How to Buy Paradise Property in Thailand Without Going Broke: Secrets of Saving and Hidden Costs!
Today, let's discuss what costs you might encounter when buying property in Thailand and how to calculate them correctly to avoid any unpleasant surprises. Understanding all potential expenses is key to a successful purchase.
One-time costs:
Registration fees
These are taxes paid at the land office during the property registration. The fees depend on the type of property, ownership form, and how long the seller has owned the property. Some taxes are based on the contract value, while others are based on the appraised value. Buyers typically pay around 2-3% of the property's price.Sinking fund
This is a one-time payment to the management company for future major repairs of common areas. It usually ranges from 400 to 800 baht per square meter and is paid before property registration. In some complexes, this fee may be annual.Freehold surcharge
In Thailand, foreigners can own property as either Freehold (full ownership) or Leasehold (long-term lease). Standard prices are usually for Leasehold properties, but if you want Freehold, expect to pay an extra 10% of the property price.Furniture and accessories
When buying a new property, you will receive a unit with basic finishes, plumbing, air conditioning, and built-in furniture. However, you'll need to buy additional furniture. For convenience, developers often offer furniture packages.Water and electricity meters
Sometimes, developers require buyers to pay for water and electricity meter installations. These can range from 10,000 to 20,000 baht.
Annual costs:
Common area maintenance
Most apartment complexes have a pool, gym, and 24/7 security. Maintenance fees are the responsibility of the property owners and are typically about 60 baht per square meter per month.Garden and pool maintenance
Owning a villa is more expensive than an apartment. Regular garden care and pool cleaning are necessary, costing around 500 dollars per month.Utilities
Electricity and water are metered. Electricity costs about 40 baht per kilowatt, while water is significantly cheaper.
Hidden costs:
- Hidden fees
If your property is rented out through a hotel, be aware that hotels may deduct marketing and management costs before sharing profits with you.
Conclusion:
It's essential to carefully calculate all real expenses before buying. Some complexes may promise high returns, but additional fees can reduce your actual income.