Many foreigners choose to make central or southern Thailand their home and a majority of them end up settling around Thailand’s third “country,” Chiang Mai.

Since the 1800s, the Thai city of Chiang Mai has been luring expats from the West, some come for the weather, and others are attracted to the low cost of living. It’s an area rich in history with a culture distinctly different than central and southern Thailand.

About 435 miles north of Bangkok, Chiang Mai is nestled in a fertile river valley surrounded by mountains and enjoys a more temperate climate than other parts of Thailand. It’s an area rich in history with a culture distinctly different than central and southern Thailand. Many people who first experience Northern Thailand on vacation end up staying for years.

The heart of Chiang Mai lies within its old city walls. Here, dozens of ancient and modern Buddhist temples coexist with public and international schools, residential and commercial neighborhoods.

Street markets and festivals occur almost nightly, and a huge array of restaurants catering to all tastes can be found within walking distance of almost anywhere in the Old City.

Chiang Mai has grown beyond the ancient walls, though, and extends for several miles in every direction. Large shopping complexes are located along the superhighway, a multi-laned, controlled-access ring road that circles the outskirts of the city. Several “mega-malls” and huge multi-national grocery and department stores line the access roads to the superhighway.

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Between the Old City and superhighway are the condominiums that so many foreigners purchase, freestanding houses, terrace homes, and hundreds of independently-owned neighborhood stores. One thing that Chiang Mai definitely has going for it is its weather.

While the weather in Bangkok is hot and steamy year-round, Chiang Mai has a cool-season From December until the end of February, mid-day temperatures are generally in the low or mid-80s.

• Can Foreigners buy Property in Chiang Mai?
• How can I find a property in Thailand?
• What are the steps to buying a property as a foreigner?
• Is Chiang Mai Thailand Safe?
• Is Chiang Mai Cheaper than Bangkok?
• How much does it Cost to Build a House in Chiang Mai?

Can Foreigners buy Property in Chiang Mai?

If you’re thinking of moving to Thailand then you’ll need a place to live. Home ownership in Thailand is extremely high – up at 80%, compared to 63.5% in the United Kingdom or 64.5% in America.

However, demand for property has slowed somewhat over the last year or two, causing the government and house builders to work on promotions to kick start the flagging market and encourage more buyers.

That said, although demand is slowing, growth in certain sectors is still solid – the condo market, for example, still grew 4.7% in the year to Q1 2016 – down on the previous year, but not to be sniffed at.

There are limits on foreign ownership of property in Thailand. Expats can own condominiums, and apartments, provided that the total ownership of the block remains in the majority Thai.

There are other routes to own property of different types, or land, in Thailand, such as by creating a jointly owned company, but it’s essential to take local legal advice to ensure you don’t fall foul of the law.

Moving to Thailand is a path well trodden by expats over the years. If you’re thinking of doing the same, then you’ll need to know a bit about the process of buying a home in Thailand as a foreigner.

What’s the property market like in Thailand?

Economic worries, and a shifting political landscape mean that some developers and investors are wary of Thailand right now. While the condo market was growing at 9.39% year on year back in 2013, the boom in prices has since slowed.

The same index hit 8.9% growth in the year to Q1 2015, but slowed to 4.7% a year later. The slow in price growth affects all housing types to different extents, with townhouses also showing a reduced growth rate of 3.1% and single family homes actually decreasing in value very slightly in the year to Q1 2016.

This curve mirrors changes in the economic outlook in Thailand, as analysts suggest that the Thai economy, which was booming back in 2012, looks likely to grow at a slower pace than other Asian nations in 2017. That said, monetary policy is stable in Thailand, with the central bank holding interest rates steady at 1.5%, and core inflation at around 1%.

As prices of homes start to plateau, the rental yields in certain segments are shooting up. The rents in condominiums – the most popular housing type for Bangkok residents – for example, continued with double digit rises even after the purchase price index started to slow.

Because of increased household debt, banks are tightening the criteria for mortgage lending, suggesting demand for rental properties will remain high for the foreseeable future.

Can foreigners buy property in Thailand?

Foreigners are subject to some restrictions when it comes to buying property in Thailand. It’s possible to buy a condo or flat, but more difficult to own land. Basically this means that expats can own a building but not the land on which it stands.

Foreigners can find a way around this by founding a company in joint names with a local, whom is then able to make the land purchase. However, if you want to explore this route then you’ll need to take detailed local legal advice.

What’s the approximate cost of different properties in Thailand?

If you’re thinking of buying a property in Thailand, the price you pay will be influenced significantly by where you want to live. In all of the largest cities, there will be a striking difference in average price based on the location within the city, with desirable central districts coming in at high prices. However, housing in Bangkok is extremely expensive in comparison to other expat hubs such as Chiang Mai.

Naturally the prices in smaller towns and more rural areas are significantly cheaper than in the large cities.

City	Price per Square Meter (USD, City Centre)	Price per Square Meter (USD, Outside of City Centre)
Bangkok	$4,093	$2,010
Chiang Mai	$1,620	$943
Nonthaburi	$1,768	$810

How can I find a property in Thailand?

Property agencies and agents

There are several avenues you can take to find a property in Thailand, however, most expats living in Thailand strongly recommend that you use a local property agent you can trust.

This is because the real estate sector in Thailand isn’t regulated, and there are restrictions on the way that foreigners can buy property. Add into this a very different system of arranging the deeds of ownership, and buying a home in Thailand without qualified local help can be problematic.

A specialist agent can also offer helpful advice and insight into the local market. Although, there will be a fee to pay for this service, they’ll help you with avoiding costly mistakes, and might be able to negotiate with the seller better than you can alone.

Nonetheless, you should make sure you’re clear on what you’ll get for your money, as both the packages and prices vary wildly.

Avoiding scams and pitfalls

Ask for local advice and recommendations for a broker, to avoid scams and pitfalls. The real estate sector isn’t regulated in Thailand, which means that quality of agents varies significantly.

Property websites in Thailand

The best way to get a head start on finding a place to buy in Thailand is to look online. If you’re looking for homes advertised in English then you’re likely to find things which are on the upper end of the price scale. If you’d rather find a cheaper place then enlisting a local agent who can help you scour, the Thai language sites will give you a huge advantage.

Great websites to get you started if you want to find a house or apartment to buy include:

• Right Move – UK based property umbrella site which hosts nearly 2000 Thai properties for sale by local agents. Because it’s a foreign site, expect prices to be on the high end but English to be spoken
• Thailand Property – An English website makes this easy to navigate, although properties are at the upper end of the market
• Siam Real Estate – Here you’ll find consulting services and listings of lots of different home types

How do I choose the right property?

Property types

You’ll have a wide choice of apartments, condos and houses in Thailand – although you face some restrictions to purchasing as a foreign buyer. Foreigner’s can buy condos, as long as the ownership of the block is still majority Thai, but it’s harder to own land as a foreigner in Thailand.

If you want to build your dream home yourself, you should talk to your lawyers about how this could be achieved. It’s possible for example, to lease land on a 30 year lease and then build. The lease can then be renewed or sold when you want to leave.

Alternatively, it’s possible to form a local company with a Thai friend, and have the company buy the land on your behalf. However, these arrangements must be made with the help of local experts.

Naturally, you’ll find more flats available in built up areas and cities, with condos being the most popular housing type in Bangkok by a long way.

Condition of the property

It’s a smart idea, though not required by law, to get a survey done on any property you choose or any land you decide to lease, before you commit to buying it. This isn’t necessarily the norm in Thailand, so you should ask your lawyer about how to find a local surveyor you can trust.

What are the steps to buying a property as a foreigner?

Buying a property in Thailand can feel quite different to buying a home in Europe or North America. The market is regulated less and you’ll be personally liable for more checks to ensure that the property you’re buying is being sold legally. You’ll need to:

• Have the savings for a house already, or find a local bank who can offer you a mortgage If you’re planning on getting a mortgage, visit the bank and get an offer in principle so you have a budget in mind
• Find yourself a property lawyer you trust, who is knowledgeable about the area you’re moving to
• Find the property you want to buy
• Have your lawyer check the title deed at the Land Department, to be sure the house was build with proper permits, and can now legally be sold by the seller
• Make an offer the seller agrees to, and pay a deposit. You can negotiate the deposit contract terms, for example, to add in a clause that specifies the deposit will be returned if it turns out after searches that there are restrictions in the title deeds
• In most cases, the seller will draw up the sale contract – you must check it with your lawyer to ensure everything is in order
• Go back to the bank and finalise the mortgage if necessary
• Sign the contract, and have your solicitor register the sale at the Land Department
• As part of the contract you’ll have agreed payment terms which you’ll now have to follow, to hand over the rest of the payment needed

What are the legal requirements to buying a property in Thailand?

Your lawyer has an extremely important role in your house purchase in Thailand. He’ll check the land register to make sure the property can be legally sold and check for any restrictions on its use.

There are many variants of title deeds on Thai property, including some which are extremely restricted, meaning that no change can be made to the land at all, and some which are essentially registered squatters rights. Your lawyer will help you understand the situation with the property you’ve chosen.

You can choose whichever notary you like to manage your property purchase, so it’s a good idea to find someone you trust and who speaks English if your Thai isn’t up to scratch.

How do I get a bank loan/mortgage?

Up until recently there were no local mortgage options available to expats wishing to buy a place in Thailand. Most Thai banks still don’t offer mortgages to foreigners, so you might find that you have to have the money upfront to purchase your property in Thailand. This will mean transferring savings, or a loan sourced in your home country, to Thai currency to pay for the house.

That said, there are now a few mortgages available for foreigners wishing to purchase a home in Thailand, and the market is gradually broadening.

Singapore-based UOB offers some mortgages for overseas buyers, with some restrictions, as does privately owned MBK Group. However, you’ll need to read the small print as the terms of these specialist mortgages might not be particularly favourable.

If you’re looking to find a mortgage locally to fund your home purchase, it’s essential to seek the advice of an expert in the market who will be able to find the right sort of options available for your situation.

How do deposits and down payments work?

Deposits / Down payments

You’ll normally be expected to pay a deposit of 10% to secure your purchase. It’s worth knowing that deposits are seldom held in escrow, away from the personal accounts of the seller. This can be a risk, so make sure you’ve done your due diligence and have no reason to distrust the seller or your lawyer.

Deposits won’t be returned unless the seller pulls out of the deal, in which case you’re technically entitled to a doubled return of your deposit.

If you’re not yet in Thailand, you might be planning on moving your money abroad to settle your new life. If you’re transferring a large amount of money across currencies, it’s important you get the best deal available when you transfer your money. One smart option is to get a borderless account from TransferWise.

With this, you can hold dozens of currencies all in one account (including GBP, USD, AUD, and EUR). It’s like having a local account which you can use to pay like a local, wherever you need it. And if you need to, you only pay a small flat charge to transfer money from one currency to another, and the real exchange rate is always applied.

If you’re paying your deposit or the cost of the property from abroad, you’ll want to double check your bank’s regulations before trying TransferWise for the transaction.

Depending on your residency status, you may need specific documentation from the original foreign bank account. Because TransferWise makes local transfers from local bank accounts, that may not work for your purposes. Make sure you double check local laws first.

What kind of taxes and fees will I need to pay?

Buying a property in Thailand involves very low taxes and fees – as most costs are covered by the seller. The buyer is usually responsible only for:

• Legal fees: Fixed costs depending on the circumstance, between $571 and $857

While the seller covers:

• Withholding tax: 1% of price
• Stamp Duty: Normally 0.5% of purchase price
• Estate agents fees: Typically they’ll be 3 – 5% of the purchase price
• Specific Business tax: 3.3% of price

Buying a property is a big – and exciting – step, but navigating the system in a new country can be a challenge. There’s no doubt you’ll find a wonderful property in Thailand – and if you do your research and source the right local help you could have your dream home in no time.

Is Chiang Mai Thailand Safe?

Chiang Mai is a fairly safe place to visit.  Having said this, there are certain precautions that the tourist to this Thai town should take in order to keep their trip trouble free.

Because Chiang Mai has a contrast of wealthy tourists and poor locals, petty theft does occur, which means that visitors should take certain precautions. 

• Don’t carry around large amounts of money, and avoid wearing expensive jewellery or looking flashy. 
• Drawing unnecessary attention to one’s self is never a good idea. 
• Try blending into the crowd instead of sticking out. 
• Leaving irreplaceable items in hotel rooms or guest houses is not a wise decision.  Instead, see if a security lock box is available.  If not, store the valuables with the accommodation’s front desk, but make sure to obtain an itemised receipt before leaving the valuables behind.
• Avoid travelling alone at night in quiet and dimly lit areas – this is a general recommendation for any unfamiliar area, but should be followed in Chiang Mai as well. 
• Drinking water out of the tap is not recommended. Some hotels have good filtration systems, but it is better to purchase bottled water. It is available at any convenience store (7-11s are everywhere) and is very cheap, starting at 10฿ per litre.    

Is Chiang Mai Cheaper than Bangkok?

Bangkok vs. Chiang Mai: the competition is fierce. Each city brings something unique and exciting to the table, so how are visitors to decide which is the best city in Thailand? While the Thai capital will always have a place in our hearts, here are 9 reasons why you should visit Chiang Mai over Bangkok.

The Ancient Lanna Kingdom

Chiang Mai was at the center of the ancient Lanna Kingdom, which spread across most of northern Thailand. Relics of this kingdom sprinkle the 700-year-old northern capital, which intermingles with its modern décor today.

The northern city especially thrived from 1250 to 1860. Chiang Mai continues to entice even visitors who only spend a few days here. Because of its history, many temples can be found throughout the city.

They are smaller than most temples in Bangkok but are designed in a noteworthy Burmese style. One of the most remarkable is Doi Suthep, a Theravada Buddhist temple atop a mountain just outside the city center.

Easier to Navigate

Boat, bus, skytrain, subway, motorbike, taxi, songthaew: there are many ways to get around Bangkok. In addition to an overwhelming number of options, Bangkok’s streets are home to some of the worst traffic in the world: just ask the drivers in Bangkok who were stuck in traffic for an average of 64.1 hours in 2016.

Chiang Mai, however, makes it easy for visitors to travel from point A to point B. Trucks with two benches, otherwise known as songthaews, circle the city center, making it easy for commuters to jump on and off as they please. The city’s light traffic also makes it certainly less terrifying to rent a motorbike and zoom around the city.

Vegan and Vegetarian Food

Though the capital continues to make strides in improving its selection of meat-free dining, Chiang Mai makes the grade regarding both vegan and vegetarian food. It seems as though visitors cannot walk far without stumbling across one of these restaurants in Chiang Mai.

And while these same restaurants in Bangkok normally get away with charging an obscene amount for a meat-free dish, the vegan restaurants in Chiang Mai are both affordable and delicious. The selection is incredible as well, with restaurants serving a wide variety of soy and tofu products and a number of delicious faux meat meals.

Affordability

Almost everything is at least a handful baht cheaper in Chiang Mai. Hostel accommodation should not cost more than a few hundred baht, and even the more luxurious of hotels are not going to break travelers’ budgets.

Meals normally don’t cost more than ฿100 (US$2.90), and the nightlife in Chiang Mai is sure to leave visitors hungover but not broke, as many are in Bangkok.

The Weather

According to the World Meteorological Society, Thailand’s capital city has some of the hottest year-round temperatures in the world. The average winter in Bangkok comes in at a whopping average of 79° Fahrenheit.

Chiang Mai, however, sits at a higher altitude than most cities in the country, making it less humid so it feels significantly cooler. On average, Chiang Mai is about 78° Fahrenheit, with the temperature dropping to as low as 72° Fahrenheit in the winter. It is still hot but not unbearable, as Bangkok’s weather is known to be.

Day Trips Galore

Sometimes, visitors just want to escape the city, even if just for a day. While the capital has its fair share of excursions, no other city in Thailand offers such a wide range of day-trip excursions as Chiang Mai.

Because it sits in a valley surrounded by mountains and a river, there are plenty of outdoorsy and adventurous excursions to choose from. White water rafting, hiking, ziplining, trekking, and rock climbing are just a few activities to choose from.

Those looking for something a bit more historical might instead opt for the three-hour journey to Chiang Rai, the old capital of the Mengrai Dynasty. It is well-known for the White Temple, or Wat Rong Khun. There are also a few elephant sanctuaries in the nearby mountainside that make for great day trips.

Immense Greenery

Bangkok, though dotted with temples and other historic relics, continues to modernize. This leaves little room for much greenery. Chiang Mai, on the other hand, is surrounded by mountainous terrain on all sides, which makes a lovely backdrop.

The city’s system of canals and Lanna ruins make the city feel unlike a city at all. Those looking to truly escape the urban jungle can venture into the neighboring mountains, as well.

The Wildlife

Tourists will be hard-pressed to find much wildlife in the City of Angels. Unless finding a jing jok (gecko) in the bathroom or a monitor lizard at Lumphini Park, the capital leaves little room for anything but people and cars. On the opposite end of the spectrum is Chiang Mai, where the center and outskirts are home to many species.

One of the top attractions in Chiang Mai is the Night Safari. There are also other excursions that promise encounters with wildlife, such as Flight of the Gibbon, a zip-line tour, where the chances of spotting one of these forest-dwelling creatures is high.

Visiting an elephant sanctuary is another way to get up close and personal with Thailand’s national animal, but pick a trustworthy company that does not allow riding the elephants. One such company is Elephant Nature Park.

The Hipster Vibe

Bangkok can have an uppity vibe, with its luxurious malls, fancy fine dining, and sky bars. While this can be great for travelers who appreciate the finer things in life, it can deter many of self-proclaimed hippies from wanting to visit the capital.

In contrast, Chiang Mai is hardly extravagant. A hipster, laidback vibe permeates, from quaint cafes to secondhand stores and more. Chilling out is easy in this laidback city.

How much does it Cost to Build a House in Chiang Mai?

With the cost of land, labour and materials being relatively cheap in Chiang Mai, many foreigners go for the option of building their own house on acquired land, but the process does present various challenges that should be noted before embarking on any construction project.

Top 10 House-Building Tips

1. It is worthwhile investing in enough land to ensure adequate construction space plus additional space for garden and privacy purposes.

2. Finding good quality, reliable builders in Chiang Mai can be a challenging process, but one that should not be hurried. Take time to ask around and gain recommendations from others who have already had building work successfully completed. See previous work of theirs.

3. Once you are confident that you have found reliable builders, it’s important to negotiate payment methods before any work starts. As with anywhere, negotiating a completion price generally works better than a daily rate, where work would potentially be dragged out.

4. In addition to negotiating payment methods, also ensure that details relating to work finishing are clear. For example; most Thai builders will not consider end of job clean-up as part of the contact. If you don’t want to be the one clearing leftover rubble, make sure that these details are agreed before work commences.

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5. If your spoken Thai is limited, and because most builders can’t speak English, it can be worthwhile arranging a translator. There is quite a difference in quality interpretation between a working class builder and yourself. Often their work can be sloppy, poorly planned and mistake prone.

6. Spending more doesn’t necessarily guarantee the quality, because many builders have become familiar with charging more when foreigners are involved but are unable to deliver to expectations. On the other hand, bargaining too much can result in corner-cutting and compromised quality which can be expensive to fix.

7. Construction costs for Chiang Mai house building are generally between 10,000 and 16,000 Baht per square metre. It’s advisable to aim for the higher end of the scale as quality in Chiang Mai may be perceived differently from Western standards. You also have to monitor quality of materials, such as use of steel, brickwork, wiring, foundations and finishing.

8. While most Thai builders are skilled, many concentrate on superficial appearance, paying little attention to smaller details. The best way to deal with this problem is to be onsite as much as possible or have someone there who is well aware of your personal preferences. Thai builders are renowned for not using spirit levels and set squares, for instance, resulting in ‘wonky’ lines.

9. It’s advisable to plan your building project during a time when there are fewer Thai holidays. Thai builders are notorious for extending two-day national holidays to being three or even five-day holidays. Expect delays in reaching deadlines as par for the course.

10. If possible, plan work to commence in the cool season (November to February). Work will probably progress more quickly and you can avoid the Songkran (Thai New Year) holiday period, as well as the rainy season.

Final Words

if you are thinking of investing in Chiang Mai, Thailand, this article has given you an exposure into the real estate industry in the country. Whether you want to buy a house or build, so can see the cost and the legal requirement.

So what is next? It is time to do your own research and when you are satisfied, put your money to work and invest in Thailand.