Myths about buying property in Thailand

Purchasing real estate in Thailand is a dream for many, but there are numerous myths and misconceptions surrounding the process that can confuse and deter potential buyers. Many foreigners fear legal complexities, high prices, and restrictions on foreign ownership, which are often far from reality. Today, we will debunk the main myths about buying property in Thailand with the help of professional real estate agents from Apart-Homes.

Myth 1: Only the Wealthy Can Buy Property in Thailand

The first and most common myth is that buying property in Thailand is only for the wealthy. However, the Thai real estate market has changed significantly in recent years, offering buyers various options across different price ranges. The cost of apartments, houses, and villas varies depending on location, property type, and developer. For instance, in resort areas like Phuket or Pattaya, you can find apartments starting from $50,000, which is considered affordable by international standards. Moreover, foreigners have access to various financial tools for purchasing, such as developer installment plans. Thus, not only the rich can buy property in Thailand, but also those seeking reasonable investments or comfortable housing for living and vacationing.

Myth 2: Foreigners Cannot Own Property in Thailand

Many mistakenly believe that foreigners are prohibited from owning property in Thailand. This is not true. Although there are certain restrictions for foreigners, they mainly pertain to land ownership. However, foreigners can freely purchase and own apartments and condos, provided certain conditions are met. A key condition is that no more than 49% of the units in a residential complex can be sold to foreign nationals. This rule ensures the protection of Thai citizens' interests but does not prevent foreigners from becoming rightful property owners. Moreover, laws governing foreign property purchases are stable, and the King of Thailand cannot suddenly change the rules and strip owners of their rights. Therefore, foreigners can legally own property in Thailand, with regulations set by the government to protect foreign investors' rights.

Myth 3: Buying an Apartment in Russia is Cheaper and Safer Than in Thailand

The myth that buying an apartment in Russia is cheaper and safer than in Thailand has been debunked for years. With equal investments, such as $100,000, purchasing an apartment in Thailand is a more advantageous investment in terms of appeal and profitability. Firstly, consider the currency exchange rates. The Thai baht is one of the most reliable currencies in the global market, with a stable exchange rate against the dollar over the past 20 years. By investing in property in Thailand, you are not only putting money into a reliable venture but also have the potential to profit from the constant appreciation of property values in popular areas like Phuket or Pattaya. In Russia, due to the constant devaluation of the ruble, purchased property will only appreciate on paper (following currency inflation), but in reality, it will lose value.

Firstly, Thailand is a popular tourist destination, which means a steady demand for rental properties. Investments in apartments in regions like Phuket or Pattaya can generate stable rental income, especially during peak seasons. Rental yields in Thailand can range from 5% to 10% annually, significantly higher than the average figures on the Russian market. Secondly, purchasing property in Thailand involves minimal risks. Modern technologies allow for online verification of the legal status of properties and developers, reducing the likelihood of fraud. Additionally, many developers offer guaranteed income programs, making the purchase even more appealing for investors.

Myth 4: Managing Property in Thailand from Afar is Difficult and Expensive

Another misconception is that managing property in Thailand from a distance is difficult and expensive. In reality, if you work with a professional real estate agency like Apart-Homes, all organizational matters will be handled for you. Property management includes finding tenants, maintenance, rent collection, and paying utility bills. In Thailand, management companies can handle all these tasks for a nominal fee, usually not exceeding 5-10% of the rental income. This makes remote property management not only convenient but also affordable.

Moreover, property taxes in Thailand are minimal compared to those in Russia. For starters, property tax is not paid by owners of apartments costing less than 10 million baht and villas less than 50 million baht (provided they are registered at the property), while owners of more expensive properties pay tax on a progressive scale depending on the property's value—from 0.03% to 1% for luxury properties. This is significantly more advantageous than in most countries and allows for cost savings on property maintenance.

Myth 5: It’s Better to Buy Property in Thailand Directly from the Developer

Some believe that buying property in Thailand is better done directly from the developer, bypassing agents. However, this approach can be risky for those unfamiliar with local laws and market specifics. Developers offer many attractive programs but do not always disclose all details of the transaction that could be important for the buyer. For instance, future maintenance costs, taxes, or difficulties in obtaining ownership documents might not be mentioned. A real estate agency, on the other hand, provides clients full support at all stages of the transaction, verifies the legal status of the property, and protects the buyer’s interests. By consulting a professional agent like Apart-Homes, you will not only gain access to the best market offers but also complete information about each property, including its legal status, infrastructure, and potential profitability. The agent will also help you secure the deal on the most favorable terms and avoid pitfalls that might arise when purchasing property directly from a developer.

Conclusion

Buying real estate in Thailand is an excellent way to invest funds or acquire housing for living and leisure. However, the process is surrounded by numerous myths that distort the perception of reality. We have debunked the main misconceptions, and now you can confidently view purchasing property in Thailand as a sensible and beneficial step. To avoid mistakes and make the purchase safe and advantageous, we recommend contacting a reputable real estate agency like Apart-Homes. Our experts will assist you at every stage of the transaction and provide full support, ensuring the process is secure and transparent.