Buying land and houses in Bangkok
Buying a house in Bangkok, or Thailand in general, is trickier than purchasing condominiums and apartments. In order to purchase a house in Bangkok, the buyer must also purchase and own the land. Because certain Thai laws forbid non-Thai nationals from owning land, many obstacles arise in the purchasing process. This isn’t to say that laws are gridlocked and an expatriate market for purchasing houses and land, exists.
With the help of professional legal advice, there are smart and workable ways around Thai property laws. Increasingly, foreign expat families are moving in to gated communities on the outskirts of Bangkok. Foreign buyers with Thai spouses are the second-largest group in the movement of buying property and houses in high end communities on the edge of the city, after middle class Thais.
Setting up a 30-year lease with the Thai owner of the land is a viable option that is quite popular among foreign buyers. Forming a company that is majority owned by a Thai nominee or partner, while control remained with the foreigner, was once a common method that has recently come under the scrutiny of the Thai authorities. Technically it is not possible for a non-Thai to own land. Many become del-facto owners through their Thai spouse but true ownership, as interpreted in a court administrated dispute, remains with the registered Thai owner. Many foreigners have lost control and ownership through this, particularly when falling out with the Thai wife or husband. A firm legal agreement leasing the house long term to the foreigner is a good safety net, with the provision that if the Thai owner should ever sell the property, the leasee is contractually entitled to a share of the income.
When buying houses in Bangkok, land availability isn’t as abundant in the centre of Bangkok as it is in its outskirts. For this reason, more of the high end real estate developments are on the outskirts of the city. Purchasing homes in the centre of Bangkok will prove to be a pricier feat than buying property farther away from the city centre. These increasingly plush estates are the hallmark of success in the modern Thailand as the middle class seek to assert their status buy buying into the lifestyle, complete with heavy security, impressive entrances and a brochure packed with facilities that include sports and social club with pool and fitness centre, exercise parks, restaurants and convenience stores and more. A lot of foreigners are now joining this suburban bliss, especially mixed nationality families.
With the developers of houses in Bangkok firmly targeting deep-pocketed foreigners they have devised stable methods for ownership. Typically there is a premium for belonging to the prestige of these, as much as 30 per cent, than a buying a conventional private house. The land areas are smaller too, but you are guaranteed quality and avoid the hassle of trying to build in Bangkok or buy a latently defected property. Those who have been here awhile and have the confidence to build can achieve much better value for money. Investors with a solid means for buying land or houses in Bangkok (such as individuals with trusted Thai partners) can do well, buying into these and renting them to expat multi-national employees who have been sent out to Thailand with their families and a good housing allowance.
Prices do range quite significantly depending on land area, proximity to highways and public transport, and whether or not you choose to stay in the burgeoning number of housing estates that the Thais favour for the prestige. In one of these, 45 minutes drive from the city centre a 300m2 house on about a quarter of an acre of land will cost between 6-10 million baht in Bangkok. Building a house independently or buying second hand outside of these is roughly 30 per cent cheaper. Land is measured in wa (4m2), with 400 making up a rai (1600m2). Putting a value on land along the Sukhumwit area is difficult, but it’s certainly out of reach of all but a few wealthy families or consortiums, and limited to Thai ownership.
While buying houses or land on the outskirts of Bangkok seems to be a growing trend as it offers tremendous value for money, it still poses large problems for those that must commute daily to central Bangkok for work. With the unpredictable traffic, commute times can often times last for unbearable lengths. It is best to consider factors such as location, commute time and price when deciding where to buy property in Bangkok. There are numerous agents in Bangkok, including westerners to help seek out good houses worth buying in Bangkok.
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