Ok, you have successful in property investment in Malaysia. What now? Well, you may consider to investing property in the neighbor of Malaysia — Thailand. Singapore’s property is very very expensive, so we start with Thailand first.
Thailand is one of the famous place that Malaysian always travelling to, because of this reason, many of Malaysian property investors have starting buying property in Thailand. Whether buying a holiday property for your own use or investment purpose, here is the article you should read on.
By the way, Siam-legal have basic breakdown of what you will needs to be done and how to buy property in Thailand. Here we go,
Select A Property Agent
Since you will be looking for property in a foreign country you need expert local assistance. The agent knows how to communicate in Thai and they’re familiar with the geographical area. The agent will save you valuable time in selecting and showing you the property in your price range that meets your needs.
Purchasing directly from the developer isn’t going to save you money as compared to buying it from an agent. A quality property for sale in Thailand is generally offered at a fixed price by the Seller. The best benefit of using a property agent is that they will act as a liaison between you and the Seller. They will obtain a fair price for you and act on your behalf to represent your best interests throughout the entire process.
Whatever country you wish to invest in, the expert local agent is always a best choice. Do hire an agent that you trust as well as have common language with you. The most importantly, make sure they are propfessional on property investment as they will know the basic requirements of this field.
Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. You need to know the correct legal process in Thailand for the foreigner to acquire property. Before you sign any deposit agreement or contract, you should sit down with a lawyer or solicitor to discuss the legal process.
Purchase a property is always need a lawyer. A lawyer can help you to check over the documents and agreement. Do hire a lawyer that you trust and study property law of the country itself. Do always keep in mind that you have fully understand all the terms and conditions before signing any agreement.
Best Method Of Ownership
In Thailand, a foreigner may only own a condominium in his/her own name. If the foreigner wishes to acquire land and build a house, he/she should obtain a long term lease on the land (for a period not exceeding 30 years each term). The foreigner should apply for the construction permit to build the house in their own name. This way the foreigner owns the house and has a secured long term lease on the land.
The lease can be written with the option to reassign to another person (if you sell), ability to sublease and with a purchase option (should the law change in the future to allow freehold ownership by the foreigner). Therefore, a lease is the most common legal method for the foreigner to acquire property in Thailand.
In fact, their law is not allowed the expats to own the land in Thailand. If you really wanted to buying a land, you have 2 options which is 30-year leasehold and buy the property through limited company. Do note that, the expats still can buy an apartment, but the building needs at least 51% owned by Thailand citizens.
A comprehensive examination of title deed recorded at the Land Department should be done. You need to verify that the Seller has clear and legal title of the land before you enter into a contractual agreement.
The title search will trace the land to its first possession. It will reveal any registered interests on the land such as mortgage or liens. This investigation will also verify the right to access to your property; the residential zoning, environmental and planning codes applicable in the area It is a good idea to make sure that you can build a structure on the land.
Titles deed are complicated in Thailand. There is many type of land title in this country, so do make sure you have get yourself study the types of the tittle deeds before buying any land or property in Thailand.
When you feel satisfied with the property, you will be asked to make a deposit to show your good faith to continue the process. In return, the Seller will reserve the property for you and start the process by drafting the contracts for purchase. Unless you write specifically a “get-out” clause in the deposit agreement, for example “subject to clear title” or “subject to agreement on the contract terms,” the money deposited is non-refundable.
Unlike Malaysia, you will need to prepare some extra money for property reservation when you decide to buy any property in Thailand.
Review Of Contracts
The Seller will have the contracts prepared for you. Since the Seller will write the contracts, it is highly recommended that you have a lawyer or solicitor review the terms and conditions. You will want protection for your interests should there be a delay in the property being built. A proper remedy should be stated in the contract.
The contract will contain a clause for penalty if you are late with your payment. This should be fair and reasonable to both parties should the Seller default.
Your payment schedule and its ration should be reasonable and practical. Normally, a first payment is 25 percent. Thereafter payments are made on a progressive basis: 25 percent when the roof is on, 25 percent when the door and windows are secure; and 25 percent when the fixtures and fittings are completed for instance.
Again, it is necessary to hire a lawyer to check over the document and agreement.
In conclusion, investing property overseas seems complicated. However, if you hired a good lawyer and agent, they can help you to settle all the matters that you not familiar with. But, you still need to study the country law and property law of the country that you would like to invest in. Lastly, the most important part is property or land title, be sure you have understand the type of title of the country to avoid any legal issues happened on you.