Resicom – Holiday Investment – 04-21 – LB

Thai up your investment

Despite being halfway across the globe, Thailand is swiftly becoming a favorite for British expats. Culturally diverse, yet boasting a sizeable expat community, the south-east Asian retreat offers a safe option for those who wish to travel yet retain their home comforts.

Holiday home website Villarenters recently reported that bookings in Thailand have increased sevenfold over the last five years, propelling it into their Top 10 destinations. They claim that the most popular properties are those which are fashioned in the local style, proving that authenticity is a winner for holidaymakers.

However, as an expat, should you be aiming for security, Thailand can offer that too. Year round tropical climate and traditions such as offering monks alms at dawn are juxtaposed with a vibrant nightlife and sophisticated healthcare service.

Bangkok is home to many of the country’s top doctors, yet a meeting with a specialist will set you back a mere $50. Rooftop bars, five star meals and authentic street food are just some of the attractions Bangkok alone can offer, proving that it is little wonder that Thailand has grown in popularity so fast.

As a holiday home for yourself, or as an investment property, Thailand has huge potential. However, under current Thai law, foreigners are unable to purchase land freehold. It is possible to purchase a 90 year leasehold contract, which enables you to convert to a freehold at any time should the law change or should you choose to establish a company to buy the freehold title. Potentially the most common way in which land is purchased, the method is fully supported by Thai authorities. A registered lease is simple to set up, with the standard lease being for 30 years and held in the investor’s name. There will be two subsequent renewal opportunities for the lease. When a lease is renewed no further payments need to be made aside from local tax, which is often approximately 1.1 per cent of the lease’s value. The only instance in which a foreigner will be able to purchase land outright is by investing an extremely large sum; Thailand has previously allowed investors spending 40 million baht to own up to one rai, which equates to around 1,600 square meters or 0.4 acres of land, in certain areas.

Before anything is signed or a deposit is made, a solicitor will undertake any searches necessary, making good legal advice essential. The final contract is signed once all legal documents have been completed, and relevant fees and taxes are paid at the time. After this, the deeds are registered with the Land Department. Buyers pay around two per cent transfer fees, one per cent legal fees and a 0.5 per cent stamp duty. Should you buy through a Thai company, a business tax of 3.3 per cent will need to be paid, and for the purchasing of land, a local development tax is charged.

In terms of popular investment areas, Thailand’s diverse landscape and culture means that there are a variety of locations to suit different desires.
As previously mentioned, the capital city of Bangkok is an obvious choice for British investors, largely due to its thriving expat community and widely available healthcare. Being one of Southeast Asia’s largest cities, it is more commercialised than other areas in the country, and adds an air of familiarity for expats missing UK life. Certain areas, such as Sukhumvit Road, are popular due to their close proximity to public transport, with the ‘Skytrain’ and MRT underground nearby. Condominiums are a popular choice in the capital, and a modern 1,290 square foot two bedroom condo will set investors back around $218,700. A similar unit to rent will equate to around $1,120 per month, whilst a three bedroom home in the nearby suburbs of Bang Na or Nonthaburi will rent for about $1,000 a month.

In contrast, Pattaya is one of Asia’s largest beach resorts and is the second most visited city in Thailand. Whilst the region previously attracted young, single males in search of nightlife, the area is becoming increasingly popular with families. Full of cultural marvels, such as floating markets, or family friendly adventures such as Jomtien beach, it is little wonder the area is favoured by tourists and investors alike. A typical house in Pattaya will range in value from approximately $62,400 to $780,000.

With it’s popularity continuously rising, Thailand is certainly worth considering when purchasing property abroad. Be it for your own use or for investment purposes.

Be the first to comment on "Thai up your investment"

Leave a comment

Your email address will not be published.