Do you often get confused on the type of property you are going to buy? Phuket has a lot of options for you to consider, particularly in terms of budget and other preferences. Most often, people get confused whether to buy an apartment or a condo unit while in Thailand. Although they may look the same, the key differences come in ownership, investment potential, and legal status.
Differences Between a Condo and Apartment
In terms of ownership, foreigners can own a freehold condo legally up to 49% of units in a building. However, they are not allowed to buy apartments because they can only be owned by a single entity. If you only need to rent a property, apartments are a great option because they are not sold as individual units. Condos, on the other hand, are a great investment option that you can buy or rent.
When it comes to investment potential, apartments are not an ideal option because you will have no ownership rights as a foreign tenant. Therefore, it will only be considered an expense for you, given you are not allowed to rent them out. A great option is to buy or rent condos because foreign owners have rights to do so.
Ownership Rights for Foreigners in Thailand
It is stated in the property ownership laws of the country to protect its land and economy from excessive foreign control. However, these restrictions are mainly applicable to land ownership and not buying condos.
The main reason why the government restricts foreign ownership of land is to preserve economic stability. If you are going to give full ownership to foreigners, it could lead to rising land prices, making property ownership for locals impossible.
Another reason why this is prohibited for foreign ownership is due to the Land Code Act of 1954. It is stipulated in the law to forbid foreigners from owning land in Thailand. The law was created for the prevention of foreign powers from controlling large areas of land in the country.
Alternative Investment Options for Foreign Nationals
Nevertheless, you can still invest in property through a number of options. For instance, you can buy up to 49% of the total saleable area in a condo building. You may also lease land on certain terms that will allow you to build a house. It is also allowed by law to set up a Thai-registered company, given it is 51% Thai ownership. Thus, you can buy land with this type of arrangement.
There are a lot of Phuket condos for sale for you to consider. A freehold condo or a long-term lease on a villa can be your safest choices. You can own 100% of a freehold condo under your name. However, the building must be at least 51% Thai-owned. So, you can only own up to 49% of the total space available for sale.
Condos also have high rental demand and good resale potential. If you want to know more options about available condos for sale in Phuket, let us help you. Give us a call or email us if you want to get the latest news and deals about property in Thailand.
