In the first three quarters of 2023 alone, foreigners purchased over 7,000 condominiums in Thailand. Their goals are, of course, different: some people wish to live in the country, others are going to buy real estate in Thailand for rent or resale, and still others would like to have a holiday home. What can a homebuyer really get in Thailand?
Content:
- A visa status
- Retirement
- Real estate investments in Thailand
- Real estate prices in Thailand in 2024
- Life in Thailand – prices and not only
- Property taxes
A visa status
Obtaining any type of visa in Thailand has no direct connection with owning property abroad. As in many other countries, Thailand has:
- A visa-free entry for up to 30 days;
- A tourist visa for up to 60 days with the right to extend it for another 30 days;
- Non-immigrant visas of different categories that allow a long-term stay and multiple entry;
- An investment visa that is issued upon buying a property for 10 million baht or more (this visa excludes the right to stay in the country permanently);
- The Thailand Elite visa, a distinctive feature of Thailand, which grants various privileges and is issued for a long period (from 5 years); as most other visa types, this visa limits continuous stay to 90 days with the possibility to extend it.
Thus, the purchase of real estate does not have a direct impact on the civil status. On the contrary, if you want to buy apartments in development projects in Thailand, you can apply for some of the visas mentioned above and resolve the issue of staying in the country.
Retirement
There is one important point that should be added to the previous paragraph – there is the so-called pension visa in the Kingdom. If you decide to retire to this inexpensive country with many resorts and beaches, buying a property together with obtaining a pension visa can be a good option for you. There are several conditions:
- you can get a pension visa (type "O") upon reaching the age of 50;
- you must confirm your pensioner status in your home country;
- the amount of your pension should be 65,000 baht or more equivalent to the currency of your home country or you should have a Thai bank account with 800,000 baht or more;
- you will have to extend your pension visa after the 90-day period expires.
As in all other cases, the visa issue comes first. You should first apply for this type of visa and then look for a suitable home, although you can perform these actions simultaneously.
Real estate investments in Thailand
You can purchase real estate in the Kingdom to generate income, for example, renting it out. The prospects are really good, but they depend on the type of housing:
- The price index for renting houses and villas had increased by 11% by the end of 2022 compared to 2021.
- Townhouse rental prices have increased by 8% over the year and have been steadily rising since the beginning of 2021.
- Finally, apartment rental prices have decreased by 1% over the past year and by 13% compared to the pre-pandemic years.
Thus, we can say that it is safer to consider houses and townhouses if you are interested in investing in a rental business. However, an apartment can also become a valuable asset if it is well-located. For example, the annual income from renting apartments in Bangkok ranges from 3 to 8%, depending on the area and the number of bedrooms. And it can reach 12% in Phuket.
Real estate prices in Thailand in 2024
You can get an answer to a simple question about what to expect from the property you have purchased by studying the dynamics of its prices. Is Thai housing getting more expensive or cheaper? The answer depends on what type of property we are considering:
- By the end of 2022, houses and villas had risen in price by 6% on average compared to the end of 2021. At the same time, their prices had been continuously rising since the beginning of 2021 but decreased only at the end of 2022.
- On the contrary, townhouses fell in price by about 3%, but they also showed a slight increase in value during 2022, followed by a decline only by Q4.
- Prices for apartments in Thailand have not changed much. However, their cost fell during the pandemic (compared to 2019 and 2020).
Experts expect an increase in prices for houses and villas in Thailand, as the rise in price of building materials and a decline in free land plots for development will definitely increase the costs of developers, which they will reimburse at buyer’s expenses.
Life in Thailand – prices and not only
If foreigners want to purchase houses in Thailand, they will definitely be interested in the cost of living in the country. Previously, Thailand was considered a cheap country, but the situation and prices have changed in the Kingdom over the past years. However, it is inexpensive to live there. Here are some figures showing typical costs:
- A dish in a local cafe will cost 40–65 baht. Prices are higher in tourist places, for example, lunch at an inexpensive restaurant costs over 100 baht, and the price for a combo at McDonald's is about 200 baht.
- A kilogram of rice costs 35 baht, but the price of a loaf of bread is about 40 baht. In general, food will cost a little cheaper than in some other countries, with higher quality products.
- The price of clothing will heavily depend on the brand and the shop. Branded trainers may cost 2,500 baht, and casual clothing (T-shirts, shorts, dresses) costs 100–400 baht in a hypermarket or on the market.
- After all, what is visiting Thailand without a Thai massage? Prices range from 200 baht per hour in an outdoor salon to 600–800 baht per hour in an expensive spa.
After all, what is visiting Thailand without a Thai massage? Prices range from 200 baht per hour in an outdoor salon to 600–800 baht per hour in an expensive spa.
In general, living in your own home in the Kingdom is inexpensive, and the local recreation and entertainment industry is quite diverse.
Perhaps the most important thing that the buyer of Thai real estate will receive is the ancient culture of harmonious life. The daily life of Thais consists of three basic concepts:
- sanuk (joy, pleasure);
- sabai (a cosy and comfortable life);
- suai (the natural human desire for beauty).
However, the first two concepts are the most popular because they exist in every element of everyday life. Delicious food, serene tranquility and pleasant communication with friends make the life of Thais meaningful. Locals are responsible for achieving comfort and enjoyment in this and many other things. Of course, how responsible they can be in the constant pursuit of an easy and relaxed life. The result is a friendly atmosphere, partly compensating for the frivolous and careless attitude of Thais to life. Foreign nationals living in Thailand appreciate this atmosphere.
Property taxes
Property taxes in Thailand are low. There are also several ways to reduce them. The annual property tax depends on the type of housing:
- for a villa, it ranges from 0.03 to 0.1% of its cadastral value;
- for an apartment, it ranges from 0.03 to 0.1% of its cadastral value;
- the rates are the same for the second and other properties – from 0.02 to 0.1% of their cadastral value.
At the same time, houses worth up to 50 million baht and apartments worth up to 10 million baht are not taxed if the owner is registered and lives in this property. When buying a house, taxes are also low. The buyer pays only a property transfer tax of 1 or 2% of the value of the property, depending on its category (freehold or leasehold).