Are you considering investing in property in Phuket, Thailand this year? We have taken the lessons we've learned over the past 20 years in Real Estate and applied them to come up with the best strategies for buying in the current climate. Read on to learn more about how to enter the Phuket property market this year.
Buying Apartments In Phuket
Apartments are in high demand by foreigners because the prices are generally lower than for a house or a villa and they are available to buy freehold. The process of buying one is also very straight forward. They are the easiest form of property to buy as they don’t come with land so there is no need to deal with limited companies or lease-holds. Apartments also come with a host of amenities that will be shared in the complex such as gyms, pools, and a variety of other services.
There are several things to know if you looking to buy apartments in Phuket. The first is that the apartment complex cannot be more than 49% foreign owned. It is unlikely that you will ever come across a situation where there are less Thais to foreigners, but keep this quota in mind when considering an apartment so you don’t fall foul of the law. A letter of guarantee must be obtained and submitted to the Land Registry detailing the proportion of foreign ownership in a complex.
Make sure you buy from a reputable building company. It is not unheard of for people to purchase an apartment and find that it has been oversold to them and has missing or misrepresented features that were laid out in a glossy brochure.
Buying Land In Phuket
Buying land in a foreign country is a potential minefield of challenges. Thailand presents its own challenges to be sure. Among the many things to consider (not necessarily in any order) are lot size, potential neighbours, zoning regulations and how likely they are to change, building permits and requirements, permissions, potential environmental impact, and the list goes on. But, a nice piece of land can be purchased, with a clear title if the proper steps are taken.
The first thing to be aware of when buying property in Phuket as a foreigner is that you are not allowed to own freehold land anywhere in Thailand, but they can own buildings on the land such as villas, apartments and houses. However, it is still possible to buy land in Phuket as a foreigner and here are the most common ways of doing so:
Foreigners cannot own freehold land but they can purchase all types of titled buildings and land on a long-term leasehold of 30 years. The lease can then be extended up to a maximum of 90 years.
Alternatively, there is the option of setting up a limited liability company to purchase property through. There are technicalities involved so it is best to seek legal advice, but basically, a company set up this way would be 49% foreign and 51% Thai owned. As the MD of the company, you would have voting rights, therefore control of the property.
Another option open to those married to a Thai nationals is that your spouse can legally purchase land and property as long as they can prove that the money is completely theirs and free from a foreign input.
Buying A House In Phuket
If you would prefer more privacy and seclusion than that offered by an apartment then you may want to buy house in Phuket Thailand. A house may not sound as luxurious as a villa perhaps, but you can still find stunning properties throughout the island according to your budget and requirements.
One of the most important things to consider is the location of the house and this will be influenced by how much time you will be spending on it. If you will be spending a lot of time there, or living full time, you might not want it to be in the most popular areas of the island as you could be surrounded by tourists during the high season. Alternatively, it may be less convenient (though cheaper) to live somewhere isolated.
You should weigh up your personal needs with a property’s potential rental benefits. The closer the house is to touristic areas the easier it will be to rent out when you are not using it. Though it is possible to get a high rental return on a more luxurious house that is out of the way in a secluded area.
Buying A Luxury Villa In Phuket
If you have the budget and you want something extra special then it doesn’t get better than to buy luxury villa Phuket. It is a great investment because you get exceptional value for money in Phuket on a luxury villa and you can also make excellent money off them by renting them out to travellers. Rents are high as an increasing number of travellers are choosing the privacy and facilities of a luxury villa over those of staying in a hotel.
Conclusions On Buying Real Estate In Phuket
Though there are several laws that you will need to work closely with if you choose to buy real estate Phuket Thailand, such as the land and ownership restrictions, it is certainly possible to buy your dream home there. Whether this is an apartment, house or luxury villa, working with a reputable agent and lawyer will simplify the whole process. Take your time while visiting the island to find your favourite location and weigh up which option works best for your budget and dreams. An apartment is going to be a lot easier to purchase and will be freehold, but if you have the resources and the desire for something more private and luxurious in Phuket there are many beautiful properties available for you.