Where can I get reliable legal advice?
We partner with some of the best law firms in Thailand to find one with the best background to advise our clients, depending on their need. Any one real estate deal could involve a dozen different topics, including: legal structure of the deal, lease, title accuracy, legitimacy of title, immigration and citizenship, viability of lease, zoning of potential neighbors, etc… finding the right lawyer is as important as finding the right property, so we use several.
Should I buy off plan or ready-to-move-in?
This goes to the fiduciary responsibility of TPA. As a rule, we don’t advise buying off-plan in Thailand. However, we have a (short) list of trusted developers where this might make financial sense, we address this on a case by case basis
Who can I get to manage my property while I am not in the country?
We would be happy to manage your villa or resort property, provided it meets a few basic criteria, which we can discuss with you.
.Are rental return guarantees really a good value?
Rental returns in Thailand can be a great source of secondary income, depending on the property. As the money is generated in Thailand, it offers a secondary safety net to your home currency. Thailand is a tourism powerhouse, and regardless of what happens in the region, we don’t see anything that would effect that for more than a quarter or two.
.What kind of rental returns can I realistically expect?
This depends largely on the property, but we typically advise 7-10%, plus some time in the villa for yourself. Of course, there are several factors that can make this appear bigger at first (delayed scheduled maintenece by mgmt.) that will come back to haunt owners a few years down the road. This are the things we advise our clients on, to make sure they are in full understanding of what they are getting into.
How and where can I get financing?
Financing in Thailand is generally not as easy as it could be, although several banks like UOB and HSBC are starting to take a more open-minded approach. Even so, expect to put 50% down at a bare minimum. Occassionally we can put a private financing deal together, as well.
What’s the difference between Leasehold and Freehold… which is better?
Leasehold means having the right to a property for a defined period of time, under predetermined terms. In Thailand the longest lease term currently allowed by law (as of 1 June 2017) is 30 years. There is no iron-clad legal device to make a lease commitment any further into the future than that.
Freehold, on the other hand, means outright ownership, which can be a tricky road in Thailand, since foreigners are not legally allowed to own land. There are a few ways around this, but most of them are not legal, and can land you in big trouble.
Most freehold units are condominiums, with more than 50% of the units owned by Thai nationals.
What is better for you, depends on your property goals. Leasehold units are typically considerably less expensive than freehold units. A well-negotiated leasehold deal can be quite profitable, if executed property as an investment. However, after 30 years, you are faced with a very real possibility of having to renegotiate with a descendant of the person who made the original lease… It doesn’t matter what country you are in at that point, human nature will surely seep into that deal and terms and price will change.
Freehold is much safer from an ownership perspective, but it has it’s own set of pitfalls.
Both can be very rewarding methods of controlling tangible assets in Thailand, and advising you on the variables is one of the things we pride ourselves on.