Tuesday, May 21

How To Buy Property In Thailand 

For a long time now, Thailand Real Estate has provided investors with attractive, secure and stable ROI that exceeds 10% per annum. Land values have increased by as much as 300% over the past decade. Property owners are guaranteed a stable income because the average rental returns is 5% a year with 7% easily achievable.  

Advantages of buying a property in Thailand

Property investors can take advantage of Thailand’s low property transaction costs. Transfer taxes are very low at 1.1% up to a maximum of 6.3%. In Singapore, an additional 15% stamp duty is levied on foreign property buyers. In Hong Kong stamp duties for foreign buyers is 30%. In Taipei, a punitive divestment gains tax of 45% was announced last year. Other countries like Australia and the United States are also increasing transaction costs for foreign buyers of properties. 

An additional benefit offered by Thailand to property owners is the huge saving from non-existing annual property taxes. In the United States, the owners of a property worth $1 million must pay an annual tax of $24,000 over a period of 30 years. 

How can foreigners buy property in Thailand?

  • Land leasehold – This is an arrangement where a foreign investor can rent a property long term from an actual owner (freeholder) for 30 years. The foreign buyer can use the property as a home or it can be rented out during the duration of the lease. When the 30-year lease expires, it can be renewed for another two 30-year terms. 
  • Lease the land but own the building – Land can be leased from a freeholder for 30 years so that the foreign buyer can build his dream house on the property. An experienced lawyer can easily extend the lease for another 30 years. 
  • Protected lease – It is also called a secure lease or collective lease wherein a tenant commits to a lease but simultaneously signs a sale and purchase agreement with the developer’s Thai company. For example, if a Thai company develops a range of villas with the purpose of leasing to foreigners, foreign investors can collectively own the shares of the offshore company. 

How to find condos or real estate in Thailand?

The internet is the best source of information for condos and real estate for sale. There are property listings that often provide sufficient information including photographs of a property. You can also make a few discrete inquiries on desirable neighborhoods where there are properties for sale. Ask around because there are some people who know more about available properties. 

You can also consider several posts in social media including Thailand property groups offering condos or real estate for sale. You can also work with trustworthy real estate agents who are knowledgeable about available properties in specific areas.