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The ultimate guide to buying a condo in Pattaya

Is It Wiser To Go For A Second-Hand Condo Or Buy A New Condo In Pattaya?

 
 
buying a condo in Pattaya
 
For any condominium buyer, it is imperative to think about the question that is posed in the title.There is a whole list of differences between buying a second-hand condo in Pattaya and a new one and oftentimes, the best way to decide on this is to understand all the facts about the pros and cons of each type to help you make a savvy decision. 
 

Want cheaper maintenance fees? Go for new Pattaya condos!

 
condo maintenance If you are someone who loves to pay lower maintenance fees over time,then you should certainly think about getting a new condo in Pattaya.Second-hand condos would usually incur higher maintenance fees due to the upkeep and for new condo property development companies,lower monthly maintenance fees are a way for them to attract Pattaya condo buyers to their condo project.
 
 

Want lower property prices? Hunt for a second-hand Pattaya condo!

 
check out property prices Well, if you like everything new and sparkling fresh, there is a price to pay for that and that means a higher property price for a new condo in Pattaya. Although this is not always the case, it is safe to say that when you buy a second-hand condo, it is usually cheaper than buying a new one. Pattaya is always featuring rising property prices so it is normal that you would be expected to pay higher for a brand new condo.
 

Don't want to spend on renovations? Go for new condos in Pattaya!

 
tools for renovating your condo For most of the new condos sold in Pattaya, it is more likely than not that these condos have come as fully furnished units. This is the condo project trend in Pattaya so by buying a new condo, you would be satisfied with the new furnishings as well as the up-to-date home design theme in the new condo. As expected with older condos, things get worn over time and this is understandable so you might have tospend some money on renovations to get a second-hand condo's design theme up to your liking.
 
 

Looking for an established neighbourhood? Try finding a second-hand Pattaya condo!

 
find your perfect condo in pattaya Because new condos are usually new developments in lesser-explored areas of the city, wanting to live in a more established neighbourhood would usually mean that you would have higher chances of finding an ideal condo by focusing your search on second-hand condos for sale in Pattaya.These established estates would have better proximity to lots of amenities and facilities that are set up along the years to facilitatethe residents of these estates. For a new condo development to be coming up in an established part of the city is often rare due to the limitations of 
space but in any case if you happen to find one, that would also mean a much higher price for such a new condo.All in all, think about your specific needs about the condo you want to buy and once you have decided on your priorities, you can know which type of condo to search for in Pattaya!

 

The legal aspects of buying a condo in Pattaya 

Every year thousands of foreigners buy property here in Pattaya without knowing the full extent of their legal rights

 

legal aspects of buying a condo in pattaya

 

If you're planning on buying a condominum in fun city then this guide was written especially for you  Only 49% of a condo development can be owned in a foreign name

A Condo can be owned outright in a foreign name only if it has been registered under the Condominium Act 2008 and licensed with the relevant Land Department. Additionally, only 49% of the total space (not units) within the condominium development can be owned directly in a foreign name. The remainder of the units must be owned in a Thai individual’s name or a Thai company name. If you are buying a second hand condo which is currently in a Thai name, you will need to check out whether you will be able to own the property in your own name. 
 

A potential purchaser of a condo needs to consider the following legal issues before they sign any Sales and Purchase Agreement or pay any deposit:

 
A foreigner must obtain a FET (Foreign Exchange Transaction) Form (commonly known as a Tor-Tor Sam or 3) from their Thai bank to prove to the Land Department that funds (if over $50,000) were transferred to Thailand from overseas and that they were remitted for the purpose of buying the condo. This is required under section 19 of the Condominium Act 2008 and by the Land Department in order to obtain a Certificate of Foreign Ownership. The Tor-Tor Sam is also required if a purchaser wishes to resell their condo and remit the funds back out of Thailand in the future.Make sure that you have completed this form before you withdraw the funds from your account! 
 
In the purchase and transfer of a condo into a Purchaser’s name, taxes are payable at the Land Department: there is a Transfer fee of 2% of the Land Department valuation of the property; if the Seller is a company, a Specific Business Tax (SBT) of 3.3% of the sale price, or assessed value of the property by the Land Office, (whichever is higher) if it has been owned for less than 5 years.
 
If the SBT does not apply then a Stamp Duty tax of 0.5% will be levied on the assessed value. The law states that the SBT should be paid by the Seller as it is their liability. This point should be checked before agreeing to sign any Sales and Purchase Agreement. The Transfer Fee and Stamp Duty are usually shared by both the Purchaser and Seller, but again, this needs to be clarified before any agreement is signed. A Withholding Tax is also payable by any company that sells a property. When buying a condo off-plan, consumer protection law states that only half of the Transfer Fee is payable by the Purchaser and that all other taxes are the responsibility of the Seller. This point needs to be checked before agreeing to sign any Developer-prepared Contract. 
 
A potential purchaser needs to employ the services of a Lawyer to conduct due diligence on the property Title Deed before any agreement is signed or deposit paid. Such due diligence will identify that the Seller actually owns the property and they are entitled to sell the property, free from any encumbrances such as mortgages or other proprietary rights. Further due diligence must be carried out at the Department of Business Development, (DBD), if the condo is owned by a Thai company and the Purchaser is buying the company rather than transferring into his own legal entity. Again, this is to ensure that the company does not have debts or other liabilities not immediately apparent. In this instance, no taxes are payable at the Land Department because technically there is not a transfer of the property but merely a change of company shareholders and directors.
 
When buying an off-plan condo, it is important to check that the developer has a history of completing projects and that the condo development has obtained a Building Permit and received Environmental Impact Awareness (EIA). 
 
If a potential purchaser wishes to buy a condo and register it in an individual Thai name, a 30 year lease can be bolted on as protection for the foreigner. Likewise if a Thai company is set up to own the condo, there must be a minimum of 3 shareholders and a foreigner can only own up to 49% of the shares. Care must be taken when setting up a Thai company where there are foreign directors and shareholders that the Thais do not appear as merely nominees, having not paid up any share capital: purchasers need to arrange for their own Thai shareholders. 
 
The legal information in this article has been provided by the Magna Carta Legal Team

 

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Hi Pattaya Trader – Thank you for an always very interesting read. Is there any way you could publish this – I would dearly like to help the Mabprachan Animal shelter – I know they are not the only ones looking after stay and abandoned animals, but they have my undying gratitude for the way they helped me Yours very sincerely, Rick Walton Soi 11 Thappraya Road Jomtien 0892 465 210

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Beachfront Launch Party at The Residences Dream, Pattaya

Located in Soi 4 Na Jomtien Eric Lai Frank Satarand and their team hosted an excellent evening of entertainment buffet and free flow Guests were also invited to view the Luxury Beach Condominium of their dreams!

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Managing Your Online Reputation

Managing Your Online Reputation

It's fair to say that more business than ever is conducted online. People use Google and the other search engines as a matter of course.

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Off-plan condos VS re-sales and pre-owned apartments

Off-plan condos VS re-sales and pre-owned apartments

The Property market in Pattaya has always been driven by new developments, with off-plan and under construction condos offering payment terms over the period of time of construction.

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Copacabana Beach Jomtien held a great Pre Launch Party

Copacabana Beach Jomtien held a great Pre Launch Party

Copacabana Beach Jomtien held a great Pre Launch Party

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Pattaya Market 2017 Overview

Pattaya Market 2017 Overview

In my opinion, this year was very important for the Pattaya Property Market. As a property practitioner and certified specialist, working here since 2008, I have seen many ups and downs in the market.

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How does your business fare in China?

How does your business fare in China?

With Chinese New Year nearly upon us on the 16th February I wonder how many look up their fortune and see how their animal horoscope will fare in the year of the dog ?

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The (Ever) Changing Face of SEO in 2018

The (Ever) Changing Face of SEO in 2018

The digital landscape moves at a frantic pace. Stand still and you are likely to be overtaken by others that…. Aren’t!

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The Day AFTER Pattaya Real Estate Prices Bottomed

The Day AFTER Pattaya Real Estate Prices Bottomed

As a Certified International Property Specialist with my own real estate business it would seem that I am locked into the position of always maintaining a positive outlook on the real estate markets in which I work.

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Mentoring – A concept worth implementing

Mentoring – A concept worth implementing

Mentoring is a voluntary process where a generally more experienced person helps another prepare for future growth by advising on developing relevant skillsets.

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Marketing Wrap Up - 2017 - Driving More Online Business

Marketing Wrap Up - 2017 - Driving More Online Business

As we reach the end of the year it is time to review some of the key points that we looked at throughout 2017. Those who have read this regular feature will recall that we have covered a variety of topics aimed at driving more new business your way. In this article we will recap on the main areas and (attempt to) reinforce the benefits of marketing in this way.

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Huntsman IndiaThai Co., Ltd

Huntsman IndiaThai Co., Ltd

Huntsman IndiaThai Co., Ltd is a name which many people trust in regards to Property/Business Management in Pattaya.

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Bright Ideas for Retargeting your Website Visitors

Bright Ideas for Retargeting your Website Visitors

Retargeting isn’t new. It’s been around for a few years now; however, I am always surprised that more business owners don’t take advantage of this power advertising mechanism.

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