Looking to buy a condo in Hua Hin - Need general information about buying property in Thailand

[Niteowl45]

As my title states I wish to buy a condo in Hua HIn in the near future. It's something I'd been thinking about for a while and with the baht finally going down (as it should have done a long time ago) this seems like the right time.

 

I will, of course, look at properties if you have any for sale (I want to spend less than 1.5 million, which should be enough for a decent small condo in a quiet area of Hua Hin), but right now I am mainly looking for a little general information on how to go about it and how the process works.

 

I've been reading about it, and I understand I should probably go through a realtor. Any advice on reputable realtors I could look at online (can't travel to Thailand at the moment, of course, might do so in October or Novemeber if the Covid situation improves)

Also, I understand money will have to be transferred from my bank in my currency and converted to thai baht by a thai bank. If I'm in Thailand, though, I guess I will have to make sure everything is ready on this end. Should I talk to my bank before I leave and maybe move some cash around so it will be easier to have it sent over?

Anyways, I think you get the drift, looking for advice and information about how to go about purchasing my condo. Any info would be greatly appreciated

[Maha Sarakham]

https://www.facebook.com/jiravilla/

 

She has a YouTube channel that shows condos pretty frequently and has YouTube videos about how the buying process works even now when you're outside of Thailand.  Send her an email, she's usually pretty good about responding.

 

Good luck!

[Peterw42]

One of the good things about buying property in Thailand is you can often avoid relators and lawyers altogether. Property is often listed, bought and sold informally on facebook, buy/sell websites etc and you can deal straight with an owner/neighbour/friend etc, there is no formal qualification or license to be a real estate agent in Thailand.. . The western model of everything goes through an agent isnt necessarily how it works, The system can be very informal with lots of Thais brokering and helping with a sale to get a cut.  

Once you are in Thailand, a realistic scenario is find an area or condo block you like, visit the block, enquire at the office (they will put you in touch with sellers) check the notice board, call numbers on for sale signs on balcony's, check local facebook but/sell groups etc.

Buyer and seller both attend the land office and complete a sale.

There isn't really anything to pre-arrange with your bank (besides setting up onlne banking). Nowadays with online banking you can transfer money instantly with your phone, from anywhere. 

Edited May 6, 2021 by Peterw42

[scubascuba3]

You want to choose an area you're happy with and favourite condos to choose from then look at ones for sale, go to the condo office sometimes they have a long list, some maybe on the wall advertised. Buy in your name (foreign quota), avoid company name nonsense. I bought in Pattaya, interestingly I've changed my mind a few times where i wanted to live so don't buy too soon.

 

Decide how you will ensure the money transfer will be classed as "International transfer" so condo can become foreign quota no problem.

 

Ensure there is a chanote, no buying off plan nonsense. The app Google Lens is good at checking the Thai on the chanote including your name

Edited May 7, 2021 by scubascuba3

[Delight]

 You asked how the process works.

I assume that the condo which you intend to purchase is in the 'Foreign 49%"

Given this you will need to submit -at your local land office-

1) A FET .This is issued by your bank confirming that the necessary funds have been brought in from abroad to Thailand.

2) A letter from the juristic manager of the condo -specifying that the condo is debt free.

 

At the land office the transfer fee has to be paid(max 6% of the appraised value or the actual agreed price of the condo. The higher price is used for the calculation)

 If you are buying a pre -owned condo -then often this cost is shared with the seller and should be less than 6%.

 

With this in place the Condominium Title Deed will be issued to you. The last entry will be your name on this Deed.

The giving  of monies to the seller is a separate process between you and the seller.

 

If you are buying a condo which is in a Company name-then all the foregoing can be ignored including the need of a FET. .

In this case there are no transfer fees. The whole process can be carried out in an accountants /lawyers office. 

The total cost should be less than 10,000 Baht

Edited May 8, 2021 by Delight

[khm2412]

Don’t forget to enquire about maintenance fees, which can be pretty hefty for a modest condo.

[newnative]

24 minutes ago, khm2412 said:

Don’t forget to enquire about maintenance fees, which can be pretty hefty for a modest condo.

     Certainly inquire but I think you'll find that in most cases the monthly fees will be modest, even for large condos--one of the big pluses with condo ownership in Thailand.  My partner and I have owned condos in different projects in Bangkok, Rayong, and Pattaya.  The most we ever paid was 7700 baht  a month for a very large 3 bedroom/3 bath condo.  About $248.  High for Thailand but included in that was weekly maid service, internet, a hot water system, and cable tv.  Total bargain.  In America I was paying more than that for just the basics in a small 1 bedroom condo--and definitely no maid service!

[Tubulat]

On 5/8/2021 at 4:46 PM, Delight said:

 You asked how the process works.

I assume that the condo which you intend to purchase is in the 'Foreign 49%"

Given this you will need to submit -at your local land office-

1) A FET .This is issued by your bank confirming that the necessary funds have been brought in from abroad to Thailand.

2) A letter from the juristic manager of the condo -specifying that the condo is debt free.

 

At the land office the transfer fee has to be paid(max 6% of the appraised value or the actual agreed price of the condo. The higher price is used for the calculation)

 If you are buying a pre -owned condo -then often this cost is shared with the seller and should be less than 6%.

 

With this in place the Condominium Title Deed will be issued to you. The last entry will be your name on this Deed.

The giving  of monies to the seller is a separate process between you and the seller.

 

If you are buying a condo which is in a Company name-then all the foregoing can be ignored including the need of a FET. .

In this case there are no transfer fees. The whole process can be carried out in an accountants /lawyers office. 

The total cost should be less than 10,000 Baht

This are my recent experiences:

 

I have a condo for sale and contact the land office already because there was a potential buyer.

The price have to payed by the buyer is 2 million thb !

What say the land office:

Valuation price at land office is THB  2,521,1000

Transfer fee 50,422

Taxes 63,028

Stamp duty 12,606

Extra to landoffice!!! 3,000

Total 129,056

Split 50/50= 64,528

 

That is the practice/reality.

[Surelynot]

I would run some numbers on rent versus buying................just to throw a Spaniard in the works.

 

You can easily earn say 7% on the capital you invest.......renting means you are not tied to noisy neighbors, no management fees to pay and no insurance.........you will find it is hell to sell if you need/want to move.

 

My condo is 7 million to buy, management fees are 22,000 if I bought. Rent is 18,000 all in....water/electricity.  

 

With a return of 7% I clear 490,000 pa, rent is only 216,000 pa.........renting is a no brainer in my book.

[matador007]

Lots of Buy/Sell groups on Facebook.

 

You can get a good idea watching the listings go by on the groups over the course of weeks and months.

 

So I suggest that, to get a good feel for the market and options out there.

[Why Me]

3 hours ago, Surelynot said:

I would run some numbers on rent versus buying................just to throw a Spaniard in the works.

 

You can easily earn say 7% on the capital you invest.......renting means you are not tied to noisy neighbors, no management fees to pay and no insurance.........you will find it is hell to sell if you need/want to move.

 

My condo is 7 million to buy, management fees are 22,000 if I bought. Rent is 18,000 all in....water/electricity.  

 

With a return of 7% I clear 490,000 pa, rent is only 216,000 pa.........renting is a no brainer in my book.

 

Exactly. Renting is ridiculously cheap vs. owning here. Pretty much the opposite of the US.

 

7% pa is exactly right as the historical return (inflation-adjusted) on the stock market (except last few years when it's been like a silly 20%). My rented place here in Bkk echo your numbers. 2-bed 2 bath, huge balcony overlooking a park, 5 mins. from Victory monument and the BTS, rent 25k/mth. including utilities, maid service and maintenance.

 

Purchase price would be 8-10 mil. Which means I am renting for less than 4% of the capital price. Few years ago I looked into buying and found similar numbers everywhere. 

 

Another problem is if you change your mind and want to move. Selling is a hassle and Thais like new so you're more than likely going to take a haircut. Renting? You can be out in 24hrs. 

 

My advice to the OP would be to rent first in the building he wants to buy into because (a) he may ending up preferring this option or (b) he gets the lay of the land before buying.

[Niteowl45]

Thanks guys, some good replies.

In terms of renting vs buying... food for thought. However, I'm not planning to buy an expensive condo in Bangkok (actually I wouldn't live in Bangkok if you paid me too).

I'm thinking of buying a reasonably priced condo in Hua Hin (or possibly Jomtien). Maintenance fees would be much lower than renting a place, imo, and long term real estate could be a good investment. Worst case scenario I would have a place to stay at when I retire.

Also, don't know about the US but 7% a year is not easy to get in Canada (but it is true that the stock market has performed well recently)

 

Still, yeah, you made some good points. I'll think about it.

 

 

 

[Niteowl45]

On 5/8/2021 at 2:46 AM, Delight said:

 You asked how the process works.

I assume that the condo which you intend to purchase is in the 'Foreign 49%"

Given this you will need to submit -at your local land office-

1) A FET .This is issued by your bank confirming that the necessary funds have been brought in from abroad to Thailand.

2) A letter from the juristic manager of the condo -specifying that the condo is debt free.

 

At the land office the transfer fee has to be paid(max 6% of the appraised value or the actual agreed price of the condo. The higher price is used for the calculation)

 If you are buying a pre -owned condo -then often this cost is shared with the seller and should be less than 6%.

 

With this in place the Condominium Title Deed will be issued to you. The last entry will be your name on this Deed.

The giving  of monies to the seller is a separate process between you and the seller.

 

If you are buying a condo which is in a Company name-then all the foregoing can be ignored including the need of a FET. .

In this case there are no transfer fees. The whole process can be carried out in an accountants /lawyers office. 

The total cost should be less than 10,000 Baht

 

Thanks for the clear info. I just have one question...

At the moment I don't have a bank account in Thailand. I read somewhere that I will have to get a 90 days tourist visa (not a problem) to be able to open an account.

It would be good to keep a thai bank account also, since I might apply for a retirement visa in the future (working online anyways). But at first I would just spend a few months a year in Thailand. Is it possible to keep a bank account even if we do not reside in the country? (I guess it should be okay but just checking)

[Delight]

On 5/11/2021 at 3:05 AM, Niteowl45 said:

 

It would be good to keep a thai bank account also, since I might apply for a retirement visa in the future (working online anyways). But at first I would just spend a few months a year in Thailand. Is it possible to keep a bank account even if we do not reside in the country? (I guess it should be okay but just checking)

It is easy to open a  Bank account in Thailand. The  Thai authorities want you to bring in lots and lots  of Baht-Very Easy.

Less easy to get it out ,however.

 

Back in the day I opened an account with Bangkok Bank.

At that time they did not seek any evidence as to my abode.

 

You will need to be in Thailand in order to create an account.

Good Luck!

[Hanaguma]

NiteOwl;

 

Fellow Canuck here.  I have invested with an online broker/robo advisor called CI Direct Investing.  They offer various plans with levels of acceptable risk- conservative, growth, aggressive, etc. They invest your money in both Canadian and international ETFs, bond funds, etc.  Low fees, low risk, decent returns.  

 

As I am an expat I don't have to worry about RRSP, TFSA, that kind of thing.  Just getting good returns.   You can also open a stock brokerage account with a company like Questrade and invest in stocks directly- NASDAQ, S and P, Toronto, whatever tickles your fancy.  

[Charlie]

As a foreigner buying a Condo, here are the basic conditions. I already bought one some years ago. If you are buying a "ready to move in" unit, read this procedure. You can pay the "booking/deposit/or whatever" in Thai Baht/Thai Bank/Credit Card. All in Thai Baht. Getting the "Title Deed" (chanote) is the main issue. OPTION ONE. You can send the Full Amount as stated in your S &P Agreement (just assume 5 Million Baht/more or less) into your Thai Bank (Savings Account). Most important, your Oversea Bank Transfer from your home country, must state that the 5 Million Baht is for the purchase of buying that condo (as in your S & P). The bank transfer (sender) must be in your name. OPTION 2 (Which I Did). Transfer the full amount of 5 Million Baht to your Developer (stating the conditions in Option One). After that the Developer with your Oversea Bank Transfer document will help you to get the "Title Deed" from the Land Office. Finally, the Developer paid me back the balance which I have paid earlier. The main issue is this. "The Land Office" will only issue you the Title Deed (chanote) if you can show proof that the Full Amount (assuming the 5 Million Baht) came from your home country. Please take note.

[Delight]

 Option 2 will not work if you are buying a pre -owned condo.