Buying a condo in Phuket: freehold or leasehold? (part 2)

Buying a condo in Phuket: freehold or leasehold? (part 2)

Let's discuss the drawbacks associated with both freehold and leasehold property ownership.

Freehold Ownership

Disadvantages:
Eligibility Criteria: Foreigners are subject to specific eligibility criteria to acquire freehold ownership, such as substantial investments in government-approved projects or meeting certain conditions. Not all foreigners may qualify.
Land Size Restrictions: There might be limitations on the size of land or property that foreigners can own under freehold ownership.


Leasehold Ownership:

Disadvantages:
Non-Ownership: With leasehold, you do not own the land; it remains the lessor's property. Your rights are limited compared to freehold ownership, and you may have restrictions on property modifications or usage.
Renewal Risks: While lease terms can be long, there's a risk of not being able to renew the lease after 90 years, potentially affecting long-term investment plans.
Lack of Control: As a lessee, you may have property modifications or usage limitations, depending on the lease agreement.
Possible Rent Increases: Lease agreements may allow for rent increases upon renewal, impacting your long-term financial planning.

Additional Considerations:
Eligibility: Carefully assess your eligibility for freehold ownership, as it comes with specific requirements that must be met. Ensure you meet the criteria or explore other options.
Investment Objectives: Consider your investment objectives and willingness to tolerate risk. Freehold ownership offers more control and long-term security, while leasehold may provide accessibility.
Legal Advice: Seek legal advice from qualified lawyers experienced in Thai real estate law to navigate the complexities and make an informed decision based on your unique circumstances.

In summary, the choice between freehold and leasehold ownership of a condo in Phuket depends on your eligibility, investment objectives, and willingness to accept certain limitations and risks. We recommend thorough research, professional guidance, and careful consideration before deciding.

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