- The 30-year lease agreement: Purchasing a property under a leasehold title would get the investor a 30- year lease, renewable however, under the ‘30 + 30’ clause in the Thai Law, permitting the investor an additional 30 years thereafter the initial period. In this arrangement, the investor signs both the 30-year lease agreement made with the freehold title owner and a legally binding extension contract for another 30 years. The investor may even be able to extend the lease for another 30 years, allowing them to hold the property for a total of 90 years.
- Transfer possibilities: The investor has the right to secure a clause in the leasehold agreement stating transference of a leasehold title to a freehold title, on the occasion that the law changes. It is also viable to include family members such as young adults as co-lessees in the contract. By this means, in the unfortunate demise of the parents, the heirs are able take-over the remaining period of the lease agreement.
As with all real estate investments, the potential investor is recommended to conduct due diligence on the titleholder, especially if said titleholder, is a company. Factors that ought to be looked into when examining the company include: checking to see how long the company has been in operation, how long it’s held the land title and most importantly if the company is financially solvent, having met all of its’ financial obligations.
Be it a freehold or a leasehold arrangement – both these alternatives are made considerably simpler when an investor accepts the services of a Thai Real Estate Development company, a company familiarized with the Thai local laws, enabling them to expertly leverage their knowledge to benefit their clients.
To discover more about the processes required in acquiring you your very own slice of paradise – Contact our dedicated team at KASA Development.