Buying property or looking for real estate for rent in Thailand is no cakewalk. It is filled with pitfalls, especially if it is your first time. It takes a whole lot of painstaking research in locating the perfect Thailand property for sale – restless nights, stressful negotiations, trying to abide by the rules and regulations of the financial institution, and more. It is essential to have knowledge of property buying procedure in Thailand to avoid any mistakes that can be costly. If you are interested in owning a property in Thailand, consider these 5 expert property valuation tips to assessing the value of a property in Thailand before making a purchase.
1 Understand the Value Types in Thailand
Property value in Thailand is classified into three sub-categories. They include:
- The market value
- The registered value
- The assessed value
Market value is the actual cost of the property you are buying.
- Market value is the least likely of all the values to be registered on the transfer forms at the Land Office
- Market value reflects the exact amount of the condo, which is used to determine the value of your investment
- Market value is the money you have bought into Thailand. It is registered on the foreign remittance form.
Registered value is the cost that is registered on the transfer documents as the amount paid for the property.
- It is the amount calculated by the Treasury Office
- The Land Office assesses the assessed value by considering other factors like improvement on the property or property structure
- It is used as the registered value registered on the transfer documents
- The registered value could not go below the assessed value
2 Title Research
You would not want to buy a property without the necessary ownership paperwork. Title research is a comprehensive investigation that traces the property to its current ownership and is registered at the land department. It tells you:
- Whether the seller has legal title to the land
- Any leases, mortgages, or charges on the property
- Environmental and planning codes, area zoning
Visit ThailandFlat.com to know more about the value types in Thailand.
3 Condition of the Property
When it comes to assessing the value of Thailand property for rent, a lot depends on the condition of the property. Hire a qualified professional to perform a thorough inspection of the property. Determine the repairs it needs and whether you will need the help of an outside contractor.
4 Reservation Fee
When you are buying a property in Thailand, you will need to make an initial reservation deposit of $1500 (USD). This amount will be deducted later from the total price. Make sure to thoroughly review the terms of the contract, as it will help you determine the payment procedure of the balance – installment or lump sum. After the agreement is signed, you need to pay 10% of the total property price within 10-15 days.
For Thailand real estate for sale, you can expect the taxes to work out to be around 2%-3% of the property market value. Transfer fees of 2% and Stamp Duty of 0.5% have been waived off by the government for the short term. Moreover, 3.3% of business tax is also charged including income tax at a variable rate.