Frequently asked questions about buying Property, Life and Lifestyle in Thailand.
Frequently Asked Questions
Questions about Buying Property in Thailand
Foreigners cannot own Property in Thailand directly however there are ways to own Property indirectly. The most common is to set-up a Thai Company which owns the Property. It is also common to ‘hold’ a Property Leasehold, the maximum lease being a 30 year term. It’s a common strategy for Expats/Foreigners married to a Thai national to purchase the Property in their Spouse’s name then take out a 30 year lease in their name for security. The lease holder can apply for a construction permit to build a house in their name. This gives more security in the event of selling or subleasing. Purchase structures such as Vendor Finance can also be set-up, this normally requires a 50% deposit. Our legal team can advise on the right structure for you and the due diligence needed for your security.
A visa is a document or permit issued by a country’s government that allows persons to enter its borders. Each country has its own laws and regulations regarding visas, so it is important to understand what options are available for ex-pats in Thailand. There are four types of visas: business visas, retirement visas, marriage/partner visas, and student visas.
Business Visas: Business visas are issued to those who wish to conduct business activities in Thailand, such as setting up a company or investing in a business. The requirements for this type of visa vary depending on the nationality of the applicant but generally include proof of financial stability and business credentials.
Retirement Visas: Retirement visas are available to foreigners who are over the age of 50 and can prove that they have a retirement income of at least THB 65,000 per month (or approximately USD 2,000). In addition, applicants must have no criminal record and must be in good health. Retirement visa holders are allowed to stay in Thailand for up to one year at a time and can renew their visas for multiple extensions.
Investment Visas: Investment visas are only available to foreigners who have made a significant investment in Thailand, such as purchasing at least THB 30 million worth of real estate or putting money into a Thai business that is approved by the Board of Investment (BOI). To qualify for this visa, applicants must also meet the financial requirements of an employment visa and have no criminal record. An investment visa entitles its holder to stay in Thailand on a long-term basis and can be renewed every year.
A broker is an individual or firm that acts as a middleman in the buying and selling of securities, commodities, or other financial instruments. A broker’s main job is to bring together buyers and sellers of securities and to facilitate the transaction between them.
There are several different types of brokers, each catering to different needs and offering different services. For example, there are stockbrokers, who buy and sell stocks on behalf of their clients; commodity brokers, who deal in raw materials like metals, oil, and grains; and foreign exchange brokers, who facilitate currency transactions. There are also insurance brokers, who help their clients find the best insurance policies to meet their needs. Brokers generally charge a commission for their services, which is a percentage of the transaction value. They may also charge fees for other services, such as research or advice.
Yes, you can pay your own taxes and insurance in Thailand. However, there are some restrictions on how much you can earn before you have to file a tax return. For more information, please see the Thai Revenue Department’s website.
If you’re employed by an employer in Thailand, your employer will normally pay for your taxes and social security contributions on your behalf. Self-employed ex-pats must file their own tax returns each year and pay their own taxes accordingly. Thailand’s insurance system is organized along with a similar model to many other countries, but there are some specific health care options that may be more suitable for those living in the country who are not eligible for Thai government health insurance schemes. This includes private medical insurance.
The loan process in Thailand can take anywhere from a few days to a few weeks, depending on the type of loan you are applying for. For example, if you are applying for a personal loan, the process may only take a few days. However, if you are applying for a home loan, the process may take several weeks.
If you need to get your loan processed quickly, it is important to speak with your lender about the specific terms and conditions of your loan. Some lenders may be able to accommodate a faster processing time if you are willing to pay higher interest fees or other costs. Additionally, there may be some situations where additional documentation is needed in order for your loan application to proceed. Be sure to ask questions and provide all of the necessary information when applying for a loan, so that the process can go as smoothly as possible. Whatever type of loan you are applying for, it is important to choose a reputable lender who will work with you throughout the entire process
Question about renting
This question usually arises when people are interested in buying property but have never taken out a mortgage before. It’s important that you understand this process because if your current home is being repossessed or you’re thinking of switching from renting to buying then taking out a mortgage is an essential step. The good news is that applying for a loan and getting approved shouldn’t take too long, as long as all information required by the lender has been provided and nothing has been omitted. However, there are many factors that can change this time period, so be sure to do your research carefully beforehand so that things go smoothly.
To start with, you’ll need to assess your borrowing capacity. This means that you’ll need to evaluate the affordability of a loan on your current income and expenditure levels. If you’re self-employed or have a poor credit rating then it can be more difficult for lenders to establish whether or not you can afford the monthly repayments, so don’t be afraid to shop around for a lender who specializes in providing lending solutions for people just like yourself. Once this has been established, there are still several things that will delay the process and possibly make it more difficult for you to get approved.
It is possible for a home to depreciate in value, particularly if it is located in an area where there is little demand. However, homes in desirable locations will typically appreciate in value over time. If you are concerned about the potential for your home to lose value, you may want to consult with a real estate appraiser to get an estimate of its current market value. Additionally, you may want to take steps to improve your home’s condition or appearance, which could help protect its value. Overall, it is important to do your research and assess the market conditions in order to make an informed decision about whether or not your home will depreciate over time.
Another benefit of private mortgage insurance is that it allows you to purchase a home with a smaller down payment than what would be required if you did not have this type of coverage. This can help to make homeownership more affordable for those who may not have the funds available for a large down payment. Finally, private mortgage insurance can provide peace of mind by ensuring that your lender is protected in the event that you default on your loan.
While private mortgage insurance does have its advantages, there are also some disadvantages that you should be aware of. One of the biggest drawbacks of this type of insurance is that it can add to the cost of your monthly mortgage payment. In addition, if you default on your loan, the lender may require you to pay back all or part of the premium that you paid for the policy.
Title insurance is a type of insurance that protects the holder from losses that may occur as a result of problems with the title to a piece of real property. The policy can also provide protection against certain other risks, such as forgery, fraud, or undisclosed liabilities. When purchasing a title insurance policy, you should be sure to carefully review the terms and conditions of the coverage so that you understand exactly what is covered.
There are several different types of title insurance policies available, and the one that is right for you will depend on your specific needs and situation. Some common types include lender’s title insurance, owner’s title insurance, and mortgagee protection policies. Additionally, some states may require additional types of coverage in certain situations.
The minimum credit score for a conventional mortgage is typically 640, but some lenders may require a score of 680 or higher. For government-backed loans, such as FHA and VA loans, the minimum credit score is generally 580. Keep in mind that your credit score is just one factor that lenders will consider when determining whether to approve your loan application; other factors include your income, employment history, and debts. So even if you have a low credit score, you may still be able to get approved for a mortgage by demonstrating strong financial stability in other areas.
If you’re looking to obtain a conventional mortgage, your credit score is one of the most important factors lenders will consider. Generally speaking, the higher your credit score, the more likely you are to be approved for a loan and qualify for favorable interest rates. Typically, conventional mortgages require a minimum credit score of 640 or higher. However, some lenders may be willing to accept scores as low as 680 or even 720.