First time home buyer tips
First time home buyer tips, helpful and interesting for real estate in Thailand.
Real estate is one of the most profitable, historic, and sustainable investment platforms of all time worldwide. And like every other business domain, success requires a proper understanding of the basic concepts, early planning, and great discipline.
Interest in the real estate market is on the rise with many not only thinking it’s a sign of adulthood and financial responsibility but also looking to join for the financial benefits. That said, buying your first home is a big deal and shouldn’t be done in a rush.
Moreover, purchasing a villa, condo or any real estate in a lucrative market like Thailand’s may be even trickier for a foreigner. That’s why you may want to take a close look at the following first-time home buying tips to help set you on a path to success.
Check Your Financial Situation
After deciding the time is right for you to go down the road of homeownership, you must look at checking and working on your financial readiness. Yes, you may have dozens of reasons to buy your first home, from the desire to settle down long-term to the appeal of low mortgage rates. But first, you must pull out your credit report and score to see where you stand like 12 months out.
During this check, identify and sort out any past due accounts or errors that might have gone to collections. Such liabilities may be problematic later if you need a home loan to assist with your purchase. In case you find an issue, contact the creditor and try to get it solved. Your credit score may not be as key in securing a mortgage loan in Thailand because it requires that you are a citizen, an owner of Thai limited company, or have certain marital benefits.
However, it would generally feel good to have a financially sound record and zero debts before moving for your first home purchase. There are many free credit monitoring services like credit karma and TransUnion which can help pull out your credit report.
Set a Budget and Stick to It
Before you ever dive into the market, it’s always very important to iron out questions like the most you can afford, and the perfect price bracket for you.
Take a look at your finances with some professional support from maybe your bank to get a better view of what will be an ideal range for you. With this budget in mind, you can survey the market so that you have a clearer idea about the kind of options within your price bracket.
During your calculations, make sure you factor in the total cost of the home including legal fees, maintenance, and closing costs. Don’t find it difficult to walk away from a house you love if it doesn’t fall within your set budget.
Start Saving Early for Your Down Payments and Closing Costs
You can be sure that becoming a homeowner especially in a foreign country isn’t cheap. Maintenance and upkeep are just some of your responsibilities and saving early for the down payments and closing costs will better prepare you for the process. Homeowning expenses can add up really fast, thus, making it advisable to be debt free and in possession of an emergency fund before you go out to make your first home purchase.
A weekly or monthly savings plan may require that you cut your expenditure on clothing, travel and other luxuries but will definitely take you towards the figure you need to make that first dream real estate buy.
Hire an Expert Property Agent with Experience in the Market and Area
The realtor you choose to hire may be a make or break point in your home buying experience. Remember you are looking to buy property in a foreign country and definitely need the best local assistance. The agent from properties away, will be familiar with the market and geographical area in addition to being able to communicate in Thai. He/she will be by your side from the beginning until the closing and even beyond saving you valuable time in selecting and showing you the available property within your price range and needs.
Sellers in Thailand generally offer quality sales at fixed prices. So, buying directly from the developer, eliminating the agent won’t save you any extra money. Instead, the liaison they offer, advice on market conditions, obtaining a fair price for you, and acting in your interest through the whole process are services you don’t want to miss.
Any Questions about your dream real estate?
Legal Planning and Ownership Options
Don’t forget you are spending a fortune to acquire this property, so it’s important to understand your ownership options and plan your steps carefully. The legal process in Thailand only allows a foreigner to own a condominium in his/her name. Make sure you sit with a lawyer or solicitor to iron out the legal process before signing any deposit agreement or contract.
If you wish to get land to build a house, you must acquire a long-term lease on the land which can’t exceed 30 years for each term but which is renewable. After securing the lease, you must then apply for permission to construct the house in your name. Through this method, you own the house and will have secured a long-term lease on the land.
The terms of the lease contract can be written allowing for reassignment to someone else if you sell, the possibility of subleasing, and a purchase option in case the law changes in the future to permit foreigners to acquire freehold ownership. A lease is, therefore, the most common legal route used by foreigners to acquire property in Thailand.
Research Neighborhoods that Best Fit What You Are Looking For
Of course, you will be looking for homes for sale within you decided price range. However, the property alone shouldn’t make your mind up. A NAR (National Association of Realtors) survey showed that 78% of homebuyers value neighborhood quality over the size of the home and for good reason. Also, 57% of buyers would prefer a shorter commute to a large yard, further highlighting the importance of location and neighborhood quality.
Your real estate agent from properties away, is usually better placed to help you with information such as the crime rates and quality of education around prospective neighborhoods. The noise levels, traffic conditions and other features of the area at different times of the day are also important. Make sure you choose a neighborhood you and your family will enjoy living in.
Summary of the Property Purchase Process
After succeeding to identify the land you would like to lease in Thailand, you have to get the process right to avoid future complications. First, a title investigation should be the direction you look to. This involves a comprehensive examination of the title deed as recorded at the Land Department. It will help you verify whether the Seller has the legal title of the land before you can move on with a contractual agreement.
This investigation will also reveal any registered interests on the land like liens and mortgages plus verification of your access to the property form applicable residential zoning, environmental, and planning codes in the area. It’s good to make sure you will be allowed to construct on the land.
When you are satisfied with a property after checking it out, you will be required to make a deposit as a sign of your desire to continue the process. As soon as this is done, the Seller reserves the property and commences with drawing up the purchase contracts. At this point, the deposit is usually non-refundable, unless there’s a special “get out” clause is written in the deposit agreement.
After the seller prepares the contracts, its advisable to have a lawyer or solicitor go through the terms and conditions detailly to make sure your interests are well protected. It’s common to have a penalty clause, in case you are late with the payment. That said, your schedule of payment should be reasonable and practical.
The first payment is usually around 25% before being completed progressively; For instance, 25% as soon as the roof is on, 25% upon securing the doors and windows, and the last 25% when the fittings and fixtures are completed.
If you have digested the tips above, you are definitely ready to get en-route towards your first property in Thailand. Just pay attention to detail and you will find the seemingly bumpy ride a lot smoother.
I wanted to thank you for this advice for home buyers. I’m glad that you mentioned you should try to have a lawyer or solicitor go through the terms and conditions of the contract. This seems important especially since they probably understand the terminology in the contracts, especially if it needs to be worded a certain way with buying homes.
I found your site from Google and I have to state it was an excellent find.
Many thanks!
Your advice to find a real estate agent that is experienced with the market and location that you’re looking to purchase in to make sure they’re familiar with it would be important. In order to find one, it would probably be a good idea to research agents online so you can learn about their expertise and services. After researching the local professionals, it might help to call or meet with your top choices in order to ask questions and discuss the type of residential property for sale that you’re looking for to make sure they understand the area and market as well as to have the opportunity to figure out if you’re comfortable working with them.
Hi Erika,
Thanks for summary and opinion. I agree with your statement to 100%. When searching for a property an experienced real estate agent can make your life much easier.
This is some really good information about buying your first home. It is good to know that you should think to get a summary of the property you want to purchase. It does seem like a good idea to get a professional to help you with that.
What I like about the article is that it emphasizes the need to save money as early as possible so that when the time comes and you’re about to buy the house, all you need to do is prepare the money and complete it via bank transfer. Having more than what you initially planned on the budget is a good idea since you have some leeway money just in case you find something nicer but is slightly over your original budget bracket. While I haven’t got any experience buying a house, I can definitely agree with having more than what you planned to buy a house with on-hand, especially when prices on real estate start rising.
I love your real estate tips. My house is getting old. I’m thinking of buying a new one.
My husband and I want to get our first home together, and your article had some great tips to help us with this process. I liked how you said to figure out things like what we can afford and our price bracket before diving into the housing market. Thanks; we’ll keep this in mind when shopping for a home.
I like your tip about taking a look at your finances. That seems like a good idea so you can buy a house within your budget. I’ll have to consider your tips so that I can buy my first home responsibly.
One of the important things to do when buying a house for the first time is to have a clearly defined budget–and stick to it! Everyone should be at the very least aware that buying a house isn’t cheap and can set them back by a considerable amount. If I were young again, I’d have definitely bought a house without even thinking about the budget!
I do agree that first time home buyers should take assistance from the experienced professionals to make a profitable deal. However, only experienced and reputed realtors should be hired for such purpose as such professionals have in-depth knowledge in such business and aware of the market situation of that locality which has a significant impact on the real estate business. Besides, a person should do a lot of research on the internet as the internet has been emerging as one of the most promising sources of information.
I agree it is definitely important to analyze your finances and set your budget right to avoid mistakes in the future. Great blog by thanks for sharing.
When it comes to buying your first house, one of the important things to do is to save up as early as possible because the downpayment to get a house isn’t going to be cheap! Cutting expenses across other things that aren’t necessary utilities like the electric and water bills should take priority especially when you’re looking to move from an apartment into a proper house. If I had to look for a real estate service the first thing I would do is to make sure that I would have enough money to actually afford the downpayment on a house!
I agree that hiring real estate agents or brokers is one of thr best steps you need to do when buying a house for the first time as they are experts in the filled and they have the familiarity with the market and geographical location. If ever that I will get a chance to buy my first one house this year, I will never hesitate to hire an agent because I don’t have any idea as to how to begin the process so I will be needing an expert’s assistance on this.
When looking for a place to live in, taking a good look at the neighborhood is one of the options available to you. The reason for this is that you would want to pick out a neighborhood that’s reasonable and has houses available in your price range, as well as being accessible to a number of important amenities like a school if you have children, or a clubhouse if you plan on inviting friends over. If I had the chance to buy a house now then I would definitely want to go for one that’s near a clubhouse with a swimming pool!
One thing to keep in mind as someone looking to buy a house is to look for a real estate agent who knows what they’re doing as well as being an expert in the area where you would want to purchase a house. The reason for this is that they know what amenities are available around the area as well as being knowledgeable about any other things that prospective homeowners should be aware of when it comes to purchasing a house in the area. If I were to buy a new house then I would want to make sure to look for a real estate agent who knows a lot about the area.
My wife and I are looking to buy a new house because we have outgrown the one we are in. Thank you for your tips on how to choose real estate agents. I have been noticing a couple of agent in my area who’s names are everywhere in the area, I think I will schedule an appointment with all of them
You mentioned that we might need to get a long term lease on the land if we want to buy a house on it. This is great to remember, except I want to buy a property that has a house already built on it so that I don’t have to worry about building one myself. My husband and I want to buy some property on an exotic island someday!
You make a great point that before you consider buying a home, you should first consider if you are financially ready for that. My husband and I are looking for a home now that we are both out of college. We arent is sure exactly how the process works, so we will be sure to find a professional that can help us out with that.
My aunt and uncle want to look into new real estate. It might be nice for them to look into getting a property that will be able to work with the contracts. My uncle and aunt might like knowing to work with a professional that will understand these issues.
I thought it was great how you said that you should find out what you can afford and what the perfect price bracket is for you before you buy a property. My wife and I are expecting our second child, so we want to move out of our apartment and into a house. We will be sure to set a strict budget before we begin looking for a home.
I like your tip about sticking to a budget. Hiring a real estate agent is a good idea when buying a home. I’ll look for the best agent in the business the next time I buy a house.
I have been looking to buy a home in Thailand and since I didn’t have any guide or idea how to proceed further, I started looking for tips online. I am glad I across this resourceful article and most of my doubts are cleared. Thank you for sharing such an informative piece of information on the things to do before buying a home. Keep up the good work!!
My aunt will be retiring soon and she wants to invest in a real estate property for her future. It was explained here that she should check the financial situation because liabilities may be problematic in the future. Furthermore, it’s recommended to consult experts when interested in real estate properties.
I’m looking to get into a home before winter hits. I do like the tip you mentioned about sticking to a budget. That way, I could be sure that I won’t be overspending or stretching myself too thin money wise.
You make a great point about researching neighborhoods that fit you best. My sister is hoping to buy her first home this year. She wants to start earning some equity and is hoping to find a Realtor who can help her with the search.
This is some really good information about rental properties. It is good to know that it would be smart to have legal planning for rentals. That does seem like something you should think about doing if you want to be a landlord.
Thank you for explaining that it’s good to iron out questions like how much you can afford and the right price bracket for you. I’m looking at buying a new home for the first time so I’ll definitely have to follow this advice. I’m going to look into more real estate property.
Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Actually Great. I’m also an expert in this topic so I can understand your hard work.
Thanks for talking about real estate. It is important to know the market. We want to get a new house.
I totally agree with you when you said that buying your first home is a big deal and shouldn’t be done in a rush. My sister is getting married and she wants to buy a house with her husband. I will share this article with them so they are aware of what to check before buying their first home.
Thanks for the great feedback. Best of wishes for the coming deal. In case you have questions please let us know.
Wow! Thank you! I constantly wanted to write on my site something like that. Can I take a portion of your post to my website?
I appreciate the information given in this article about the factors which should be taken into consideration before buying a home. First of all, a person should hire a real estate professional. Such professionals have in-depth knowledge in such field and could provide proper assistance to make a profitable deal. Besides, a person should also do a lot of research on the internet to understand the basic aspects of the real estate business. Some people often ignore the importance of hiring a realtor to save certain money which in-turn could cost them a lot of money.
Thank you for mentioning to hire a realtor that goes through the terms and conditions of the contract. I believe it is important since they understand the terminology in the contracts. My next step will be to find a great real estate agent to help me buy my first home.
I like what you said about prepping for the commitment of homeownership by prepping your credit score 12 months out. My husband and I have been looking for a home and need to pay better attention to that side of things. I would imagine that if we do some introductory viewings or home expos that we might get a better sense of where we need to be financially.