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Wednesday, September 12, 2012

Advice for Property Purchase

Question:
- We spend a lot of time in Thailand. Therefore, we’re considering buying a house or an apartment here. Can you give us some advice?
Thor, Hua Hin

Answer:
Here is issue number one when it comes to property purchase is: Look at it as an investment. You might have planned to live out your days here, but I can guarantee that your heirs will look at it as an investment. And, who knows, you might change your mind and want to switch to something else. The bottom line is, you need to buy something that is relatively easily traded.
In this respect, there are three main components: Location, Access, and Maintenance. A house in a housing estate that is cumbersome to reach and have lots of rubbish and leaves in the streets might be a nice place to stay, but it’ll be difficult to sell.
Here are some tips:
1. Don’t buy a cheap plot of land in the countryside to build a house there, unless you do this as a gift for your Thai partner. You will never get any return on your investment. In rural areas in Thailand, no one can afford to pay the market price for a western style house, be it for rent or purchase.
2. Don’t buy houses in “mini residential areas”. Some foreigners buy a small piece of land and put up 5-6 houses with a common pool. That means the common fee will be high, especially if one or two owners refuse to pay, as sometimes happens. Bet on quarrels between neighbors in such small places. Both in terms of housing estates and condos, it’s safest to bet on the bigger projects.
3. Don’t forget to check the secondhand market. If you buy secondhand, you already know if the maintenance in the project is good or not. Plus, you normally get a lot of freebies already installed, like water purifiers, sound systems, burglar alarms, electric garage doors, extra lighting and so on.
(From Thailands Tidende issue 1/2010)

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