Buying houses and land in Chiang Mai
Those entering the land and house market in Chiang generally have two options; the first is to buy land and build your own property, while the second option is to go for the ready made alternative.
Foreigners wishing to invest in property and land in Chiang Mai will usually find outstanding value on house and land prices, particularly when compared with prices in their native land. In addition to cost savings, Chiang Mai is rated as one of Thailand’s most pleasant and ‘foreigner-friendly’ cities to live in. Its land and property prices are far cheaper than Bangkok and the South, making it attractive when buying land or houses in Chiang Mai.
While it’s not possible for foreign individual to own land in Thailand, many foreigners end up buying land in the name of a Thai spouse in Chiang Mai due to legal limitations. Many foreign individuals - with no rights to own land - can also take advantage of inexpensive land prices by means of long-term lease holding (usually for a 30-year lease) when buying houses in Chiang Mai, while not actually owning the land they are on.
For non-natives without a Thai spouse, the long-term lease hold is usually applied to foreigner ‘acquisition’ of property, and more specifically, the land the property is built on. To be avoided is the old system whereby foreigners would form a ‘paper’ company when buying the land the property is to be built on. Thai authorities are now fairly effective at checking the legitimacy of such companies and there could be implications, should a company be proven to be illegitimate.
While the land beyond the ever expanding city limits provides the most value for money, land within the city proper - particularly around the riverside, Night Market and Nimminhemin areas - has increased significantly in line with the city’s prospering tourist industry and the overall increase in economic growth. This land may be relatively expensive, but area trends suggest that it will retain if not increase in value as land scarcity in these areas continues to rise.
The cost of buying land in Chiang Mai varies according to supply and demand and the specific attributes of particular locations. Prices can range from approximately 30,000 baht per Thai square wah (4 square meters) in the city center, which will then typically decreases on a sliding scale to around 7,500 baht in suburban areas which are still within 20 minutes of the city centre. Areas with picturesque attributes, but which are not in the city center (such as the areas around the foothills of Doi Suthep), tend to sell for about 15,000 baht per square wah.
When buying land, there are three different types of title deeds. Chanotes are the most accurate and solid since they have been demarcated using GPS and usually come with inner urban property. Nor Gor is another common deed on land when buying in Chiang Mai, which are less accurate but give the holder full entitlement to the property they are buying. Eventually they will be upgraded. Then there is Nor Gor Saam (3) which is a pre-Nor Gor deed that has yet to be finalised. These are not very secure since the holder is only a claimant to the land and though he can pass it on, there is a risk that the government might not upgrade the land to full title deed. Most Thais are confident they can bribe the problem away however, as is commonly done.
There are also various building restrictions loosely applied but unless you’re planning a condo these don’t apply, and most of Chiang Mai has pretty lax zoning enforcements on what you can do with your land when buying in Chiang Mai. Check first with a trusted lawyer to enquire at the land office if the land or property you are buying has any conditions or debts attached to it.
Finally, a word of warning when buying property in Chiang Mai that includes land deeds. Since foreigners cannot ever own land in Thailand directly, the law will not support you in the event of a dispute. Many foreigners have been taken for a ride after buying land and placing it in a Thai partners’ name. When they become estranged it’s not uncommon for the Thai party to assume complete ownership and expect to derive a windfall from the split. Ultimately the courts are ineffectual in helping reach a fair resolution, resulting in lost control over ownership.
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