The Complete Guide to Investing In Thailand Property
THAILAND PROPERTY INVESTMENT GUIDE
Thailand is an incredible country that attracts millions of visitors every year, which makes it a great place to invest in real estate, a fact that you probably agree with. While hotels are available, many people look to get an authentic experience, provided by renting a property, rather than sitting in a formal hotel.
But, it is not a smart thing to launch in investing in Thailand property without doing some research and getting accustomed with the local property market. It is also not an easy thing to succeed if you don’t have at least the basic knowledge that will enable you to make the right decisions.
This is one of the reasons this guide was created, to show you, step-by-step, what it means to become a property investor in Thailand. So, go through each chapter and see how you can exploit this corner of paradise by earning profit out of
REASONS WHY YOU SHOULD INVEST IN OVERSEAS PROPERTY
When one looks to invest money in properties, there must be several reasons that should point out toward the fact that the investment will be profitable and not a waste of money. So, why should you invest in Thailand property?
- A much-preferred destination for tourists and retirees alike
First of all, you need to have in mind that Thailand is a preferred exotic destination for many people, providing everything one may desire for an ideal vacation. Also, it is seen as the best retirement destination for those that worked in Asia for years, due to its pleasant climate, incredible scenery, delicious food, hospitality, and the possibility to live the retirement years in a perpetual holiday.
Even foreigners can come and live here once they retire, as there are special retirement visas for anyone that reached 50 years old. Another plus would be the fact that the country provides great schools and an amazing healthcare system, being seen as a great place to live by many.
- The ideal place to live for people coming from all over the world
The weather here is warm throughout the year, including during the winter holidays, which makes it a very busy touristic destination during this period, plus many would like to live here so that they will stop enduring cold weather. Its natural landscape, made out of mountains, lush green forests, and beautiful beaches, turn Thailand into a small paradise, where people want to come back over and over again.
Even though the real estate market in Thailand is growing and developing, prices are still rather low. If you want to do such an investment, now it’s the time to do it, as the Bangkok property prices, for instance, are extremely accessible.
- The property prices in Thailand are very accessible
Because of the steadily developing economy and relatively low prices, many companies decided to choose Thailand as one of their headquarters, which means that the population of Thailand will increase, due to the many employees that will be part of these companies. This happens because the country managed to attract many investors in the area, which also contributes to the prosperous development of the local economy, placing Thailand among Asia’s leaders.
- The country has an excellent location with a high number of benefits
It is also extremely easy and cheap to fly in Thailand, enjoys an excellent infrastructure, great facilities in all of its resorts, and very good business relationships with China. Not to mention that the rental potential of Thailand’s properties is extremely high, as the government spent a lot of resources to lure in a higher number of visitors.
Also, in present days, foreign investors are seen as a great opportunity for the country, so they are more than welcome and even encouraged to invest in the country. So there are more than enough good reasons to start a property investment in Thailand.
CAN FOREIGNERS INVEST IN THAILAND REAL ESTATE?
As mentioned before, foreigners are welcome in Thailand and they are allowed to make investments. But, when it comes to real estate, there are some restrictions investments coming from foreigners. Unlike other real estate markets of the world, the one in Thailand is not that open when it comes to completely passing titles of property into the hands of foreigners, so you need to know the rules if you want to make a successful investment.
So, what are the conditions when buying property in Thailand as a foreigner? To start with, you cannot own property in Thailand as a foreigner, but you can obtain a lease for the desired land for 30 years, time in which you are investing as you please in real estate. There is another option, of course, which involves finding a partner from Thailand and establishing a company in the country.
However, as a foreigner, you won’t be able to own more than 49% of the company. But, with the help of a company that was created in Thailand, you will be able to buy land and hold its property title. Still, when it comes to condominiums, the regulations are a bit more permissive. A foreigner can buy and own a condominium for as long as he is able to enter Thailand in a legal manner. But again, the units of the condominium owned by a foreigner cannot exceed 49% of the total development space of the area.
But, if you are an American citizen, things change a lot. Due to the existence of the Thailand-US Amity Treaty, American citizens can own a company in Thailand in a proportion of 100%. But even so, do equip yourself with patience because the process will take a while as there is a lot of bureaucracy on the way.
Yet again, even if you fully own a company, the previously mentioned rules apply when looking to buy land or properties in Thailand. If we are to look at the laws, there is a possibility for a foreigner to own land in Thailand if he invests a minimum of 30 million Thai Baht, which is somewhere around $850,000, per year in real estate. Even so, special approvals are required so not everybody that makes such an investment has the guarantee that he will gain ownership as well.
REASONS FOR FOREIGNERS TO INVEST IN THAILAND
After finding of all these conditions and restrictions, you’re probably wondering if it is really worth investing in Thailand’s property market. This is a legitimate question but you need to look at these reasons if you are interested in making such a step, especially if you want to do a Bangkok property investment because you’ll end up understanding why this is such a great choice.
- The capital city, Bangkok, provides a wide range of business opportunities
First of all, Bangkok is the capital city but also Thailand’s primate city, which means that the most important things take place here when it comes to political, financial, and social sectors. Also, Bangkok will continue to develop at an incredible rate, in comparison with other cities in Thailand, forecasts predicting that, by 2025, Bangkok will be the second largest city in Asia and among the most profitable, reaching a GDP of $300 billion. So, if you are looking for property for sale in Thailand, start looking in Bangkok.
- The demand for houses and apartments is on the rise
It is also estimated that the population of Bangkok will continue to grow, aiming to reach 11 million residents by 2025. This means more people that will want to buy or rent Bangkok apartments, so the demand for real estate developments will continue to rise.
- Wealthy Thais like to own apartments downtown and houses in the outskirts
Also, did you know that wealthy Thais love buying luxurious condos in downtown Bangkok, just to avoid high traffic as they head to work? They do this even if they already own a landed house on the outskirts of the city, where they usually retreat at the end of the week. So, this is why there is quite a demand for luxurious residential units that are as close as possible to Bangkok’s town center.
But not just rich Thais love staying in Bangkok’s downtown area. Expats also appreciate such an opportunity so they will not hesitate to cease it, mesmerized by the city’s vibes, bars, restaurants, and nightlife.
- A lot of companies start opening headquarters in Thailand
Multi-national companies also want to take advantage of the city’s growing economy and favorable business environment, so more of them are starting to move to Bangkok. This is going to be soon a very sought after city, so it will be worth being here as a real estate investor when this happens. Also, it is worth knowing that prices are not necessarily dictated by the area where the new development is built.
It often happens that two developments placed one next to the other have very different prices. So, if your development is near an MRT or BTS station, you used high-quality materials for its construction, you offer a high degree of luxury and number of amenities, then the price of the units in your development will go up.
HOW MUCH PROPERTY TAXES ARE IN THAILAND?
When it comes to property taxes it is worth knowing that condominiums in Thailand have no property taxes. However, they do have an annual management fee, which will cover its electricity costs, up-keeping, staff, and cleaning processes. How much is the management fee? Well, it depends on the size of the condominium, being approximately 500 baht for every square meter, per year.
If you wish to transfer the property to someone else, then you’ll have to pay a fee that represents 2% of the value appraised by the government. But, in most cases, this fee is split between the seller and the buyer.
As a seller, you will also have to pay a stamp duty, which represents an additional 0.5%. Still, if you intend to sell a property within 5 years after its purchase, you will have to pay a 3.3% tax that represents the Specific Business Tax. In this case, you won’t have to pay the stamp duty anymore.
In case you don’t want to sell and would rather rent your Bangkok property, then you should know that the taxes for income generated by property rental are very low, as they enjoy a significant number of deductions. Thus, the amount you will have to pay as a rental income tax will be calculated once the deductions will be established.
But, before you start to get worried about it, it most cases it is never bigger than 5% and in the majority of the cases, it is far lower than this. Also, most landlords will tell you that they don’t even bother thinking about this tax and they don’t pay it either, and no one ever comes to ask them questions.
IS BUYING PROPERTY IN THAILAND SAFE?
Buying property in Thailand is extremely safe because this country has very solid laws when it comes to property ownership and has all the data stored in a highly secured computer program. But, if an issue does appear, after all, they will be either from the development company or from the seller.
Still, do know that there are quite a few highly reliable development companies in Thailand, which created a strong reputation in time and completed numerous successful projects. So, with a bit of research, you will be able to find a great partner for your investment plans.
What you should stay away from or at least be very careful with, is the small development companies. If you do choose to collaborate with such a company, make sure you have a third-party inspector check the unit that’s being built periodically, to avoid major issues.
IS THAILAND PROPERTY A GOOD INVESTMENT?
For the past decade, the real estate market stabilized in Thailand, plus it is very well positioned when it comes to its neighbors, allowing a 1-hours flying to any of the following destinations: Myanmar, Laos, Cambodia, and Vietnam.
It is also worth mentioning that the Thai Baht has been one of the most stable currencies in Asia for years in a row, so it is more reliable than the Japanese Yen or Singapore Dollar. The market has a low tendency to crash as well, so the risks an investor takes when choosing to exploit Thailand’s property market are extremely low.
WHY INVEST IN THAILAND NOW?
Many investors choose to have their headquarters in Bangkok just because they can travel so easily to all the surrounding areas, fast and comfortable. Not to mention that Thailand is such a pleasant place to live, with many opportunities that arise throughout the year and a constantly developing urban area and economy.
You can tap into the one-year investment visa program by simply investing 10 million Baht in properties in this country. You are also allowed to invest in various assets as well, such as mutual funds, stocks, bonds, and so on. Also, you can renew your investment visa over and over again, without limits, so you can enjoy doing business in Thailand for as much as you please.
PROJECTS TO INVEST IN THAILAND BANGKOK
IDEO MOBI RANGNAM
Ideo Mobi Rangnam is a FREEHOLD condominium on 31-floors with a total of 366 units and 169 car parking spaces. Residents of The Development will enjoy world-class facilities including a 360 degree dramatic swimming pool, a Levitate Lounge, a Cloud Fitness Centre and a Sky Garden. In addition a ground-breaking ventilation system powered by solar cell technology will ensure the comfort and health of all residents.
Located near the Victory Monument BTS station and Rang Nam MRT station, the Ideo Mobi Rangnam presents a compelling investment opportunity for astutue investors to take advantage of the growth in Thailand’s economy.
A brief introduction to Thailand’s economy was presented earlier for another new launch condominium project, the Life Asoke Rama 9 developed by Mitsubishi Estate.
With pricing from S$130,xxx per unit, the Life Asoke Rama 9 saw all 60+ units allocated for Singaporeans sold out over the launch weekend.
Seeing the keen interest for Bangkok properties by overseas investors, Ananda Development is building the Ideo Mobi Rangnam to take advantage of the capital seeking to invest in real estate.
Why Choose Ideo Mobi Rangnam Thailand?
- 630 m from BTS Victory Monument, 135 m to MRT Orienge line.
- 3 Stations to Siam Paragon and Central World, 1 Station to the airport rail link
- Located in Soi Rangnam is lively location convenience 24-hour
- Natural retreat at Santiphat Park & Makkasan Complex, surrounded with the well-known Hospital & Faculty of Medicine
- Smart Building Design: Futuristic unique design, design solar cell panels for every unit.
- New design interlock unit (to get more than space)
- Could sky facilities, stylish and spacious lobby design.
- Smart design typical units: Floor to ceiling 2.7m every unit, walk-in closet, fully furnished
- Smart Solar Fresh Air System: Solar cell panels for every unit: Solar Fresh Home, Smart Solar Dashboard
- Facilities: Cloud Sky Facilities: 360 Dramatic Pool, Levitate Lounge, Cloud Fitness, Sky Garden
- Developed by Ananda Development
ELIO DEL NEST
Elio Del Nest is a brand new launch by Bangkok’s leading public listed developer. It is a unique “High Rise Resort” covering a very large plot of land.
Elio Del Nest is located in the new upcoming business district of Bang Na on Sukhumvit Road, 750m from BTS Udom Suk sky-train station where there is plenty of new commercial development including the existing BITEC Convention Centre and future Bangkok Mall (SE Asia’s largest shopping mall) all linked by a skywalk.
This is an ideal entry-level project for investors who wish to keep their financial commitment low and to stay secure with a well established developer. Elio Del Nest stands out significantly from other low cost developments in the area because it is a resort style project with 7 high rise buildings from 23 to 35 floors surrounding the massive swimming pool, gardens and sprawling communal clubhouse / parking building where the exterior design resembles a bird’s nest. This is more of a spectacle than your average high rise project in this area.
Facilities at Elio Del Nest include: Two large swimming pools, gardens, ponds, fitness centre with virtual fitness equipment, kid’s playground, shops on premises, restaurants on premise, co-working spaces, meeting rooms, laundry, BTS shuttle service.
Units on sale at Elio Del Nest range from Studio’s, 1 Bedroom, 1 Bedroom Plus (with small extra room for single bed or study), and 2 bedroom types.
Be sure to consider Bang Na as the next investment hotspot in Bangkok, with the new Bangkok Mall (SE Asia’s largest) and Bitec convention centre this is an ideal business hub on Sukhumvit Road much closer to the international airport.
Why Choose Elio Del Nest Thailand?
✅ 750 metres from Udomsuk BTS Station, easy access downtown & areas East and South of Bangkok.
✅ The Em District at Phrom Phong is just 20 minutes away, and the nightlife and restaurants of Thonglor are even closer.
✅ Efficient & Enhanced transportation links including the BTS Yellow Line and a link directly to Suvanabhumi International Airport are also planned.
✅ Future opening of the Bangkok Mall in 2018, which will be the biggest mall in South East Asia, that includes shops, hotels, fun parks, offices and a new bus terminal.
✅ Future sky walk from Udomsuk BTS Station 500 metres away.
✅ Near BITEC (Bangkok International Trade & Exhibition Centre) which is undergoing a major expansion programme, to include a new office building as well as a larger exhibition area.
✅ Udomsuk is located on Bangkok’s most popular BTS line, the Dark Green Line, which is undergoing significant expansion with another station (Samrong) added in May this year and a further 8 stations under construction running south to Samut Prakan. The Udmomsuk area will be further enhanced by the opening of the Yellow Line Monorail running from Ladprao to Samrong in 2020.
✅ Upper Sukhumvit area around Elio Del Nest offers excellent shopping and entertainment, i.e.: shopping malls (Central Bangna, Mega Bangna, Seacon Square, Paradise, Robinson Department Store and Major Cineplex).
✅ Makro Food Service Store, markets and small resturants at doorstep.
Click Here To View More Details On Elio Del Nest
IDEO Q SUKHUMVIT 36
Ideo Q Sukhumvit 36 is a ground breaking luxury standard development by Bangkok’s leading PLC developer. This new launch is in the heart of Bangkok’s premium residential district Thong Lo. Famous for it’s attraction to Japanese expats, this is the international zone of Bangkok where shopping, restaurants and nightlife all intermingle. Thong Lo is where Bangkok’s upper society reside and you will find an abundance of high-end luxury villas here as a result.
Ideo Q Sukhumvit 36 is positioned on a freehold parcel of land only 450m to BTS Thong Lo sky train station. The project consists of two high-rise towers linked by a bridge on the 24th floor – Tower A has 48 floors and 364 residential units, Tower B has 25 floors and 85 residential units. Facilities are shared between both buildings and are incredibly well fitted featuring: Sky Onsen Spa, Infinity Swimming Pool, Fitness Centre with Virtual Fitness equipment, Golf Simulator, Library, Lobby Lounge, Steam & Sauna, Tea Room, Co-Working Space, Automated Car Parking. These facilities are spread across 2 floors – The Sky Life facilities are on the 24th floor and the Summit Sky facilities are on the 47th floor.
The residential units at Ideo Q Sukhumvit 36 are much larger than the average small sizes we see all over Bangkok. This project is clearly built with expat residents in mind who require more living space. The one bedroom units range from 34m2 – 37m2, one bedroom plus units (with extra room for small bedroom or study) ranging from 44m2 – 56m2, and two bedroom units ranging from 63m2 – 68m2.
Why Choose Ideo Q Sukhumvit 36 Thailand?
✅ 5 minutes walk to BTS Ratchathew
✅ 5 minutes walk to renowned and popular Soi 19 Wanton Noodles
✅ 5 minutes walk to Pantip Plaza (Bangkok’s largest Wholesale Mall)
✅ 5 minutes walk to Pratunam Market
✅ 6 minutes walk to Platinium Fashion Mall (3 zones in 3 separate buildings)
✅ 8 minutes walk to Siam Paragon Shopping Mall (Ion Orchard of Thailand)
✅ 10 minutes walk to MBK (Thailand people’s mall)
✅ Attractive Rental Yield @ 6%
✅ Private Elevator right at your doorstep (Rare and Luxurious)
✅ Choice of 1-bedroom and 2-bedroom units (Efficient and Affordable)
✅ Low Quantum from S$2xxK
IDEO Q VICTORY
Ideo Q Victory is a condo project developed by Ananda Development Public Company Limited, Ideo Q Victory has 39 floors and contains 348 total units, Units range from 1 bedroom to 2 bedroom. Ideo Q Victory at Thanon Phaya Thai, Ratchathewi has the following facilities: cctv, fitness, parking, security and swimming pool. Local amenities include hospitals such as Institute of Cardiovascular Diseases, schools such as idesign school and Goodlanguage, shopping centers such as Century Mall, V Street Market and PAMMY_NAILS, restaurants such as Restaurante. Azotea 2planta, Rajdhevee Bar&Seafood and Victory Seafood, and the public transport stations of Airport Link Phaya Thai (A8), Ramathibodi Hospital Railway Halt and Yommarat Railway Station.
Why Choose Ideo Q Victory Thailand?
MAIN ENTRANCE – Every time you step onto the premises of Ideo Q Victory, you’ll be able to leave the pandemonium of the capital city behind and be embraced by the varying shades of tranquility and privacy thanks to the double-height fence of our project.
AUTOMATIC PARKING – With advanced technology, our automatic parking at Ideo Q Victory lessens your burden.
RETREAT GARDEN – The lush garden located next to the entrance welcomes you to this reservatoriumof life, allowing you to leave your worries behind at the gate as you are greeted by the sound of flowing water and the sight of luxuriant foliage.
CAVE LOUNGE – The unique Cave Lounge, inspired by the majesty of a cavern, transports you to another world, where you are one with nature and serenity
Click Here To View More Details On Ideo Q Victory
ASHTON ASOKE RAMA 9
Ashton Asoke Rama 9 is a ground-breaking iconic residence in the very centre of Bangkok’s new Business District of Rama IX / Ratchadapisek, close to Asoke. This spectacular high-rise development consisting of two towers is being developed by Bangkok’s leading developer. Ashton is the name reserved for this developer’s range of Grade-A luxury residences which are situated in truly premium locations and feature a superior standard of finishing. Every condo in this development is a corner unit, allowing the maximum amount of light into the building and offering spectacular panoramic views of downtown Bangkok.
Ashton Asoke Rama 9 is located directly next the up coming ‘Super Tower’ – set to be Bangkok’s tallest building with an already existing two million square metre Business District surrounding it. Ashton Asoke Rama 9 is positioned on a premium land plot which is the last vacant corner plot on this major intersection between the two roads, Ratchadpisek and Rama IX. The high-profile location of this corner can be likened to the famous advertising signs in Piccadilly Circus, London, or Times Square, New York, fitting for a residence of this importance.
Why Choose Ashton Asoke Rama 9 Thailand?
- First Ashton Super Luxury Condominium in Rama IX – Bangkok’s New CBD Zone with the Stock Exchange of Thailand (SET), the Mega Grand Rama 9 Project (>1.2mil sqm of Leasable Office and Commercial Spaces)
- Possibly The Last Prime Corner Plot Location at the Rama IX and Asoke-Ratchada Intersection
- Best View of New Rama IX CBD (Grand Rama 9 Mega Project Including the Future Super Tower)
- Ashton Brand Value : Top Brand of Ananda (Super Luxury Class Condominium) plus World Renown Design Team (Architecture, Interior & Landscape Designers)
- Dean & Deluca’s Branded Lifestyle Store & Cafe at Doorstep (Ashton Asoke – Rama 9 X Dean & Deluca)
- Only 230m to MRT Rama 9
- Only 1 Stop to MRT Phetchaburi / ARL Makkasan (Airport Rail Link)
- Only 1 Stop to MRT Thailand Cultural Centre Exchange Station (Future Orange Line – Blue Line Interchange)
- All “Corner” Unit Design with Single Loaded Corridor
- Innovative Architecture for Maximised Ventilation and Natural Light
- 1st “Urban Oasis” at Rama IX (>1 Rai)