Property Ownership In Thailand - The Freehold

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Posted by Continent Property on September 21, 2022
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Freehold Property in Thailand Explained

Owning property in Thailand is often not as straight forward as it is in your home country, but that’s also to be expected. The two options available to potential Thailand property investors are Freehold and Leasehold, both with their merits. While the Leasehold offers a few more convenient perks in regards to ownership responsibilities, or lack there of, a Freehold will entitle the purchaser to complete ownership, and all the pros that come with it.

Freehold Property in Thailand Explained

The Benefits Of Owning A Freehold Property In Thailand

Freehold property owners in Thailand are in a different situation than Leaseholders are in regards to the ownership, up-keep, maintenance etc of a property. The property is yours 100% and you are free to do as you please with it. This also comes with a number of other advantages that we’ve listed below.

A Freehold Condominium In Thailand Can Be Put In Your Name

Perhaps one of the most important aspects of owning a Freehold title on your property is having it in your name and without the use of a spouse, partner or shell company. Peace of mind is priceless when it comes to the property market in Thailand.

A Thailand Freehold Property Is Yours Forever

A Freehold property is yours to keep. You’re free to build a happy home full of memories until you either decide to sell or lease out your property.

Freehold Condominiums In Thailand Can Be Inherited

If the correct due diligence is done on your property and will, you can leave your Freehold condominium as part of your inheritance. There are two points of reference for this the Civil & Commercial Code and the Thailand Condominium Act. Although the information does differ slightly from these sources, the law is on your side if you have handled your affairs correctly.

Your Thailand Freehold Property Will Appreciate Each Year

Property in Phuket and Thailand has seen steady growth over the past few years and one of the many advantages of owning a Freehold Thailand property is that it will increase in value each year. Every baht you put into home improvements and maintenance will be reflected in the selling price if you choose to move on or upgrade.

The Disadvantages Of Owning A Freehold Property In Thailand

You’ll be pleased to know that when it comes to finding out the disadvantages of owning a Freehold property in Thailand, there are very little. Obviously you are fully responsible for the upkeep costs and any additional upgrades made to the property.

Common area fees will be the same as anyone with a Leasehold property but you have the benefit of not having to hand your property back to a developer or landlord at the end of the lease.

Thailand Freehold Property Ownership Summary

Having a Leasehold or Freehold option available to can only be a benefit to potential property investors, as each person will have different needs and requirements. While Freehold may limit your options slightly and is more aimed at Condo ownership, it’s still a fantastic option to own a property in Thailand, especially as an investment for the future, so let’s take a final look at the Pros and Cons below:

Freehold Pros:

  • Foreigner investors are allowed to own the property in their own names
  • You are able to leave your property to heirs
  • A Freehold is seen to be slightly more attractive to a potential buyer
  • You can mortgage your property or sell it outright as a Freehold owner
  • You are not limited to 30 years with a Freehold, its yours to keep
  • You have a voice when it comes to Condo and Estate meetings
  • Fairly low tax rates in comparison to properties abroad

Freehold Cons:

  • High transfer fees upon purchase (can be increased if the property was not owned long)
  • General cost of Freehold properties is higher than Leasehold
  • You are solely responsible for the up-keep and maintenance of the property

There are a good amount of Freehold and Leasehold properties available in Phuket, so all you need to do is decide which ownership option suits your needs the most.

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