What does it cost to buy a house in Thailand and what should you pay attention to when purchasing real estate?

Buying a house and living in Thailand is a dream for many. There is a lot involved in making such a dream come true. First of all, you must meet the applicable visa requirements for a long stay and you must familiarize yourself with the laws and regulations regarding buying a house. For example, there is a law that states that foreigners are not allowed to own land in Thailand. You can then rent the same land again through a lease construction. Different rules apply when purchasing an apartment (condo).

So you see, if you are planning to move to Thailand and want to buy a house, good preparation is very important. In this article we will help you get started.

What is possible and allowed when it comes to buying real estate in Thailand?

What is not possible:

• In Thailand it is not possible for foreigners to register land directly in their own name. The purchase of land by foreigners is prohibited by law, and as a foreigner you cannot obtain full ownership of land.

What is possible:

• As an expat in Thailand, you nevertheless have several options for owning real estate. For example, you can buy an apartment directly from a developer who will arrange all the necessary documents for you. When purchasing under 'Freehold Ownership' you even become the full owner of the condominium.
• Another option is to own a house through a 'lease agreement'. You lease (rent) the land for a period of 30 years. With this arrangement you receive title deeds for both the land and the house.
• Another option is usufruct*. In Thailand, usufruct, or “usufruct,” allows a person to use land and enjoy its fruits without owning it, useful for foreigners who cannot own land. The right, regulated by the Civil and Commercial Code, requires registration, is non-transferable and terminates upon the user's death.

* Usufruct, or “usufruct” in Dutch, is an interesting legal concept that is also applied in Thailand, especially in the context of real estate, such as land. A usufruct gives someone the right to use land owned by someone else, and to enjoy the fruits (e.g. rental income or agricultural products) of that land for a specified period of time, often for the life of the user . This right is formalized by a legal contract and registered with the local land registration authority.

In Thailand, usufruct is regulated by the Civil and Commercial Code. A usufruct can be particularly useful for foreigners, as Thai law prohibits them from owning land. However, by entering into a usufruct agreement, foreigners can obtain the right to use and exploit the land without owning it. For example, this could be attractive to those who want to build a house on land belonging to a Thai citizen. A usufruct agreement must be in writing and must meet certain formalities to be valid. The main features of a usufruct in Thailand include:

• Duration: The right of usufruct can be granted for a certain period of time, but usually ends upon the user's death.
• Rights and obligations: The user may use the land and any buildings on it and enjoy the proceeds arising from it. However, the user must maintain the property and may not make any structural changes without permission.
• Transferability: A usufruct is generally not transferable, although the fruits arising from the land, such as rental income, can be transferred or inherited.

When drafting a usufruct agreement in Thailand, it is important to take into account all legal requirements and restrictions. It is often advised to seek legal assistance to ensure that all aspects of the agreement are handled and recorded correctly. This helps prevent problems in the future and ensures that both the landowner and the user have clarity about their rights and obligations.

Buying a condo is the easiest

The easiest method to acquire real estate in Thailand is to buy an apartment, often called a condominium. When you buy an apartment directly from the project developer, the process generally goes smoothly. These condominiums usually have communal facilities such as a swimming pool, elevator and fitness room. According to the agreements with the Owners' Association (VVE), you pay a monthly amount in service costs.

How much does a house in Thailand cost?

The costs of buying a house in Thailand can vary greatly, but in general they are lower than in many Western countries and certainly cheaper than in the Netherlands. The easiest way for foreigners to buy property in Thailand is to purchase an apartment. These can often be purchased directly from the project developer, where the project developer takes all the work off your hands. Prices for such apartments often start around €50.000. For a detached house or villa in popular areas such as Hua Hin, the price can reach €400.000 or more. But in less touristy regions, houses are often considerably cheaper, sometimes starting from €100.000.

The quality and finish can sometimes be a source of annoyance. Most construction workers and contractors use different standards than we are used to in Belgium and the Netherlands. You will have to take that into account.

The costs for maintenance and running costs of a house in Thailand are also generally lower than in Europe. Factors such as low wages and the tropical climate play a role in this. So while prices may vary, homes in Thailand are generally a lot more affordable than in many Western countries, making it attractive for many foreigners to buy property there.

What determines the price of a house in Thailand?

Just like in Belgium and the Netherlands, location is an important factor when it comes to the price of a home. Consider inside or outside the center, tourist destination or not, sea view or no sea view and so on.

Of course there are also additional costs. There may be legal fees if you hire an attorney to handle the paperwork. When you buy property in Thailand, you are subject to a one-off statutory transfer tax of 2%, which is usually split between the seller and the buyer. It is important to know that in Thailand there are no additional taxes on ownership of either apartments or houses.

Advantages and disadvantages of a detached house, condo, townhouse and living on a Moo Baan

In Thailand you can choose from different homes and housing types, such as a detached house, a condo, townhouse and a residential community, all with their own advantages and disadvantages. We will explain that.

1. Detached house

Detached houses in Thailand offer a unique living experience, with both advantages and disadvantages to consider if you are considering investing in or living in such a property.

Advantages of a detached house in Thailand

• Privacy: Detached houses offer more privacy than apartments or houses in a gated community. There are no directly adjacent neighbors, which means that you are less bothered by noise and have more space for yourself.
• Flexibility in adjustments: Owners of detached houses often have more freedom to change or expand their property. This means you can tailor the home to your personal tastes and needs without the strict restrictions that often apply in planned communities.
• Space: Detached houses often come with more land, providing extra space for gardens, outdoor entertainment, and even swimming pools. This can be particularly attractive to families or those who enjoy gardening.
• No common costs: Unlike living in a condominium or Moo Baan, with a detached house there are no monthly maintenance or management costs for common facilities.

Disadvantages of a detached house in Thailand

• Maintenance costs: Owners of detached houses are responsible for all maintenance and repair costs. This can be expensive, especially if the house is large or there are specific issues that need to be addressed.
• Safety: Detached homes can be more vulnerable to burglaries compared to homes in gated communities that often offer better security. It may be necessary to invest in security systems or hire security personnel.
• Location: Many detached houses are located outside central urban areas, which can lead to longer commute times to work, schools or amenities. This can increase both transportation costs and the time spent traveling each day.
• Resale value: The resale value of detached homes can depend on current market conditions, the location and the condition of the home, meaning it can sometimes be difficult to sell the home quickly or profitably.

2. Condo (apartment)

Advantages of a condo in Thailand:

• Maintenance-friendly: One of the biggest benefits of living in a condo is that the maintenance of the building and common areas is managed by the condo association. This means that individual owners do not have to worry about things like garden maintenance, cleaning of communal areas, or maintenance of the pool and gym.
• Services: Condo complexes often offer extensive amenities that are not always available to people living in detached homes. This may include swimming pools, fitness centers, security, reception services, and sometimes even shops and restaurants within the complex.
• Safety: Many condos offer 24 hour security and CCTV, providing an extra layer of safety for residents.
• Location: Condos are often conveniently located in or near city centers, close to workplaces, shopping, entertainment and public transportation, making everyday life easier and more comfortable.

Disadvantages of a condo in Thailand:

• Less privacy: Because condos often have multiple units on the same floor, this can lead to less privacy. Noise from neighbors or common areas may sometimes be audible.
• Space restrictions: Condos often offer less living space than a detached house, and outdoor space such as a garden is often lacking.
• Association costs: Although maintenance of the communal areas is taken care of, this comes with monthly association fees which can sometimes be quite high depending on the location and amenities provided.
• Management Restrictions: Residents in a condo must adhere to the rules set by the condo board. This may include restrictions regarding renovations, pets, or rental of the unit.
• Potential overpopulation: In popular areas, condo complexes can become quite full, which can lead to congestion in common facilities such as the pool or gym.

In Thailand, living in a 'Moo Baan' or gated community is a popular choice for expats and locals alike. This type of housing offers several advantages and disadvantages that are worth considering when looking for real estate.

3. Townhouses

Townhouses in Thailand are a popular housing option that offers a middle ground between a condo and a detached house. They are especially popular in urban and suburban areas, and offer several advantages, but also some disadvantages.

Advantages of a townhouse in Thailand:

• Affordability: In general, townhouses are more affordable than detached houses, making them an attractive option for many buyers, especially young families or first time buyers.
• Maintenance: As with condos, maintenance of common areas is usually managed by a homeowners association, meaning you won't have to spend as much time maintaining exterior areas.
• Safety: Many townhouse complexes offer secure access and communal security systems, adding an extra layer of security for residents.
• Sense of community: Through proximity to neighbors and shared spaces, townhouses promote a sense of community and interaction among residents.
• Extra space: Compared to an apartment, townhouses offer more living space, often spread over multiple floors, and including separate living and dining areas. Many also have small private gardens or courtyards.

Disadvantages of a townhouse in Thailand:

• Less privacy: Although a townhouse offers more privacy than a condo, you still share walls with your neighbors, which can lead to noise and other disturbances.
• Limited outdoor space: Although townhouses often have a small private garden or terrace, the outdoor space is usually limited compared to detached houses.
• Association costs: As with condos, association fees for common area maintenance and security services can add up and be a significant monthly expense.
• Regulations: Residents of townhouse complexes often have to follow strict rules set by the homeowners' association, which can impose restrictions on things like renovations, pets and rental policies.
• Potential for resell difficulties: Depending on market conditions and location, townhouses can sometimes be more difficult to resell than other types of homes, especially if demand in the area is low.

4. Moo Baan

Advantages of living in a Moo Baan:

• Safety and security: One of the biggest advantages is the increased safety. Moo Baans are often equipped with security services, security cameras and sometimes even entrance gates that are manned 24/7. This creates a safe environment for the residents.
• Sense of community: These neighborhoods are designed to promote a sense of community, with common areas such as parks, playgrounds, and sometimes even schools and shops. This can be especially attractive for families with children.
• Maintenance and cleanliness: In a Moo Baan, the maintenance of common areas and often the exterior of the homes is taken care of by the community management. This ensures that the area remains neat and well maintained.
• Services: Many Moo Baans offer extensive amenities such as swimming pools, fitness centers, clubhouses, and sports facilities that are exclusive to residents.

Disadvantages of living in a Moo Baan:

• Cost: Living in a Moo Baan can be associated with relatively high monthly costs for maintenance and security. These additional costs are an important consideration when choosing this type of home.
• Location and accessibility: Sometimes these communities are located on the outskirts of cities, which can lead to longer commute times to work or other city amenities.
• Restrictions and rules: Residents in a Moo Baan often have to adhere to strict rules regarding renovations, pets and even the color of the paint on their home. These rules can be experienced as restrictive.
• Less privacy: Despite the spatial layout, living in a densely populated community such as Moo Baan can lead to less privacy, because houses and facilities are close together.

Can I buy a house/condo in Thailand and rent it out to tourists or expats?

Yes, as a foreigner you can indeed buy a house in Thailand and rent it out, provided you follow certain rules. Buying a condominium to rent out is a particularly popular option, because it is legally simpler and you can have full ownership of an apartment as a foreigner.

If you are planning to buy a property with the aim of renting it out, it is important to carefully research which locations are most attractive to expats and tourists. Neighborhoods that are easily accessible, close to amenities such as international schools, shops, entertainment options and with good transport links are often favourites. Choosing the right location can significantly increase the rentability of your property and ensure a good return on investment.

Starting point to orient myself on buying a house and prices in Thailand

The internet is an excellent tool for exploring the real estate offering in Thailand. By using search filters you can easily specify what you are looking for based on location, price range, and property type. Online platforms provide a comprehensive overview of what is available on the market. This can be particularly useful if you are still in the exploratory stage, or are already in Thailand and want to plan targeted viewings.

Here are some popular websites where you can view real estate in Thailand:

• Thailand Property: This site offers a wide range of real estate options, from apartments to detached houses, located throughout Thailand.
• DD Property: Aimed at buyers and renters, this website makes it easy to browse different real estate categories using detailed search functions.
• Thailand Real Estate: Another useful platform offering a diverse range of properties across Thailand, including luxury villas and commercial properties.
• Hipflat: This website offers an extensive list of real estate options, from apartments to villas, with powerful search filters to help find the perfect property in Thailand.
• FazWaz: A popular site among expats for its user-friendly interface and detailed information about each property listed, including photos, prices, and amenities.
• Dot Property: This site features a wide range of properties, from rental apartments to homes for sale, offering many options in different parts of Thailand.
• BahtSold: Mainly popular for its diversity of listings, ranging from cheap apartments to luxury villas, as well as cars and other personal goods.
• Thailand-Property.com: This website is known for its wide selection and detailed property descriptions, making it a favorite choice for expats looking for properties in Thailand.

By using these sites you can get a good idea of ​​prices, locations, and the types of homes available.

Tips for buying a house in Thailand

Now that you are familiar with the regulations surrounding buying a house in Thailand, you can start your exciting new phase of life. Here are some essential tips to help you purchase your ideal home in Thailand.

• Understand the regulations: Make sure you are fully aware of Thai laws regarding property purchases by foreigners. This prevents unexpected surprises during the purchasing process.
• Analyze the location: Thoroughly research the area where you are considering living. Pay attention to the availability of amenities such as local schools, public transportation, and the safety of the neighborhood. If you plan to rent out the house, choose locations that are popular with expats and tourists.
• Call in experts: It is advisable to hire a reliable real estate agent and legal advisor. A good real estate agent who has experience with the Thai real estate market can significantly help you find a home that meets your needs. Legal support is essential to ensure that all documentation and transfers of ownership are carried out correctly and within legal frameworks.
• Anticipate additional costs: Be aware of additional costs on top of the purchase price. This includes transfer fees, taxes, attorney fees and estate agent commissions.