decorate and furnish it as they please. This is typically the more attractive option to those who will be renting long-term.
Part-Furnished
Part-furnished can be an attractive option so long as the apartment has the essentials. Then you can finish off with a few fancy items of furniture to your liking. Of course, with either unfurnished or part-furnished apartments, you’ll have the added burden of transporting/getting rid of the furniture should you need to move on or leave the country.
Furnished
For the path of least resistance, renting a fully furnished apartment is the way forward. This will allow you to move in and move out with little hassle in between.
In Thailand, the size of land is expressed in Rai, Ngan and Square Wah (or Talang Wah).
One Wah = 2 metres, and thus one Square Wah (2X2 metres) = 4 square metres.
One Rai, the biggest unit, is 4 Ngan, 400 SQW, or 1600 sqm
The answer is yes! There are no restrictions on age limit for Thai nationals owning land or property. However, whether or not the land departments accept is down to their discretion, so you should not think of having the land and property in your child’s name as a guaranteed fix. It is, however, something worth exploring.
If you are interested in investing in land in Thailand, you will have to invest in a majority Thai company (51% of shareholders of Thai Nationality). However, using a majority Thai company merely to get past Thai law restricting foreign land ownership is illegal.
If you are a minority shareholder in a legitimate Thai company, then you may own real property in Thailand through that company. If you are the director of said company and have amicable relations with the Thai shareholders, then you essentially own the property through the control of the company. You may even decide in the future, with the consent of the other shareholders, to sell the company with the property asset.
Technically speaking, anyone can be a shareholder in a company at any age. However, they cannot be registered as “Managing Director” until the age of 20.
Should I Rent Privately or Through an Agent?
This is entirely down to your discretion; however, we would advise going through an agent. Yes, we are a little biased in this regard, but there are many benefits to using an agency as they are a regulated and professional trade body or association. Renting privately might be the best option for you if you are fortunate enough to find the right landlord. However, there are no guarantees when renting privately, so tread carefully.
How to Open a Bank Account in Thailand?
- Make sure that a property has been well maintained (i.e., windows, roof, and guttering)
- Be mindful of how much storage space is available compared to how much you’ll need
- Ensure that the place is well-insulated
- Double-check that all gas and electrical appliances are certified and safe to use
- Do the furnishings meet fire-safety standards?
- Run all of the faucets in the house—are they in working order? What is the water pressure like?
- Check that hot waterworks and that the air conditioning units are functional
- How secure is the apartment? Are you in a gated community? Is the apartment in a secure condominium?
- Do you have your own secure post box?
- Are common areas kept clean and maintained by the building staff?
- What local transportation is available? Will you need to venture far to access your local amenities?
- Is your prospective property close enough to things that are important to you? (i.e., the beach, local restaurants, etc)
- Is there any roadworks or construction going on nearby? Be mindful of properties with empty plots next door—this might sooner or later be used for a construction project which would take the best part of a year.
- Be sure to speak with existing tenants if you bump into them on your visit—how do they like living in the area? Is there anything to look out for? What is the landlord like?
Don’t Wait Around Too Long!
Yes, it is important to take your time and not rush into a decision, but you must also be mindful of the fact that the best properties will disappear quickly. Thus, you’ll need to move relatively fast to secure the perfect place.
- You can use Pattaya Prestige Properties to be notified of any suitable accommodation the moment they come available
- View property the moment you are interested and have reservation cash available just in case
- Be ready to sign a tenancy agreement
What to Expect from a Contract?
Before you move into your new property you will be required to fill out and sign a tenancy agreement. This is an important document that will detail all of the rights and responsibilities that both you and the property owner will bear, including:
- The property address
- Amount of deposit paid (and Terms & Conditions for having it returned at the end of contract)
- How much/often your rent will be paid
- The duration of the agreement
- Contact details for the landlord
- Any bills which may or may not be included within the rent
- Any additional charges (cleaning, building maintenance etc).
Be careful when reading your contract and ensure that you are entirely comfortable with it and that you fully understand what is involved. Get everything in writing and don’t rely solely on verbal agreements.
What Will Be Expected of Me as a Tenant?
- Pay your rent on time but be sure to ask how much grace you have and whether additional charges will be added for late payments
- Most of the time you will be required to pay all charges for gas, electricity, and water. Equally, in the majority of cases, you will be required to pay for internet and cable TV… Make sure to work this out before signing any agreement
- Keeping the property clean and tidy
- Reporting any damage or necessary repairs to the landlord immediately
- Repairing or paying for any careless or intentional damage caused to property + for some small repairs as would have been outlined and agreed in your contract
- Basic house maintenance (changing batteries and bulbs, etc)
- Being respectful of your neighbours
- Providing reasonable access to the landlord should they need to show the property to prospective buyers or new tenants (in the lead up to the end of your agreement or as part of any special agreement you may have with the landlord)
- Leaving the property in the condition that you found it in
- No sub-letting unless the landlord has allowed you to do so in writing
Conclusion
And there we have it! That should be enough information on the home buying process in Pattaya to get you started. Understandably, reading all of this will likely leave you feeling a little overwhelmed or confused. This is why it is paramount that you work with a reputable real estate agency who can guide you through the motions, and consider hiring legal advice to assist you from start to finish.
There are many things to consider and be mindful of when buying property in Thailand as a foreigner, but if done correctly and with the appropriate guidance, it is entirely doable, and irrefutable worth the effort.
Providing you do you due diligence, take your time, and do as much research as possible before rushing into an agreement, you shouldn’t run into too many issues. Then, you’ll be able to find your dream home and live in one of the most beautiful tropical destinations in the world.
Thailand is a truly spectacular place to live and it is within your reach! If you would like us to assist you with the process of buying a property in Pattaya, Thailand, then please feel free to contact us today at your convenience. We will gladly elaborate on any of the information listed in this article and help you further comprehend where you stand in regard to the property market and your eligibility.