Thailand is a kingdom situated in southeast Asia that has almost 70 million people and is one of the top tourist destinations in the world. The real estate market is a reflection of this with many foreigners, otherwise known as farang, buying or renting in large numbers in the islands in the south, in central Bangkok, and in the north in Chiang Mai and the province of Isaan.
Cultural differences in the real estate market are important but they can be overcome. In this guide I will explain what these differences are and how they can be overcome so that you can get the best deal, whether you are looking to buy, rent, sell, or become a landlord.
Saving Face
This is a big part of Thai culture to this day. It means that the people in power don’t like to be shown to be wrong in public and will do anything to avoid this situation. Try to be conscious of this and don’t embarrass people who you need in order to get a good deal.
Have patience and be kind at all times and you will quickly earn respect. This means things take time but they do get done eventually!
Weekends
Real estate agents work regular office hours Monday to Friday. Don’t contact them during the weekend as it’s not great if you want a working relationship. There are some agents in the busier parts of Thailand such as Bangkok and Koh Samui who might be the exception to the rule.
Noise
When it comes to renting or buying you’ll be invited to a tour of the premises. Make sure to raise your concerns diplomatically and politely because you’ll be better off in the long term, but it is a good idea to check for noise issues before you move in. There are many stories told by people who failed to do this and deeply regretted not doing so.
Construction noise is a difficult noise and you should always check with your real estate agent and anyone who lives nearby about this issue. Some buildings have a lot of construction going on all the time because they are bought or rented out on an individual basis. The responsibility to be aware of the current circumstances of the property is on you.
There is not much an agent can do for you after you have bought a property or signed a lease agreement. Construction can take place at some unusual hours and the police are not always that keen to crack down on it.
You must recognize that real estate agents can do little to control events once the contracts have been signed.
Dress Code
Try to dress in a smart casual fashion when in a Thai real estate office. You’ll be treated with much more respect and as a consequence you’ll probably get a better deal. Wearing a suit and tie is not necessary as a client. The sloppy dresser won’t get far and if you have tattoos make sure to cover them up if possible.
Hospitality
You will probably be offered free food and drinks in the office. Accept them graciously and show your appreciation. When accepting such gifts, saying “khop khun krap” if you’re male or “khop khun ka” if you’re female is polite and will be appreciated. It means “thank you” in Thai.
Getting straight down to business is not the Thai way. A little social talk for a few minutes is acceptable.
Inspection Tours
It is customary to be allowed an inspection tour of the property in the company of the agent. Try not to embarrass the agent by asking too many questions but rather let them talk and let them show you the benefits of the property. Be respectful when touring a property.
Take mental notes of what you see but try not to embarrass the agent by asking difficult questions. This is an opportunity to assess where you belong in the market and what is realistic for you.
Building Committees
Some buildings allow foreigners to serve on the committees that determine the rules of the building. This can be challenging and isn’t for everyone. However it might be necessary to ensure better hygiene standards, working elevators, and fewer issues with noise and security. The time invested might pay off and this will slowly earn the respect of the local Thai community.
A building might have a rat problem because the garbage is thrown on the street every night, but this might be alleviated by providing tall garbage bins. These and many other issues can be solved with teamwork and will help to improve the quality of life for those living in the building and ultimately increase the value of each apartment.
Measurements
Thailand has a different measurement system to that used in other countries.
The three basic units are Rai, Ngan, and Wah.
- One Rai is equal to 1,600 square metres.
- One Ngan is equal to 400 square metres.
- One wah equals 4 square metres.
Sometimes you might see a property’s area described as 2-2-64.
So that’s 1,600 x 2 = 3200. 2 x 400 = 800. And 64 x 4 =268
Add them all together and you get 4,268.
The good news is Thailand adopted the metric system in 1923 but if you’re from the U.S. or the U.K. then you’ll have to adapt to it. No one in Thailand uses hectares or acres in my experience, and I’ve only read a property being described in square metres or the traditional Thai system.
Make sure to have your mobile phone on you in order to save yourself the trouble of becoming confused if the agent starts referring to these units.
Dealing with Local Residents
Dealing with local residents is a necessary step to having a happy life in Thailand. One good step would be to invite them to your house warming party and share some food and drinks with them. This should win them over and build their confidence in you.
Good hygiene standards are appreciated considering that Thailand is a tropical country with its own health challenges. Be careful about rubbish and make sure that it’s secure from rats and mice.This might even attract snakes and dogs and it will make you very unpopular in a short amount of time. Removing stagnant water will also lower the risk of mosquitoes, which is useful since diseases like dengue fever and malaria are still present in Thailand.
Keeping your lawn cut low will also be a good way to prevent unwanted pests from coming to your neighbourhood and your neighbours will appreciate a neat and tidily kept front garden as well.
Deutsch:
Français:
Español: