Investment Guide for Thailand

The “land of smiles” is sure to bring a smile to investors’ faces. A line-up of white sandy beaches and deep blue seas, coupled with a lush green backdrop, makes the place a hit with investors. Shrewd investors are making the most of the Thai realty market which is experiencing a boom after the recent bad economic and political conditions.

What do Experienced Buyers Say?

Although there has been an increase in the property prices, it has not managed to match up to the overall inflation. The Thai government has relaxed ownership rules which have turned the property market in Thailand into a competitive one. The main forces behind the boom in Thai housing market are its economic growth and the predictable growth in the tourism industry.

Thailand has emerged as the most preferred Asian destination for tourists. The place is known as the “Spain of the East”. According to the World Travel and Tourism Council, tourism figures will grow by 5.3 percent per annum until 2017. The political and economic condition of the country is not stable but investors are viewing this as a golden opportunity as they are positive that there would be a satisfactory resolution for the same. Thailand’s property outlook looks good according to international property analysts. They are of the view that office buildings and the residential properties sectors still look healthy in the country.

Market Overview

Thailand is likely to have a great future in economic growth. Foreign investment is also likely to improve in the near future. Astute investors are taking advantage of the political unrest and economic crisis in the country. They are purchasing property in Thailand with a hope that its value will appreciate in the future. For a person who is planning to invest in Thailand, there are medium to long-term opportunities of growth. Early investment is very important to get the highest returns because property prices are at an all-time low.

Although the political situation has not been stable for some time now, the tourism industry is still thriving in the country. Even when the political situation worsened, the holiday rentals did not nosedive. Foreign investment has only increased in the country. The reason for the growth in the tourism sector is the low-cost of airfares and the rising accessibility to major tourist attractions in and around Thailand. The value of major property units has increased with the increase in Thai property in popular areas.

Why is Thailand Popular with Investors?

Thailand is a hit with the investors as the place is lucrative. The country has an ideal geographic location. International employees can work all around Asia due to the perfect location. Thailand is very popular among tourists.  It is no longer viewed as a mysterious destination but has a universal appeal to it. Thailand has many things and places to entice tourists from all over the world.

Thailand also has strong business links with China which is an Asian economic leader. Retirement visas are available for people above 50 years of age. Thailand is a great place to spend your old age. You can invest now and spend your life after retirement peacefully here. Thailand has some great educational institutions, an effective health care system, and it is a friendly country to live or visit. The completion of Suvarnabhumi-Bangkok International Airport (SBIA) has stimulated growth in the commercial property markets of eastern Bangkok. Thailand is easily accessible and is one of the cheapest places to fly to in Asia.

The Thai government has been encouraging foreign investment as it is helping in the economic recovery of the country. Brilliant infrastructure and state-of-the-art facilities have made it a rage with investors. Lovely mountains, striking resort towns, dense forests, and attractive beaches make this place well-liked by tourists. A tropical climate and cities swarming with culture and color all around leave the tourists asking for more. Property prices are much lower than many comparable destinations. Moreover, the warm weather is perfect for people visiting the country from Europe between November and February. Low, ongoing taxes and no capital gains tax for private investors are other reasons why investors admire this destination.

People who are planning to re-locate to Thailand have made just the right decision. The property prices are very low and living standards are amongst the best in Asia.  Also, the cost of living is quite low and the quality of life is at its best. Property prices will gradually increase and recover. Although investors will need to wait for a few years before they can fully reap the capital appreciation and rental yields, the Thai property market is the good bet.

Where Should I Invest?

Some of the top places to invest in Thailand include Sukhumvit in Bangkok, Hua Hin, Koh Samui, and Lanta Island. The number of tourists increases by the day and the infrastructure is continuously being developed and improved upon. The need for the finest infrastructure has arisen from the need to meet the luxury standards of international tourists. One of the zones of the real estate market which is showing great signs of development is the condominium market.

Bangkok, one of the largest cities in the world, has ruled the property market for years because of superior services, high standard of living, direct transport links, and employment opportunities.

How Should I go About it?

There are two ways to invest in Thailand; either via a Thai Limited Liability Company or through a leasehold agreement. Leasehold agreements are for foreign investors who may be using loopholes to amass large chunks of land or properties. Some expats form a company just to buy one property. Both the methods are safe ways of investing in property.

You can buy a property through a local lawyer who specializes in property law. The fees can be negotiated. You could even hire a property agent. There is also a reservation fee for newly constructed properties. The developer will request a 10 percent deposit which is subtracted from the final amount. There are also stamp and transfer fees which are currently under review and may be waived for a short term to encourage investment. A structural usage tax is also levied. However, the capital gains tax is very little. 

The key limitation is the lack of finances which could hamper the overall growth of the property market. The property market had frozen a bit after the 2006 coup and the recent civil-war-like situation. But, according to experts, the market will soon recover. Investors who are a little wary are awaiting news on planned elections.