Buying a Condominium in Thailand

For any foreigner looking at investment properties in Thailand, condominiums have the easiest path to ownership. While buying a villa or other landed property can be complicated, foreigners may legally own foreign freehold condominiums.

While the word ‘condo’ sometimes conjures up images of small, cramped dwellings, there are spacious, luxurious condominiums throughout Phuket which dispel this stereotype.

Some resorts even offer stunning designs giving luxury condominiums the feel of a villa – right down to the private swimming pool, sprawling patio, and manicured lawn with landscaped garden. For those who prefer more traditional houses to bungalows, there are also roomy duplex condos.

These condos all hold their own compared with private pool villas and, while a foreigner may be enticed by a villa, the required Thai company ownership structure is not as straightforward as freehold condo ownership.

After doing their research, most foreigners simply prefer the hassle-free option of owning a condominium.

The most popular places to buy in Thailand
Thailand offers something for everyone – from cities to mountains to idyllic tropical islands. Chang Mai is an attractive destination in Thailand’s northern mountains, while Bangkok has moderately priced and luxury condominiums for city lovers. But one of the most popular places in Thailand, and probably the fastest-developing, is Phuket Island.

The ‘Jewel of the Andaman Sea’ has seen massive residential and infrastructure development over the past 20 years, especially on the island’s west coast. There is now a vast array of Phuket condos for sale, attracting buyers from all over the world.

Full foreign freehold ownership
This is probably one of the most important reasons why a foreigner would choose a condominium over a villa. Condos allow foreigners to own freehold Thai property in their own name, in perpetuity, registered at the local Land Department.

This is not the case with landed property (e.g. houses or villas) which require either a leasehold or the formation of a Thai company. The latter is usually frowned upon by the Thai authorities, as companies are not always correctly structured to comply with either the property or incorporation laws of Thailand.

In other words, foreign freehold condos are stress-free, offering buyers peace of mind that they are not flouting any laws.

Own a property in up-market areas
Owning a house or villa in highly desirable areas of the island can be prohibitively expensive. A condo, on the other hand, allows foreigners to own property in the same areas at a much lower cost.

Cheaper to maintain than villas
Whereas the maintenance costs for a villa all fall to a single owner, condominium running costs are shared equally among all owners. The upkeep of an entire resort is paid through a Common Area Maintenance (CAM) Fee. Owners also pay into a Sinking Fund, which is used to cover any major work that becomes necessary in the future.

Any villa owner will tell you the cost to maintain the property can be excessive: regular garden landscaping, pool servicing, and even exterior painting. In time, the villa roof will need repairing, the pool pump will need replacing, and various other niggling costs will compound your maintenance expenses.

These costs also arise with condominiums, but they are shared among all the owners.