MarketPlace Tips

1.Educate yourself well before any decision.

        Obviously, the first thing you need to do whether renting or buying is to educate yourself about the market. Start off by telling everyone you know that you are looking for a new place especially friends who live in buildings you like, as they may know if someone is moving out shortly. There are many useful websites with good forums such as Thaivisa.com with much helpful advice. Many property websites lead to agents and their lists of properties won’t include addresses or even building names. Nevertheless they often have good tips and will give you a rough idea of prices, even if most aim at the high end.

Spend several weeks before you start looking in earnest, to look at the type of places that are being offered in your preferred suburbs and the rents being asked, so you get a feel for the market.

Don’t immediately rule out the use of agents. They tend to have a bad reputation but if you can find a good one they can be of great help, driving you around the city to look at places, offering suggestions and acting as translators. Many rely on word-of-mouth recommendations to keep their businesses going so your interests sometimes mesh with theirs.

Many people waste time asking about places they have already seen, because they don't keep notes. Keep track of the ones you've looked at so you'll recognise them as you continue to look.

Make a checklist of the things that really matter to you – built-ins, high ceilings, parking, an internal laundry. Finding a home is a very emotional process and this can prevent you getting bowled over by one feature of a place (ooh look! a swimming pool/sala/window seat/two-car garage) and not realising until you are about to sign the lease that the kitchen sink is only two feet off the ground or there are no cupboards.

To get an idea what you should be paying in any area you’ll probably need to enlist a Thai friend's help (for translating) and then drive around looking out for houses with 'For Rent' signs outside. Addresses are very confusing in Bangkok; you'll need someone to take you to see the place as directions will be useless.

Do your homework properly, take your time and gain advice from several quarters. Generally people are honest but you have little recourse to the law as a foreigner renting in Thailand. You'll also have little luck claiming back lost deposits and fees from your agent if things go wrong.

Most rented property in Bangkok and around Thailand, is fully furnished. Poor buildings will usually have second-grade furniture and facilities, while valued property will be luxuriously furnished and have a lot of facilities. Most middle to high-end condominiums will have a nice swimming pool, a sauna, laundry facilities, maid services and so on. You may just have to get some towels, bed sheets, and coffee mugs, and move in. Television, washing machine, microwave, air-con and so on will all be there. You can find all this, sometimes while paying a rent of Bt30,000 a month or less (especially in the suburbs of Bangkok), for at least a three-room unit. Much cheaper accommodations are available.

When renting a property for business purposes there will likely be a 'key-money' charge involved which amounts to six months rent or more, depending on the property's location. This is an old Asian tradition which amounts to 'daylight robbery' but is considered the administration fee. Often there may be a middle man involved who is sub-leasing the property and pocketing the key money.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

2.Recognize the housing pattern in Thailand .

        Thais generally have very different tastes when it comes to houses, preferring houses built for status rather than practicality. Since their lives are quite communally oriented, they prefer densely packed new housing estates, rather than secluded and remotely located places. Where Europeans may prefer tropical living with plenty of fresh air, warmth and natural light, Thais prefer to bolt themselves up in air-conditioned rooms with small windows. Of course there are exceptions to the rule and it means that you're more likely to find a great, cheap, place that no one else wants.

Noise levels are something many foreigners are likely to have difference tolerance levels for compared to Thais. If you like a place, come back at different times of the day and NIGHT to assess the noise, especially from karaoke machines, motorbikes tearing up the soi, PA systems attached to schools or temples, barking dogs and so on.

Not many buildings, especially those over 10 years old, are well maintained and this applies whether your are buying or renting. What you don’t get the landlord to agree to fix before you move in, you'll probably have to fix yourself.

Water features are popular and many places have pretty little ponds, canals and lakes but these all bring mosquitoes - lots of them. They do, however, help cool things down in the hot season. A big shady garden keeps the glaring sun out but retains the humidity in the rainy season and makes the house interior very dark on cloudy days.

Many places come with their own furniture, though this varies considerably. Cheap cane furniture can be bought here to supplement what they have given you. Cheaper places may have really uncomfortable beds. The Thais are used to sitting on the floor or sleeping on rock-hard coconut husk mattresses.

When signing a contract make sure that you have verified (independently) that the English version you are reading is consistent with the Thai version, for it is the latter which will be used in settling a dispute. In any case, Thais prefer to settle things out of court (courts aren't always impartial), so make sure you have the upper hand.

All nearly all rental properties the tenant will be required to pay additional charges for electricity, water and telephone that are not included as part of your main rent. Also, due to the tax structure, all property in Thailand is rented as "furnished" - even where you may not want to make use of the furniture. Remember to check the cost of water and electricity costs. Many landlords will charge a fairly cheap rent but make thousands back a month on high utility bills.

The usual deposit for a condo or apartment in Bangkok is about two months of rent, while the rent for the first month must be paid in advance as well.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

3. Make a good plan for your money.

        Generally speaking it is better to rent than buy unless you plan to stay permanently (or most of the time) in Thailand, and be particularly wary if your goal is to make a capital gain.

        If you do buy a condominium, you will in general have to prove that you have brought in the money involved from abroad. Banks have special forms to fill out for this purpose. So when you bring in the money to a Thai bank, with the purpose of using it to buy property, be sure to make it clear to your bank.

When buying, it’s generally better not to buy off the plan, as many people discovered in the wake of the 1997 crash.

If you own a property, you will be liable to pay a property tax. The amount of this tax depends on the estimated value of the property. You should check how much you will have to pay, though the rate may go up in the future. Expect between Bt10,000-20,000 a year for a two-bedroom unit. Other taxes will have to be paid when the property is bought or sold. Because of the peculiar local system of taxing property on a rather arbitrary assessed value rather than true market value, these could amount to as much as 30 percent of the purchase price. When a tax bill arrives ? often some two or three months after the sale is completed ? this could come as a nasty shock to a buyer, since the seller often neglects to mention this liability during the negotiations. Further, if the house is purchased through a company, one has to bear in mind that corporate tax is higher than personal tax, and the cost of setting up the company has to be considered as part of the initial investment outlay, even if this is a relatively modest additional cost.
Use the services of a law office, before you make a property purchase.

Maintenance fees are usually charged by the month, and the amount is decided in the yearly meeting of the owners (where you do have voting rights). A fee higher than Bt35 per meter per month, is possibly high, but all depends of course on the value of the property itself, and the need for important repairs. But often the money needed to keep up a building, might be used for other purposes. A Juristic Person (elected by the condominium owners) with staff will usually manage the building, with help from real estate management companies. Management of a building may often change, with as a side-effect that there is less long-term planning and management. Some unit owners will refuse to pay maintenance fees as long as they do not live there themselves. This of course is illegal, and reduces the money available for maintaining the building. From our experience, it is very difficult for a Juristic Person to force people to pay their dues.

Expect to have little control over what happens around your property. A garbage dump or a slum may develop just around the corner. Zoning is generally pretty lax in Bangkok.

When you lease property for a long time (like 30 years or 99 years), you may save some money when signing your contract, that is, a lease for 30 years may be cheaper than buying property. However, you should be aware that you forgo the rights of owning the property. For instance, you will not have voting rights in annual meetings. How the condominium is managed will be decided above your head. Monthly costs (like electricity) will also be charged, without you having control over it. Electricity costs and maintenance fees may go up over the years slowly but relentlessly.

If you decide to build in an outlying area, you may have to deal with the 'village headman', an influential figure who may have some sway over the suburb where you plan to build. Expect them to show up at the your doorstep demanding some sort of fee for an obscure building law.

If you buy with the idea of renting the apartment out to make a profit, you may want to think again. In the West, the standard rule-of-thumb for value/rental is around 100-120 times. In Thailand value of property is generally about 200 times the rental price. In short, it’s not a great investment.