Is it possible to sell condominiums to foreigners?
Selling condominiums to foreigners is a popular form of real estate investment because many foreigners who like Thailand, want to live in Thailand, or work in Thailand often have high purchasing power. This makes the opportunity for success relatively easy, or even easier than selling to Thais, especially for high-priced, profitable condominiums. However, for novice investors wanting to start selling condominiums to foreigners, there are important things to know to ensure a correct and safe investment, as follows:
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1. It's crucial to know that not all foreigners can buy condominiums in Thailand.
Currently, the law allows foreigners to own condominiums in Thailand, but they must meet specific legal criteria. For example, they must be foreigners with permission to reside in Thailand under the Immigration Act or those permitted under the Investment Promotion Act to purchase residential properties in Thailand. If investors are unaware of these legal conditions, they may inadvertently sell condominiums to unauthorized foreigners, potentially violating the law and facing penalties.
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2. It's essential to know that there are limitations on condominium ownership for foreigners in Thailand.
The latest law states that... Foreign nationals are allowed to own a maximum of 49% of the total area of a condominium project. For example, if a condominium project has 100 units, only 49 units can be sold to foreigners. This usually doesn't pose a problem for small-scale investors who buy a single unit or a few units to resell to foreigners, as the project owner is responsible for controlling the number of units available for foreign ownership. However, problems can arise for large-scale developers who build and sell condominiums themselves, and foreigners buy up a large number of units. If proper verification isn't done, and ownership is transferred to foreigners exceeding the legal limit, it can be considered a violation of the law and lead to subsequent problems.
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3. Understanding the Preferences of Different Nationalities for Condominiums and Locations
Once you have a basic understanding of the laws to plan your condominium investment for foreigners correctly, the next step is to understand their needs. Different nationalities have different preferences; for example, Japanese nationals tend to prefer condominiums with complete amenities, a quiet environment, and hot tubs. And locations like Phrom Phong and Asoke are popular because many Japanese people work and live in those areas. Similarly, Chinese buyers often prefer condos near shopping, dining, and entertainment venues with convenient transportation and a large Chinese population, such as in areas like Rama 9 and Huai Khwang. To successfully sell condos to foreigners, investors need to clearly focus on the nationality of their target audience. This will allow them to select condos that best meet the needs and preferences of their target group.
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Thank you for the valuable information from REIC.
