Land for Sale in Krabi

Building a property in Krabi

A Guide to Buying Land and Building a Villa in Krabi

Krabi is currently undergoing a period of significant expansion – increasing tourist numbers and a buoyant property market have resulted in a heightened demand for land and a rapid development of real estate. Therefore, finding an affordable plot in a desirable Krabi location is becoming progressively more difficult. If you have already fallen in love with your own slice of Krabi, you may be tempted to purchase it before local businessmen or other foreign investors snap it up. This is a huge step for most and one that should not be taken without first arming yourself with the facts.

With that in mind, we have collated some useful information designed to get you thinking about what you should consider before taking the plunge!

Step 1 – Buying Land in Krabi

Never forget – location, location, location! This is without doubt the most important factor when purchasing land in Krabi, particularly if you want to rent your future home on the lucrative holiday market. Sought after Krabi holiday villas tend to be located within easy walking distance of a beach or local tourist amenities and will ideally boast a sea or mountain view. Check too, that standard utilities including water, electricity, phone and internet can all be connected, as there are many parts of Krabi where this is not possible.

Currently Thai law does not allow foreigners freehold ownership of land, although they can own property. There are a number of ways to overcome this legal hurdle, the most common of which are listed below.

Land Lease – foreigners can arrange a 100% land lease in place of a freehold. Although the term is for a maximum of 30 years, there is usually an option to renew for a further 30. As many foreign purchasers are nearing retirement age, this is often a practical solution.

Investment – if you are fortunate enough to be able to deposit a fixed sum of cash (THB 40 million or around £800,000) into a Thai bank account each year, for five consecutive years, you are entitled to buy a limited amount of land for residential use.

Company Ownership – a registered Thai company with a majority of Thai shareholders can purchase land in Thailand. Foreigners can buy shares in such a business and, even as a minority shareholder, may then legally procure land.

Thai Spouse – A Thai spouse may buy land in the name of their foreign partner, although we feel a word of caution is appropriate! The spouse may have no formal rights to the land in the event of a death or divorce.

Remember – always seek independent advice from a qualified solicitor who has specific knowledge of Thai conveyancing laws before signing on the dotted line and, as mortgages are not commonly available to non Thais, be prepared for a cash transaction.

Step 2 – Building Your Dream Home

If you have managed to obtain your coveted plot of Krabi land, you will now be faced with the challenge of turning that empty patch into your dream Krabi home. Before embarking on the design phase, your Krabi architect will want to understand what you intend to use the property for, as your requirements will differ dramatically, depending on whether you want to live in the property yourself or rent it out as a holiday home to generate an income.

Some key considerations before beginning your villa design include:

Construction – a typical Thai construction is usually the best option. Local contractors will be familiar with this type of build and the necessary materials will be easy to obtain. Thai properties are designed to cope with the extremes of Krabi weather too, including intense humidity and heavy monsoon rain and will consequently be cheaper to keep cool during the hottest months. This means that your property will be easier to maintain, an important factor, especially if you are often away. Traditional and contemporary Thai buildings not only look impressive, they also tend to blend into the natural surroundings and are a popular choice for tourists.

Security – although the crime rate in Krabi is comparatively low, a secure perimeter wall or fence will provide additional peace of mind for both you and any future guests. It also helps deter unwanted visitors such as stray dogs or snakes which are not uncommon in Krabi!
Outside Space – again, depending on how you intend to use the property, outside space must be thoroughly reviewed. Most guests will expect some outdoor areas in which to make the most of the delightful Krabi climate and, whilst you might prefer sweeping, well manicured gardens, if you plan to be away for long periods of time, an attractive yet low maintenance garden may be the answer.

Swimming Pool – swimming pools require a lot of maintenance and can be costly to run. On the other hand, pool villas are without doubt the most sought after self catering accommodation in Krabi. Ensure that you allocate sufficient space for one if you intend to turn your villa into a holiday home.

Lifestyle – Take the implications of old age into account if you are preparing to retire in Krabi. Design your property with ease of mobility in mind and consider making it wheelchair friendly, especially if you plan to rent it out. There is a distinct lack of villas catering for the disabled in Krabi and you will have immediate access to an untapped market.

So, now you’re ready to turn your beautiful vision into a concrete reality – we recommend employing the services of a reputable Krabi architect and construction company, with extensive local experience. They can gently guide you through the entire process, from the initial purchase of your land, to the property construction itself and may even provide the ongoing maintenance and management of your holiday villa, if required. Professional developers offer an end-to-end project management service and work hand-in-hand with their clients, thus turning a potentially stressful experience into a fun and rewarding one!

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