Pattaya, a vibrant coastal city on the Eastern Seaboard of Thailand, has attracted both tourists and expatriates ever since the first American soldiers hung up their boots here on rest and relaxation during the days of the Vietnam War.
The surrounding beaches are nice, the nightlife in central Pattaya is legendary, some might say, notorious, and the property real estate market has been growing steadily over a long period of time.
For those considering a permanent stay or speculating on an investment opportunity, purchasing a condo, or a house for sale Pattaya presents an exciting prospect.
In this article, we will take a look at some of the essential steps, and considerations when buying a property in Pattaya.
Table of Contents
Understanding the Real Estate Market
Pattaya’s real estate market offers a diverse range of accommodations from modern condominiums to luxury villas. The market has been growing steadily and attracting both local and international buyers for many years. The city’s tourist status, improving infrastructure, and the return of a vibrant tourist industry post-COVID have all added to the investment appeal of the city. Many outside speculators have been looking at investment in Thailand for varied reasons.
Research.
Before diving into the market thorough research is critical. By familiarizing ourselves with the different neighbourhoods we are able to make informed decisions. It’s advisable to visit Pattaya and explore the areas to get a firsthand feel for the locations that potentially interest us before committing to any offers.
Legal.
As a foreigner investing in Thailand, the legal situation regarding ownership can appear complicated at first. While foreigners can buy and own condo units each project will have a limit on the number of units that a foreigner can buy. On top of this, and if you intend to live in the unit, the correct visa must be applied for and conditions met. Hire a reputable lawyer, with solid recommendations, if you are inexperienced in the process and the process should run more smoothly.
Ownership Deeds.
The chanote, or title deed will be issued in Thai language, and it is important to have the legal status of the deed verified by a competent estate agent or lawyer.
Taxes and Fees.
All title transfers are subject to taxes and fees that link to the value of the property and the length of time the previous owner has held the deed. Taxes and fees can be split by the buyer and the seller or either one of the parties agrees to take on the tax and fees. It is important to make it clear who is paying these costs before an offer is made and during the negotiation process.
Making an Offer and Negotiation.
Once you’ve found your dream home or investment property work with your real estate agent to negotiate the purchase prices and terms regarding transfer and fees. You should consider seeking the guidance of a lawyer during this process.
Property Inspection and Due Diligence.
All properties in Thailand are subject to a mandatory government valuation in order to calculate the sales tax. When investing in Thailand It is well worth considering instructing an independent property valuation team who will value the property for a very reasonable fee.
Finalizing the Transaction.
Once both parties have agreed to the price and the terms, the sales agreement is signed and a deposit may be paid to the seller – the size of the deposit, and whether a deposit is tendered is up to both parties. The sale will be completed at the Land Department, with both parties signing, and the ownership is officially transferred to the buyer.
