Lazudi's Guide 2022: How to invest in Pattaya Property

This guide outlines key points regarding investing in property in Thailand. Foreigners can buy property in Thailand. However, guidelines differ between condominiums and landed property. Foreigners can own a condo in their own name in Thailand. Although the government guidelines are applicable across the country, this article focuses primarily on condo investment in Pattaya.

Many people buying-to-let (investment property) purchase a condo as they are generally easier to rent out than houses. The ‘Juristic entity’ onsite overseas day-to-day property management, thus reducing owner intervention. And as owners have no direct responsibility for outdoor areas, condos require less maintenance and attention.

Why Invest in Pattaya?
Pattaya has changed considerably over the last few years. The local government has focused on moving Pattaya city to be more family-friendly and an attractive location to live for international employees of large corporations established in the region. The pandemic heightened the need further with the loss of international visitors over the last few years. So, what has changed?

• The Eastern Economic Corridor, EEC, covering the provinces of Chonburi, Rayong and Chachoengsao, is moving to an economy based on innovation and technology with efficient import and export links via land, sea and air. Attractive government incentives have attracted a swathe of large international corporations.
• The M7 motorway cuts travel time between Bangkok and key communities from Chonburi to Rayong with roads linking to coastal communities, including Pattaya City.
• A high-speed railway, linking Don Mueang–Suvarnabhumi–U-Tapao Airports is due to open in 2026. Trains will travel up to 250km per hour in intercity sections.
• U-Tapao International Airport is receiving a mega upgrade of 50 million baht, providing a new and direct east coast gateway for tourist and business travel.

With the improvement in roads and more people working from home, Pattaya has become an attractive alternative to living in Bangkok. Some Bangkokians have moved temporarily and others permanently, commuting to Bangkok for work as needed.

Where and What to Buy in Pattaya?
One way to approach this is to put yourself in the shoes of a tenant looking for property. The importance of the following aspects will vary for short, medium or long-term tenants.

Location: 

• Choosing the right location is the most essential aspect to consider. Many tenants prefer properties close to the beach, and main roads with easy accessibility to the public baht bus route (songthaew), although people staying longer term usually get their own wheels.
• Another critical factor is being close to shops and amenities. However, especially with large condo developments, these facilities appear later.
• Condo developments have been popping up in Pattaya and Jomtien over the last few years, with Jomtien being preferred by expats and tourists looking to live away from the Pattaya hubbub.
• Condo prices closer to the beach are generally more expensive and could potentially hold value more as the supply of beachfront land diminishes.

Onsite facilities: 

• Since the pandemic, tenants and ‘buy-to-live-in buyers’ are leaning towards condos with a range of recreational and working facilities, such as swimming pools, well-equipped fitness centres, garden and BBQ areas, co-working spaces, good security, laundry facilities and a mini-mart. Another trend has been the increase in people with furry friends and the need for pet-friendly digs.

Price: 

• People always want to pay a reasonable price, and the more your condo’ ticks the boxes’, the higher the potential rental return. Remember that Pattaya has many condos on the rental market, and your property needs to be attractive and competitive.

Completed project or off-plan?

• With a completed condo, you get what you see, and you can start renting it out straight away. Buying off-plan can reap savings; however, receiving rental returns takes longer, and construction delays can occur. If choosing off-plan, ensure you select a developer with a proven track record.

What is the Process for Buying a Condo?

This is a simple outline of the buying process. Listen and heed your lawyer’s advice at every step throughout the process.

1. Engage a reputable agent and independent lawyer and obtain a clear understanding of the purchase process.
2. When you have identified the ideal condo, you can negotiate on price. Some may be inflexible. However, there are many stories of buyers picking up great properties with lowball offers, especially if the current owner wants out.
3. A Reservation Agreement and a small booking fee is paid, taking the unit off the market.
4. A Sales and Purchase Agreement (SPA) is prepared, with 30 days to review and complete due diligence. Upon execution, a deposit is paid. For foreigners buying a condominium in Thailand, 100% of the funds must be transferred from overseas as foreign currency. Your Thai bank will provide a Foreign Exchange Transaction Form (FETF), essential for completing the sale.
5. If buying off-plan, make the instalment payments according to the SPA.
6. The settlement date is outlined in the SPA. Common Area, Sinking Fund and Transfer Fees are calculated, and the exchange is completed with final payment.

If buying property in Thailand is financially out of reach, you may be eligible to take out a loan in Thailand.

What are the Top Properties to Buy in Pattaya?
Our trusted Lazudi agents recently curated this list of our TOP 5 condos in Pattaya, in great locations, with excellent facilities and amenities, and offering great value for money. Whether you are looking for a Pattaya escape from Bangkok or investing in Thailand property, check out these TOP condos.

If you prefer to buy a house in Thailand, our Pattaya Homes To Fall Head Over Heels With provides excellent insight into properties for those looking for a long-term tenant or to retire in Thailand. For other listings, visit our website or contact our agents, who will help narrow your search.