What costs are associated with buying property in Thailand?

Before investing in a property in Thailand it is wise be aware of the involved financial obligations. Once you have chosen a unit in almost all cases the first cost you will need to make is the booking fee. This shows your commitment to the transaction and will reserve your chosen unit. After 14 days an additional payment will be due, the amount varies on the developer, and could up to 30 percent of the total agreed purchase price.

If you are paying for the property with money from overseas there are several things you must be aware of. Firstly, all payments need to specify that the money is for buying property. Include with this the name of the developer, the project and your unit number as proof. Without this you will not be able to take ownership of your property at the Land Office.

The bank that receives your payment(s) will issue a document called a Foreign Exchange Transaction Form (FET). You will need the FET documents as evidence of payment. Money transfers from overseas must use the same name as the one used in the Sales and Purchase Agreement. If in doubt a lawyer or an Ananda Sales Representative will be able to clarify the right documentation required.

The remaining balance of the property tends to be staggered. This will be detailed in the Sales and Purchase Agreement. Other costs to be aware of are the transfer fee which is 2 percent of the purchase price and is usually split between the buyer and seller for new projects; a one-off sinking fund which is held in reserve for any future building works; the annual common area management fee and cost to register the utility meters.

For further information on the process of buying a unit with Ananda please look at our step-by-step guide online here.