Why Buy? Rent and be Happy
© Udonmap.com

For most foreigners, our first contact with Thailand is as tourists. Then that time came when we said to ourselves, “I have so much fun in Thailand, love the Thai people so much, love the food and culture to death, it might be nice to live there.” So, we came to Thailand to call it “home.”

One of the first things we need in our adopted home is, well, a home. Living in a hotel room or renting a standard, Thai-style, one-room apartment can become tedious and cramped. At this point, many foreigners have a strong urge to enter the housing market and buy a home in which to live. Perhaps there is a Thai spouse or significant other who is also suggesting the idea of home ownership to us. In all but a few circumstances, it is better to lease property in Thailand than it is to buy. If you are not comfortable with living in a leased home for a long period of time, it may be a better idea to find another country more accommodating to foreign residency and land ownership.

In purely financial terms, it is usually much cheaper to lease a home in Thailand then it is to buy one. In Udon Thani, you can usually find a nice home to lease in the 7,000 to 10,000 Baht range. Using the higher range of the estimate for the sake or argument, you would spend 3.6 million Baht if you leased a home for 30 years. While this might seem like a lot of money to “throw away”, consider that if you accounted for the time value of money, the present value of that stream of payments is under 1 million Baht. To put it another way, if you were thinking of buying a new home in Udon Thani for 3.6 million Baht, you could deposit that 3.6 million Baht in a money market fund or savings account earning 5% interest and draw 180,000 Baht per year in interest. For that kind of money, you can practically rent any house you like in Udon Thani. At the end of the day, you still have your principle safely tucked away in the bank without having to worry about selling a major capital asset.

Leasing a home is also a great idea for maintaining your peace of mind and freedom in the kingdom. If it turns out that the neighbors are raising German Shepherds at night, you can move out. If the local rubber baron decides he’d rather have a petrochemical refinery next door, you can move out. If the spouse, girlfriend, or boyfriend doesn’t work out, what can you do? You guessed it. It is much easier to move out on a lease than it is to sell a multi-million Baht asset. This is especially true in a part of Thailand that is traditionally less affluent than, say, a Bangkok, Pattaya, Koh Samui, or Phuket.

Whatever you do in Thailand, it always helps to keep one thing in mind: we are all guests here in the Kingdom. If a Thai national marries an American and they move to America, the Thai national can almost always become an American citizen as a matter of right. As we all know, this is not the case in the Kingdom. Very few foreigners are able to obtain Thai citizenship even though they are married to Thai nationals and have Thai children. Almost all of us are here on one year visas, renewed annually. There is an old saying among ex-patriots here in Thailand: never buy anything that either cannot fit into your suitcase or that you are not willing to leave behind. Although Thailand may feel like our home at times, because of the legal system and societal attitudes towards foreigners, it will never be our home.

Of course, there are situations where buying might be a good idea. If you really do have a strong relationship with your spouse, it can be a good way to leave some property to him/her and his/her family as an estate planning tool. Ditto for those of us who have Thai children. Some foreigners can afford to risk losing a few million Baht without losing much sleep. Whether or not it is a good idea to buy or not will depend on each individual situation.

Whatever your situation is, you should always discuss any issue regarding real property with an independent, competent legal professional. A qualified professional will be able to explain all of the rights and risks involved with buying and leasing a home here in Thailand. A little money spent beforehand on competent legal advice can save you a lot of money in the future.

While we are on old sayings, here’s one among homeowners: the second happiest day of my life is when I bought my home, the happiest day of my life is when I sold it. It is usually easier to buy than it is to sell anything. This is especially true for homebuyers in Nong Khai. With all of the complications of foreigners buying homes in Thailand, leasing is probably the best option for most foreigners.

Note: The author is not a Thai attorney and nothing in this article is intended either as legal advice or as a substitute for obtaining legal advice specific to your situation from a licensed Thai attorney. Neither the author nor the publication assume any responsibility and shall not be held liable for any action taken or not taken in accordance with or as a result of any information contained in this article. This article, and the information contained herein, is intended purely for entertainment purposes only.