Understanding The Purchase Of Freehold Condos And Leasehold Condos In Thailand

When purchasing a brand new property, you might stumble upon the terms "freehold" and "leasehold". It is important to know exactly what those terms mean, so that you can make a wise decision and be satisfied with your real estate transaction for a lot of years. Especially if you want to purchase a new property in Thailand, here is everything you need to know about freehold and leasehold properties.

With freehold, you have full ownership of the property

In other words, you legally own that particular property and you are entirely responsible for it. This means that you are the one who will support the maintenance costs and you are responsible for making any repairs in the long run as well. You are holding full ownership of the property forever or until you decide to transfer it to someone else.

With leasehold, you own the property for a limited amount of time

Obviously, leasehold is basically the exact opposite of freehold. You can buy a property in Thailand on leasehold, but you don’t own it permanently. Usually, in different cities of Thailand such as Bangkok, you own a particular property bought on leasehold for about 30 years. You are also fully responsible for maintaining that property and keeping it in a great condition during your ownership.

What is better: Freehold or leasehold?

Well, it only depends on your needs, preferences and of course budget. For example, if you really want to own a particular property and do whatever you want with it, it is a good idea to buy it on freehold. As a result, you can stay in that property for as long as you like, you can transfer it to your family members or loved ones, you can sell it and so on. With leasehold, you won't have so many privileges, but your main advantage is that you don’t need a very big budget in order to buy a property, you are just paying the rent.

In Thailand, both leased and freehold properties are sought after

Although in most cases it is just better to have your own house and buy a property on freehold, you should also consider the benefits of properties on leasehold. In Thailand in particular, very-well maintained condos on leasehold which offer a lot of attractive amenities are actually preferred of freehold properties that don’t share the same features. So, assess your needs, come up with a budget and make the right decision!