Buying a condo in Phuket: freehold or leasehold? (part 1)
Acquiring a condominium in Phuket: Freehold vs. Leasehold? What sets Freehold and Leasehold ownership apart? In Thailand, Freehold ownership bestows complete property rights, whereas Leasehold permits foreign citizens to lease and utilize the property without land ownership. Here, we delve into the specific particulars, pros, and cons of purchasing a condo in Phuket, considering ownership choices like Freehold and Leasehold:
Freehold Ownership:
Advantages:
1. Absolute Ownership: Freehold ownership, often referred to as "Chanote" or "Nor Sor 4," provides the highest level of property rights. You have complete and unconditional ownership of the condo unit.
2. Inheritance Rights: Freehold properties can be inherited, allowing you to pass on the condo to your heirs, ensuring a long-term investment for your family.
3. Transferability: You can freely buy, sell, lease, or transfer the condo without restrictions, providing flexibility in managing your investment and potentially profiting from property appreciation.
4. Peace of Mind: Freehold ownership is considered Thailand's safest and most desirable property ownership, offering security and control over your investment.
Leasehold Ownership:
Advantages:
1. Accessibility: Leasehold is a more accessible option for foreigners to invest in Thai real estate without stringent eligibility criteria, making it a viable choice for many.
2. Long Lease Terms: Lease agreements are initially issued for a 30-year term, and lessees can often extend them for two additional 30-year periods, potentially allowing for 90 years of ownership.
3. Negotiation: Lessees can negotiate the terms of the lease agreement with the lessor, allowing for some flexibility in the terms and conditions.
4. Transferability: Leasehold properties can often be transferred or sold to other parties, offering potential investment opportunities.
Ultimately, the choice between freehold and leasehold ownership depends on your specific investment goals, eligibility, and risk tolerance. Both alternatives come with unique benefits, and seeking guidance from legal experts and real estate specialists in Phuket is recommended. This will empower you to make a knowledgeable decision that matches your financial objectives and individual preferences.
