Buying a condo for sale in the Sukhumvit area of the city is a wise investment. This area of Bangkok is one of the fastest-growing residential areas due to all the shopping, a vibrant restaurant scene and the undeniable convenience of living along the popular BTS Skytrain line.
The increase in real estate developments over the past ten to fifteen years in the Sukhumvit area has resulted in a better standard of living for residents living along this major artery in Bangkok. Residents enjoy condo complexes that have luxurious swimming pools, state-of-the-art, well-equipped fitness rooms, playgrounds for the kids and 24-hour security. Many of them also offer shuttle services that ferry residents to and from the nearest BTS Skytrain station.
With multiple-bedroom condos available, international schools close by, and some of Thailand’s finest hospitals, the Sukhumvit area is quickly becoming the area of choice for Thai and expat families.
Buying a Condo for Sale in Sukhumvit
Most of the condos available for sale along Sukhumvit consist of freehold legal ownership condos. Expats are eligible to own up to 49% of the total area of a condo complex. On a practical basis, these condos operate on a quota system. This means that 51% of the available units are reserved for Thai ownership only, with the rest available for Thai or foreigners.
Some of the condo developments in the area are built on leasehold land. These developers offer leases of 30 years with an option to renew. Leasehold contracts for foreigners are also offered in condo complexes where the foreigner quota has been reached.
Foreigners Investing in Condos in Bangkok
Several regulations govern foreign purchases of condos in Thailand that foreigners should stay aware of, as they change from time to time. Currently, it is very difficult for foreigners to obtain a mortgage in Thailand, although staying in touch with your local bank is always the best way to keep up with changing regulations.
Foreigners who buy condos for sale in Bangkok must transfer their purchase payments from an overseas account to comply with the 1991 Condominium Act. These payments have to enter Thailand as foreign currency. In registering the sale of the condo with the Land Department, foreigners must obtain a “Foreign Exchange Transaction Form” certificate for each payment from the recipient bank.
There are certain tax liabilities for everyone, both foreigners and Thais, that may arise when buying or selling a condo. They consist of a 2% transfer fee, a stamp duty, a 3.3% Specific Business tax and a withholding tax. Anyone entering into a purchase of a condo for sale in Bangkok should check the wording in their contract and see whether these taxes are split between the buyer and seller, or exactly which party will incur these taxes.
But once the sale is completed, you’ll enjoy a pleasant and convenient lifestyle in one of the most desirable areas of Bangkok.
Published by Samantha Brown