Undertaking a Thailand property purchase requires planning and foresight. Whether purchasing Thai property for investment, retirement or as a holiday home, there are various pitfalls an investor should be aware of before investing. Before committing to a Thailand property purchase Asia Property Consultants can provide valuable information and services to help avoid some of the pitfalls associated with property investment. Examples of issues related to Thailand property purchase include the following:

Lack of title search - As an emerging country, it is essential that foreign investors obtain a valid title certificate. A comprehensive examination of title deeds recorded at the land department should be done prior to placing a deposit or signing any binding agreements.  Verifying that the seller has clear and legal title of the land will help limit complications that might arise with your Thailand property purchase. A title search may be completed in 48 hours and will uncover any zoning issue, planning codes or liens on the property.

Buying without a lawyer - Thailand property purchase is possible without the services of a lawyer but foreign investors are advised to use lawyers who are familiar with the laws of Thailand, the Thai language and contracts in Thailand, which do not always follow international norms.

Buying without a real estate agent - It is advantageous to utilize local experts who are familiar with the Thai property market and are able to save you time by concentrating on properties that fulfill your needs.

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Failure to do due diligence - Before undertaking a Thailand property purchase, you should make sure that you are making a sound investment. Foreign investors should check the satisfaction of previous buyers and check the history of the developer. Local experts will be able to check the project, find out who their directors are and what is their performance history.

Having a deposit become non-refundable - If an exit clause is not added to the deposit agreement, the deposit may be kept as an opportunity cost incurred while the property was reserved. Although the nominal amount placed as a deposit is fully refundable in many countries, this is not the case in Thailand. Using advisers who are experts in purchasing property in Thailand will help avoid this omission and will make your Thailand property purchase less risky.

Buying in a mismanaged project - Purchasing property in Thailand may involve risks but the risks may be minimized with research and by using advisers familiar with the area. If you want to greatly reduce your risk, purchasing from larger developers will be your choice. Many developers are publicly listed companies and well established. Although larger developers have the resources and expertise, they usually will not negotiate on the sale price or offer variations to the standard design plans. If you are interested in more flexibility and are willing to take a greater risk, advisers may be able to find reputable developers who offer more flexibility in the design plans and price.

Buying because of price - Buyers need to check the price of projects in the area to make sure they are not paying too much for their investment. Investors must take into consideration the type of purchase that is being made and any underlying issues that may reduce the value of the property.

Forgetting your heirs - Planning is important when investing overseas. If you are purchasing property in Thailand, it is important that you establish beneficiaries for your assets. Thailand does not have an inheritance tax and it is suggested that you have a local will or trust vehicle in place for a smooth transition of assets.

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Failure to consider the surrounding area - If your Thailand property purchase in a growing development, it is most likely that several phases are still under construction. Knowing where future construction is scheduled and avoiding the purchase of adjacent property will help reduce the possibility that you will have to endure several years of construction in your new home.

Asia Property Consultants assists international entrepreneurs and investors to achieve the Thailand property purchase objectives by professionally managing all aspects of purchasing Thai real estate and selling Thai real estate. For details on our firms other property related services see our Asia property services page.

For more information on Thailand property purchase, please contact us at our Singapore office at (+65) 67350120 or email us at info@healyconsultants.com