You might be approaching retirement age and have set your sights on enjoying your golden years in the tropical paradise called Thailand, or you may have business interests in the Royal Kingdom. Whatever your reason for settling in this unique country, if you are planning to acquire a plot of land to build your dream home, you have come to the right place.
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Land Acquisition
Foreigners are not permitted to own land in Thailand; however, there are options. You can lease a plot of land for 30 years with an option for another 30 years, which is the most common way for a foreigner to secure land on which to build a home. It is essential to hire an English-speaking Thai lawyer to review the lease agreement to ensure there are no concealed issues. Prices will be similar to buying freehold, and the lease is fully transferable and can be left in your will.
Company Land Ownership
If you already have a Thai company, the business entity can purchase land, although the company must be active and paying taxes. If a Thai company is set up solely for the purpose of real estate acquisition, you run the risk of the Thai government confiscating the assets, as it is illegal to run a proxy company for land ownership. If you intend to set up a company when you arrive, do that before thinking about land acquisition, and the company can make the purchase.
Hire an Experienced Architect
You could ask the builder to design your dream home, but hiring an experienced architect ensures all the small details are handled, and they do make all the difference. He/she would ask a lot of questions to get an understanding of what your idea of a dream home is.
Choosing a Reliable Builder
Whether building reconstruction or designing and building a pool villa, there are some excellent custom builders; you need to inspect a few of their previous projects to get a clear picture of workmanship. Ensure that your lawyer checks the contract before you make a commitment.
The Contract
Any new build starts with a contract, which clearly states a timeline for stage payments, along with details of the features and responsibilities of the construction outfit. Penalty payments would come into play should the project deadlines be exceeded, while the client would be invited to inspect the site prior to making a stage payment.
Style of Build
Most people want a single-storey villa-style property with a large garden and a pool, which is easy to maintain. An open plan design helps to keep the interior cool in the hot summer months, with tinted windows and insulation blocks rather than regular bricks. The architect could show you quite a few templates, and if they do not hit the spot, you can design from the ground up. Google Images can help give you some design inspiration; you can browse 1000s of fine homes built in various parts of Thailand.
House Ownership
Although you cannot own the land, you can own the house, so you do have rights; should the house be in your Thai partner’s name, you are entitled to 50% of the value, should you split up. Thai law does not favour either party, and we advise you to protect your wealth with a prenup if you are planning to marry a Thai citizen. Click here for questions to ask when renting property in Thailand.
Condo Ownership
Many retired couples do not want the work that comes with keeping a house clean; they don’t need that much in terms of living space, and a 1- or 2-bedroom condo unit is perfect. The good news is that there are no restrictions on foreigners owning condo units; you must show evidence that the funds came from abroad, and you cannot own a condo unit if foreign ownership in that development exceeds 49%. This is designed to keep a balance between foreigners and Thais.
Furnishings
There are special companies that can handle everything on your behalf; you sit down with a representative and decide on the furniture for each room, and when the property is ready for occupation, every item is delivered and set up ready for the big day when you move in. Failing that, you can spend a few hours at a furniture warehouse, and everything will be delivered in pack form; you could ask a local handyman to set things up.
The Importance of Legal Security
You should not build on land that you have yet to secure; if you go ahead and build a house on your partner’s land and you don’t stay together, then issues may arise. You could lease the land if her parents own it, which offers you the protection you need. There are ways in Thailand to ensure that your dream home is secure for many years.
