Features of buying real estate in Thailand
The land of smiles attracts with its warm climate, paradisiacal islands and beautiful beaches, ancient Buddhist temples, exciting shopping, fishing, windsurfing, yachting and diving. People come here not only to spend their holidays, for the winter, but also for permanent residence. Buying an apartment in Thailand allows you to save money, receive passive income or resell it profitably. Depending on your goal, we will help you choose the appropriate object. We will tell you in the article about the nuances of buying real estate in this kingdom
How much does an apartment cost in Thailand?
Many foreigners prefer this country because of the fairly affordable prices – from 2 thousand dollars per square meter. m is in a new building. Thailand is developing rapidly and belongs to a fairly safe region. At the same time, Phuket and Pattaya are the most popular. They are chosen most often for vacations, living and investing. For 50 thousand dollars, you can buy profitable real estate 500 m from the sea, which will bring a profit of 300-500 dollars. per month almost year-round.
The owner pays utility bills 1 time per year. Their cost is about 30-40 baht per 1 sq. m. They include exterior lighting, maintenance of the surrounding area and garden, garbage collection, cleaning of the pool, gym. Payments for water and electricity must be made every month. Their size is determined by the actual consumption shown by the meters.
Pattaya has a lower price per square meter and a lower cost of living compared to Phuket. Bangkok, with its luxurious shopping malls and the largest aviation hub, is 149 km away. Phuket attracts with its beautiful tropical nature: bright and diverse forest vegetation combined with snow-white beaches and azure waves.
Low tax rates
In total, the buyer pays from 1 to 3% of the cost of housing. The tax on real estate ownership is 0.03% of the cost per year. If you want to resell the property, then two taxes are charged:
0.5% — if you own real estate for more than 5 years, if this period is less, then 6.3%;
from 5 to 35% — income tax, the calculation of which depends on the amount of income received from the sale.
A foreigner who rents out real estate pays:
15% on rental income in the absence of an INN in Thailand;
from 5 to 35% — if there is an INN, which is also calculated depending on the amount of profit: the larger it is, the higher the tax.
To obtain a local INN, you need to live in the kingdom for more than 180 days and be a tax resident.
Year-round demand for rental housing
The popularity of Thailand, and consequently the demand for rental housing, is relevant all year round. Of course, as in any resort, high and low season can be noted here. For example, September is the least popular because of the rains, and January is considered the peak of the influx of tourists.
If we compare it with Europe, then seasonality in Thailand still does not have such a pronounced expression. For example, in Spain and Italy, the high season lasts 3-4 months, and in Bulgaria — about 2 months. In addition, the region is important. For example, in Pattaya you can really relax all year round. The average air temperature does not fall below 22 °C. April is considered the hottest month, and December is considered the coldest. The peculiarity of the resort is that the rains mostly come at night.
What to consider when buying a property in Thailand?
- The buyer must have a bank account in both his country and Thailand. When registering housing for a private person, the receipt of money from abroad is recorded and documented.
- The forms of real estate ownership for foreigners are full ownership (freehold) and long—term lease (leasehold). If you buy expensive housing for permanent residence, then it is reasonable to formalize a freehold, that is, it is 100% ownership — it can be sold, donated, inherited.
- For the purchase of a small apartment for the purpose of investing funds and with the possibility of its further resale, a leasing company is suitable.
Each of the forms has its own advantages and disadvantages. It is most profitable to buy real estate at the stage of announcing the project.
- By investing in the project at the excavation stage, you can get the maximum return. When purchasing real estate, a foreign citizen is not automatically granted a residence permit or citizenship, but it is possible to obtain an investment visa. Also, everyone can buy a Thai Elite Visa, which allows you to legally reside in the country from 5 to 20 years.
Our real estate agency is directly involved in the sale of new projects and represents various developers.
Before starting work with them, we take into account the construction experience and the history of the company, that is, how many years on the market, which projects were built, whether they were put into operation, whether the construction deadlines were met, if there were delays, then what they were associated with. If the developer already has ready-made projects, then you can choose several and take a ride through them with an “inspection”: see the materials, the quality of construction. If there are available apartments, you can ask to show them. If the developer has no construction experience or it is insignificant, it is required to carefully study the documents of the company, the capital, the founders.
If there are doubts about the project, which is the case, a few months after the start of sales, you can find out about the number of apartments sold. If demand is high, then the probability of starting and completing construction is quite high.
Another key factor is location. People come to relax by the sea, and walking distance to beaches and developed infrastructure are important to them. The first coastline increases demand and provides a higher price for rental housing. If you look at the booking sites, the objects by the sea are the most popular, so you can consider secondary housing for purchase here, since new projects in popular areas have already been sold out, or the price per square meter may be higher than in a project built earlier.
Projects by the sea will always be popular, no matter if it is a new building or a secondary one. Choose an apartment with the High Rise real estate agency. We know the local market thoroughly, so we will help you choose the option that is right for you.
