Recession has affected consumer spending drastically so before you buy a house in Thailand answer this: how much house can I afford?
Investing in a house requires a lot of speculation and it means exploring different possibilities if a particular option isn't working well for you. There are many factors that determine your house affordability. The most important is your income. Your income should be enough to support your monthly mortgage payments. The other factor that decides the size of the mortgage you can take out in Thailand is your recurring expenses every month.
In case you are already having credit card debts, a student loan or an auto loan and you are making payments for the same, you should take out a mortgage that will enable you to meet your existing debt payments as well as the payment which you are required to make in case you take out a mortgage.
Your credit rating is also an important factor that will help you to decide the size of the mortgage. In case you have a very bad credit rating, lenders will perhaps shy away from giving you a loan that will have favorable terms. It doesn't necessarily mean that you don’t stand a chance to get a mortgage. You can shop around for different mortgage rates that are being offered by the lenders in Thailand.
As far as selection of property is concerned, you can lay your hands on any of the following depending on your affordability and interest. Check it out.
- Thailand Usufruct
A Thailand usufruct gives the right to an individual to use a particular premise for a lifetime and to derive profit from the property that belongs to someone else. However, the property should be used with utmost care so no damage is inflicted to the property. It has many legal aspects that can be best handled by a lawyer. - Thailand condominiums
You can also own a Thai condominium provided you are able to fulfill the criteria of owning a condo as per Thailand Condominium Act.
There are many other options to own property in Thailand.
A new draft bill related to land and property tax in Thailand may not go down well with many homeowners in Thailand. The main aim of the bill is to help property owners so that they can make optimum use of their land and property as far as selling unused property is concerned. It may be mentioned here that the Land and Construction Tax Bill that is expected to be taken up for discussion in the month of August may be approved towards the later part of 2009.
A common fear that is haunting homeowners in Thailand is that they will not be able to enjoy tax exemptions any longer. Currently, homeowners enjoy tax exemptions under the prevailing land and tax law that is in force for more than 80 years now. Consumers believe that there will be an escalation in taxes. Currently, property tax revenue makes up approximately 10 percent of the total budget. People are also anxious to know about the pricing of homes as per the new tax regime.
