Second Home Investment
As the holidays come each year, we see the continuous influx of tourists not only to Thailand's traditional popular destinations like Hua Hin, Pattaya and Phuket but practically all over the Kingdom. While visiting here for the holidays in the tropics is a wonderful experience it can also provide some amazing investment opportunities. And so the big question is: How can I make a sound investment while on holiday?
Second Home Investment
You've probably heard some fascinating stories about expats who came to Thailand and invested on properties and every year, they come here to enjoy their holidays in the comfort of their second home or come to reap profits from their most treasured property investment in Thailand. These people have anticipated the immense benefits of Property Investments in Thailand perhaps even in their first or second visit in the country. They have made sound investments in Thailand in the form of properties i.e. land, condo, villa or apartments.
We may level this kind of investment perspective as purchasing property as a second home for the obvious reason that:
- You acquire the property for the purpose of affording yourself and your dependants the same convenience which your home provides during vacation or even on your retirement days.
- Your home away from home as you might call it.
- You can rent out your condo or villa during the time being when you are not in the country. There are a lot of agents in Thailand who can take care of this process and also collect the rent for you; this way, your property investment is well protected.
Benefits of a Second Home
Aside from the aforementioned merits, there are other compelling reasons why you would consider investing in a second home in Thailand.
- Firstly, you don't have to pay annual property tax or council tax (as they call it in the UK) for your properties in the Kingdom. Generally, only taxes that you will pay are the taxes concerning with the buying of the property and with the selling of the property should you want to sell it of later on. However, some jurisdictions in Thailand do collect very small tax on the property and interestingly some jurisdictions do not.
- Secondly, you have many promising property locations to choose from, with choices ranging from beach fronts, Mountain View, urban and rural landscape among others.
- Thirdly, the issue of security is something that property developers highly consider in their projects so this aspect is certainly well taken care of. Residents of Hua Hin, however, are especially fortunate in this case as they are residing in an up market area which is currently inhabited by the King of Thailand and his immediate family. The benefit is extra special security not only for the Royal Family but for the whole resort district of Hua Hin as a whole. The next idea is making the second home investment dream come true!
Process for a Second Home
For any visitor planning to buy a second home in Thailand or to the investor who is contemplating to buying yet another property to add to his portfolio, the following considerations should be observed to ensure a sound investment:
- Condominium And Land Purchase
Whether it's a new or a resale unit in a development, it is important to observe the following proper legal procedures for a successful purchase of property in Thailand. For example,
- Checking the Title Search for the current registered ownership of the land over which the condominium is constructed, clear and comprehensive sale and purchase agreement,
- Deposit and down payment
- The means of payment and finally
- The registration of ownership.
Most legal documents in Thailand are filed with the government officials in Thai language. You should seek the guidance of a legal advisor before proceeding with your acquisition.
- Off-Plan Investment
Engaging in an off-plan allows you to acquire your second home in a relatively low price but also can be of risk if you don't observe some precautions especially with these types of contracts.
The important elements to consider in the contract are:
- Time frame
- Payment penalties
- Developers default
- A guarantee that your payment is fully refunded should the construction fail to be completed for some reason or the other.
- Building floor plan and specifications
- Alternative dispute resolution in the form of arbitration, among others.
- Property Financing
You may find it convenient to apply for property financing to assist you in your property purchase for that second home, there is now an alternative or a solution to your problem, you may apply for loan from Bangkok Bank or UOB in Singapore to help you with your financing.
Read more on 'Property Financing' on our website.
- Selling Your Property
Later on, you might want to sell your property for some reasons and there are some problems that you should be ready to face with on the way. It may require a bit of drafting know-how to protect you from any potential financial damage, or in the least, any further disappointments. A number of things can go wrong in a sale of your property, the worst being the failure of your buyer to complete. It is always good to enlist the services of a real estate agent or a broker who could help you with the selling.
Effective estate planning is drafting your Thai will which specifies the beneficiaries to be entitled to your investments should the unexpected happen.
Purchasing your second home in Thailand should be in accordance with solid legal planning to ensure this investment that you’ve been dreaming of is truly a dream come true. Part of that good planning is from informing yourself regarding the legal process for the property purchase in Thailand and a good lawyer to help you through the process.