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Buying In Thailand

After years in the doldrums, Thailand’s property market has re-awoken with a vengeance. Property prices in the capital surged by an average of 16% in 2010 and the trend is set to continue, with new building projects dotting the skyline and new life being breathed into the ‘ghost-scraper’ construction sites abandoned after the 1997 economic meltdown. Major real estate developers have said that they will be investing over B300 billion ($8.5 billion) in residential property in
Bangkok’s central business district alone, within the next three years. With 24-hour working the norm on most construction sites, Thais are likely to be lulled to sleep by thesound of jackhammers for some time to come.

The market has received an injection of confidence from the sustained recovery of the Thai economy
– despite the effects of a severe downturn in the all-important tourism industry buffeted by the
effects of 9/11, the Bali bombing, the SARS crisis, the war in Iraq and the latest disaster, the bird
flu scare. The Taksin government is predicting economic growth of 8% growth in 2004, and Thais
are figuring that if the economy can not only survive, but also grow, during these uncertain times,
then it is fundamentally strong enough to keep them in their jobs for the foreseeable future.
Market watchers are predicting a slowdown in growth for the second half of 2004 because of a
pending interest rate rise, but this is only likely to stabilise the market to make the growth steady,
rather than pushing the market into depression.
Further information about the property scene can be found at the EescapeArtist.com site:
http://www.escapeartist.com/Thailand/real_estate.html
Thai Property Law
Archaic, complex, patchily enforced, open to interpretation, and full of loopholes, property law in
Thailand continues to be the cause of considerable trouble for foreign nationals. Any transaction
involving property, apart from normal residential rentals, requires the services of a good lawyer. If
you are thinking of entering into major deals involving property, the lawyer’s fee may very well be
the best purchase you will ever make in Thailand.
The Taesaban – Overlord Of Land
Any dealings with land in Thailand, apart from simple residential rentals, will almost certainly
bring you into contact with the Taesaban – the local Mayor’s office. The Mayor, or more accurately
the District Officer or “Nai Amphoe”, is the undisputed heavyweight champion of land in the area
he controls. Every issue pertaining to land will be dealt with by the Nai Amphoe’s legion of rubberstamp
wielding subordinates. Land is a very important subject for all Thais and consequently even
the lowliest civil servant in the Taesaban holds a significant amount of power. Within each Taesaban
is the Land Office where all official business concerning land and property is carried out. It is
unlikely that you will be able to deal with the Taesaban without having to pay to a civil servant
some sort of “special administration fee’ – in cash – somewhere along the line. When my company
sought planning approval for a two storey building to be constructed, the official fee for the
planning approval was B3,000 but the “processing fee” was B5,000. This is an unfortunate fact of
life in Thailand and “special administration fees” need to be factored into your financial plans (add
10% for good measure).

Nationally, land is managed by two government departments, The Land Department (0-2222-
6131, http://www.dol.go.th/), and The National Housing Authority (0-2377-2010,
http://www.nhanet.or.th/). They can be contacted for advice if you have problems with the local
Taesaban office.
Types Of Land
Land in Thailand is categorised according to how it has been surveyed and registered. A lot of land
in Thailand has not been adequately surveyed and it is vital that you check the status of the land
you are interested in and get an accurate survey done. This is because the title deeds of the land
reflect its surveyed category and this will determine both your legal rights and the value of the
land. The four main types of title deed are:
Chanot Ti Din. This is land accurately
surveyed and registered, and what is
registered cannot be contested. This is the
best type of land to buy but unfortunately it
is difficult to get hold of and very expensive.
Nor Sor Sam, Nor Sor Sam Kor. Land with
a title deed and with an accurate record of
ownership contained in the title deed and
confirmed by the Taesaban. Nor Sor Sam Kor
additionally has the land mapped out on a
notarised aerial photograph. The difference
between Nor Sor Sam and Chanot Ti Din is in
the accuracy of the survey. If you are thinking
of buying Nor Sor Sam land, get an
independent survey done and get the owners of the neighbouring land to confirm in writing they
agree with the survey’s accuracy. Your neighbours’ names and addresses can be obtained from the
Taesaban office. This is by far the most common land type in Thailand and the one that you will
most likely be dealing with.
Sor Bor Kor. A title deed properly surveyed and registered, but which cannot be sold or otherwise
transferred unless bequeathed in a will.
Sor Kor Nung, Tor Bor Tor Hok, and Tor Bor Tor Ha. Different flavours of registered “squatter’s
rights”. Avoid land of these types like the plague as you have little legal recourse if you are
removed and the land is worth virtually nothing. Many foreigners have been ripped of by purchasing
these types of land. Beware!
Thailand has its own system of land measurement. Land is measured by Talang Met, Wah, Ngan,
Rai, and, sometimes, Acre. The table below displays the details:
Thai Measure Contains Square Metres Square Feet
1 Talang Met 1 10.7
1 Wah 4 42.7
1 Ngan 100 Wah 400 4,277
1 Rai 400 Wah 1,600 17,109
1 Acre 2.5 Rai 4,000 42,772
Property Prices
Property prices increased by an average of 16% in 2003. While this level of increase will not be
sustainable without the danger of creating the sort of property “bubble” that precipitated the
economic crisis of 1997, analysts expect annual increases to remain above the level of inflation for
many years to come. This makes investing in property a very attractive proposition, but it also
means that prospective investors should move quickly before prices increase too much.

Property prices vary wildly in Thailand. Even in Bangkok the cost of a one bedroom apartment can
be anything form B500, 000 ($12,500) for a tiny studio unit on the outskirts of Bangkok, to B30
million ($750,000) for a riverfront penthouse. You very much get what you pay for in Thailand and
this is particularly the case with property. As in most other countries, city property prices are
generally much higher than small town prices. The exceptions are areas of outstanding beauty and
those areas that are marked for rapid tourism development.
When you get quotes from a private Thai vendor about the land price, be aware that they will
quote “farang price” – the price they think that they can get away with when dealing with a
foreigner. This can be anywhere from 25% to 500% above the real value of the property. This is
very much “caveat emptor” – let the buyer beware. For a good guide of prices paid by Thais, check
out the local banks – they often have display boards of properties for sale (most of them repossessed),
often with photographs of the properties. It is interesting to compare these prices with those in
real estate agents targeting the foreign national market or the prices you will be quoted by private
vendors. If you are thinking of investing large sums in real estate in Thailand, it may be wise to
consider employing a qualified valuer to write a report for you. The Thai Valuers Association (0-
2260-3880, http://www.tva.or.th/) will provide a list of their members.
The following list is a ‘rule of thumb’ price guide for condominiums. Prices are obviously affected
by the prestige of the area and condominium block, its facilities, convenience to amenities and a
host of other factors, but the list should serve as a reasonable guide.
Bangkok Inner City: B50,000 to B100,000 per square metre ($1,250 to 2,500)
Bangkok Outer Suburbs, Phuket: B35,000 to B70,000 per square metre ($875to 1,750)
Pattaya, Chiang Mai, Koh Samui: B25,000 to B50,000 per square metre ($625 to 1,1250)
Upcountry: B10,000 to B40,000 per square metre ($250 to 1,000)
Property Loans And Mortgages
The foreign property market has slowed down considerably due to increased competition and
rising prices and consequently the market is starting to respond in an attempt to maintain inward
investment. Many foreigners resident in Thailand ask whether they can get a mortgage or loan to
from a Thai bank to purchase property. Until recently, the simple answer was no. Even now, the
“main street” Thai banks are unwilling to lend money to foreign nationals for almost any purpose
– even companies with foreign shareholders find it difficult to obtain business overdraft facilities.
However, the more progressive finance houses are starting to take an interest in the market for
financial services provision to expatriates. Leading the way is the TISCO Finance Public Company
Limited, which will consider giving housing loans of up to 90% of the value of the property to
foreign nationals domiciled in Thailand who have the “right credentials”. Further details of TISCO’s
products can be obtained from:
TISCO Finance Public Company Limited
TISCO Tower, 48/2 North Sathorn Road,
Bangrak, Bangkok, 10500.
Tel: 0-2633-6000
Fax: 0-2633-6150
Email: mailto: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
http://www.tiscogroup.com/en/index.htm
Buying Land
You will often hear that foreigners are not allowed to own land in Thailand. Whilst Section 86 of the
Thai Land Law prohibits nationals from owning land in Thailand, this is actually a sweeping
generalisation and there are ways in which foreign nationals are legally permitted to own land.
The mechanisms are complicated but achievable and with the right legal assistance, owning property
should not be a difficult task. The mechanisms outlined below all have their merits, and it is up to
the reader to seek advice to determine the best mechanism for their needs.

Buying Freehold Land
There are three ways to own freehold land in Thailand:
Forming a Thai-registered private limited company. This is one of the most popular ways to own
freehold land in Thailand. If the instructions set out in “The ‘Foreign’ Private Limited Company”
above are followed, the company will have
the legal right to own land. However, the Thai
authorities are tightening up on this
mechanism. Companies with predominantly
Thai shareholders and more than half of the
capital in Thai hands may be considered
foreign companies if they are managed by a
foreign national. Land Offices may also
examine any company that has more than one
quarter of its shares owned by foreign
nationals. These restrictions vary widely
between Land Offices throughout the country.
In Bangkok and those areas where a lot of
foreign nationals reside, or where land is
particularly expensive, the rules may be
stringently applied and having a private limited company is not the option. In rural areas, the local
Land Office may not be so bothered. If the company is legitimate in that is trading or is intending
to trade from the property, and has not been set up simply as a front to buy land, then these
difficulties should not appear.
Board Of Investment (BOI) Approval. The authorities, with approval from the BOI, will allow
individual foreign nationals who invest more than B40 million ($1 million) in activities “of productive
interest for Thailand” to own up to one rai (1,600sq.m) of residential land. The land must be in
Bangkok, Pattaya, or other residential areas as provided for by law. The BOI will be the best source
of advice if this is the route you wish to take.
Spouse Ownership If you are married to a Thai national and are prepared to put the property in
their name, then there are no restrictions to buying land. However you will not be able to create
contracts to say that you will own the land in event of divorce or death, or that will place any
restrictions upon the disposal of the property, as the Thai authorities do not accept the validity of
this type of contract between Thais and foreigners. In essence, you will have to think of this as
giving your spouse a gift. You will also need to make sure that the purchase of the land is made
either in cash, or from your spouse’s bank account, as the authorities may question the sale of the
land if the money has come from your bank account.
Buying Leasehold Land
Any ‘juristic person’, whether it is a Thai or foreign national, individual or company, is allowed to
lease land in Thailand for a maximum period of thirty years and have the lease registered at the
Land Office and placed on the Title Deeds of the land. The initial term of the lease as well as the
extension periods are declared as paid in advance and incorporated into the agreement is an
option allowing the lessee to purchase the land outright should the law change and permit foreigners
to own land in Thailand. A lease registered with the Land Office remains in force throughout the
term of the lease, regardless of whether the freehold owner sells or otherwise transfers the land,
and cannot be changed in any form without the written permission of both parties. The lease can
be renewed for two additional thirty-year periods by legally binding contract between the lessor
and the lessee. Although the renewal contract cannot be registered at the Land Office, a properly
drawn up contract will provide adequate protection. If you can find a piece of land or a house that
you want to buy and the freehold owner is prepared to enter into a lease agreement, this is the
simplest way of owning property in Thailand. The drawback is that you need the permission of the
freehold owner in order to sell the lease, sublet the property, or build or alter any structures upon
it.

Another instrument you can use is the strangely titled ‘usufruct’. A usufruct is similar but not
identical to a lease in so far as it permits the usufructor to “exploit the natural resources of a lot”.
A usufruct also includes the right to sublease the property or to transfer the rights to a third party
without the necessity to secure the permission of the owner. In addition, the ban on foreign
ownership relates only to land, not structures or fixtures. With a usufruct allowing exploitation of
land, a foreigner can take out a long-term lease on a plot and build his own house.
When the lease expires, the foreign national will either have to find a settlement with the owner as
to what is a fair price for structures or fixtures, or the lessee will have to dismantle the structures
and return the plot to its original condition.
Using Nominees
Nominees can only be used to secure leases, not for freehold purposes, and they only need to be
used if the existing owner of the land you wish to buy will not agree to enter into a satisfactory
lease agreement with you. In this case, you can find a Thai citizen to buy the land (using your
money of course!) and then you create the lease agreement between yourself and the nominee in
the normal way. Nominees will expect to receive a fee for their services. This arrangement has a
number of advantages, not least of which is the fact that the Thai nominee can probably get a
better deal for the land than a foreign national negotiating directly with the Thai owner. The other
main advantage of using a nominee is that you can write your own clauses into your lease agreement
with the nominee. For clauses that will accrue costs, such as the maintenance of services, the
lessee will be expected to pay. The most important clauses to include are:
• The lessor agrees that all permanent structures on the land are the property of the lessee
• The lessor agrees not to sell the land in whole or in part to a third party for the duration of
the lease
• The lessor gives the lessee first option to buy the land upon termination of the lease
• The lessor permits the lessee to sell the lease to a third party under the conditions of the
lease
• The lessor agrees to ensure unobstructed access to the land
• The lessor agrees to maintain and not remove service infrastructure (water, power, sewerage)
• The lessor agrees to permit structures and structural alterations to the land that have been
approved by the Lands Office
These clauses remain in force and transfer to any subsequent owner for the duration of the lease
It has been possible up to now to create a “nominee with mortgage” arrangement to provide even
greater security. The arrangement is that instead of a lease agreement, the Thai nominee buys the
property then the property is registered as mortgaged at the Land Office. The property cannot be
sold until the mortgage lender (the foreign national in this case) signs the title documents declaring
the mortgage cleared. However, recent judgements in the Thai courts have thrown some doubt on
the validity of this method. Advice from a reputable lawyer is required before entering into this
type of arrangement, as this seems to be one of Thai law’s many grey areas.
Buying A House
A commonly held misconception about property in Thailand is that whoever owns the land owns
everything built on that land. While the house and the land that the house is built on usually come
as a package, the above misconception is not true. This is one of Thai law’s famous grey areas and
the cause of disputes. If the ownership of the building and its value is registered on the land
papers then this is sufficient to separate the ownership. Affidavits from the landowner stating that
the house belongs to a third party are also a good protection. This distinction only comes into
effect if you are buying land to build a house on, otherwise the freehold or leasehold rules described
above will apply.

Buying A Condominium
Foreign nationals wishing to buy a condominium have to fulfil one of the following three conditions:
• The foreign national must be a permanent resident
• Investment promotion privileges must be obtained from the Board of Investment
• The funds used to buy the condominium must originate from a third country.
The last condition means that anyone with sufficient funds is able to purchase a condominium in
Thailand. Currently foreign nationals are restricted to buying condominiums only in Bangkok and
Pattaya, unless approval has been obtained from the Board of Investment (BOI). There are some
restrictions on the number of condominiums in a building that can be owned by foreign nationals.
This is usually 49% of the total number of condominiums, but under BOI privileges this can be
waived. There is an additional restriction that the condominium development must not exceed a
certain area. The authorities change this value frequently, according to market conditions; sometimes
the condominium must not occupy more than one rai, at other times the maximum area is five rai.
Your lawyer will be able to ascertain the latest situation.
Proving that the funds originated from abroad is a simple case of transferring the money from your
overseas bank account either into your Thai bank account or to the vendor’s account, and receiving
from the Thai bank the Bank of Thailand Inward Investment Form “Thor Tor Sam”, with the
condominium purchase entered on the form as the reason for the transfer. Ensure that. The name
on the Thor Tor Sam form must be the same as name on title deeds and originate from the
purchaser’s personal overseas account, and the transfer must be made in a currency other than
Thai Baht. The form must be taken to the Land Office when the title deeds are transferred from the
vendor to the purchaser.
Buying a condominium is much easier than buying a house. Purchasers need to choose an available
property, negotiate a price, conduct a conveyance (with the help of a decent lawyer), arrange for
and process the funds transfer, and register the transfer with the Lands Office. The conveyance is
particularly important; blueprints of the entire condominium block and grounds, detailing all
infrastructure (electricity, water, sewerage etc), should be obtained, in addition to the blueprint for
the condominium you intend to purchase. Copies of the condominium block land papers should be
checked to ensure that the land on which the block is built is registered as “Chanot Ti Din” (see
Types Of Land above) and is freehold land. Copies of the rules of the condominium block and its
annual services and maintenance charges must also be obtained. This is a vexed issue for expatriate
condo owners – there are many stories of foreigners being charged double for electricity, elevator
maintenance charges, cleaning, and other services.
Buying A Dual Purpose Property
If you are thinking of going into business in the service sector, then “living above the shop” has
many advantages. The biggest gain is with the mechanism of the property purchase. It is perfectly
legitimate to form a private limited company, have the company purchase the property, and have
the company do its business from the property. There are literally tens of thousands of “shop
houses” on the main streets of Thailand. These are buildings where the entire ground floor is an
empty space, with living accommodation on the two or three floors above. Further advantages of
the dual purpose property is that land taxes are combined to the one property, there is no rent to
pay, and electricity and other service charges for the entire building can be claimed against the
company, thus further reducing the tax burden. Living out of the business, particularly if it is in the
food and beverage sector, is very common in Thai society.
Building Your Own Home
The dream of building your dream home in paradise can be turned into reality in the Land of
Smiles, mainly because it is so cheap to do relative to other countries. Many consider the definite
advantage of being able to construct a home to their exact design and specifications to be well
worth the effort. Some quite stunning homes have been built that fuse modern western features
with traditional Oriental designs and materials. Wonderful 3-bedroom villas standing in exotic

landscaped gardens can be built for as little as B2 to 3 million ($50,000 to US75, 000). A further
benefit is the ability to build a home to international standards. Building your own home in Thailand
is, however, time-consuming, problematic, and can be more expensive than buying an existing
building. An added disincentive is that housing loans for this type of project are very difficult to
obtain.
To build any permanent structure in Thailand, permission must be granted by the local Taesaban
(Land Office), will require an avalanche of paperwork. Forms and even fees tend to vary between
offices so it is difficult to be specific, but at least the following documents will be required:
• Documents proving freehold ownership, OR, usufruct, OR permission to build from freehold
owner if the land is leasehold
• Thai ID card and home registration papers (Tabian Ban) of the freehold and/or leasehold
title holders if they are a Thai national, or passport and resident’s permit or valid visa of the
freehold and/or leasehold title holders if they are a foreign national
• Site plans
• Architect’s blueprints
• Structural engineer’s report and blueprints
• A map of the land
The application may take some time to process and frequent visits to the Taesaban office to
answer queries and fill in additional forms are quite common. Your architect and lawyer will between
them be able to guide you through the bureaucratic minefield.
The appointment of three professionals is considered essential for a relatively trouble-free home
building project. Firstly, a reputable lawyer should be appointed to deal with the land purchase,
the drawing up of contracts with the architect and building contractor, and any other legal issues.
Costs will vary, depending on the complexity of the project, but count on at least B40, 000 ($1,000).
Secondly, a competent architect who has, or can form, a good relationship with the Taesaban, can
organise structural and quantity surveys, and can incorporate international standard design and
construction techniques to the final plans, should be retained. Young Thai architects are increasingly
trained overseas, with the advantage that they can merge the best western building standards
with the natural Thai flair for design and innovation. Architect fees vary between B100, 000 to
B200, 000 ($2,500 to 5,000) for design work, blueprints and reports. The Association of Siamese
Architects (0-22319-4124 http://www.asa.or.th/) will happily provide you with a list of their
members. Thirdly (and most difficult to find) is the need for a trustworthy and competent building
contractor. Contractors, who can speak a language other than Thai and can build to specifications
other than the local “3-inch breeze block, wall and column” standard, are quite rare. The contractor
should be able to run the site from start to finish and employ labourers and sub-contractors. Theft
from building sites is rampant, so 24-hour security should be organised – many contractors build
temporary on-site accommodation for themselves and their staff and this should be factored into
project costs. They generally work either on a price for the entire job or for a monthly fee. Estimate
about B250, 000 - 350, 000 ($6,250 to 8,750) for a six month project, depending on the location
of the project. The Thai Contractors’ Association (0-2255-3991-2, http://www.tca.or.th/) is a good
source of advice if you cannot find a local builder.
The best time to start construction is November, as you can take advantage of the relatively dry
months of November through to May. Once the building is completed, it will need to be registered
with the Taesaban (your lawyer will advise on the process) and the Post Office. There are a number
of Thai religious ceremonies associated with constructing new buildings, for example the “Sao Ek”
ceremony which takes place when the first vertical beam is placed in the ground (rather like laying
a foundation stone). Your architect or building contractor will be able to advise you on the protocol
of these ceremonies. Do not ignore them, as they are important not just for you but also to the
local community.

There are host of pitfalls to avoid and problems to overcome when building your own home in
Thailand, and those contemplating doing so should be aware that it could be a very stressful
exercise. Homebuilders tend to spend a large amount of their time on-site, supervising the work
and dealing with the host of everyday problems invariably occur, turning it into an almost full-time
occupation.
Infrastructure Checklist
The following checklist will assist in making inquiries about the condition and facilities of the
property you intend to purchase:
• A proper survey of the foundations, walls, roof, and drainage should be conducted.
• Make sure that the property has direct access to public roads, and that services do not
cross private land to reach your property, otherwise the landowners may try to charge a
fee.
• Thailand’s rainy season can cause serious localised flooding, particularly if the drainage
system is poor. Properties at the foot of hills are particularly vulnerable to flash floods.
• Obtaining a telephone line is difficult in Thailand – the property should have an installed
line.
• The property should be linked to the mains water system, or if on a housing estate, the
estate should have its own reliable storage water supply. Wall-mounted units produce hot
water – check that they are part of the price and safely installed and serviceable
• Mains electricity connection is a must. Condominiums should have a backup generator.
Beware of neighbours stealing your electricity – check the lines regularly and secure the
meter and connections inside lockable boxes.
• Cable or satellite TV connections are a must for some
• Condominiums should offer pest control as part of the annual maintenance charge
• Air-conditioning is a must have for many. Check that the price includes air-conditioning
units. If not, a 9,000 BTU unit, adequate for a normal sized living room, can be purchased
and installed for around B13,000 ($325).
Real Estate Agents
Finding a real estate agent in Thailand is easy, finding one you can trust less so. Two industry
associations attempt to regulate the activities of agents, The Thai Real Estate Association (0-
2229-3188-90, http://www.thairealestate.org/) and The Real Estate Broker Association: 0-2986-
5388,) http://www.reba.or.th/). You will be safer if you deal with an agent that belongs to one of
these associations, but be aware that they do not provide compensation in cases of dispute. Both
organisations will provide a list of their members on request.
Real Estate Taxes
Land tax is levied at the rate of 12.5% of the assessed assumed rental value of the property.
However, owner-occupied residences are exempt from this tax. At the point of registration of a
purchase (or lease) of property a transfer fee of 2% (or just 1% in the case of a lease), a stamp
duty of 0.5% and an income tax (variable rate) will be assessed on the greater value of the
declared selling price. There is no capital gains tax in Thailand and income tax (usually between
1.0 - 3.0%) on property is the comparable replacement. There are no set rules on who pays the
income tax, and it is just another part of the bargaining process, as with all the other costs of the
transfer of ownership.
Home Property Insurance
There are four types of home property insurance available:
Building Insurance. Premiums depend on value of the property and its condition, the locality and
risk of damage. Premiums start at B900 for B1 million coverage against house damages. Premiums
will be less if the property is well maintained. Many policies do not cover “Acts of God” such as
flooding, lightning, or earthquake.

Contents Insurance. This type of insurance will cover your home contents in case of accidents but
not in case of theft. There are two types of content insurance, cash value and replacement. Cash
value insurance generally covers up to 80% of an item’s cost, whereas replacement insurance will
cover the entire cost of buying a new item. Replacement insurance is more expensive but better
value.
Burglary Insurance. Since valuable items, such as jewellery, watches, TVs etc are not covered for
theft by contents insurance, burglary and special risks insurance is worthwhile.
Moving Insurance. This is required only to protect your possessions during transit from an old
home to a new one. Insurance companies require advance notice of the date of removal and may
check the credentials of the removal company.
A full insurance package for all four types of insurance should cost no more than B25, 000 ($625)
per annum. The American International Assurance Co., Ltd. http://www.aiathailand.com is one of
the most reputable insurance companies in Thailand. A comprehensive list of insurance companies
can be found at the following URL: http://www.thaiwebsites.com/insurance.asp?mode=insurance
Securing Your Home And Belongings
As a foreigner, you may be a target for burglars who think that you are extremely rich, but most
theft from property is opportunistic. While no property can be made completely safe, sensible
security measures will minimise the risk.
Living in a high-rise condominium should lessen the possibility of your being the victim of a breakin
but this is not always the case. Although condominiums usually have a 24-hour security guard
presence, they are not always that efficient. Condominiums that have combination keypad/swipe
card entrance systems provide additional protection. It is important to have good locks on your
entrance door, and if you can fit a lock additional to the one already provided, so much the better.
Entrance doors should have a spy hole and the use of intercom systems is increasing. Make sure
that windows and balconies are secure.
Protecting a house is more difficult but a few simple measures will deter most opportunist thieves.
You may wish to consider getting a guard dog, if you can cope with looking after it. Properly
trained, they are an excellent deterrent. Walls and fences surrounding the property should be well
built. Although broken glass and razor wire are unsightly, they should put off the less agile burglar.
All windows and doors should have metal security grills fitted. There is debate about whether
CCTV cameras and burglar alarms do more harm than good by advertising a resident’s potential
wealth. Fake cameras and alarm systems are available at Panthip Plaza in Bangkok (see below).
The ultimate deterrent is to employ a night watchman.
If you store valuables or important documents in your home, it is wise to buy a fire safe. They are
fairly inexpensive; a one-cubic metre floor standing safe can be purchased from most furniture
stores for about B9, 000 ($225).
Inheritance Law
Foreign nationals can inherit property in Thailand subject to the following conditions: residential
or commercial property must not exceed one rai (1,600 square metres), and industrial property
must not exceed ten rai (16,000 square metres). It is a good idea to have your will drawn up in a
third country, translated into Thai and checked by a lawyer to confirm its validity under Thai law,
then lodged with the lawyer. Thailand does not have an inheritance tax.
Thai Housing Estates
Many Thais now live in housing estates that were rapidly built on the outskirts of towns and cities
during the 1990s property boom. Some very good houses can be bought on these estates, but
there are a number of downsides. Very often, the estate owners do not adequately maintain
private roads, security is inadequate, and the estate water supply can be variable in quality (many
estates are not linked to the mains water supply and have their own rainwater storage tanks).

Estate owners will often try to make “one-off” charges for infrastructure improvements that they
should pay for themselves. Anyone considering moving to a housing estate should also by aware
that they will be living cheek-by-jowl with local Thais. This has advantages but if you are sensitive
to noise, it could be a problem. For many the worst aspect of the Thai housing estates is the packs
of dogs set roaming free by their owners – they can be a serious problem.
Renting Property
Property rental in Thailand is very much a buyer’s market, and with some condominium blocks
reporting occupancy rates as low as 50% some very good deals can be found. Compared to most
western countries rents are amazingly cheap. Bangkok must one of the best value capital cities in
the world to rent an apartment – where else could you rent a furnished one bedroom apartment in
a block with swimming pool, Jacuzzi, restaurant and 24-hour security, close to major commercial
and entertainment areas for as little as $450 per month? In the smaller towns in Thailand, a fully
furnished two-bedroom townhouse can be rented for the paltry sum of B3, 000 ($75) per month.
Leases generally run for one year and a deposit of two months rent is normally demanded. The
landlord is responsible for the upkeep and maintenance of the property “to a reasonable standard”
and is required to respect your privacy. The tenant is required to respect and not damage or alter
the property, not sub-let without permission and to allow the landlord access “at reasonable
times” – all pretty standard arrangements. Lease documents are generally derived from a standard
template. If you have problems with a lease document get a lawyer to check it for you.
The best resource for property rentals in Bangkok is Thai Apartment http://www.thaiapartment.com/
This excellent Website lists hundreds of apartment blocks and you can search by apartment type,
location, rent per month, and number of bedrooms. Each block has contact details. The apartment
owners pay to advertise on this site, for prospective renters the service is free.
Outside of Bangkok, the tourist areas of Pattaya, Phuket, Koh Samui, and Hua Hin have a host of
real estate agents to serve your needs, but be prepared to pay more. The local newspapers and
magazines are a better bet (see the section in Communications below). Asking around is also a
very good way to get better deals than with the real estate agents.
Serviced apartments are starting to become popular, especially with international companies to
temporarily house their expatriate employees. They tend to be a lot more expensive than normal
apartment blocks but the service and facilities at some of these places is outstanding. The Oakwood
Residence in Bangkok http://www.oakwoodbangkok.com/ is a good example of the better type of
serviced apartment.
Buying Business Premises
Buying a property to conduct business is usually achieved by forming a private limited company
and making the purchase, as outlined above. Check with the Lands Office before the transaction to
make sure that the business that you intend to carry out at the premises is not subject to any
restrictions. Be especially careful about properties close to wats and schools – there may well be
objections to placing a discothèque next door to the town’s main temple.
Leasing Business Premises
Business premises can be leased for a minimum of one to a maximum of fifty years. For the leasing
of small business premises, such as a shop house, the most common arrangement is to lease for
three years with a negotiable extension of a further three years A private contract drawn up
between the parties’ lawyers can be made, but unless the lease is registered with the Land Office
there will be no security of tenure. Registering the lease will make it binding on the landowner and
any subsequent landowner for the duration of the lease. The registration process is quite simple
but insist upon a copy of the Title Deed with the registration clearly marked. This will also protect
you from unscrupulous land dealers who attempt to sub-lease properties that they themselves
only have a lease for.
There is a lease registration tax payable to the value of 1% of the total value of the lease. For
An EscapeArtist.com Special Report @Copyright 2004 All Rights Reserved
58
example, if the lease runs for three years and the annual rent payable is B100, 000, the tax will be
B100, 000 x 3 years x 1% = B3, 000. The tax is to be paid in full to the Land Office upon
registration of the lease. To register the lease, the Land Office will require the following documents:
• Letter of permission from the landowner to register the lease
• Originals of the company’s Articles of Association
• Copy of a shareholder’s meeting with a resolution to enter into the lease agreement
• Original of the lease agreement, signed by both parties
• Originals of the company directors’ identification papers
• Photographs of the land and the building
• Photograph of the company address plaque fixed to the wall of the property if the company
is registered at the property
• A map detailing the location of the property
• The lease registration tax
When drawing up the lease, it is important that the responsibilities of the parties are clearly
defined. Common problems that occur are disputes about the ownership of additional fittings to
the property made by the lessee, who is responsible for maintenance, and who pays for the
building insurance. A schedule of property and maintenance should be drawn up, attached to the
lease, and signed by both parties. The question of who pays for the building insurance is one for
negotiation. Building insurance starts at around B10, 000 ($250) per annum.
Business Premises – To Rent Or To Buy?
The choice of whether to rent or buy business premises depends upon the nature of the business,
the nature of the property and the amount of time you intend to stay in that property. The advantages
of buying are best realised if you are buying freehold premises as a limited company. Leasehold
premises do not hold the same value as freehold and are more difficult to on-sell, although selling
a lease is permitted with the agreement of the landowner.
Probably the best business premises investment opportunities available are in hotels, guesthouses,
and resorts – if you know what you are doing. A particular gap in the market is in serviced
apartments outside of Bangkok; buying and refurbishing an old apartment block or hotel and
renting serviced units would be a viable proposition, especially in the Economic Investment Areas
where the number of temporary expatriate staff working for factories and large firms continues to
rise.

 

 

 

 

 

 

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