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The question of which country’s real estate is profitable to invest in worries many foreign buyers who understand the potential benefits of this decision. Let's consider one of the large countries in Southeast Asia – Thailand. It is a popular resort destination that attracts tourists and freelancers from all over the world. In this post, we will tell you why it is worth investing in property in Thailand, what benefits the housing owner can receive.
Content:
Why invest in Thailand property?
The reasons to invest in real estate in Thailand are numerous and we will look at the main ones below. The main thing is that housing remains the most stable asset. The weight and purchasing power of any currency is affected by inflation, the global political and economic situation. However, while money can devalue and even be denominated, real estate remains a valuable asset in any circumstance. And no matter what happens to the funds, housing can always be resold and become more expensive, since prices tend to rise. Investing money in real estate in Thailand means not just saving it, but increasing it.
Top 10 reasons to invest in real estate in Thailand
Below are 10 reasons to invest in Thailand real estate. Foreigners can consider purchasing not only residential but also commercial properties. On our platform you can find all types of real estate in the kingdom.
No. 1 Real Estate Law
The right of ownership of housing for foreigners is slightly different from the usual European system. The point is that expats are allowed to invest in real estate in Thailand, but they cannot be land owners.
Nationals of foreign countries can buy Thai apartments in a condominium the general territory of which is jointly owned by the apartment owners. Individual houses, villas and townhouses can be purchased either as a leasehold or as a freehold, but the adjacent territory is registered only as a leasehold (this is long-term ownership of real estate on a rental basis).
Another point is foreign property hunters can buy no more than 1,600 m² of land for the subsequent construction of a house for permanent residence. The condition for this is to invest $1.13 million in the local economy and obtain permission from the authorities.
No. 2 Visas for the purchase of real estate and investment
Another compelling argument as to why it is worth investing in real estate in Thailand is an investment visa. Anyone who has purchased a condominium residence worth $270,000 or more and has confirmed a high level of income can apply for it. In this case, the correspondence of the price of the purchased property to this amount must be confirmed by the Kingdom’s Land Department.
No. 3 “Tax Paradise”
If the owner of a Thai property rents it out, they pay a considerably low tax rate: on average only 3–5% per year (the tax is calculated on a progressive scale and depends on the value of the property). In addition, utility bills also do not make a dent in your wallet - they amount to approximately $60 per month. This is significantly less than in many regions in Europe.
Another important advantage of Thailand is that there are no annual taxes on real estate in the kingdom.
No. 4 More affordable prices
The country's real estate market is at the stage of development and is showing rising prices. However, the maximum values are still far away, so both up-market and low-budget properties can be found on sale. Compared to other countries, apartments here are quite inexpensive. When buying a housing unit, you can spend only $100,000. A villa can be purchased for $300,000. The final cost of housing depends on a number of factors:
- region;
- proximity to the coast;
- type of unit and its living area;
- amenities of the complex where it is located.
The country also has comfortable prices for products and social services. This is one of the factors that makes investing in real estate in Thailand particularly attractive to foreigners.
No. 5 Growing economy
Thailand's GDP is one of the highest in all of Southeast Asia. This level is achieved through several directions, these include:
- high tourist interest, not very dependent on the season (Europeans come to the country to spend the winter in a warm climate, and during the high season people from all over the world enjoy their holidays here);
- established trade with other countries;
- Thai currency (baht) is one of the most stable in the world;
- developed infrastructure (the transport network continues to expand: both domestic and international).
Industry is also developing in Thailand: a large hub has been formed in the east of the country, called the Eastern Economic Corridor. The provinces also have special economic zones with tax incentives. Clusters like these allow creating new jobs for people and further strengthen the economy.
No. 6 Safety
The country has quite strict laws, according to which even a small violation can result in a significant fine. Criminal offenses are punishable by lengthy prison sentences, so level of security is quite high. By nature, Thais are quite peaceful and not prone to aggression, so crimes involving violence against individuals are rare.
No. 7 Tourist attraction
Of course, renting out apartments and houses brings owners additional income. But why should you choose real estate in the Eastern Kingdom?
This decision will be strategically beneficial in the long term because:
- there will be no idle housing; apartments and houses are in demand among freelancers who come to work in a comfortable warm climate, and in the high season there are plenty of tourists;
- ROI for investments in Thai real estate is up to 8% per annum. This is an easy answer to the question of whether it is worth investing in real estate in Thailand.
If you buy an apartment in Thailand without even living in it, you will not incur losses: the apartments can be rented out, and the demand for them is year-round.
No. 8 Buying real estate with cryptocurrency
Before investing money in real estate in Thailand, you should decide on your preferred payment scheme. In addition to the standard purchase of a home with cash, it is also possible to purchase using cryptocurrency. However, it is important to consider that not all developers and owners support this payment option.
No. 9 Remote purchase
One of the advantages of real estate in Thailand is the possibility of buying it remotely. To do so, it is enough to use the services of a professional broker who knows the situation on the local market, and knows all the features of the legislation and the rules for concluding a remote transaction. In this case, the broker acts as a trustee of the future owner and acts on their behalf.
No. 10 Wide range of units
There are plenty of offers for sale in the country. With various real estate platforms, for example Thailand-real.estate, buying an apartment or a villa in Thailand, becomes easy as that.
Are you looking for a low-budget apartment? You are at the right place, you will find a wide range of affordable options. Are thinking about buying a penthouse or villa? No problem, we will offer you the most luxurious units matching your goals.
Our website also offers analytical information on the state of the local market. It will help you figure out whether it is profitable to invest in real estate in Thailand and what the prospects for the development of the residential sector are.
In our property database, you will find both new real estate and resale options. We collect the best offers from developers, estate agents and private owners. Experts will tell you why it is worth investing in Thailand and explain how to do it most profitably.