Thailand has always been loved by people all over the world. The food, the inclusive culture, and the low consumption rate are the main reasons that attract foreigners there. The Chinese, in particular, are not just partial to travelling to Thailand but even moved to live there.
Did you know that 31% of the foreigners holding long-term residence visas in Thailand are Chinese?
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So the question is: should you invest in Thai property? What are the restrictions for foreigners investing in Thailand property? What are the advantages and disadvantages? Today, we will discuss all these topics.
"I am a foreigner, can I buy property in Thailand?"
As mentioned above, the Thai government has introduced a "Buy a house, Get a visa" policy to encourage foreigners with high spending power to invest in Thai real estate. This means that foreigners can buy property in Thailand!
"As a foreigner, can I own land in Thailand?"
As mentioned above, foreigners are not allowed to own landed property unless they are buying leasehold landed property. So, if a foreigner really wants to buy a freehold, landed property, is it possible?
According to the policy on foreigners buying property in Thailand, it is almost impossible because:
In short, when foreigners buy property in Thailand, they can only buy condominiums, then they can get freehold condominium units.
As for properties with land, such as villas, you can only get a leasehold with an extension of up to 90 years, or if you create a company in Thailand and find a Thai national to hold 51% of the shares, you can buy a freehold property with land in the name of the company.
"Did the Thai government not relax its policy because of Covid-19?"
We all know that Thailand relies heavily on tourism. Phuket, in particular, has seen a boom in tourism, which in turn has boosted the local real estate market, with many foreign investors buying properties there to earn extra rental income.
However, the sudden hit of a pandemic has affected the real estate market in Phuket. The country has not been able to revitalize the real estate industry, even with local tourists coming to visit. As the demand for property in Phuket declines, Thai developers are now clearing their existing house inventory and delaying the launch of new condominium projects.
As for the Thai government, they have not announced any relaxation of the property buying policy for foreign buyers but will introduce various measures to stimulate the property market and encourage foreign investment, such as the "Buy a house, Get a visa" policy. However, the Thai government may announce some reforms in the next three to five years, which will further stimulate the Thai housing market.
Thailand's real estate is one of the most popular countries among Asian countries for Chinese investors. Meanwhile, according to the latest data from the Chinese real estate portal Juwai.com, Thailand was the most popular country with the highest number of inquiries from potential Chinese buyers back in 2018.
Compared to real estate in China, Singapore and Hong Kong, foreigners can buy less expensive homes in Thailand, especially in Phuket. This may be one of the reasons for the attraction of Chinese buyers and the fact that they make up half of the overseas buyers in Phuket.
One of the main reasons that Phuket attracts so many foreign buyers is that you can buy freehold property here.
As we have repeatedly mentioned earlier, it is impossible for foreigners to buy freehold property in Thailand, except for the 49% foreigner quota condominium units granted by the Thai government. Unless they are purchased in the name of a company, the process will be very complicated.
However, in Phuket, it is very easy for foreigners to buy freehold property and although the price may be slightly higher, you can make a profit when you sell the house in the future.
Phuket is located in the Southwestern peninsula of Thailand, so its pleasant climate, beautiful beaches and luxury hotels attract many foreign tourists every year.
At the same time, the relaxed life and warm sunshine captivate many people to come here to retire and settle down.
Developers may not be able to complete their development projects due to lack of capital or other reasons. Therefore, investors must choose a reputable developer or seek advice from a local professional real estate agent in order to avoid the risk of investment failure.
This is another risk of buying a phase property because the developer can market the project in advance and the investor can buy the property before obtaining the EIA approval.
However, should any unforeseen land issues arise, it will affect the delayed completion of the development or even a complete construction freeze.
Although Thailand has a growing number of laws to protect buyers, they are still ignored by developers and the final product and quality is often different from what is advertised. In such cases, there is nothing buyers can do about it.
The real estate in Laguna is managed by Banyan Tree, a world-class hotel group with top-notch facilities and a championship golf course, so if you buy a property here as an investment, you probably won't have to worry about renting out the property.
The spacious ocean view condominiums and spectacular villas, all with easy access to the beach and the lush tropical environment nearby, often attract foreign tourists to stay here.
With its proximity to the sea and mountains, Rawai is a place with great mountains and water. When you buy a house here, you can enjoy not only the stunning sea view but also the coolness of the mountains.
In addition, Rawai is a relatively large community. As the population increases, there are more and more choices of restaurants, cafes and bars, and expected to have more development in the future - attracting foreigners to live and invest here.
This article was written by Nasupha Suwansri. Click on her profile to get her expert advice on Thailand real estate!
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