How To Avoid Risks When Buying Real Estate In Phuket?
by Arnab Dey Real Estate 29 April 2023
Any type of investment is followed by certain risks. It would be irrational to argue over this fact.
Thai real estate is not an exception. Warm weather all year round, clean spacious beaches with white sand, and diverse nature plus urban infrastructure: shopping centers, schools, hospitals, and an airport provoke foreigners to make emotional decisions and forget about the risks. Before monitoring flats prices in Phuket for expats, a foreign buyer has to analyze the possible unpleasant issues and weigh all the pros and cons.
Buying real estate in Phuket for ex-pats
Under the Condominium Act, a foreign national can buy an apartment in Thailand as his or her own full personal property. Villas and houses in Thailand are not available for foreigners as Thai law does not allow buying plots of land by people without Thai citizenship.
One more important rule to know is that buying real estate in Phuket does not result in obtaining citizenship. It means that irrespective of the amount of money the foreign buyer pays for an apartment, obtaining a Thai passport is available on general terms. Moreover, you must renounce your nationality at birth: dual nationality is not recognized in Thailand.
Common risks when buying real estate in Phuket
The sale of real estate is the main goal of Thai realtors, and they are willing to go to deception to achieve it. Realtors introduce themselves as anyone and make up unbelievable stories, just to close the deal. Of course, not all realtors are like this, but you should be careful about the person with whom you will work. Find out as much information as possible about the real estate agency you are going to work with.
Political and administrative risks.
Such unexpected issues like changes in the general political situation, public protests, or territorial disputes are very unlikely to happen. The progressive laws of the government ensure the stability of domestic politics. Countries with a constitutional monarchy are politically more stable. Even the change of government in 2014 had no effect on the real estate market and the economic situation in general: the exchange rate did not change and there were no military actions.
Construction risks and delays.
Construction risks are most often connected with getting the obligatory EIA certificate and possible delivery delays. The process of obtaining the EIA certificate can take up to 1 year but the start of the construction is prohibited without the document.
Bad weather conditions sometimes may influence meeting construction deadlines. However, if the finishing of the construction is delayed, the developer will have to pay fines to the clients.
Ways of eliminating risks when buying real estate in Phuket
Avoiding all the risks when buying property in Phuket is almost impossible. But, there are several ways to reduce them:
- If you need a qualified lawyer`s help, contact a company with an office in Thailand: its lawyers have a better understanding of local laws and procedures and have experience and useful knowledge.
- Choose only the trusted and popular developer with an extensive portfolio.
- Investing in off-plan apartments, select the object with the possibility to get income in the process of development.
- Choose projects where a management contract is signed with a hotel operator. Before signing a contract, the hotel operator carefully checks all the risks associated with the implementation of the project.
- Be careful and responsible when checking the documents. Ask professional notaries, lawyers, and translators to make sure that the obligatory pack of documentation is present.
The bottom line
Investment in real estate in Phuket is one of the best and proven ways to not only maintain but also increase their savings, which in the economic crisis is becoming as relevant as possible.
Deciding on buying real estate in Phuket, a buyer should not be misled by plenty of irrelevant information. Risks are possible, it is a fact and it has to be accepted. But the fact should not stop foreigners from investing in real estate in Phuket.
To select a suitable apartment, go to the website Thailand-Real.Estate. Here you can find exclusive properties from trusted developers and good business prospects. Thailand-Real.The estate is a perfect tool to make the first step towards your dream of resort housing.