For a traveller, Thailand is an amazing place to visit, with beaches that have clear water and shopping destinations that display the top brands in the world. Thailand is a lot more than a tourist destination for many who have made it their home.
Thailand offers jobs, allows foreigners to live in peace and also offers many attractive perks in terms of immigration and stay for affluent global citizens. No doubt being connected to the ASEAN HUB has given Bangkok leverage and has made it the commercial capital, but there are many more reasons to stay and live in Thailand.
Moreover, the country is ranked in second place in the ASEAN in terms of GDP which makes it a good place for traders and also in terms of infrastructure such as roads, railways, airports and seaports that facilitate business.
Why Do Foreigners Invest in the Thailand Real Estate Market?
- Thailand is easy to navigate once you get a lay of the land. Commuting in Thailand is a simple and inexpensive task especially if you choose to take the BTS Skytrain or MRT underground system. Both of these connect Bangkok in various ways through multiple lines and ensure ease of transport. The average cost of riding on the BTS Skytrain is 35 Bahts with 16 Bahts being the starting fare and 59 Bahts being the maximum fare per journey. The average cost of riding on the MRT Underground is 30 Bahts with 15 Bahts being the starting fare to 50 Bahts being the maximum fare per journey.
- Thailand is also a buyer’s market for real estate as the cost of living here is less than half of living in other South East countries. As of the recent census, Thailand is in the top 20 places to live a comfortable life in Asia with the average cost of a filling meal estimated between 50 and 75 bahts which translates to $1.40 to $2.0 per meal.
- Labour is cheaper than in most other countries and finding workers who are hardworking, dedicated and loyal is a real possibility. Moreover, there are many home office buildings as well as dedicated commercial office places for rent in Thailand. Foreigners who work in firms may also be eligible to make an investment in Thailand for office spaces if they invest in the development of the country through the BOI Prescribed Investment Act.
- Foreign real estate buyers who wish for a higher Return on Investment often consider Thailand as a place of choice as purchasing property here is relatively cheaper than in Hong Kong, Malaysia and India. The average cost of buying a home in Thailand with a 120 square meters plan is $5, 266 while the average cost of buying a simple house in Hong Kong with a 120 square meters plan is close to $28,570. Note that the price may increase by 15-20% for the same built-up area if you wish to invest in gated condos, maintained condotels, beachside villas and homes in up-class neighbourhoods with a sophisticated crowd.
- Thailand is a paradise for retirees who want to spend their golden years and nest egg on purchasing property in Thailand. While most of the retirees who invest in the Thai property market prefer to live on beaches, it is not unheard of to find a few young heart retirees living in Bangkok, Silom and other developed cities. The average cost for a retiree to live in Thailand is as low as $600 per month if they have their own house do not pay rent and do not have any mortgages on Thai properties.
Is It Safe for Foreigners and Their Families to Live in Thailand?
The majority of the areas in Thailand, both the upcoming localities and developed areas are safe to live in. Condominium complexes also have CCTV cameras, security guards and other safety measures in place.
Many villas and townhouses have automated gates that can be opened electronically through passes, cards, and also through smartphones. Thailand is a safe country for foreigners to live in and raise their children as well, but if in doubt, choosing a condo unit in a gated community is always a good practice. Installing CCTV cameras and automated gates with high fencing in villas and townhouses may also work out for buyers who wish to live in Phuket, Pattaya and Koh Samui.
Can Foreign Investors in 2024 Own Leasehold Land In Thailand?
If recent times have proven anything, it is that the Thai economy has more or less withstood COVID-19 better than many other countries by having countermeasures and safety precautions in place. However, the Thai economy did take a small hit despite tackling the situation in the best possible manner. Due to this and to help the economy and Thai citizens, a series of incentives have been rolled out in 2024 for affluent global citizens.
The incentives and initiatives for foreigners in 2024 imply that under various schemes, wealthy global citizens can consider relocating to Thailand as well as investing in the real estate market. Does this mean that as a foreigner you can freely buy leasehold properties built on Thai soil? Not as of now and maybe not anytime in the next couple of years! However, this does mean that you can invest in freehold properties with a Chanote Title Deed and you can legally transfer the property to your name.
Interestingly enough, these incentives have also made it possible for foreigners to invest through the Board of Investment to acquire land under certain criteria. The criteria include investing using your offshore account and overseas firm to own a certain area of leasehold land under the firm’s name provided the company and investment are done in a legit way. The Prescribed Investment Act through the BOI allows foreigners to own 1 Rai of land for every 40 million Thai Bahts that they invest in the development and well-being of the country.
3 Things You Should Know Before You Invest in Thailand Real Estate
The first and most important thing to remember is that while Thailand is a friendly and welcoming country, Thailand’s property laws are not always foreigner friendly. This directly translates into reading the contract before signing it, checking the authenticity of the title deed before paying any money and finally doing your own land survey to ensure that you are paying for the exact property area that is mentioned on the Sale and Purchase Agreement.
The second thing to remember is that squatters that occupy a vacant house can claim rights on the land by paying a small fee to the Thailand Land Department if they have occupied that land illegally for 10 years or more. To combat this potential issue, managed property solutions offered by realtors such as Silk Estate are the need of the hour.
The third thing to remember is that, you can rent your condo when you are travelling, or if you have purchased the condo for investment purposes. The informative blog post about Bangkok condo rentals on the Silk Estate website covers this topic at great length.
Choosing A Property to Invest In For A Future in Thailand
Before going ahead and choosing a property to invest in Thailand, make sure that you have a realtor to mediate and manage the property in your absence. Silk Estate has vast experience in selling dream properties to foreigners and also offering Managed Property Services to overseas investors.
Delegating your property hunting, purchasing and managing tasks to Silk Estate can give you peace of mind and also ensure that you get to spend your time on things that you love!
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