You are considering buying an apartment or villa in Thailand but don't know where to start.
Here are the three key steps that will allow you to go from dream to reality and become the owner of your villa or apartment in the Kingdom of Siam.
REAL ESTATE IN THAILAND: THREE TYPES OF INVESTMENTS DRIVE THE MARKET
The Thai real estate market attracts three main types of investment:
- Residential investment
- Holiday investment
- Rental investment
The fact that the market isn't reserved for large investors explains Thailand's success with individuals and retirees seeking truly personalized investments. In Thailand, it's possible to invest according to one's objectives and priorities.
INVESTING TO LIVE IN THAILAND YEAR-ROUND
The price per square meter is very attractive compared to prices in Europe, in particular. It is therefore possible to become a homeowner even with a small budget.
Given the country's continued economic growth, the risk of seeing your property lose value is very limited. On the contrary, all the conditions are in place to realize a capital gain over time.
The real estate market is structured and regulated, therefore real estate investment is secure.
Property taxation is also attractive: no council tax, no land tax, and low capital gains tax upon resale. Importantly, there is no inheritance tax, making it easy to pass on your assets to your children. However, it is advisable to make a will to expedite the process.
In addition to these real estate-related advantages, Thailand offers many benefits as a country to live in: exceptional living environment, low cost of living, economic dynamism, quality infrastructure (airports, hospitals, international schools, etc.).
INVESTING TO OWN A SECOND HOME THERE
Holiday investment is very popular because it allows you to enjoy your apartment or villa for several weeks or months a year, while also benefiting from rental income when the property is vacant.
Unlike many situations, owning and enjoying your second home is therefore not a financial burden but rather a source of income.
It is therefore possible to enjoy all the advantages that Thailand offers in terms of quality of life, at one's convenience, while making one's investment grow.
Why is holiday investment relevant?
It allows you to have a foothold in one of the most attractive countries in the world in many respects: climate, cuisine, gastronomy, culture… Real estate in Thailand remains very affordable compared to Europe, for example.
Entrusting the management of your property to a local real estate professional when it is unoccupied ensures rental income and also provides assurance that your property is maintained and monitored.
There are no property or council taxes to pay. Taxation is also particularly favorable on real estate income. It's an excellent way to combine enjoyment and profitability, while building wealth to optimize its transfer (no inheritance tax).
INVESTMENT WITH RENTAL GUARANTEE
The influx of tourists (nearly 40 million per year) and the emergence of a Thai middle class are fueling demand for rental properties, both for short and long periods.
It goes without saying that investing in an apartment or villa in the Kingdom of Siam, to diversify one's portfolio and generate income, is a sound strategy. This is especially true given that real estate professionals specializing in Thailand offer solutions designed to optimize and secure excellent returns.
Why is making a rental investment a very profitable operation?
Demand for rentals is strong and will continue to grow as the number of tourists will continue to increase, as will the number of retirees seeking a happy retirement.
Average rental yields are around 7-8%. Aiming for a 10% rental yield is quite achievable in some seaside resorts. Rental guarantees are offered on certain properties, meaning that the rents stipulated in the contract will always be paid, whether or not the property has been rented by the management company.
✓ Buyback guarantees are also possible and negotiable.
✓ Management fees remain low.
✓ The tax system is attractive.
Given the economic outlook, the real estate market is expected to continue its steady price growth. While it's important to remain cautious, realizing a capital gain upon the eventual resale of the property is highly likely.
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