Being a city that is consistently ranked as the world’s top tourist destination, Bangkok has seen a corresponding growth in its real estate market, both within the city and across Thailand. In recent years, the city has emerged as a highly popular location for real estate investments, particularly among foreign expatriates. You can discover hundreds of condos for sale in Bangkok or apartments for rent in the city without much of a hassle.
That being said, when it comes to owning a property, particularly a condo in Bangkok, it usually boils down to two major choices: buying or renting. Let’s explore the condo vs apartment difference, as well as their pros and cons, in order to make a more informed decision.
Understanding the Bangkok Condo Market
Bangkok’s real estate market is as diverse as its culture. The city offers a range of condos, from luxurious high-rises in the city center to affordable units located in the outskirts. For many, the initial thoughts may be, “If I plan to stay long-term, then I should buy a condo,” or “If I only stay for working or visiting, I should rent a condo.” Still, there is a list of intricate details you need to explore to be able to confidently rent or buy a condo for sale in this vibrant city.
Renting a Room in Bangkok
Before renting a furnished, luxurious apartment, understanding the rental terms for a condo in Bangkok is crucial. Typically, standard rental agreements in Bangkok span 12 months (1 year). If you use agents, they often charge a fee equivalent to one month’s rent as brokerage. Those seeking rentals for less than six months should directly approach the owners. On the other hand, rentals exceeding three years require lease registration at the Land Department. The maximum allowable lease term is 30 years.
Pros and Cons of Renting a Room in Bangkok
Pros
- Flexibility: Renting offers flexibility, especially for those uncertain about their long-term plans. Even though you are entitled to a 12-month lease period, you can easily move to other condos at the end of that period, as apartment rooms are constantly available.
- Lower Initial Costs: Renting requires less upfront investment compared to buying. You only need to invest in the deposits and monthly utilities costs.
- No Maintenance Costs: As for the occasional maintenance and repairs, the owner is usually responsible for them. This makes budgeting much easier in the long run.
- No Market Risk: Renters are not affected by fluctuations in the property market value.
Cons
- No Equity Building: As you may know, rent payments do not contribute to property ownership or equity.
- Rental Increases: You may face periodic rent increases depending on the changes in the market and lease terms appointed by the condo project or owner.
- Limited Control: Renters typically have limited ability to alter or renovate the property.
- Dependency on Owner: You depend on the owner for property maintenance and addressing any issues.
Buying a condo in Bangkok
When considering settling down in Thailand, owning your property, such as a condo, provides a stronger sense of belonging and greater control. Still, Thailand enforces strict regulations on condo purchases.
Key points to note include that while foreigners are permitted to own condos or structures, they cannot own land. Crucially, foreigners may own up to 49% of a condo project. This implies that if 49% of a building is already foreign-owned, no quota will be available, necessitating a search for other condos for sale in Bangkok.
Pros and Cons of Buying a Condo
Pros
- Investment Opportunity: Bangkok’s real estate market often sees appreciating property values, making it a potentially profitable investment.
- Ownership Perks: Owning a property gives you the freedom to modify or renovate as you see fit.
- Long-term Stability: Buying ensures a long-term residence without the uncertainty of lease renewals.
- Rental Income: You have the option to rent out your condo, which can be a steady source of income.
- Capital Gains: There’s a potential for capital gains if you sell the property later at a higher price.
Cons
- Initial Cost: Purchasing a condo demands high upfront costs, including a down payment, taxes, and other purchasing fees.
- Maintenance Responsibilities: As an owner, you’re responsible for all maintenance and repair costs.
- Market Fluctuations: Real estate markets can be unpredictable, and there’s a risk of property value declining.
- Illiquidity: Real estate is not a liquid asset, meaning it can take time to sell if you need quick access to funds.
Choosing between buying and renting a condo in Bangkok depends on individual circumstances, financial capabilities, and long-term goals. Both options have merits and challenges, and the decision should be based on thorough research and personal needs.
In said regard, enlisting the expertise of a trusted property agent can be a great help. They can help streamline both the renting and buying process, as well as handling all the legal details. Throne Property Thailand is one such agent and real estate expert ready to provide you with a complete one-stop solution for all your Thailand property needs.
See our listing of condos and properties for sale in Bangkok, click here.
About Throne Property Thailand
Globally launched in 2014, Throne Property is a strategic partner of leading, well-known listed developers in Thailand. Our elite team of multilingual real estate experts provides a comprehensive range of services designed to accommodate all your needs. Our offerings start from real estate listing and extend to elite visa service, house inspection & transfer, property management, interior design, butler service, and inclusive after-sales services.
Experience a premium one-stop property management service with Throne Property. Get in touch with us today!
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