Do you want to buy or sell a house in Thailand? Great! Maybe you’re moving there, maybe you want an investment property, whatever the reason is, it’s important to know what all those costs are going to be before signing on the dotted line. Not knowing essential information can cost you thousands of baht if not more. Read ahead on what you can expect when buying or selling a condo in Pattaya.
The perfect location:
The first question that should come to your mind is the location. Do you prefer the hustle and bustle of town or do your heart’s desire a quieter area? How about somewhere in between, with easy access to both. Clients often go looking for an apartment by asking themselves what they can live without; and what factors are a must. Arguably your preference might clash with the cost of the condo/place due to location.
The right agent:
The trickiest cost is probably going to be the realtor fee (or agent). A realtor is one cost, but there are also other costs involved and it’s not as straightforward as just handing over the money. This amount will vary depending on how much work they have done for you throughout the whole process – from introducing your property, through signing contracts and escrow, until closing day.
Cost of the actual condo:
The overall cost depends on the size and the vicinity of the area that the building is located in. In order to determine the value and rental potential of a place, most people compare its square footage to its neighbors. CBRE Thailand has released a summary of condos in Bangkok, where entry-level condos were categorized to be less than 70,000 Baht per square meter. Furthermore, they provide an overview of prices and availability based on different areas.
The different types of condos/house:
When setting a price to sell a place or buy one its characteristics matter a lot. Studio rooms are cheaper but can be restricting. Whereas a two or more room condo or house costs 500,000 Baht extra but can lack access to light.
Laws for foreigners
There are many laws that foreigners have to consider when buying a property in Thailand. All money for the purchase of this property has to come from abroad, and without proof you will not be able to register it as yours. That’s because only 49% can belong outside Thai nationals at any given time. You will also need special permission or registration before selling off parts if they’re owned by other countries’ citizens (with restrictions).
Taxes and Fees
When buying or selling a condo a transfer fee is included in the contract and it’s explained prior to the act. The stamp duty and business tax for buying or selling property should be paid by both parties equally, so as not to put any burden on one side. In total there are 30k Baht that need paying when completing this transaction- but don’t worry; they’re split 50/50 between buyer and seller.
You are also required to pay into the sinking fund- a fund of initial monies paid by new residents in the building. This was around 12,500 Baht and it’s a one off payment at around the same rate as your annual maintenance fees (which can vary). Also sellers better be prepared with 6k if they want their water/electricity meter installed.