Purchasing a condo, house or other property is a decision that takes time and careful planning, especially when looking at properties in a foreign country. We will give you a basic overview of these two options to help you make a more informed buying decision.
Purchasing a condo, house or other property is a decision that takes time and careful planning, especially when looking at properties in a foreign country. Each destination has its own set of rules and regulations, which is why it is so important to have an understanding of your options as an owner. In Thailand, there are two main ways for foreigners to obtain a condo outright – Freehold Ownership and Leasehold Ownership. We will give you a basic overview of these two options to help you make a more informed buying decision.
Leasehold Ownership vs. Freehold Ownership
Purchasing a property leasehold means you agree to buy a property for a fixed amount of time. During this time, you are the owner of the house or condo, but you do not own the land on which the property is built. At the end of the contract, the property is returned to its original owner.
Buying freehold, on the other hand, means the property is entirely yours. This usually means higher taxes and premium fees, but you have the benefit of owning the property and selling it at any time if you should choose to do so.
When deciding between leasehold and freehold, it is important to consider why you want to own this property. Is it an investment that you plan to sell in the future or a home you plan to stay in for the long term?
Leasehold vs. Freehold in Thailand
In Thailand, leasehold properties allow an owner to lease a property in his or her own name for an initial period of up to 30 years. In turn, this lease can be renewed twice in separate contracts for up to 90 years total of ownership. Many buyers see this as a sufficient amount of time to own the property and are happy with the lower overall fees associated with leasehold ownership. For example, the registration fees for a leasehold property are only 1.1% of the total amount of the lease rental fee, with .5% being paid by the lessor. This is compared to a 2% transfer fee for freehold properties, whereby both the buyer and seller are each responsible for paying 1% of the purchase price.
While the fees may be higher for freehold ownership, you have the benefit of owning your property outright for an unlimited amount of time. This means you have the right to vote at your condo’s general meetings, as well as the right to sell your property at any time – both of which do not fall under the umbrella of leasehold ownership rights.
However, it is important to note that Thai law states that only up to 49% of the units in a development can be owned freehold by foreigners. Therefore, if a development has reached this quota, the only other option for a foreigner to own is through leasehold.
The Next Step
As you can see, there are pros and cons to both leasehold and freehold ownership in Thailand. While this has been a brief overview of the two, we encourage you to speak in more detail with one of our agents to ensure you have a complete understanding of your options when purchasing a property.
Thank you for contacting us, we will get back to you as soon as we can.
For the company to collect, process or use your personal data for the purposes as follows:
Communication and provision of various information relating to products and services of the Company and offer of any projects in which customers may be interested
Preparation of marketing plan and analysis, process, development and improvement of products and services of the Company
Transmission of information to any third party or business alliance of the Company in relation to products and/or services of the Company
This policy shall be used for personal data protection for clients of SC ASSET Corporation Public Company Limited and its affiliated companies (the "Company") which you provide personal data through online and offline channel such as site visit, website, mobile application, social media (“Platform”), allowing you to search for, visit, use products and services of the Company and/or its business partners such as:
Residential projects, i.e. condominiums, detached houses, townhouses, commercial buildings and other projects.
Baan RueJai Application by SC Asset.
News and promotions of products and services.
Any operation regarding products and services.
"Personal Data" means personal information that enables an individual to be identified, whether directly or indirectly.
"Cookies" means information that is sent from a website to each visitor’s computer while accessing such website.
2. Personal Data collection
2.1 The Company will collect your Personal Data that the Company received whether directly or indirectly which consists of;
Personal data such as name, last name, gender, age, nationality, date of birth, marital status, address, occupation, place of work, postal code, email address, telephone number, credit card, personal income, car that you are driving.
Data on your interests such as products and services, hobbies, social networking activities, sports, travelling, etc.
Data on your decision whether or not to choose products and services, such as reason of purchase or selection of residence, budget, purpose, other products that are used for comparison, comments and site visit information regarding products and services.
Data that specifies your location while using the website. If you enable the GPS system, you consent the Company to collect and process your location information. However, if you would like to conceal this information, you can install programs or turn off GPS on your mobile phone.
Necessary information to be provided to the Company and the Company is entitled to process such personal data as stipulated by law without consent as follows:
Data to be provided for complying law or performance or execution of a contract or other data as stipulated by law. If you do not give your personal data, the Company may not be able to proceed with such action requested by you or as the Company informs you or other consequences pursuant to the applicable law.
Data that is necessary for any lawful interest such as the collection of photo from the Company’s activities and etc.
Other Personal Data subject to your prior consent
2.2 The Company will collect your Personal Data only as necessary or for the purpose of collection and in accordance with the law. However the Company may collect and anonymise any data.
2.3 Method of Personal Data Collection
through the Company’s channel, e.g. electronic means, documentation, verbally, depending on circumstances etc.;
or through channel of the Company’s business partner / other service providers, e.g. Facebook, Instagram, Twitter, Tiktok, Line, etc., for the purpose of creation of your profile or agent. or
The Company has no intention to collect any Personal Data of a child whose age is less than that stipulated by law (the “Age Limit”). If you are younger than that of the Age Limit, please do not use the service of the Company or give any Personal Data to the Company.
In the event that you are a parent of a child whose age is less than the Age Limit and is aware that your child is giving Personal Data to the Company, please contact the Company and you may request to exercise your right instead.
In the even that you are a child of age that is less than the Age Limit and need to receive services and products of the Company, you are required to have a consent of your parent in place for the provision of your Personal Data.
3. Purpose of collection / use / disclosure of the Personal Data
4.Potential Receivers of Your Personal Data
4.1 The Company, business partners of the Company or any employee of relevant companies.
4.2 Agents of the Company who has been authorized to offer and sell the Company’s products and services, including agent or person hired by such person.
4.3 Other persons, including agent or person hired by such person who is arranging in connection with the Company’s products and services, the conduct of the marketing activities, the offer of the Company’s information, the development of the Company’s products and services, e.g. payment method, documentation system, technology, delivery of documents, research, etc.
4.4 Any governmental authority or supervision organization or any person to which the Company is required to disclose such data whether by laws, regulations or order in relation to the Company or pursuant to the Company’s agreement with any governmental authority or any other person.
5. Security of Information
6. Owner's rights
7. Marketing Activities and Promotional Activities
In the event that the Company has send any information relation to its marketing activities and promotional activities, including those concerning products, services or any interesting activities and if you have agreed to receive such information but would like to cancel such receipt, you may proceed by Call Center at 1749 .
8. Exceptions to the Confidentiality of Personal Data
9. Personal Data Retention