Our Vision : Real Estate in Thailand PDF Print E-mail

Real Estate is the only investment that offers the possibility of a potential increase incapital coupled with a rental income.

Depending of your project and your timeframe, both can be obtained.

bangkok trend
Source: BMA archives

Whilst the investment property market here is considered emerging, investors will find the potential is very high. It is possible to buy off plan for under EUR 30,000. Detached villas can be had for about EUR 100,000 in some areas. With rental yields that are ranging between 6% and 9% at the present, this market is very attractive to many foreign investors. As more investors, holidaymakers and expats look at this market, the potential for property price growth is also high. Estimates are between 10% and 15% per annum on price growth.

Thailand is cheap relative to its peers

yield regional market
Source: Sansiri

Some explanation:

Whilst the investment property market here is considered emerging, investors will find the potential is very high. It is possible to buy off plan for under EUR 30,000. Detached villas can be had for about EUR 100,000 in some areas. With rental yields that are ranging between 6% and 9% at the present, this market is very attractive to many foreign investors.

Favourable Exchange Rate Bolsters Property Investor Confidence in Thailand

bath euro
Source: Yahoo Finance

Some explanation:

The favourable exchange rate between the euro and the Thai baht make this country very appealing to holidaymakers, expats, retirees and investors. With a single euro worth about 47 baht, euro money goes very far here. Add to this the fact the cost of living is incredibly low by European standards and the appeal of Thailand country becomes quite clear.

Generous Tax Structure makes Thailand Property Investment Very Intriguing to Buyers

 Type of Tax / Fee  Property Sale
 Lease
Transfer
 Who pay
 Freehold Building
 Transfer fee **
 2% 2% NIL Seller / Buyer
 Stamp duty
 0,5% or NIL 0,5% or NIL
 0,1% Seller
 Specific business Tax
 3,3% or NIL  3,3% or NIL
 NIL Seller
 Withholding tax
 1% ou 5-37%
 1% or 5-37%
 NIL Seller
 Lease registration fee
 NIL NIL 1% Lessor / Lessee
 ** Reduction of transfer fees originally introduced until March 2009 has been extended until 28 March 2010. Transfer fees during this period are reduced from 2% to 0.01%. Note that the reduction does NOT apply to transfer of land with no buildings on it, or to lease registrations.

Explanation

The tax structure that investors face in Thailand is very appealing. Whilst taxes do exist, they are much more generous than those found in other investment destinations. For example, Thailand does not have a capital gains tax or an inheritance tax. The country’s income tax ranges between 1 and 3%, and its land and structures taxes are quite low as well.

Thailand’s Culture Appeals to Holidaymakers and Expats, which Bodes Well for Property Investors. Value of the resort property market still growing, despite the worlwide crisis

situation resort
Source AREA

Some explanation:

Holidaymakers and expats who come to Thailand are often overwhelmed with the welcoming nature of the people. Hospitality is greatly ingrained in Thai culture. In addition to its religious sights and welcoming people, Thailand is famous for its Bangkok nightlife, incredible cuisine and beautiful art and architecture. The cultural draws of Thailand make it a popular holidaymaking destination, which encourages investors looking at catering to this strong and ever-growing market.

Thailand’s geography and climate combine to make this a favourite destination for many holidaymakers, expats and retirees. The country is considered the world’s 49th largest in size and is dominated by lush, tropical landscapes. The geography includes mountains, rivers, waterfalls, plateaus and plenty of beaches along the Gulf of Thailand. The weather is typically warm and wet in most regions. The beautiful landscapes and welcoming climate of Thailand create a very strong holidaymaking market.