Acquiring a villa in Thailand: Factors investors should take into account.

Thailand is a tropical paradise. People who have visited once often consider purchasing real estate. Villas are generally the best option to enjoy comfort and tranquility with the stunning beauty of the natural surroundings. Free-standing houses are also a good option when residing in this tropical country. Some potential buyers do not search for a buy-to-live villa but for a buy-to-invest property, for example, to rent it out. But is it that simple to purchase a villa in Thailand? What factors should you consider beforehand to keep yourself from experiencing difficulties?

In Thailand, there are always a vast number of villas for sale on different budgets and in different parts of the country. There is a demand for villas among both buyers and tenants. Thailand is one of the most visited countries in the world. Before the pandemic, more than 30,000,000 people came to the country in a year.

Investors are primarily concerned with the benefits they will receive from the acquisition of real estate. According to this parameter, villas are less lucrative than apartments. If on average, apartments in Thailand bring a 7% return a year, then the return from a villa seldom exceeds 5%. These indicators are average and may vary depending on the location, services in the residential complex, etc.

When buying a villa, it is important to remember that Thailand has a land ownership restriction for foreigners. This means that a foreigner can not own a land plot. But there's no need to be dissuaded. The land can be taken on a long-term lease for up to 90 years! The villa can be registered either as a property or as a long-term rented unit. This is referred to as a leasehold and is a common form of property ownership in many parts of the world. But if you are still not sure about a leasehold and want to purchase a land plot as a property, you can do it with the assistance of a Thailand-based company, where you will have the right to exclusive ownership, but this process is not a simple one. 51% of the company must belong to Thais. These are the conditions for a company’s registration in the country. Real estate experts recommend that buyers not be afraid of long-term rental and shouldn’t see the pitfalls as a reason to refuse to buy a villa in Thailand.

The main advantage of an apartment in Thailand is the services available for residents, including security, communal recreation areas, playgrounds, a swimming pool, and a gym. But living in a villa can also provide a broad range of services. If you purchase a villa on the territory of a residential complex, then you will have access to almost the same amenities as in condominiums, while still enjoying privacy, because the villas in the complex are often situated far away from each other.

When purchasing a buy-to-invest villa, one should consider the preferences of the tenants. The most popular villas are in resort areas, such as Phuket, Koh Samui, and Pattaya. It is important to bear in mind that people generally prefer a quiet and peaceful atmosphere, and only a few people want to rent a villa close to a nightclub or a very noisy beach. It is crucial to have a good view, a pool (either private or shared by several villas), and a small garden where you can relax on sun loungers or have a barbecue. The infrastructure in the area is also important to tenants. There should be shops, restaurants, and hospitals nearby. These aspects should always be considered when choosing a villa for subsequent rental.

In Thailand, villas, like other types of real estate, are sold with finishes. They are usually unfurnished, although some real estate developers sell housing units semi-furnished and with basic household appliances. Most developers give you a choice of several types of finishes. For tourists, houses are usually rented out with all the necessary items for daily life, such as dishes, bed linen, and bathroom accessories. These details can be the deciding factors in the choice of a holiday villa for a tenant.

When investing in real estate, you should also pay attention to the trend in housing prices in the area. In some districts, housing prices are increasing faster than in other areas. Major entertainment events in the area or infrastructure development (construction of shops, public institutions, roads, and railway stations) may have an impact on the price increase.

Before acquiring a property, research the required taxes and fees. Calculate how much you will need to spend on property maintenance so that it does not become an unpleasant surprise in the future.

If you want to rent out your villa, you can advertise for tenants yourself, but it is safer and much more efficient to turn to specialists. A developer or an agency will gladly assume all the responsibility. In this case, contracts with the tenant can be signed using a power of attorney. There is no need for the owner of the villa to be present when signing the contract. This way, your property will generate passive income without the need for regular visits to Thailand. If you want to deal with the admin of renting out a property yourself, it will be advisable to first consult with a lawyer. A lawyer can help you draw up a rental contract correctly and inform you about all the details of the rental business in the kingdom. For example, if a foreigner rents a home in Thailand, the TM.30 form, a "Notice from the Landlord, Homeowner or the Unit Owner where the Foreign Person Lives" is required. This would be issued to the homeowner. The owner will be fined if he is found to not have this document. TM.30 can be issued online in most regions of Thailand. If the agency is engaged in the rental, then professionals will take care of these nuances. The owner will not have to concern himself with it.

Acquiring a buy-to-invest villa in Thailand is a good option. However, it is worth considering both positive and negative aspects of this decision. The specialists of Thailand-Real.Estate aggregator will help you choose a proper villa or any other property in Thailand. The web page provides a large variety of villas in different parts of the country. You can find the right option for you among the available properties on offer.