Leading Global International Real Estate Company and Investment Consultants

Specializing in Global Luxury Properties, Must Buy Investments, Citizenship & 2nd Passports

Looking to in
Sales
Rentals

Why Invest in Thailand Property?

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.

The Thailand Property Market for International Buyers

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

  • An exotic long haul destination, Thailand is also a sophisticated tourist destination with a great universal appeal
  • For thousands of people who have worked in Asia for many years, Thailand is an attractive retirement destination, in which the living environment will feel familiar
  • Retirement visas are available for foreigners over 50 years of age, according to financial means
  • Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit
  • The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are set to continue growing quickly
  • Thailand is the largest growth market in Asia. Increasing numbers of businesses choose Thailand as a regional base from which to keep their employees working all around Asia.
  • Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region
  • The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) has precipitated growth in commercial property markets in eastern Bangkok as well as made Thailand even more accessible by air
  • Thailand is one of the cheapest places to fly to in Asia
  • The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns
  • Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.
  • Rental potential is great, due to increased government spending luring growing numbers of tourists
  • No capital gains tax for private investors, and low ongoing taxes
  • Today, foreigners are regarded by the government as a big investment opportunity in Thailand and they are actively welcomed and encouraged to invest
  • The waving of Stamp Duty and transfer fees are regarded as enticements for foreign buyers

So What Types of Property Investment Opportunities exist in Thailand?

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.

Rental Guarantee Properties

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

Pre-Selling Off Plan Property Investment

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.

Buy to Let Property Investments

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.

Conclusion

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.


 

 

book an investment consulatation

Get in Touch with us

Buyers Guide
Investment Guide
Property Brochure