CHECK-LIST: WHAT YOU SHOULD DEFINITELY CHECK WHEN BUYING A REAL ESTATE IN THAILAND
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We offer the step by step guidelines on how to avoid hidden dangers and keep yourself from regret after buying the real estate. We included everything in the check-list which you can print out after reading and keep it with you. The information you see here was collected since 2012 based on the practical experience of VillaCarte Sales Department.
All steps are divided into two parts. First part is the basic level. How to buy a real estate from a developer or an owner in the secondary housing market. Second part is an important addition for those who buy a property under construction or at earlier stages.
WHEN YOU BUY A READY PROPERTY
Step 1 Define the property form you need: leasehold or freehold. The real estate price and the opportunity to descend it will depend on the correct choice.
Leasehold is a long term leasing for a period of 30+30+30 years.
Freehold is the registration of the proprietary rights.
Apartments: in any project, 51% of apartments are offered for leasehold and 49% of them are for freehold. The apartments of different proprietary form have different price. Freehold apartments will cost 10-30% more than the leasehold apartments. This difference depends on the developer. If you buy an apartment for investment purposes, it is better to choose a leasehold. For residential and inheritance purposes, it is better to consider a freehold option.
Villa: the building can always be registered as a freehold, and the land plot for a foreigner can be legally registered in several ways. Please, consult with an agent or a lawyer about the reliable option in each particular case.
Step 2 Check the chanote, a document confirming the property rights to a land plot. Ask for a copy from the seller.
Step 3 Define the final price and the payment procedure. Ask about promotions and discounts. The developer usually offers several payment methods for your choice, and the total payment amount will depend on the payment procedure. If it is a resale from the owner, also ask the same question. Individuals are usually agreeable and offer several payment methods. A professional agent is in charge of all such negotiations.
Step 4 Ask about guaranteed income program and its conditions: what is the interest, if there are any limits for the owner (usually the owner can come to stay in a low season and for two weeks a year maximum). Not all developers offer such program. Our company will guarantee the profitability of certain villas. The company experts forecast the profitability based on their experience in the rental market.
Step 5 Learn in details what is included in the real estate price: furniture set with particular specification or a note ‘everything what is inside’, decoration, air-conditioners, household appliances, crockery, etc.
Step 6 Calculate all taxes to be paid by you.
Step 7 Make a list of all fees and payments the buyer shall pay after accepting the property rights: amortization fee, payment for the common territory, telephone, internet, TV, cleaning, small repair and maintenance fee. Some of these are offered by a managing company, and something should be done by you.
Step 8 Collect references about the managing company, if it is available. Calculate monthly and annual maintenance fee.
Step 9 Ask for a contract in English to read and to check every item.
Step 10 Prior to buying a real estate on the sea shore, ask in detail about the beach quality: if it is possible to swim there, what is the bottom like, how tides influence the comfortable life.
Step 11 Learn the infrastructure: ask the developer about the construction plan and its location.
ADDITIONAL TIPS FOR AN OBJECT UNDER CONSTRUCTION
When you have seen a 3D model of the complex under construction in the developer’s office, considered thoroughly all 11 items in the check-list, there are four other important points to be learnt by you.
Permit for construction If it is not in place, it is a ‘red flag’. You should ask why it is not available and when the developer is going to get it. Otherwise you risk getting the real estate much later then it was expected.
What other projects were constructed by the developer, and if they were handed over on time. This will give you the understanding of the developer’s reputation and the opportunity to forecast the success of the current project.
If the construction has already begun, find out if the construction stage complies with the approved plan. Otherwise, you might be involved in a delayed construction project.
Your real estate plan with clear dimensions, view mark and location on the project (building, floor). Learn this document carefully to avoid any false expectations.
Irrespective of the fact that you might make a purchase without anybody’s assistance, apply to a company or hire an agent, remember about our recommendations. Or even print out a small check-list not to miss something.