Thailand is a constitutional monarchy with a parliamentary democracy. The prime minister acts as the head of government (the prime minister usually is the leader of a majority political party). The king is the head of state, who exercises sovereign power through the parliament, the cabinet and the courts, under the provisions of the Constitution.
Thailand is divided into 77 provinces, each of which is divided into districts and sub-districts. Bangkok (the capital) and Pattaya are special governed districts.
The Thai economy, traditionally based on agricultural exports, has transformed dramatically over the past few decades, with industry and services assuming a more prominent role. Industrial activity is concentrated in the central region around the capital, Bangkok.
Thailand enjoys Generalized System of Preferences benefits from a number of countries/regions, including Australia, Canada, the EU, New Zealand and the US, and has comparable access to the Japanese market. Thailand is an attractive destination for foreign investment, with investment policies focusing on the liberalization and promotion of free trade. Foreign investment, especially investment that contributes to the development of skills, technology, innovation and sustainable development is actively promoted.
Thailand is still able to reap the rewards of its strategic placement on the map today, but in different ways. Its capital of Bangkok is just an hour-long flight from four rapidly growing frontier markets. Namely Vietnam, Cambodia, Laos, and Myanmar. These nations are among the fastest growing in the world and have given Thailand easy access to cheap labor and almost 200 million consumers – not to mention its own decent-sized population of 67 million.
Therefore, the Thai economy isn’t just dependent on its neighbors for growth. Not only is Bangkok the most heavily toured city on the planet (beating out Paris and London in Mastercard’s latest survey), but also one of the world’s largest exporters of automobiles, electronics, and hardware. Besides manufacturing and exports, Thailand has a large services sector considering it’s an emerging market. The Thai startup community is also seeing rapid growth and great success.
Naturally, this extends to the Thai property market as well. A middle class who barely existed a few decades ago is now much more prominent. They’re capable of buying into the countless new condos and housing projects being built.
There is no doubt that Thailand is the number one choice for international property buyers in South East Asia for some of the following reasons
When it comes to Thailand property investment it is without doubt the most diverse in South East Asia and really does have something for everyone.
For those who want a holiday home with investment there are a few major developers who offer rental guarantee schemes where in essence the Investor enters into a commercial transaction with the developer. The developer leases back the unit after the sale takes place and give a rental guarantee fixed for up to 15 years normally at between 7% to 9% of the purchase price paid.
The Developer then markets the property though its tourism networks and makes sufficient money to make a profit and pay the Investor their rental guarantee. Most of these developers will give 14 to 28 days a year free usage of the investment so the owners actually get to use their investment. For those people who pay in full prior to these projects being completed will normally get cash back equivalent to the rental Guarantee
Another type of investment is buying pre-selling off plan Condos, especially in places such as Bangkok where there will be up to a 4 year build period the investor will buy at the earliest stage possible and see the value of their investment rise as the Developer increases the prices of the units as they make more and more sales until the development is sold out. The Investor then has the opportunity to sell his contract prior to completion and as they may have only invested 30% of the purchase price in those payments to that date the ROI (return on Investment) can be huge. Alternatively some investors will complete on the transaction and get a great yield on the property compare to the original price they paid.
Probably the most traditional form of investment there is very simply investors will buy properties and immediately let them out with the best returns being in the cities and therefore for this type of investment it’s really hard to look beyond Bangkok as the place to invest especially for international property investors.
Without doubt whatever type of investor you are Thailand really does have it all and unlike the emerging markets of South East Asia its already an established economy with 3.2% growth last year and already the second largest economy in South East Asia, In short it’s one of the best places for property investment in Asia.