SDB Club Benchmark Real Estate

Purchasing Phuket real estate may appeal to any foreigner looking for an investment, whether for investment or for business purposes. In fact, the option to purchase Thai property has increased in popularity amongst European and American alike in recent months as a result of higher yields compared to elsewhere in the world. Phuket is a desirable country as a result of its hospitality and laid back lifestyle, but if you do want to purchase Phuket real estate then you will require proper legal assistance and guidance.

Legal Restrictions

There are many legal restrictions associated with Thai real estate. They largely depend on the type of property you want to purchase:

Land ??? Legally, no foreigner is allowed to purchase land. They are restricted to owning the physical structures only. The law however does make provisions if you wish to purchase land for development. You could either purchase the leasehold for 30 years with an option of renewal or purchase the land in the name of your existing company. It would have to be a Thai Limited Company though and the funding would have to come directly from the company???s provable income and not you.

House ??? Purchasing a house is slightly easier than purchasing land even though the same rule applies for this form of Thai property as for land. You are not able to hold the land???s freehold at all as it has to be leasehold. If you have a Thai spouse then he or she can own the freehold but in his/her name only as long as he/she can prove that the money used to purchase it was not yours.

Condominium ??? The Phuket condominium ownership process is the easiest to understand by far because there is no land involved in apartments or Phuket condominiums at all. Foreigners can own up to 49% of condos in any given block. .

Thai property is cheap in comparison to property elsewhere, which is a major plus point. Sales over the past 7 years show that the yields for investment purposes are very high.

Purchasing Procedures

If you do wish to purchase Thai real estate or Thai property then the purchasing procedures are relatively straightforward as long as there is no land involved. You have to prove that you have enough income to cover any mortgage that you may have or buy the Thai condominium or house outright. You also have to produce documents to verify your identity, nationality, right to be in Phuket and plans and land searches if you are proposing to build your own property.

Funding

Until a few years ago, it was impossible for any foreign national to obtain a mortgage to fund the purchase of Thai property and so would have to buy the property outright or via a business. That is not the case today. Bangkok Bank was the first banking institution to offer a mortgage loan to foreigners wanting to invest in property in Phuket. You can borrow up to 70% of the Phuket condominium or house value. However, approval is dependent on the production of your passport and/or?? ID card of your spouse, reference letter from your current bank, bank statements for the last six months, a credit report, a letter from your employer confirming your salary or two years accounts if you are self employed and any other documents they may request.

Speak to any of our staff in Phuket about the procedures for purchasing property and the finance options available.