Are you dreaming of owning a slice of paradise in Thailand?
With its vibrant culture, stunning landscapes, and friendly communities, the Land of Smiles, as it is often referred to, can be an ideal destination for those looking to invest in a tropical haven.
But before you put your money where your mouth is, you should understand the property ownership laws for foreigners.
Here are various options, including:
Buy a Condominium—For a buyer who insists on ‘Freehold in my Name,’ this is the best and most clear-cut option available.
Lease land or property. A long-term lease is the only way for a foreigner to have full control over a piece of land in Thailand using their own personal name.
Secured leasehold (with a share of the Freehold) is rapidly becoming most buyers’ preferred method as it lends itself well to securing the asset for the foreigner as well as ensuring the continual maintenance and upkeep of the entire development, which the buyer also has a share of.
Purchasing Freehold with a Thai Limited Company. It has been uncommon in the past for foreign investors to set up a Thai Limited Company in order to control the Freehold of land and property. It must never be overlooked (as it so often is) that a Thai company must have a function, a purpose & objectives. It must have income and expenses and should pay tax annually and be audited semi-annually.
BOI direct investment Through an application process with the ‘Board of Investment” (BOI) in Thailand. An individual investor who invests the equivalent of, or more than 40,000,000 THB in Thai Government Bonds or other assets deemed beneficial to the Thai society. Will be given the right to buy and own up to 1 rai of land under section 96 of the Thai land code (1996).
Foreigner with a Thai spouse If you are married to a Thai spouse and madly in love, then why not buy a property together. In this modern-day world, there are many ways to protect you both and your loved ones in the event that your love is not everlasting.
To understand your options and before you part with any cash, like in most countries, it is highly recommended that you take on the help of a reputable local lawyer when buying real estate.
Primary Regions for Real Estate Investment in Thailand
Bangkok
The metropolis of Bangkok has been experiencing a property boom over the last couple of years. Prices in the central areas have soared, especially for the CBD. There is good demand for condominium units in the central areas however the competition is heavy. Housing is practically only available outside of the central areas and therefore not very popular among foreigners.
Koh Samui
The island of Koh Samui experiences heavy interest from investors and buyers as it has practically everything it needs to compete with other locations. Many buyers prefer Koh Samui for the laid-back, casual experience of the tropics.
With Chaweng area being the main tourist and entertainment location, real estate developers now focus more on other areas for development. Especially in the pristine and untouched south there is still good land available for medium to high-end developments. Land prices are relatively low compared to other beach locations in Thailand and therefore the island bears some good opportunities for investors.
Phuket
Phuket is Thailand‘s largest island and is experiencing an ongoing development boom, which is turning the island into a metropolis. It features some of the finest beaches but has not much seafront or sea view property left for sale, at least not for reasonable prices. Therefore, the property market is focusing mainly on the very high-end market, comprising hotels and luxury villas. As land prices have skyrocketed, there is a large demand for condominium units for sale and rent.
Pattaya
Beach and entertainment town Pattaya is seeing a revival of its property market as there is now good demand for low to medium-priced second homes. As the city is only two hours away from Bangkok, there is good demand from expats working in Bangkok and from the wealthier Thai community. They will eventually benefit from the proposed high-speed railway between
Hua Hin
The relatively small town of Hua Hin is a long stretch along the beach of the western coast of the Thai Gulf. Most hotels were built in the eighties and are located directly at the beach. Hua Hin is also profiting from the ongoing property boom in Thailand, with some high-end products for foreign nationals currently being constructed. Still, the main interest comes from Thais looking for secondary housing.
In summary, the correct right of possession and location depends on you, your circumstances, and your objectives for buying property in Thailand. It also depends on the property you choose and from whom you buy it. Therefore, there is no one solution that suits everyone, and it’s essential to work with advisors who recognize this and ask you questions before presenting any solutions.
Editor’s note: The photos shown here are from Sense8 Samui Villas, an award-winning real estate developer with a track record of completing, managing & maintaining villas in Koh Samui. Sense8 Samui has been developing condominiums and private pool villas in Koh Samui, Thailand for more than ten years.
Having already completed and sold out all of our previous developments and with a thriving rentals business now behind us, the Sense8 Samui group is now launching our 4th villa project in Chaweng Noi with breathtaking sea-views.
Consisting of just ten 3, 4 & 5 bedroom detached pool villas, Sense8 Samui Sea View Villas promises to be our most exciting project to date. For more information, visit www.sense8samui.com
