Thailand is a very beautiful country and is one of the most popular tourist destinations in Southeast Asia. However, the countless beaches, magnificent royal palaces, ancient ruins, and ornate Buddhist temples are not the only things that attract foreigners to Thailand.
While some people go to Thailand for resort experiences, others choose this country as a place to live and invest. This choice makes a lot of sense, given that the Thai economy has made significant progress in recent years. In 2020, the World Bank named Thailand one of the great development success stories; the country ranked fourth in ASEAN per capita GDP, after Singapore, Brunei, and Malaysia.
This country also attracts entrepreneurs. According to the latest World Bank ranking, Thailand ranks 21st out of 190 countries in terms of ease of doing business. Add to this a relatively affordable cost of living, $1990 for a family of four, excluding rent, and it becomes clear why more and more foreigners are choosing to live in Thailand.
The local real estate market is showing steady growth in both premium and economy segments. Read on to find out more about finding, renting, and buying a cheap apartment in Thailand.
How Can I Buy an Inexpensive Apartment in Thailand?
According to Numbeo, one square metre in a city centre in Thailand costs on average 135,405 THB ($3763), outside the city centre: 70,048 THB ($1947).
These figures depend on the province where the property is located, its condition, size, and many other aspects. In addition, it is important to bear in mind the restrictions imposed by Thai law on the purchase of apartments by foreigners.
Citizens of other countries can only buy properties in condominiums. Visually, they are not very different from apartment buildings; it is all about the legal status of the building. Therefore, when looking at property advertisements, you should exclude non-condo options, although the price may be very appealing. However, apartments are not always available to expats, even in condos. If 49% of the building’s residents are already foreign nationals, you will not be able to buy an apartment in this building
Theoretically, if a property is sold by a Thai owner, there is a chance that the quota in the building has not been reached yet and an expat will be able to buy the property. However, the quota is often reached while the building is still in the commissioning stage. Therefore, to save time when searching for housing, it is better to disregard apartments owned by Thai citizens. It is worth making an exception only for a special property; you can try your luck and check if there is any chance a foreigner can buy it.
You can check out available properties in the Housearch catalogue.
Bangkok.Photo: Wanaporn Yangsiri (Unsplash)
How Can I Rent an Inexpensive Apartment in Thailand?
According to Numbeo, renting an apartment will cost you:
- 14,439 THB ($401) for a one-bedroom apartment in the city centre and 8720 THB ($242) for the same apartment, but on the city outskirts.
- 37,893 THB ($1,053) for a three-bedroom apartment in the centre and 22,147 THB ($616) for a similar one, but on the city outskirts.
If you are on a tight budget, it is best to focus on small apartments outside the city centre and far from tourist areas.
If you are buying a home, you should give preference to condos, while with renting it is quite the opposite. This rule does not apply in all cases, but apartments for rent are usually located in complexes with one owner. Consequently, all issues are managed in a fast and centralised manner. Each apartment in a condo has a separate owner, and it takes some time to find the responsible party and solve the problem.
Once you have found a property that matches your budget, do not rush to sign a contract. First, check whether the price includes the utilities. They are usually paid separately, which means that the initial price will be increased.
Bangkok.Photo: Srinrat Wuttichaikitcharoen (Vecteezy)
The deposit also affects the final cost. If you are going to rent a condo or an apartment for more than a month, you will need to pay a deposit in most cases. A deposit usually equals two months of rent. The deposit, which is a guarantee for the owner, is theoretically returned to the tenant entirely or partly at the end of the contract. However, in real life, an unfair landlord can keep the whole amount under various pretexts. You will be able to avoid this or reduce the risk if you follow some rules:
- Check the reviews from previous tenants on the rental website.
- Take pictures of the apartment before signing the contract. Document all damage and wear and tear. It is best to do this in the presence of the owner or their representative.
- Make sure that the deposit clause is included into the contract with details about its return.
- Ask for a list of costs in case something is damaged.
- Ask about the cleaning fee right away. Many property owners in Thailand claim money for cleaning from the tenancy deposit. The cost of the service and payment procedure must be described in the contract. Otherwise, a seemingly cheap apartment might turn out to be quite expensive.
- Agree on the return of the deposit at the stage of concluding the contract.
These points will help you avoid unexpected expenses in the future and to keep costs down.
What Else Affects the Cost of an Apartment in Thailand?
Many factors affect the price of property, both when renting and buying. For example, the cost will be lower if:
- The apartment is in an old building. Construction in Thailand is constantly improving and properties built in the last 10 to 15 years are more likely to have a pool, a gym, and other amenities. Apartments in these buildings are more expensive.
- There is no security in the building. Most buildings in Thailand have at least a concierge. Buildings without security services are cheaper.
- The building is far from public transportation.
In a Nutshell
Many factors influence the cost of real estate in Thailand: the popularity of the area, proximity to the city centre, accessibility of public transport, the size of the property, its condition, legal status, and so on.
It is almost impossible to buy or rent a really cheap apartment without giving up certain amenities. However, if you determine which factors are important to you and which can be ignored, you will be able to save some money. For example, you can minimise future expenses by giving up security, a swimming pool, or a gym.
If you are renting a flat, you need to carefully study the terms of the contract and figure out what hidden payments may be included. This will help you to save money.
Cover photo: Bangkok, Andreas Brücker (Unsplash)
