More and more foreign nationals consider the option of buying a second home abroad each year, especially in an interesting and exotic destination like Thailand. You might be looking into buying a retirement home, a vacation cottage, or an investment property intended to bring in more latent income. Thailand is the excellent location for this kind of investment, but you should know that the process is not without its fair share of difficulties. It is really important to avoid any potential pitfalls within the process.
Shown below are a few of the mistakes that could ruin the process of purchasing property in the area. Read on to know what dangers to avoid.
Mistake 1: Buying a Property Without Legal Assistance
As a foreign national, you can buy property in Thailand without using an attorney, though it may end up costing you a lot more in the long run. But this may be the easiest mistake to avoid. One thing you should know about the real estate market in Thailand is that contracts are not always compliant with international standards, and may dramatically differ from the regulations in your home county. An experienced attorney who knows the legal system in Thailand can help you understand the process. These professionals are well-versed on the ins and outs of their domestic market, and are aware of all pertinent intricacies. Having a vested attorney on your side will mitigate common mistakes.
Mistake 2: Purchasing Property Without Help from a Realtor
While you may have some real estate knowledge of how the market behaves in your area, when buying property in Thailand you will have no practical knowledge of the market in this country. It is necessary to obtain help from a real estate agent who can weed out the worst offers and scams. A realtor’s help will also be instrumental in choosing the right community for your desired property, as they can act as a conduit between you, the buyer, and the property seller. Last but not least, a good realtor can get you the best value for your investment and will make sure to secure a fair price for the property you decide on.
Mistake 3: Not Doing Your Due Diligence
Before entering any contractual agreement with a seller, you need to make sure they actually have a title deed to the land the property is on. A title search will help you identify if there are any mortgages or leases on the property title, or if there are any other legal problems associated with it.
The due diligence process also involves checking if the property will constitute a good investment, making it an absolutely imperative part of the process.
Mistake 4: Paying Too Early for the Initial Deposit
Paying an initial fee, usually 10-percent of the entire property value, is part of the purchase process in most countries. In Thailand, by accepting this fee, the seller is reserving the property for you and beginning the process of selling the property via a legal contract. But what happens in the event that you change your mind, or are no longer interested in buying that property? In case you decide not to go through with the buying process, the seller is within his right to keep the deposit money. This is why it is important to make sure you pay an initial deposit once you are entirely sure that the property you chose is the right one. At the very least, it is your duty to include a couple of exit clauses within your initial contract, so that you can shield yourself from losing any money in the case that you change your mind.