How to buy property in Phuket?
There are two options: you can choose and buy property remotely, or on the spot, being in Phuket. We will consider both options, because only some details differ slightly.
First of all, you need to choose a suitable property.
- Is this a house or an apartment?
- For living alone, with the whole family or for rent? What about the price category?
- Is it supposed to be an investment in the low cost rental market or for an LTR visa (10 years) or for an investment visa?
There are many buying options. Let's look at specific situations.
Mark works remotely and prefers to spend the winter in warmer climates. He wants to buy a property where he can live for three to five months a year and then rent it out with the help of a property management company.
This is not the most profitable option, because in this case, it is impossible to take advantage of the developers' offers with guaranteed rental income. They all offer to stay at the chosen property for a maximum of a month a year, and not in the high season (not in winter). In winter, they allow you to live in an apartment or house for a maximum of two weeks, and in the peak season - just a week.
Well, what to do, Mark has such a wish. It is necessary in this case to choose property without a mandatory rental income program. Mark can reduce costs by choosing an apartment with a moderate fee for the maintenance of the territory, or a detached house or villa. So he will not overpay and be upset that in the low season his property is poorly rented out and not paying off. With a good set of circumstances and careful management of the real estate, the property will be able to generate income.
Do you need quality property management? We will be happy to help. Message us and we will discuss the terms.
By the way, Mark can purchase apartments in a project where the developer provides an Elite visa as a gift with 100% payment. This is a valuable offer, because it allows remote workers to forget about visa restrictions and enter the country an unlimited number of times within five years, staying in Thailand for as long as necessary.
Mary and Patrick come to Phuket once a year for two or three weeks with their children. They love to relax in the best conditions and finally decided to get themselves a home on this paradise island. After all, it can be a proper investment?
It can if approach the choice of the developer carefully. We will select a high-class villa or apartment where the family will be able to relax at the right time of the year, and the rest of the time the property will be rented out by the management company and generate a steady income.
Harry wants to keep and grow his capital while getting a visa for 10 years. You can apply for it if you buy an object worth more than 500 thousand dollars, or cheaper, but then you will have to make additional investments in government bonds or keep them in the form of a fixed deposit in a Thai bank.
Read the article about the 10 year LTR visa.
Developers are starting to offer their support in obtaining a long-term LTR visa when objects of a suitable value are bought, which are plenty in Phuket. Contact us and we will find you an apartment or villa where you will receive the support you need in resolving visa issues.
Let's summarize what questions you need to decide for yourself before choosing a property:
- House or apartment.
- Price category.
- Do visa issues need to be resolved?
- Do you need rental income? Remember that the guaranteed income program restricts you from living in your own apartment or villa!
- Do you want to participate in investment programs? These questions are much more important than the following:
6. Which area of Phuket is the best for this?
After all, this requires knowledge of the island and an understanding of the purpose of the purchase. The manager will share a lot of information with you and show you the objects and the streets adjacent to them via video call. We have friendly and attentive managers. They will help you make a choice. If you have specific preferences, say, you hate dense housing, or want to live near a particular school, that matters. Let us know about it in advance.
Now that the selection is outlined, let's move on to the next step: viewing and selecting the object.
If you are in Phuket, choosing a property is easy. The agent puts you in a car and drives you around the island, showing you properties that fit your purpose and price range. The agent keeps your preferences in mind and sighs a little to himself: he/she needs to work hard and explain a lot, but it is not known whether you will buy real estate with his/her help or not.
In the case of a remote purchase, a realtor shows you the necessary properties during live calls, coming to each place on his/her own. You are also sent everything that is possible about these projects or houses - layouts, specifications, colorful brochures.
When you make your choice, you need to pay a deposit in order for the property to be assigned to you. It also fixes the price. It may take up to a month until you sign the sale and purchase agreement. In November 2022, prices rise by 10-30% in a few days.
Before making a deposit, you need to sign a deposit agreement. If you are in Phuket, you can read it in any suitable place and sign it in front of the realtor. If you are far away, the agreement is sent to you by e-mail, you carefully read it, sign it, make a scan or photo without distortion and send it back.
Pay a deposit. On the spot, with cash or bank transfer is possible, and the second option remains the only option if you are not in Phuket.
What is the size of the deposit? Most often, this is 100 thousand baht, but there are options with both 50 and 200 thousand.
If you buy a home from a developer - whether under construction or already finished - he confirms receipt of payment and begins to prepare a contract of sale.
If this is secondary housing, then the money goes to the lawyer's account. You need to choose a lawyer in advance who will check all the documents. When he receives the deposit, he notifies the owner, checks the title deeds, prepares the sale and purchase agreement, and schedules the time for the transaction to take place at the Land Department.
When the contract is ready, it is submitted to you for review. If all is well, then you sign the contract. If necessary, the original verified contract is sent in two copies by regular, physical mail or using a delivery service, and after signing, you also send it back, keeping one copy for yourself.
If you choose a property under construction, then you, most often, pay in installments. You pay it accordingly to the approved payment schedule, periodically admiring the photos and videos about the progress of construction.
Hint: if the developer doesn't make you happy with reports as often as you would like, ask the agent to send video reports. Realtors often drive around Phuket and see objects under construction with their own eyes.
If this is secondary housing, then the payment, more often, is one and only and complete. It immediately entails a change of ownership. For this, it would be worth being in Phuket. Even if you are not going to go to the land department, it is much easier to issue a power of attorney for a lawyer on the spot than to do it in another country.
The same is true with housing under construction. When it is completed, the registration of property takes place with the participation of a lawyer, for whom you also sign a power of attorney.
A power of attorney can also be issued remotely, but you will have to translate the Thai version and certify the translation with a notary.
By the way! A power of attorney issued in Thailand is valid only within six months.
After registering the property, the lawyer sends you the originals of the property right or keeps it until you arrive in the country.
We want to tell you more and more about the buying process. Leave a message and our managers will contact you in a suitable messenger and share the details in a personal conversation.
Enjoy real estate shopping!
