Considering Condo in Thailand

[nexus99]

Me (US Citizen) and my wife (Thai and US Dual Citizen) are considering purchasing a condo in Thailand. We live in the USA now and will for the next 14 years or so. After that we want to have a beach spot (and maybe a spot in BKK) to live at as we choose.

 

We are thinking of something like a 2 bedroom place in Hua Hin, Pattaya, or other desirable beach close location. Not too terribly far from BKK.

 

In general, what are some bits of high level advice. Are there other beach locations we should consider? 

 

Is there a possibility for us to get a mortgage to help with the purchase?

 

is it reasonable for us to buy something now and find a way to have it leased/managed by a local property management company. 

 

Thanks in advance for your guidance.

[Jingthing]

I would say wait until you need and invest your money elsewhere such as a stock index fund.There is a good chance your Thai condo will be an ill managed wreck in 15 years. There is also a good chance that a remotely managed condo will take you to the cleaners.

Edited September 11, 2022 by Jingthing

[DrJack54]

6 minutes ago, Jingthing said:

I would say wait until you need and invest your money elsewhere such as a stock index fund.There is a good chance your Thai condo will be an ill managed wreck in 15 years. There is also a good chance that a remotely managed condo will take you to the cleaners.

Credit where due.

OP, the above is good advice, especially given the time frame that you outline.

 

Rentals can be a nightmare.

I gave my partner a condo and townhouse and currently she has issues with one tenant.

Late rents etc.

Does her head in.

I wouldn't even think of having rental investments in Thailand unless I lived in Thailand.

 

Frankly your plan is receipt for disaster. 

Even though I live in Thailand it still has been incredibly difficult when "things go wrong".

For example the townhouse we did complete make over.

Just to name one problem that occured was new kitchen we installed gone to termites in matter of months.

 

Less issues with condos imo.

However the rent issue mentioned above is in condo.

 

 

 

[KhunLA]

If you have to ask those questions, then avoid investing in RE in Thailand.

 

Invest in the USA, and use that income to live, rent, own in Thailand when the time comes.

[plus7]

General rule: if you want invest in property, invest where you live.

I bought condo 10 years ago, beach front - price didn't grow since that.

 

[scubascuba3]

Property here isn't really an investment, you may struggle to rent it out, ok to live in

[Peterw42]

Your wife would need to be gainfully employed in Thailand to get a mortgage from a Thai bank. 

Maybe, with inflation sweeping the planet at the moment, Thai prices will rise over time, But usually they remain static, 10 years later, you can buy/sell for the same price. So just buy when you are ready to come here.

[Etaoin Shrdlu]

I second all the reservation that other posters have mentioned.

 

Also, since you are both US citizens, consider the complexities of compliance with US tax obligations if you use a condo in Thailand as a rental property. Exchange rate fluctuation and the mandatory depreciation that you would have to account for can turn a loss at sale in Thai baht terms into a profit in US dollar terms, handing you a large US tax bill even if you don't repatriate the proceeds.

[pomchop]

Make $ there (usa) spend it here (Thailand).  Generally good advice.

 

Thai rents are very cheap compared with USA so you might want to forget the buy route and just plan on renting when you are ready for the move.  That way you can try out Pattaya or Hua Hin or wherever you like for six months or a year and when you decide where you like  and what buildings you prefer then find a rental and sign a lease with option to extend for several years.

[Celsius]

I posted a picture of my 2 year old hiso Bangkok condo in another thread.

 

Condo warranty is non existent in Thailand. Insurance does not cover or will cover only cosmetic issues (think water pipe burst, they will pay to paint the wall). 

 

Good luck with your investment.