Nowadays, it’s not easy for anyone as the world’s economic and financial situation is even more unstable than during the COVID-19 epidemic. Many people are thinking about moving and buying real estate abroad, but is it a good idea to invest in real estate in Thailand now? Or is it better to wait?
According to experts, Thailand entered the list as one of the most appealing places of purchasing real estate amongst Europeans in 2022. Furthermore, the real estate market in Thailand is still recovering from the impact of the pandemic, and Chinese citizens, always highly involved in the market, have yet to return.
Content:
Disadvantages of the current situation
Price growth
Due to rising energy prices, costs for building materials and construction work are increasing worldwide. The housing construction price index rose to 132.2 points in the third quarter of 2022, 6.2% higher than in the same period of the previous year, as well as the highest over the last five years. Compared to last year's prices, costs for plumbing increased by 13.2%, steel and steel products by 11.5%, and 9.5% for wood and wood products. Costs for construction work increased by 5.6% compared to the previous year. Only the price of ceramic tiles decreased by 3.2% compared to the same period last year.
Factors “in favor” of the purchase of real estate
A new visa type
The Thai government introduced a new long-term resident visa in September 2022. LTR visa holders will have the right to stay in Thailand for 10 years. They‘ll have to declare their presence in the country once a year. Previously, they had to do that every 90 days. The visa will be multiple-entry, so you’ll not need to obtain a re-entry permit. The following categories of foreigners will be able to obtain visas:
- wealthy people;
- well-off pensioners;
- digital nomads – individuals who work online in companies located in other countries;
- highly qualified specialists in a certain field who want to work in Thailand.
Minimum risk
Buying real estate is the least risky type of investment. Investing in real estate brings limited returns, but almost never goes into negative territory. Moreover, there is a quite high and appealing yield of 5-8% in Thailand.
Rising real estate prices
Real estate in Thailand is only growing in price, which is good for further resale. On January 1, 2023, new estimated land prices will be announced, which will lead to an increase in real estate prices in the country. Before that, there were no price increases for several years as part of the measures taken to support citizens during the pandemic. The real estate market has not yet fully recovered from its influence. The current situation allows you to invest in real estate before prices rise and this will serve to further solidify the most important rule of a smart investor, i.e., to buy at the minimum value and sell at the maximum.
New projects
Nowadays, after the pandemic, all property developers are in the process of starting their new projects. This makes it possible to invest money in real estate under construction at the starting price. To attract buyers, developers also offer favourable terms of payment instalments and promotions.
Profit abroad
If you rent out Thai real estate, you’ll receive a passive income abroad in foreign currency. Money can be freely transferred from Thai banks to worldwide banks.
Before buying a property in Thailand, you need to evaluate all the pros and cons of such an acquisition specifically for you. It must be remembered that investments always carry certain risks, both in difficult and peaceful times. Think about your purpose for investing in real estate abroad. Is it for personal stay, for passive income, or for resale? It would be advisable to consult with a lawyer to clarify all the details of the process of buying foreign real estate at present.
