Buy to Let

At Terra Real Estate Investment we offer various investment strategies such as Buy to Let. The most popular option favoured by investors will always be to buy a condominium to rent out and receive a rental yield for additional income, as extra finance for your pension, or to diversify your investment portfolio.

Our company possesses extensive knowledge about Thailand’s property market, and has facilitated purchase of property on behalf of our clients, with a main focus on Bangkok and Pattaya. While the gross of our clientele can be find within the Pan-Asian region, we also offer our services, and have assisted investors from all around the globe.

We offer a free investment consultation to all interested investors so that they can learn more about the market and are better equipped to understanding the rules regarding property purchases within Thailand. Our company offers services to both experienced investors, as well as new investors, and as our company goal is to nurture and build on long term relationships with our clients, there are no preferential distinction between our clients. Terra Real Estate Investment always provides full effort to satisfy all questions, answer all uncertainties, and is always on standby to support all clientele in the purchasing process from beginning till the end.

A few important questions we have been frequently asked regarding buy to let include:

Can I own a condominium in Thailand?

The answer is ‘Yes‘, Thailand does offer a 100% freehold ownership for foreign investors. There is a rule that states 51% of a condominium building must be sold to either a Thai national or a Thai company, however, this means that the other 49% of the building can be sold directly to foreign owners. Due to the fact that the majority of buyers in Bangkok are Thai nationals, it is very uncommon for the foreign quota to be reached.

Can I obtain a loan from a Thai bank?

No, foreigners can not obtain any loans from local banks. Currently, there are only two banks in the world that offers mortgages to purchase Thai property, which are UOB in Singapore and Bangkok Bangkok (Note; Only the Singapore & Hong-Kong branches offers these mortgages). Please be advised that only certain nationalities may obtain these mortgages.

Are there any other costs when I purchase a condo?

Terra Real Estate Investment does not charge any costs from the buyers. We offer free consultation and handling of the purchase process at zero costs for our clients.

There are however, some costs that do need to be paid in relation to the condominium itself. These costs are dependent on a few factors, for example, when the condominium is still under construction a payment needs to be paid upon change of contract. The fee is usually only a few thousand THB, but the final amount is completely up the discretion of the developer.

When you choose to purchase a condominium that is already completed, payment to cover transfer fees and taxes at the Land Department is required. These are normally about 2-3% of the purchase price of the condominium, but is dependent on many factors, so will range quite widely on a case by case basis.

What are the rules regarding selling my property?

There are very few rules regarding re-selling your property. As there are also no time limits, no additional taxes will be imposed upon you in the event that you decide to re-sell your property the day after your purchase (Note; This only counts for off-plan property). As this is quite an uncommon perk, it is also recognized as one of the many advantages in investing into Thailand’s property market.

What percentage of yields can I expect in Thailand?

While this is usually dependent on the location, properties in Bangkok generally offers about 4-6% yield on rental properties. For Pattaya, the yields are substantial higher and can be found between 8-12% per annual. Our company listings also includes a few projects that offer 10% guaranteed yield for 5 years.

What can I expect based on capital appreciation?

Based on property reports from different sources, we conclude that the capital appreciation in Bangkok will be around 5-6% on an annual base. This of course differs year by year, and can be influenced by external factors.

I would like to spread my payments, is this possible?

Spread payment (a.k.a paying in instalments) is only possible when the condominium is still under construction. Developers will offer payment plans starting from the project launch until the completion of the building. This means that you will be required to pay a down payment to reserve the unit, with instalments at a monthly or quarterly basis to be paid after. Upon completion of the project, all unit owners are invited to inspect their purchased property before committing to the final payment.

Payment in instalments differ, and are completely up to the discretion of each developer.

If you would like to purchase a property that has already been completed, you will need to pay the full amount of the unit in one payment.

These are just some of the questions which we receive on a daily base. There are of course many more questions, and we would be happy to answer them in a free consultation. So please feel free to click “here” and get in touch with one of our advisers now to learn more about “buy to let” property.