Thailand is not only a great holiday destination but also an opportunity for profitable real estate investment. The Land of Smiles is the most visited country in Southeast Asia that received 11.15 million travellers in 2022. Although the prices keep going up, properties are still relatively cheap compared to Western countries. This article will tell you how to buy an apartment with a pool and a gym at a great price, and what foreign investors should expect when making a purchase.
Content:
What’s for sale
Thailand’s real estate market includes condominiums, houses, and villas. The prices are reasonable. You can buy property in Thailand even for USD 20,000. It is most profitable to purchase property directly from the developer and at the construction stage.
A condominium, also known as a “condo,” is a community of unit owners who have the right to use common areas. What makes a condominium good is its own pool, gym, and parking. Even better if it has shops, cafes, and playgrounds. You can see the current prices for off-plan properties on our website: development projects in Thailand have a very affordable cost.
Private houses in Thailand can be very budget-friendly. The land on which any private house stands, whether it is a bungalow on the beach or a building in the countryside, cannot be acquired by a national of another country. As a rule, a foreigner buys a building and leases the land plot for a certain number of years. You will find details on how to obtain rights to own real estate and land below.
A villa is a mansion, usually surrounded by a garden. It is fenced, has a large area, a designer interior, a swimming pool, and other luxury amenities. This is the most expensive type of real estate in the local market, while also being in demand among tourists. The cost of daily rent of the simplest villa starts from USD 100 in the low season and shoots up with the beginning of the high season.
Who sells
As a rule, residential properties are developed by foreign investors. Thais prefer to build commercial real estate, which is valued much higher than residential. There is a wide choice of off-plan projects in Thailand in the capital and all the main resorts of the country. The top investment areas are Bangkok, Pattaya, Hua Hin, Phuket, Chiang Mai, and Koh Samui. Pattaya and Phuket have a large number of new condo projects, units in which are popular with expatriates from China, the US, France, and Russia.
How to buy
Apartments in Thailand can be purchased from international agents. Thai realtors are a lottery, and the odds of winning are not at all high. In order to choose a suitable investment property independently, you need to speak the local language and understand the intricacies of the law. It is much easier and safer to contact an experienced real estate broker who has a large database of proven properties and relevant competencies.
When purchasing property in Thailand, a foreigner can count on two ownership types: freehold and leasehold. The first option is free permanent ownership. Property can be sold, gifted, inherited, mortgaged, etc. Moreover, if you buy a unit in a condominium, you become the owner of a small piece of land on which the building is located. The size of the plot will be proportional to the area of the acquired property. Also, foreigners can only purchase 49% of all units, at least 51% must be Thai owned.
Leasehold is basically a long-term lease when you acquire the right to occupy a property. This form of ownership is typical for private houses and villas. In this case, the building is wholly owned by the buyer, but the land on which it stands is leased, as a rule, for 30 years. The lease can be renewed twice. All this time, the owner has the right to dispose of the property at their discretion.
If you want to buy land in Thailand, you will have to register as a legal entity. You should keep in mind that in this case, too, you will only own 49% of the company’s shares. We emphasise that the local government is distrustful of inactive firms; besides, you will have to pay recurring additional taxes.
Price overview
When choosing apartments in development projects in Thailand, make sure to consider the location of the property. Just because a house is near the beach doesn’t mean you’ll enjoy living there. There are many tourists in Thailand who love to have fun. Regular parties, celebrations, and noise outside the window may interfere with your plans. Here are some suggestions in fairly quiet neighbourhoods:
- A studio in Pattaya for USD 17,500
- A two-bedroom apartment in Kathu for USD 72,700
- A two-bedroom duplex in Koh Samui for USD 110,500
Pitfalls
When buying a property in Thailand, it is important to keep in mind that this investment per se does not give you any advantage when it comes to visas. Any foreigner can buy real estate. Owning property gives the right to stay in the country without any preferential treatment. However, there are programmes that offer a simplified visa regime for investing in the country’s economy. Thus, when purchasing expensive properties, the buyer is entitled to extra perks, for example, the opportunity to live in Thailand for up to 20 years under the Thailand Elite programme.
