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18 Jul 2025
Real Estate & Home Buying

Top 5 Mistakes Foreigners Make When Buying Property in Phuket – and How to Avoid Them

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Top 5 Mistakes Foreigners Make When Buying Property in Phuket – and How to Avoid Them

Introduction

Phuket offers some of Thailand’s most attractive real estate opportunities but buying property here as a foreigner comes with unique challenges. At Century 21 Hero, we’ve helped many of international clients navigate the market successfully.

Unfortunately, we’ve also seen what happens when buyers go it alone or rely on bad advice. In this article, we outline the top 5 mistakes foreign buyers make when purchasing property in Phuket and how to avoid them.

1. Not Understanding Ownership Laws in Thailand

The Mistake:
Many foreigners assume they can buy land or property the same way they do back home. But Thai law restricts foreign land ownership.

Avoid It:

  • Foreigners can own condos freehold (within quota limits)

  • Land must be leased or owned via company/spouse

  • Always consult a real estate lawyer before signing anything

Related reading: Guide to Buying Property in Phuket as a Foreigner

2. Skipping Legal Due Diligence

The Mistake:
Some buyers trust the seller, developer, or agent without verifying property titles, building permits, or zoning.

Avoid It:

  • Hire a reputable, independent lawyer

  • Confirm the title deed is legitimate (Chanote preferred)

  • Check environmental and construction approvals

At C21Hero, we perform legal checks on every listing we represent.

3. Overpaying Due to Poor Market Knowledge

The Mistake:
Foreigners unfamiliar with Phuket’s pricing often overpay, especially in tourist-heavy areas.

Avoid It:

  • Compare prices across neighborhoods (Kamala, Rawai, Cherng Talay)

  • Ask your agent for sold price comparisons, not just listing prices

  • Get a property valuation if unsure

We help clients negotiate fair prices using real market data.

4. Ignoring Total Costs and Hidden Fees

The Mistake:
Only budgeting for the sale price without accounting for taxes, transfer fees, or maintenance.

Avoid It:

  • Factor in:

    • 2% transfer fee

    • Withholding tax (1%)

    • Lease registration (1.1%)

    • Legal fees (THB 30k–100k)

    • Common area fees (condos)

  • Ask your agent for a complete cost estimate before buying

5. Choosing the Wrong Property Type for Their Goals

The Mistake:
Buying a vacation villa when they actually need a rental investment or vice versa.

Avoid It:

  • Be clear on your goals: holiday use, investment, retirement, or full-time residence

  • Condos are easier for rental income

  • Villas offer space but require more legal and tax planning

  • Ask your agent for a strategy session to match your goals with the right property type

Bonus Tip: Don’t Choose the Wrong Agent

Not all agents are licensed, experienced, or working in your best interest. Some are tied to specific developers and push certain units, regardless of your needs.

What to Look For:

  • International agency with Thai and foreign legal knowledge

  • Multilingual communication

  • Transparency in commissions and process

  • Proven track record with foreign buyers

Why Choose Century 21 Hero?

  • Decades of experience in Phuket

  • Verified listings with legal support

  • Multilingual team and licensed agents

  • Personalized buying plans for expats, investors, and retirees

Ready to Buy Safely in Phuket?

Start with trusted advice and the right team.

Avoid the mistakes—secure your piece of paradise with confidence.