Which country should you consider if you are looking to put your money into real estate overseas? In this article, we will show you why Thailand is an obvious choice.
Thailand has a vibrant economy, with one of the highest GDPs in Southeast Asia and a service sector accounting for half of the national income and having a major stake in national employment. More and more foreigners come to Thailand every year, both on a short and long term period, attracted by the combination of a peaceful exotic lifestyle and a modern infrastructure network. The capital Bangkok is growing fast, the interregional and urban transport network are constantly expanding and Suvarnabhumi Airport is a major hub linking Thailand to more and more destinations worldwide.
Thailand attracted between 30 and 40 Million tourists per year during the 5 years preceding Covid and the trend is likely to be the same again for 2023. It is among the most sought-after "wintering" destinations for Europeans who wish to get away from the frigid winters of their home countries. This surge in tourists has a direct impact on the demand for renting and buying real estate. In fact, investing in property in one of the most popular tourist destinations in Thailand often entails a quick payoff due to the high rental yield and the steady rise in real estate prices.
In Thailand there are accommodations to suit every budget and taste, all the way from small comfortable apartments to huge high end villas. In the capital city and in major resort areas like Samui, Phuket and Hua Hin, property experts such as www.fivestars-thailand.com share their knowledge of the property market with potential buyers looking to buy a home away from home in Thailand. In order to better interact with foreign customers, Western staffs are hired by property developers and brokers and will assist you during each step of the purchasing process and even beyond, your property agent managing your property while you are away to ensure you keep earning rental income!
Thailand is also among the most desirable destinations in the world for freelancers to reside in. High-speed Internet, non-cold weather and a high quality of life at a reasonable cost are some of the reasons why a growing number of "digital nomads" from all around the world decides to make Thailand their home.
The island of Phuket in Southern Thailand is one such digital nomad hub and has recently been voted amongst the top 20 cities in the world for freelance work. The Thai government is also currently working on plans to create an exclusive IT zone in Phuket to draw even more foreign investors and experts.
However Phuket is not just popular among freelancers but also among regular tourists and investors, attracted by the white sand beaches and water sports activities to be found on the West Coast of the island. Last but not least, Phuket is becoming famous as a yachting hub and is home to the most famous names in yachting, namely Feudalism as well as Royal Huisman.
It is worth noting that regardless of their growing number of residents, the Southern gems of Phuket and Koh Samui are protected by easily enforceable zoning laws restricting the amount of land available for development as well as strict environmental rules. You will not be able to build tall structures on the islands, especially in Koh Samui. In spite of that, the demand for rental homes in Phuket and Samui has never been bigger, which has a direct impact on the yearly increase of the property prices there!
One of the other advantages for foreign nationals looking to purchase in Thailand is the tax system within the country, both as an employee and as a buyer or a seller. The cost of the transaction taxes is very reasonable compared to European countries and yearly property taxes are extremely low.
The national currency also remains one of the most stable currencies around the globe. In the year 2010 one dollar was equivalent to 33.37 Thai baht, at the end of 2019 the exchange rate for dollars to Thai baht was 30.15 and in 2022 the exchange rate will be 33.75 baht.
In Thailand there aren't any restrictions on foreigners purchasing real estate, others than they cannot own land in their personal name but rather have to set up a Thai limited company in order to do so. Condo-type apartments can be bought by foreigners in their own name.
In a nutshell, here are 10 reasons why you should consider Thailand as a great location to buy real estate:
Due to the economic crisis caused by COVID-19, some of the initiatives proposed by the government linked to the tourism and property sectors were "frozen". But by 2022, the nation's improvement in those sectors and others linked to them was already evident.
Thailand has always been a very resilient country and knows how to bounce back much faster than most other countries. It is important to note that in addition to the Covid health crisis, the property market in Thailand had already suffered a first "blow" after the economic crisis of 1997 known as Tom Yam Kung crisis.
Regardless of these crises, the property industry in Thailand has always been stable and secure and by judging from the number of new real estate developments all across the country, the trend is it will keep being vibrant for many more years to come!