With Rental Yields at 5%, and cost per square meter in Bangkok being 66% less than in London, the reasons for investment are clear. Steadily increasing property prices and a lower cost of living leads to increasing demand for Thailand property.
Property investment has its risks and rewards like any other business have its pros and cons. Detailed research on the place you want to buy is necessary to avoid complexities. It is valid to be anxious and doubtful as a foreign buyer, because of different laws and regulations that you are not familiar with. Doing your homework on the area and hiring a real estate agent will be helpful. In this guide, we will discuss some aspects of real estate in Thailand, so fasten your seatbelts and get ready for a ride down the realty industry in Thailand.
Thailand is a home of opportunities for business and investment in property. Thailand has amazing tropical beaches, royal palaces, rich culture, and magnificent Buddhist temples. It is a holiday paradise, tourists love the culture and tropical vibe of the country. Thai cuisine is very famous, it’s diverse and delicious, no doubt why it is popular among tourists. The Thai economy has seen strong and steady progress over years. It is not the most expensive country to live in. It can be cheap and affordable depending on the lifestyle you choose. If you are fine with surviving on normal yet delicious street food then the cost of living will be low, but if you enjoy fancy western-style cuisine the cost will be multiplied by five folds.
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Reasons to invest in Thailand
Tropical beaches
Thailand is tropical beach heaven. Southeast Asia has the most gorgeous and exotic beaches. The lush green palm trees shadow the beautiful shores. Thai resorts are famous across the globe. Buying property in Thailand gives you access to a beautiful tropical world. Planning to live here after retirement is a good idea due to the relaxing environment of the country. It will be soothing for your health and serene for the mind. Some of the popular beaches in Thailand are:
- Maenam beach, Koh Samui
- Sunset beach, Koh Lipe
- Thong Nai Pan Noi, Koh Phangan
- Sairee Beach, Koh Tao
Affordable cost
Thailand is considerably cheaper to live in than most developed countries. Property restriction laws limit foreign buyers to buy land in Thailand, for this reason, condos are popular among foreign buyers. On average, a condo in Thailand costs about 76,000 dollars whereas it costs about 408,000 dollars to buy a house in the United States. Your lifestyle in Thailand can match your budget. You can have a minimal yet quality life here and also a luxurious and extravagant lifestyle, Thailand has both to offer. You have both options of either living economically or spending generously on villas and resorts.
No taxes
As property laws in Thailand restrict a foreigner from directly owning land foreigners resort to buying condos and apartments. This puts them at an advantage of no property taxes, yes absolutely zero land tax. Another reason for you to consider buying property in Thailand, you can buy a condo here and rent it out or retire in Thailand and live a peaceful life with no stress. It is a plus point for budget buyers. Just save up enough for an apartment in Thailand and forget about taxes. Way to live your dream life in a holiday paradise.
The weather
Thailand has a tropical climate leading to hot and humid weather conditions all year round. The seasonal monsoon brings heavy rainfall to the country. That is why Thailand produces an abundant amount of tropical fruits. A stream of moist air flows from the Indian Ocean and causes heavy rainfall, especially in the mountainous region.
Best places to buy property in Thailand?
Bangkok
Covid hit the Thai economy right in its heart and caused a lot of damage. The realty industry declined to a great extent even though the real estate market is regaining its previous peak slowly but the prices are still relatively low. Bangkok is the capital center of the country. As it is the capital of the country every facility you name is present here. Bangkok offers opportunities for investment for those who are looking for fast capital appreciation. Apart from investors, it is a second home to many foreigners. Thailand is a vibrant city with a wild nightlife, on the contrary, it has glorious beaches and beautiful seascapes, here you get the best of both worlds. An affordable lifestyle and enjoyable experiences will persuade you to move here. People here are so hospitable for this reason it is called ‘the land of smiles. The language barrier is also not huge. English is widely spoken throughout the country, especially in the capital. Buddhist temples are a tourist attraction. People often come here to visit temples and meditate. Not to forget the mouth-watering Thai cuisine that people enjoy from all over the world.
Phuket
Phuket is an attractive location for holiday homes or permanent bases for life after retirement. Bangkok offers thrilling nightlife, however, Phuket peaks in providing splendid natural beauty. It won’t be a stretch to say that Phuket is Asia’s resort island. It has magnificent beaches, spa centers, yacht marinas, golf courses, and fine restaurants. Phuket also offers nightlife and excellent shopping malls. Phuket is one of the wealthiest provinces of Thailand, it also plays a major role in the country's tourism. Its tropical beaches attract tourists, the central government also spends a lot on Phuket to maintain its security and to keep it highly maintained.
The most popular areas for foreign buyers are Kata, Karon, Patong, Bang Rao, and Surin. The cost of living and real estate in Phuket is lower than in any other holiday place in Europe. It is one of the places where you can live a luxury lifestyle on a budget. Phuket is a very strong tourist destination and its appeal did not go down after the 2004 Indian Ocean Tsunami. The infrastructure of the place is developing more and more at a rapid pace. This swift growth resulted in two international hospitals on the island ensuring quality healthcare services.
The education here is up to the mark. Primary and secondary English education is given according to the British or American curriculum.
Koh Samui
If you are a beach lover then Koh Samui is just the right place for you. There are many exquisite local cuisines that will bless your palate. Also, laying on a white sand beach under coconut tree shade and siping on the lemonade will give you a cloud nine experience. Koh Samui is highly popular for its white sand beaches, clear waters, and delightful island life. If you are looking for exponential business growth by buying lands then Koh Samui is your best option. It only takes a glance to see the mesmerizing nature and beautiful beaches which makes Koh Samui one of the most beautiful places in the world. Also, the Koh Samui real estate market is profitable and high paying. If you want to invest now is the best time for you. The corona has done much damage to the whole world. But you can make the best from it by buying land at low prices. Koh Samui has future potential and will definitely be a good investment for you. It has many five-star hotels and delicious cuisine, which is a magnet for tourist attractions. You can buy resorts and condos and rent them out to people on vacations which will give you significant gains.
Chiang Mai
Chiang Mai is a very beautiful place that is surrounded by rainy forests and peaceful nerve calming sceneries. It is an oasis for people who crave a temperate climate. The lush green forests with the sound of rain dropping down the leaves is a lullaby to the mind. It is one of the few cities in Thailand in which you can experience different seasons around the year. Many people are starting to migrate to Chiang Mai because of the cold weather in Thailand. Also, here the housing cost and education are very cheap and affordable. Mainly, education is a major issue for people. There are many good schools in Chiang Mai that will provide your children with quality education at an affordable rate. One of the major advantages of living in Chiang Mai is that the cost of living here is much lower than in many famous cities in Thailand. You can buy an apartment at a very reasonable rate. However, the prices will not stay low forever. If you want to invest in the city, now is the time. You can buy them at a profitable rate and sell them. The prices are starting to increase rapidly. So your investment will surely double within no time.
Pattaya
Pattaya is considered to be the second most important city in Thailand. It may be because it is a marvelous combination of both a resort and a metropolis. It is crescent-shaped and is present on the east coast of the Gulf of Thailand. Due to its geographical location and all the comforts, it is a source of attraction for tourists. You can enjoy both a vacation on the beach and do important business dealing in the metropolis city. So your work and vacation will go side by side. The warmth of the sun and the sight of the sea with a child bear and your loved ones will give you the best beach experience, along with the entertainment and attractions of the big metropolis. You can visit Pattaya with your friends, your family, or even solo your trip will never be disappointing. A huge number of tourists visit Pattaya around the year. It will be a perfect place for you to invest. The combination of both beach and a big metropolis is a magnet for tourists. It is wise to invest in buying condos and resorts which will give you profitable gains. Also, it is legal for foreigners to buy Pattaya property.
A guide for foreigners buying property
Many of the tourists who visit Thailand often have a notion of buying property there. The experience including all the entertainment, markets, delicious local cuisine, and luxurious and comfortable lifestyle in Bangkok compels you to settle in such a vibrant and beautiful place. Bangkok is famous for its nightlife. Many people crave sitting under the moonlight and watching the big metropolis in all its starlight and vibrance. Also, it is a place with rich culture and astonishing temples. However, buying land in Thailand is not as easy as you think.
Buying Land on Lease
The Thai government does not allow any foreigner to buy land in the country. You can only buy land in Thailand by marrying a Thai citizen. The Thai citizen will buy the land and stipulate a 30-year lease agreement with the foreigner. You can also buy land by opening a Thai limited company. Your company should be joined with at least 49% shares of the Thai citizen. Only then is it legal for you to buy any land? These are applied to all the houses and detached houses because they are on the land.
Buying Condos a Better option
Lucky for you you can completely own a condo or an apartment in Thailand. However, there are still rules. The building residing in the condos should be 51% Thai-owned. So only 49 percent of the condos/apartments are available for foreigners. Still, it is a good investment. Bangkok is a true tourist spot. Owning a condo and apartment can give you substantial profit. You can rent them out for the holidaymakers. Also, whenever you plan for a vacation in Bangkok you will have your own Condo which will save you all the extra money.
Taking Loan in Thailand
Many foreigners looking to invest in an apartment or condo in Thailand face one major problem. It is financing. Many apply for loans in Thai banks. However, this might not be the best approach. Thai banks do not give loans to foreigners easily. They make the procedure very hard even if you are a foreigner living and working in Thailand for many years. So the better option would be for you to apply for a loan in your own country and then exchange the money. You will be able to buy the condo/apartment quickly and easily.
Thus, Buying property in Thailand would definitely be a vast and money-making investment for you. All the cities of Thailand have their own beauty, entertainment, luxuries, and attractions. You can enjoy the amusements of the big metropolis, Bangkok’s nightlife, and mesmerizing nature. And peaceful beaches all in a single country. So it is a magnet for tourists. Although, there might be some difficulties in buying property in Thailand. But it is surely an investment that will spurt the growth of your company and take your business to new horizons!
For more information on the cost of living in Thailand, read our guide.