Buying property in Thailand is an exciting prospect, offering both financial and lifestyle rewards for foreigners. But like any major investment, it’s important to take precautions to avoid costly mistakes. To help you steer clear of common pitfalls, we’ve outlined the top five mistakes buyers often make when purchasing property in Phuket.
A title search is a comprehensive examination of a property’s ownership history, recorded at the provincial Land Department. Tracing the title back to its first owner(s) assures that what you are buying is legitimate. Conducting a thorough title search ensures you are truly getting what you are paying for.
Skipping this step is one of the most common mistakes foreign buyers make—and one of the costliest to fix later.
"According to the latest research by CBRE Thailand, over 60% of disputes in secondary market property sales relate to unclear land titles or encumbrances."
Clear and Legal Title – You wouldn’t buy a bike or a car without the proper ownership paperwork, and the same principle applies to property. A title search confirms that the seller has a valid and legal right to sell the property.
Mortgages, Liens, and Encumbrances – Existing financial obligations such as mortgages, liens, or long-term leases can affect a purchaser’s right to use the land. It’s important to note that a valid lease contract will remain in force even after ownership changes.
Zoning, Environmental, and Planning Codes – When buying land in Thailand, especially in beachfront areas, it’s essential to verify the zoning and environmental regulations. Restrictions may apply to construction height, distance from the shoreline, or permitted land use.
For further reading, see our related articles: Foreign Property Ownership in Thailand: Freehold vs. Leasehold and How to Buy Property in Thailand as a Foreigner: Step-by-Step Guide.
We advise clients against purchasing property in Thailand without the assistance of a lawyer. While some purchases are more straightforward, they deserve the attention to legal details only a good lawyer can provide.
You can read more in our Should I Use a Lawyer When Purchasing Property in Thailand article. We can also provide a list of lawyers who are recommended by our previous clients.
Real estate agents in Thailand don’t need a license to do their job, nor do they need much of anything else. You only need to reach out to a few agencies for this to become painfully clear.
While communication delays and a general lack of professionalism might be annoyances, more important issues can come up. Agents might be new to Phuket and/or real estate in Thailand, or worse, they’re unscrupulous and will tell you whatever they think you want to hear in order to buy the property.
Pulse Real Estate is one of Phuket’s most well-established property agencies.In fact, every member of our staff has been living in Phuket for over 10 years, and almost everyone has more than 5 years’ experience working in Phuket property. As such, we work as a team to ensure the highest client satisfaction. Contact us and find out more about how we can help you with your property purchase.
This one can be seen upon first inspection--usually right at the entrance of the property. Common ground upkeep at the time of your visit will leave little to the imagination and management companies change, you can expect the same quality, or lack thereof, moving forward.
When investing in off-plan property you are looking to be able to move in as soon as possible or get a timely return on your investment. Mismanaged developments can lead to:
You need to carry out due diligence on any developer you are interested to purchase from by looking at their previous projects and financial standing. If information is hard to find, ask your agent who will share their inside knowledge, or put a good lawyer on retainer to find this information.
Pros:
Cons:
Pros:
Cons:
As we said at the beginning of this segment, the choice is ultimately yours, and only what you feel comfortable with matters. Keep in mind though, this is an area where the expertise of an estate agent can come in handy, as they will probably have knowledge of developers active in their area.
Everyone wants to know we’re getting a good deal, but when assessing price there are several variables to take into consideration.
You get what you pay for, and you may regret buying a property simply because it was cheap. Oftentimes, curiously cheap condos are constructed using low-quality materials and unskilled labor.
Other issues may have to do more with the surrounding area. Perhaps there’s a nightclub in the area that plays loud music until 2 am. The area may be prone to flooding, or the owner may have heard of a nearby construction project that is starting soon.
On the flip side of that, it’s often the case where a property slightly above a budget you’re most comfortable with offers the best value. For a small percentage just over what you were prepared to pay, you might get great maintenance, easy access to transport routes, a corner unit, or other added value items that make the property more convenient, and easier to sell later on.
Research properties in the surrounding area. That will give you a good perspective on the current market situation. This is another good reason to find a knowledgeable agent. They will know what’s currently happening in the local market, or they have good resources to find data they don’t currently have.
At Pulse we are on hand to help with all of your property requirements. Why not visit us at the office? We can make an initial introduction and find out your requirements over a coffee.
Alternatively you can call us on +66 63 078 6599 or fill out the form on our contact page and we will get in touch.
At Pulse we are on hand to help with all of your property requirements. Why not visit us at the office? We can make an initial introduction and find out your requirements over a coffee.
Alternatively you can call us on +66 63 078 6599 or fill out the form on our contact page and we will get in touch.