Buying a home in Thailand. Villa and the apartment

Planning to buy residential property in Thailand?

Many would like to have their own piece of land with a personal house and a pool in the yard or a cozy apartment for a good new building in Thailand, namely in Phuket, so that you can come to your vacation and have a rest without any problems with rentals, realtors and other things, and in their absence just rent to other foreigners. But for some there is a problem with the choice, because they do not know all the pros and cons of these two types of housing, as well as what type of housing is more profitable to have. For such cases, this article may be useful.

Condominiums or apartment buildings

Condominium (Condo) - a type of real estate that is an apartment building. In a condo, foreigners can buy an apartment in their personal property if they fall into a special 49% quota. As we have already described this article in more detail, this form of real estate ownership is called freehold. Freehold quota, is rightly considered the most simple, at the same time, the most low-cost form in the design for foreigners.

For owners of apartments in condominiums, there are monthly payments for garbage collection, maintenance of cleanliness in the territory adjacent to the house, security, gardeners, cleaning and maintenance of swimming pools (if any), for the electricity needed to cover the territory of the condominium. In general, this is similar to ordinary utility bills, for example in Ukraine and Russia. Such a payment is usually from 30 to 70 Thai baht per 1 square meter of your accommodation, depending on what general services are provided at the condominium and on what level of the complex itself. It is also worth mentioning that if you want to buy a condo in Phuket or Thailand, you will have to pay a one-time fee of about 600 Thai baht per 1 square meter of your home, in other words, a kind of tax for foreigners.

Villas or just houses

In Thailand, and Phuket, all villas are usually houses up to two floors high with a private fenced plot of land with a garden and swimming pool. Such courtyards can be from very tiny pools with slightly larger than the size of the bathroom, and huge areas with even more than one pool. Most of the villas are separate from each other buildings, like ordinary houses, but just as often there are villas in the complexes of villas and entire residences, which also have a personal land plot and a large swimming pool, which is often shared.

The price of the villa directly depends on the size of the living area and the area of ​​the land plot on which the house is built, as well as its proximity to the sea and beaches. Also beautiful views opening from the territory of the villa still matter. Of course, proximity to the beaches of condominiums is also reflected in the cost, for example, Phuket to buy an apartment by the sea will be much more expensive than somewhere deep in the island, despite the fact that the levels of condominiums, amenities and size of the living space may not differ.

Since foreigners do not have the right to full ownership of land in the entire state of Thailand, it is possible to own such property through two options:

1. Buying land in the property of a company previously registered in Thailand with the help of a Thai citizen and the subsequent registration of real estate on himself.
2. Registration on Leasehold, that is, through long-term lease of land from 30 years.

For the implementation of the first paragraph you will need to find a reliable lawyer with experience in such cases.

Summarize

In the matter of profit from renting an apartment or villa in Phuket and Thailand, the advantage by a small margin on the side of an apartment in a condominium is mainly due to lower taxes and costs of maintaining this type of property. If you compare, the income from renting an apartment can be on average from 7 to 15 percent per annum in US dollars, with income from renting the villa from 5 to 10 percent per annum. These percentages are already deducted all sorts of expenses.

Always consider the possible additional costs for the purchase and maintenance of a particular type of property, this will help you immediately determine further benefits for you. But in any case, an apartment will always be cheaper in taxation and maintenance, since at least there is no personal plot of land for which you need to take care and pay the appropriate taxes. However, the house is suitable for those who want privacy in the fresh air, so that no one would interfere with or make noise near, in this case it would be an excellent option for recreation. In general, it is necessary of course to take into account personal preferences for housing.