So, what should buyers do in the Hua Hin property market today? As I write this, a small number of local property owners are finding that purchases made through nominee structures have landed them in serious trouble.
I have some sympathy for those affected, but nominee ownership has been the wrong way to buy property for decades, and most people knew there was a risk. Thailand has not suddenly changed its laws. The authorities are simply taking action against people who have not followed them.
Legal ways to buy property in Hua Hin
Buying property in Thailand has not changed. It can still be simple, effective, safe and secure if you do it properly.
Thailand is a proud nation and wants to protect its land. Some people will use the current situation as another excuse to post negative comments online and claim the country is too risky for property buyers. I do not agree.
I am proud that I have never offered a nominee purchase. In fact, thousands of people will have heard me ask: “Why do this illegally when it is so easy to do it legally?”
Many countries restrict foreign land ownership or use leasehold arrangements. It is not as unusual as you might think. Thailand prefers shorter, more controlled lease terms because Thai people do not want to lose ownership of their land. That is understandable.
A properly structured and registered lease provides security for the agreed term. Buying a villa can still be a good option and, when everything is arranged correctly, it is a straightforward way to enjoy your home and protect the assets you own.
Do not rush or overpay
My first concern in the current market is the number of people spending more than they need to.
“We have to act now before it is too late.”
No, you really do not.
I am genuinely concerned that, in five years, some buyers who overpaid will need to sell for personal reasons and discover that the market does not support the price they want.
I often hear something like: “We paid 15 million baht, but the exchange rate was bad. Now we need to sell for 17 million baht just to break even.”
Unfortunately, the market does not care what exchange rate you received. If you paid 15 million baht for a property that was realistically worth around 13 million baht, selling it later for 17 million baht may not be possible.
That does not mean everyone loses money when buying in Thailand. They do not. It means some buyers paid too much at the start.
People are beginning to behave like timeshare buyers on the Spanish coast during the 1980s and 1990s. Stop. Do your due diligence, take your time, find a trusted agent and use reputable lawyers to identify the right ownership structure.
Where buyers can still find value
The condo market presents similar issues. A buyer recently approached me after purchasing a newer condo and said they now wanted something larger.
That is fine, but first they need to sell their current unit.
“I paid almost five million baht for 33 square metres at the launch party.”
Launch prices are often aimed at local buyers who may have easier access to finance and can therefore accept a slightly higher price. A foreign buyer may not realise this until it is time to sell. If the unit is now worth closer to four million baht, that does not prove everyone loses money in Thailand. It shows why buyers must understand the resale market before purchasing.
Older condos that can be renovated offer good opportunities today, as do newer houses. If you are buying a second-hand home, check whether the owners lived there or used it as a rental property. A heavily rented house may require more renovation than expected, which affects its resale value.
Off-plan housing can also work well. A longer construction period may allow buyers to benefit from Hua Hin’s improving infrastructure, including the motorway, airport and rail services. However, location remains important. New infrastructure will not make every development a good investment.
Take your time and get it right
You could save yourself a lot of time and simply come to see me.
As I get older, and yes, I seem to be ageing faster now, I want to work more closely with buyers who want to do things properly. That means taking time, searching carefully, understanding what they really want and weighing up the pros and cons.
I can remain your agent for as long as the process takes, whether that is weeks, months or even years. I am not retiring just yet, so let me guide you through the whole process and help you settle in Hua Hin.
As for buyers who prefer to chase the salesgirl bouncing around a swimming pool in a property video, good luck. I do not look particularly good in a skirt, so I will not try to compete.
I simply want to sell you something I would be proud to own myself. Let’s work together and make this next chapter of life the best it can be.
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