* Property in Pattaya and Hua Hin Thailand *

Buying a new home can be stressful at the best of times. However, with a little preparation and forethought, some good advice and assistance along the way and it can also be an exciting and rewarding experience. With a plan you can ensure that what at first seems an over-powering array of things to remember becomes no more than another checklist to work through.

Most professionals will agree that your planning should centre on four areas:

Your first step needs to be to set your budget, re-locating as an ex-pat means that you need to take many different things into account when arranging your finances.

Quite often you need to allocate some of your available capital to fund future income and check if your visa application requires you to show a certain balance in a Thai bank at a given time. Easily over-looked.

You may also need to make allowances for temporary accommodation whilst house-hunting if you are a first-time buyer here.

At the end of the reckoning, bare in mind that it is almost impossible for a foreigner to obtain a mortgage or property-financing in Thailand in his/her own name, no matter who has told you something different.

Do not get caught out and forget to add in all the little extras or 'add-ons' that could be associated with the purchase:

• stamp duty
• transfer tax
• business tax
• income tax
• company formation costs
• building inspection costs
• legal expenses
• insurance
• repairs

Developing this Wish List will save you time and wasted effort. It will clarify in your own minds exactly what you are looking for and minimise wasted trips to view properties that were never in with a shout. It will also help assisting real estate agents to know exactly what you are looking for in a home.

Start by deciding on exactly what type of home you want. Your budget in most cases is bound to influence your choice.

Take the time to consider alternative options such as Build & Design, (we assist you to buy a block of land, design and build your dream home for sizeable cost-savings), installment plans and pre-construction discounts offered by some developers for buyers prepared to buy before their houses are finished. Ask us for advice at this stage and we can sometimes open doors that never seemed to be there before.

Below is a list of options you will need to consider when deciding on your type of home.

• Style of home, house or condo, detached or linked (semi, shophouse, townhouse)
• New, used or old
• Renovation project or Ready-to-Go
• Number of bedrooms
• Number of bathrooms
• Garden, courtyard or balcony
• Garage, under cover parking or off-road parking
• North facing
• Floor-plan
• Access for furniture and electrical appliances
• Fully fitted kitchen or breakfast bar & eat-out
• Privacy and security
• Private swimming pool or communal

Your budget and preferred lifestyle will to a large degree influence your choice of area to live. Average property values in preferred areas will give you a good indication of whether you are likely to be within your budget or not.

Your home is almost certainly to be one of your most valuable financial assets. It only makes sense that you take every precaution to ensure that you select a property that has a healthy chance of increasing in value over a given period of time.

Buying ahead of the trend (predicting popular areas for the future) is a sure-fire way of securing capital appreciation but can also be a risky business if you are not too familiar with the local market. Take advice!

Always get professional estimates for the cost of any repairs or renovation work you expect to undertake on the property. Never believe that things are always cheaper because it's Thailand. They usually are but take advice!

You will also need to consider the obvious and ensure that any selected location considers access to the following factors and prioritises them:

• Family
• Friends
• Shopping facilities
• Public transport
• Work place
• Schools
• Beaches
• Sporting facilities
• Entertainment facilities
• Low noise area
• Quiet safe street
• Local business activities

Finally, don't forget to list all those areas that you would not consider living in. It makes short-listing so much quicker and simpler!

The time-frame for moving in to your home may be dictated by outside factors; sale of property elsewhere, employment dates, expiration of existing rental contracts. Whatever they may be, take them into account.

Be realistic and accept that you will be lucky to find your dream home within the first five properties you visit. Be prepared for a thorough and relatively long process and anything quicker will come as a pleasant surprise.

Be realistic about the amount of time house hunting is likely to take. Bear in mind that several hours each weekend, or during the week will need to be set aside for viewing prospective properties.

Discuss any time constraints on viewing availability with your agent from the start. Do not be afraid of stipulating evenings only or weekends. Just make sure you can get back for a day-time viewing on any properties that take your fancy.

You want to see, day-time, evenings and weekends if you can. Do not forget that Pattaya is a beach-side resort and weekends can be oh so different from Tuesday evening or Thursday mid-morning!

Okay now you are ready to start looking at properties!

As you will undoubtedly be seeing quite a few properties on your travels, it makes sense to prepare a system for recording and comparing them. Your wish list could form the basis for a score-card approach and coupled with a batch of digital photographs can prove invaluable when trying to recall details and locations at a later date.

It is difficult to imagine buying a motor car without checking the engine and taking it for a test drive. However, many people do just this when buying a home, which costs significantly more.

You would not buy a car or a bike without first checking it out, so why should you consider buying a house without taking the same safeguards. As in all countries Caveat Emptor (buyer beware) stands you in good stead.

Be prepared and if you do not have the confidence to carry-out an accurate appraisal yourself, take advice!

First Choice Homes can arrange for a range of professional reports right up to and including a full engineer's structural survey.

So now you have made up your mind that you have found your new home it's time to make an offer. The more homework that you have done by this stage the better your bargaining position will be.

Be warned, if you are negotiating with Asian owners that they are patient and skilled negotiators. Good advice is to set a top price that you will bid up to and not to allow yourselves to be tempted over this. Although it is extremely rare to be in an auction situation, negotiating can take a similar process.

Once you have settled on a price you need to have this confirmed in writing. This is done in the form of a Purchase Agreement which confirms the price and other conditions agreed.

At the same time that this is being drawn up it is usual for your legal advisors to check that the property has good title. The vendor should provide a copy of the Chanod (Title Deed) for this purpose and a check is then carried out at the local land office.

As with all legal transactions, buying your new home will entail completion of endless reams of paperwork. Your Real Estate Agent or appointed legal representative will complete most of this for you as translations into English or other foreign languages do not exist, but you should be aware of what is involved. The two most important documents to view and check before contract stage are:

The Purchase Agreement. This is the contract to purchase the property and will detail property details, what else is included in the purchase, payment schedules, buyer's and seller's obligations, timescale, etc.

The Chanod (Title Deed) is a copy of the Land Title, showing:

• a plan of the property
• its boundaries (as signified by numbered concrete posts topped with red which are shown on the plan)
• exact measurements of the land
• its location relevant to neighbouring streets and properties
• any charges assignments easements or covenants registered on the title
• details of any existing mortgage on the property
• planning information, defining what the land can be used/developed for (e.g. residential or commercial purposes)

On signing of the Purchase Agreement a holding or reservation deposit is required. The amount is open to negotiation but a fair guideline is 10-20% of the agreed purchase price.

At this point, should a purchaser not complete on the contract then his deposit and any other money paid may be forfeited.

A schedule for the balance of payments is settled by negotiation and included in the Purchase Agreement. The only limitation is your imagination and the vendors agreement.

Additional fees are due on the sale or transfer of property in the Kingdom of Thailand as follows:

• Stamp Duty: 0.5% of the property price* is payable to the Ministry of Finance.
• Special Business Tax: 0.11% of the property price* is payable to the Ministry of Finance if the property has been held by the seller for less than five years.
• Income Tax: ranging from 1% - 3% of the property price* (the Thai equivalent of a Capital Gains Tax).
• Transfer Fees: of 0.01% of the sale price* payable to the Ministry of Finance. *(as assessed by the Land Department)

If you are transferring funds in from outside of Thailand then you should request that your bank raises a Tor Tor Sam for you. This document verifies that the funds originated outside of Thailand. The transfer must arrive in Thailand in foreign currency value and be converted into Thai baht on arrival here.

If you are buying a condominium this document must be presented at the land office on transfer of ownership. Should you wish to repatriate any funds brought in for the purchase of property then you will need to produce this document in order to receive permission to transfer currency back out of Thailand .

Completion of the purchase process is made on settlement of the outstanding balance and transfer of ownership. This process takes place on the same day and culminates in you taking possession of the keys to your new home.

Congratulations! It was a long hard ride but you now finally get to enjoy your new dream home.

Oh by the way, do not forget to arrange insurance on your new home, register with the utility services and say thank you to your Real Estate Agent!

You now have some idea what we have to go through each and every transaction that we process. But that is our job, we are the professionals. So please do not hesitate to use us!

home * buyer's guide

home * buyer's guide