When you have finally decided to give retirement in Thailand a shot it is time to leave those hotel rooms, guest houses, and friend's floors behind and look for a more permanent residence. You'll find that the available housing here runs the gamut from hovel to palace. You could rent a nice small condo for a few thousand baht a month or buy a mansion for B50 million. But first let's consider whether we should be looking to buy or to rent.
To buy or not to buy, that is the question.

There are numerous regulations limiting foreigners from owning land and property in Thailand. In fact, up until only a few years ago even Thai nationals who were married to foreigners lost the right to own property here. But if you are set on buying, here are some rules (simplified) for owning property in Thailand. These change all the time so check with a lawyer if you are really interested in buying property.

You are allowed to buy, with some reservations, a condominium unit.
You can buy a building but not the land it is on.
You can hold a 30 year lease on certain lands and buildings.
You can be a part owner of a company that can own property.
You can invest B40 million in Thailand and own up to 1 rai of land.

Another option is to buy the property and put it in a trusted friend's/wife's/girlfriend's name. Although this is a very popular method of buying property, to put it bluntly, it can be a really bad idea. You wouldn't give someone you have known for a very short time your bank card PIN number, would you? Why would you put your life savings in someone else's name? That is just a farang-getting-ripped-off-horror-tale waiting to happen.

Why buy anyway? We normally own real estate expecting it to appreciate in value. We think of it as an investment that will grow, and it usually does. That rule doesn't always apply in Thailand. Older houses and condos are often looked at as one would a used car. Don't expect your 'used' property to go up or even hold its value. With the current lack of good investment opportunities many Thais are putting their money into building condos and housing developments. This has caused a glut on the market. Would you buy a 10 year old car if there were lots of new ones around for the same price or less?

Since it is almost impossible for a foreigner to get a mortgage here you would have to buy with cash. Let me suggest something better to do with your cash. Let's say we take the amount of B2.5 million. That would buy a good sized condo or a simple house upcountry. Instead of locking that money up in the purchasing of property, we invest it and get say a modest 6%. That would give us a monthly income of over B12,500. For that amount you could rent a nice condo or a small house. And you would still have the complete B2.5 million principle available to you.

So with that suggestion I have to admit that I just bought a house in Chiang Mai. Well, the house is in my Thai wife's name of course. We have been married for 35 years so I think we have a chance for a long-term commitment. Unless you have the same kind of enduring assurance with a Thai spouse I am going to recommend that you not consider owning property in Thailand.

Let's keep it simple. Rent.

Next Column: Condo Hunting
For one Expat's experience try:
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