A Guide to Investment Property Thailand

 
Photo courtesy of Visbeek

With its beautiful beaches, incredible architecture and unique cultural atmosphere, Thailand is an extremely appealing destination for those seeking the exotic.  From the legendary streets of Bangkok to quaint mountainside villages, Thailand draws in holidaymakers from all over the world by the thousands with its unusual sights.

Thailand’s property market growth potential, its booming tourism industry and economic success are all driving investment forward.  We at Nubricks.com cite the following 10 reasons as some of the factors working to bolster interest and confidence in the investment property that Thailand has to offer: -

1) Thailand’s Relations With Europe Inspire Investor Confidence in the Country

Thailand has experienced some periods of governmental instability, but its relations with the West remain quite strong.  Thailand and the UK for example, are on very good footing.  This is of course very encouraging for investors, holidaymakers and would be expats to the region.  The UK and Thailand retain close relations politically, culturally and educationally speaking.

2) Thailand’s Economic Stability Serves to Bolster Property Investor Confidence

Thailand’s economic growth and stability are very appealing for foreign investors.  With a GDP of an impressive USD 197.7 billion and a growth rate of about 5%, this country’s stability is quite encouraging for investors.  Major industries that drive the economy forward include manufacturing and tourism.  Investors who desire stable and growing economic environments are being drawn more and more to Thailand.

3) Thailand’s Emerging Status as a Property Investment Hotspot Intrigues Buyers with High Promise for Returns

Thailand is a relatively unexplored property investment destination for Europeans, but its stock is rising fast.  With its fast economic growth and an expanding tourism industry, many buy-to-let and buy-to-hold investors are discovering this market.  This is evidenced by the many off-plan projects currently on the books and the present growth in existing real estate.  With growth estimates that are quite appealing, Thailand promises very attractive returns for investors willing to take the plunge.

4) Thailand’s Low Buy-In Real Estate Prices Appeal to Many Property Investors

Whilst the investment property market here is considered emerging, investors will find the potential is very high.  It is possible to buy off plan for under EUR 30,000.  Detached villas can be had for about EUR 100,000 in some areas.  With rental yields that are ranging between 6% and 9% at the present, this market is very attractive to many foreign investors.  As more investors, holidaymakers and expats look at this market, the potential for property price growth is also high.  Estimates are between 10% and 15% per annum on price growth.

5) Favourable Exchange Rate Bolsters Property Investor Confidence in Thailand

The favourable exchange rate between the British pound and the Thai baht make this country very appealing to holidaymakers, expats, retirees and investors.  With a single pound worth about 70 baht, British money goes very far here.  Add to this the fact the cost of living is incredibly low by European standards and the appeal of Thailand country becomes quite clear.

6) Generous Tax Structure makes Thailand Property Investment Very Intriguing to Buyers

The tax structure that investors face in Thailand is very appealing.  Whilst taxes do exist, they are much more generous than those found in other investment destinations.  For example, Thailand does not have a capital gains tax or an inheritance tax.  The country’s income tax ranges between 1 and 3%, and its land and structures taxes are quite low as well.  The tax on rental income ranges between 10 and 30%, depending on the type of property in question.  The overall low tax structure of Thailand makes it very appealing to investors, expats and retirees.

7) Thailand’s Culture Appeals to Holidaymakers and Expats, which Bodes Well for Property Investors

Buddhism dominates the Thai culture as evidenced by the many temples, statutes and other unique sights.  The country also has strong ties to Chinese culture.  Holidaymakers and expats who come to Thailand are often overwhelmed with the welcoming nature of the people.  Hospitality is greatly ingrained in Thai culture.  In addition to its religious sights and welcoming people, Thailand is famous for its Bangkok nightlife, incredible cuisine and beautiful art and architecture.  The cultural draws of Thailand make it a popular holidaymaking destination, which encourages investors looking at catering to this strong and ever-growing market.

8) Thailand’s Geography and Climate are Strong Factors Driving Interest in the Region

Thailand’s geography and climate combine to make this a favourite destination for many holidaymakers, expats and retirees.  The country is considered the world’s 49th largest in size and is dominated by lush, tropical landscapes.  The geography includes mountains, rivers, waterfalls, plateaus and plenty of beaches along the Gulf of Thailand.  The weather is typically warm and wet in most regions.  The beautiful landscapes and welcoming climate of Thailand create a very strong holidaymaking market.  An estimated 850,000 Brits alone visit this country a year.  This is very good news for investors who desire buy-to-let opportunities and resale potential as well.

9) Thailand’s Growing Tourism Industry is Very Appealing to Real Estate Investors

With its exotic temples, palaces and unique landmarks, such as the Reclining Buddha, Thailand is an exotic destination that appeals to holidaymakers far and wide.  Investors here will find a strong and growing tourism industry, which is very encouraging.  The industry is estimated to have a 2007 value of about USD 47.8 billion.  Growth is anticipated to occur at a rate of about 5.3% per annum through to 2017 according to the World Travel & Tourism Council.  This is very good news for investors who want to cater to the holidaymaking market.

10) Ease of Entry into Thailand for British Citizens makes the Country Very Appealing to Holidaymakers, which is Good News for Property Investors

British citizens enjoy fairly easy access into Thailand.  Passport holders are allowed to visit for up to 30 days without a visa in advance of arrival.  Those who wish to stay longer than 30 days will need to obtain an extension of stay or get a valid visa.  Whilst travel to Thailand is fairly expensive, more than 850,000 Brits a year travel here alone.  This is very good news for investors who seek to cater to the holidaymaking market.

Thailand’s exotic atmosphere, beautiful landscapes and warm climate appeal to holidaymakers from all over the world.  With its developing real estate market and its potential for returns, Thailand is very appealing to foreign investors with a variety of different strategies in mind.