Buying property in Thailand, particularly in a destination like Phuket, can be a rewarding investment — whether for lifestyle, rental income, or capital growth. But for foreign buyers unfamiliar with local laws and market dynamics, the process can also be fraught with hidden pitfalls.
To protect your investment and ensure a smooth transaction, here are some of the most common mistakes to avoid when purchasing property in Thailand.
1. Not Conducting Proper Due Diligence
Failing to perform a thorough title search and legal review is one of the most costly mistakes buyers can make. Always verify:
- Title deed type (Chanote is the most secure)
- Developer credibility (if buying off-plan)
- Encumbrances or liens on the property
- Zoning and environmental restrictions
💡 Solution: Work with a qualified lawyer who specializes in Thai real estate law to conduct due diligence before signing anything.
2. Misunderstanding Leasehold vs. Freehold Ownership
Foreigners cannot own land in Thailand, but they can own:
- Condominiums (Freehold) – up to 49% of the total unit area in any development
- Land (Leasehold) – typically a 30-year lease with optional renewals
- Structures (Freehold) on leased land
Many buyers mistakenly assume that leaseholds automatically renew or offer the same security as freehold. They don’t — and must be structured carefully.
💡 Solution: Understand your ownership rights clearly, and have all terms documented and registered with the Land Office.
3. Relying on Unqualified Agents or “Too-Good-To-Be-True” Deals
The Thai real estate market is not as tightly regulated as in many Western countries. As such, it’s not uncommon to encounter unlicensed agents, aggressive sales tactics, or overpromised rental guarantees.
💡 Solution: Choose a trusted, experienced agency that prioritizes your interests, offers transparency, and provides clear documentation.
4. Ignoring Transfer Fees, Taxes, and Ongoing Costs
Many first-time buyers only budget for the purchase price, not realizing they’ll also need to cover:
- Transfer fees (typically 2% of the appraised value)
- Withholding tax or stamp duty (0.5–3.3% depending on transaction type)
- Lease registration fees
- Annual maintenance or management fees (especially in condos or gated communities)
💡 Solution: Ask for a complete breakdown of all upfront and recurring costs before committing.
5. Overlooking the Importance of Currency Transfer Rules
If buying freehold property, foreign funds must be transferred into Thailand in foreign currency and documented with a Foreign Exchange Transaction (FET) form. Without this, the Land Office may not approve your ownership registration.
💡 Solution: Work with your Thai bank and legal advisor to ensure your funds are properly transferred and recorded.
6. Skipping Legal Advice
Some buyers rely solely on advice from developers or salespeople, which can leave them vulnerable. Thai law and contracts are often unfamiliar territory for foreigners.
💡 Solution: Always hire an independent lawyer to review contracts, translate documents, and protect your rights.
7. Not Considering Property Management
If you won’t live in your property year-round, maintenance and rental management become critical. Without a reliable local contact, you risk deterioration or rental mismanagement.
💡 Solution: Choose a property with reputable management or hire a professional service to handle everything on your behalf.
Final Thoughts
Thailand offers excellent opportunities for foreign property buyers — but only when approached with the right knowledge and support. Avoiding these common mistakes can mean the difference between a stressful experience and a successful, rewarding investment.
At Reloc8 Phuket, we offer expert guidance, local insight, and full-service support to help you purchase with peace of mind.
📞 Contact us today for a free 30-minute consultation and let us help you invest with confidence.
