Most foreigners don’t know that many properties in Phuket can be bought either from a land auction or public real estate auctions. Many auctions are taking place on the island every day and if you’re in the right place at the right time, you can buy one of these properties at a nice discount. You also can enjoy the savings of buying a property at auction in Phuket if you remember my few tips of the trade.
Buying a property like a house, bungalow, condominium or even an apartment in Phuket can be quite easy if you know these few things first. You will need to have a company set up in the case of a land transaction of any kind. It’s forbidden for foreigners to own land in the kingdom of Thailand. Foreigners are allowed however to buy a condominium in Phuket in our own name if the condo title is a freehold title. If it’s not, you may be able to lease it for thirty years with a possible extension of another thirty years.
One of the most important things when buying a property at auction is to be able to do research on the title. The only way to do this is have a Thai ask all the right questions at the land office. Questions like “does the property have a public road” or “is the title free and clear of liens” are examples of things you will want to know. This can be often difficult for a lawyer to answer given the short amount of time between when a property is listed and the time it goes to auction. You need to be able to move quickly and do the research before you go to auction. If you haven’t had time to prepare for the auction, best to let the Phuket property go to someone else because it’s not worth the risk.
Another way to pick up a property is from several banks that have repossessed the property but for some reason the property in Phuket hasn’t gone to auction as of yet. There are many banks that have properties available. You can find a lot of these on the internet but you better have someone who can read Thai because many of the websites are in Thai only and there isn’t an English version. These banks also sell these properties at special open houses like the big one in Bangkok called NPA.
Many newspapers’ in the south carry Phuket land or property auction notices. A good Thai friend can alert you to the Phuket properties that come available. On the day of the auction make sure you bring your buddy as the numbers in Thai can be confusing during auction day. You don’t want to overpay or get caught up in the hype of the auction. Make sure to set your limit you want to pay for the property and stick to it.
In closing, a smart shopper can receive a nice discount buying properties in Phuket at auction if they have researched the title and make sure there are no problems with the land or property. A competent lawyer can do the necessary background checking on the land to make sure the title is free and clear. By doing proper research on The Phuket land title and having all the information like zoning, electric, water and mineral rights one can find a Phuket property suitable to purchase at auction. One of the best things to remember when buying a property that is too good to be true is that it probably is too good to be true and you may have missed something important in your research.