The choice between buying a property or renting.
Whenever you, as a new real estate investor, start researching into Phuket property, one of the most common questions you will face is choosing between freehold or leasehold purchases.
Today, lets end that debate once and for all by arming you with all the information you need.
In a freehold agreement, the buyer has full ownership of the property. As a result, they need to take charge of all maintenance, repairs until they sell the property or pass it on as an inheritance, a gift or an exchange.
A leasehold agreement is a renting agreement. In Thailand, the leasehold agreement can last for 30 years with 2 options for renewal. The terms of maintenance and repair are dictated by the contract but usually the buyer takes responsibility for them. Any Phuket property you purchase on a leasehold agreement automatically becomes illiquid i.e. it becomes ineligible for the open market thereby protecting you.
Speaking of Thai agreements, you also need to know that owning an apartment and owning a condo mean different things in Thailand. Owning an apartment means the buyer has full ownership of the apartment. Investing in a condo, on the other hand means each apartment has a specific owner and each owner has their own certificate. No matter the type of property you choose, foreigners can only own 49% of a condominium and 51% must be under a Thai name. This rule applies to any block of flats in Thailand.
Conclusion
Thailand rules on real estate can become effortless to navigate with the help of a real estate agent. In case you need help figuring out real estate investment in Phuket, IbgProperty.com is your one-stop solution for all your Phuket real estate buying, selling and renting needs.
