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. Most of these tourists especially flock here this season to escape the harsh cold winter in their respective home countries. Indeed, they come here with their families and loved ones to celebrate Christmas and New Year on the beach under the rays of sunshine. Yet, of course, 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?

The Second Home Investment Mind Set

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, their most treasured property investment in Thailand.  Surely, they can be your role model for that sound investment you are up to. As these people were smart enough to 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. So that when we see them come annually in Thailand we already know that they just come here to reap one of the fruits of their investments. 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. As much as you want to preserve such a mindset for the property purchase, surely, you are as practical as others.  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 Purchase in Thailand

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!

Securing Your Second Home the Proper Way

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:

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 or 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.

      2. 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, price, payment penalties, developers default or a guarantee that your payment is fully refunded should the construction wouldn’t be completed for some reasons, building floor plan and specifications, alternative dispute resolution in the form of arbitration, among others.

       3. 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.

        4. 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. The problems faced are much like the sale of properties anywhere in the world but 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

         5.Will

 Effective estate planning is drafting your Thai will which specifies the beneficiaries of your investments should the unexpected happen. You should consult with a reputable lawyer to draft your will in both Thai and English languages so that it becomes legally binding whether in Thailand or in your home country.

     Summary

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 consulting with a legal advisor for proper legal advice and guidance apart from informing yourself regarding the legal process for the property purchase in Thailand. In the end, there’s nothing more rewarding than reaping the benefits of having a second home in this piece of paradise while enjoying other advantages such as a maximum return on investment at the same time. It is only then that you can truly say you found your second home in Thailand.


      Siam Legal

We are Thailand’s largest legal network with eight locations across the Kingdom. Our firm is staffed with 7 foreign attorneys and solicitors who work together with our 25 Thai lawyers. You can visit any of our offices for a free consultation regarding property, legal or immigration matters.
Our Hua Hin office is located at Market Village and is open 7 days a week. You can call us in Hua Hin at 032-526-286 or in Bangkok 02-253-8100. Please visit Siam Legal on the web at www.siam-legal.com/realestate where you can read over 15 related articles regarding the legal procedures for real estate transactions in Thailand.