Bangkok Real Estate – The Hidden Issues!
As I sit here preparing to write this blog, I know that the subject matter will only have any real importance and interest to a small number of readers. After all, there are not so many expats who actually take the plunge and buy a property in Thailand.
In this piece I will look at two of the little-known or understood areas of property purchase that can, and often do, only reveal themselves after an investor has begun the process of looking into real estate investment. These areas are:
- The Mortgage Issue
- The Property Boom!
Getting a Mortgage!
The main reason this is an issue is because it is near to impossible for a foreigner to obtain a mortgage from their local bank in Thailand; something which is unbeknown to many until they try. Therefore, the only way to purchase property as an alien is to bring over all the money from abroad – in cash!
The downside of that is not so many people have the equivalent of several million Baht at their disposal. Foreign banks, like those found in the UK, US, OZ, etc., will not easily or willingly lend money to their customers so that they can buy a property in a faraway country like Thailand. Bankers just see this as both risky and unstable, or put another way, too high a risk, whether it’s a buy-to-live or a buy-to-let purchase.
Percentage of Condos Owned by Foreign Investors
After reading the above, you probably think that the number of foreigners owning condominiums in Bangkok is negligible. You might then be surprised to discover that 17% of all condominiums owned in the Thai capital – at the time of writing – are foreign owned.
You may not be a buyer yourself, or even a potential buyer, but if you’re a Bangkok expat then there is a chance that you know someone who is. If that’s the case, then you might want to point them to this article and tell them to check back periodically for updates as the mortgage issues is changing all the time, in favor of foreign investors.
Watch this space!
The Property Boom!
Over the years, the supply of condos has grown so much that Bangkok alone has seen an increase of an average 40,000 new condominium units a year – every year! That an incredible 40,000 extra liveable units hitting the market with relentless frequency year on year. This figure does not account for all the new units built outside the city either, nor does it include the construction of new detached or townhouses built within the city during this time.
Editor’s Note: Over time, Bangkok’s residential property scene changes and therefore needs to be revised as certain aspects become outdated and irrelevant.
This post: “Bangkok Real Estate – The Hidden Issues! ” was originally published on May 28, 2012, and is one of our articles that are currently in the process of being revamped and updated so as to provide accuracy and comprehensiveness for our readers.
Please check back soon.
Thank you for your consideration.