The world is indeed shrinking in terms of ease of traveling and migrating to new countries for better commercial opportunities. One such opportunity is investing in real estate. Bangkok is among the popular destinations for foreigners looking to invest in real estate. With a fairly steady and strong economy and an increasing middle-class population, Thailand is becoming a favored destination for business. Bangkok is a vibrant and diverse city with a population of eighteen million. Teeming with traditional markets, huge super malls, an architectural blend of the traditional and modern and a bustling nightlife, Bangkok has a lot to offer to both its local populace and ex-pats.
A rapidly developing city, Bangkok offers numerous opportunities for real estate investment. A growing real estate market, where rental yields exceed 5% in some areas, Bangkok is witnessing a real estate boom. However, one must remember that foreigners are only allowed to purchase condos in Thailand.
A huge city with numerous areas to live in, buying a condo in Bangkok can be a difficult task. With thousands of condos to choose from coupled with legal and regulatory obligations, buying a condo in Bangkok can be overwhelming. The following guidelines should help you in finding your dream condo in Bangkok.
Ownership of Property by Foreigners in Bangkok
Thailand allows foreign investors up to a maximum of 49% ownership of a company registered in the country. The same rule applies to the ownership of property by foreigners in Thailand. However, this regulation does not apply if you are a US citizen.
Government officials are used to working with foreigners and that helps as you have to deal with a fair amount of paperwork when purchasing a condo in Thailand. You need to remember that payment for the property has to be made in foreign currency only. However, once past the initial regulations, you will find that ownership laws are rather strong with all title deeds and other documents computerized.
What can you Expect to Pay for a Condo
Depending on the location, size, and amenities, prices of condos in Bangkok traverse a huge range. While, in the suburbs, a one-bedroom condo would range from $32,000 to $80,000; the price would be much higher in prime areas. You can check out this https://cornerstone.co.th/condos-for-sale-chon-buri-pattaya/ to get an idea of the types of condos available and their prices in various parts of Bangkok. Generally, the average cost per square meter for newly built standard condos would be around $3000. This could go up to as high as $8300 per square meter for super-luxury condos.
Which Neighborhood Should I Look at
That is perhaps the question that perplexes most investors looking to buy a condo in Bangkok. A large city with lots of neighborhoods to choose from; the choice will depend on your requirements, budget, and preferences. Given below are some of the popular neighborhoods for investing in a condo.
A neighborhood with plenty of skyscrapers and luxury condos, Bangkok’s financial district, though rather small, is home to wealthy locals and ex-pats. The financial district is well connected to the public transit system and offers loads of shopping, fine dining, and nightlife. Property prices in this area are expensive, with very few entry-level options.
A large neighborhood, very close to the city center, Sukhumvit has a wide range of properties with varying prices. While older developments can be affordable, new developments closer to the city center are expensive. Well connected to the public transit system, the areas near the city center are very popular with ex-pats. A bustling and busy area, Sukhumvit is the center of Bangkok’s entertainment and nightlife. While this can be great fun for a short duration, the constant sound can be an asleep spoiler. The other problem to contend with is the regular traffic jams.
One of the most expensive and exclusive neighborhoods in Bangkok; Lumpini is home to many embassies and high-end shopping centers. The public transit system is not an issue here, with the main transit arteries running through the area. Probably the safest neighborhood in Bangkok due to the numerous embassies situated here. If you are looking for nightlife next to your condo, this neighborhood is not the place for you.
With plenty of public transit and a rail link to the airport, this is a reasonably priced neighborhood. An added benefit is the cost of living here; it is much cheaper than other similar parts of Bangkok. However, the options of condo varieties are limited in this area. But, you can get very good entry-level condos to choose from. Although located in a convenient place, this is more of a local populace neighborhood, with a far lower population of ex-pats living here.
Popular with ex-pats and second homeowners, Riverside offers entry-level to high-end luxury condos. With high-end developers putting up new projects in the area, Riverside is perfect for a short term buy and sell investment option. A fair number of shopping complexes, lots of high ends and mid-range hotels and a bustling nightlife, there is plenty to do in this area. However, the public transit system is conspicuous by its absence in this area.
Fees and Taxes on Property
Thailand property taxes and fees are pretty low with no annual property tax being charged. However, there is a property transfer fee of 2%, of which the buyer typically pays 50%. While the seller is supposed to pay a 0.5% stamp duty, in case they do not, you as a buyer will be liable to pay that. Selling the condo within five years of purchase attracts a ‘specific business tax’ of 3.3%.
Another fee that you might need to pay is the management fee to cover the upkeep of the building and other amenities. This, however, is charged by the building owner and not by the government.
The Bottom Line
With a large number of options available in Bangkok’s booming real estate market, you would be well advised to choose a property agent or developer to help you find the condo of your choice.