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• Introduction of Thailand

Introduction of Thailand

Introduction of Thailand

Thailand is the most beautiful countries in the world, known as the u0022Land of Smilesu0022. Thailand is one of the top destinations for expatriates around the world. Its natural landscapes, cultural heritage, ancient architecture, delicious food, low cost of living, and hospitality services are all attractive points. Therefore, there are countless people who come to Thailand to buy real estate.nnThailand has airline, rail and road options that can take you from turquoise seas and white sandy beaches. With cheap domestic routes and more than a dozen airports, you can be in almost every part of the country in a few hours.nnThis exotic location has always been a favorite property for international investors, especially those from Hong Kong, China, Singapore, Malaysia, Russia and Australia. Overseas buyers consider Thailand as one of the best places to retire. Due to the country’s level of economic development, property prices in Thailand are still at a low level, and rental yields are very attractive. Regulations in Thailand fundamentally limit the purchase of condominiums by foreigners, and its land laws limit foreign ownership of Thai property. With only 49% of total Thai real estate space available for allocation to foreign buyers.nnNonetheless, real estate prices in popular areas such as Bangkok, Phuket, Pattaya and Chiang Mai have been rising amid the global economic downturn, especially in Bangkok. Apartments and villa properties in this area are most popular with tourists and foreign businessman. With the increase in demand, real estate in Bangkok has more potential for appreciation. As a result, most investors focus on buying properties in Bangkok.

• To know more about Real Estate Market in Thailand

To know more about Real Estate Market in Thailand

To know more about Real Estate Market in Thailand

The initial stage of the epidemic did hit the global economy, but the Thai property market was surprising us. According to the survey conducted by the Bank of Thailand (BoT) in 2020, property prices in the Thai property market still increased by 3-4% in the third quarter. And by 2021, property prices in Thailand will have a more stable upward trend. Among the real estate projects in Thailand, real estate projects in Bangkok are the most popular among overseas investors. Bangkok is the capital and commercial center of Thailand. Apart from being a popular tourist city in Thailand, it also attracts many overseas talents to develop. With the demand for real estate in Bangkok increasing while the supply of land remains unchanged, the price of real estate in Bangkok has been rising steadily. According to reports, the property prices of Bangkok real estate have an annual increase of 5-10%, and the net rental return rate of Bangkok real estate in the city center is estimated to be 4%. For overseas investors, buying property in Bangkok is a good choice.nnInvestors who intend to buy properties in Thailand can pay attention to the average property prices in popular cities for real estate investment in Thailand. Thai buildings are divided into detached houses, apartments and townhouses, among which townhouses were rated as the most investment potential, with an increase of 6.5%.nnu0026nbsp;nnu0026nbsp;

Average property prices in Phuket, Pattaya, Chiang Mai and Bangkok

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• 3 Reasons to Buying Property in Thailand

3 Reasons to Buying Property in Thailand

3 Reasons to Buying Property in Thailand

What is so special about real estate in Thailand? Before deciding to invest in Thailand’s property market, let me tell you 3 reasons why you should buy property in Thailand.nnu0026nbsp;nnu0026nbsp;nnu0026nbsp;nu003ch3u003eAppreciation potential of real estate in Thailandu003c/h3u003enThailand’s property market includes many local real estate developers, unlike Hong Kong’s monopoly situation. Due to the large size of Thailand, area of Bangkok is 1.4 times size of Hong Kong. Therefore, it is easy for investors to encounter many real estate projects launched in Thailand at the same time, and the large supply will bring healthy competition in the real estate market in Thailand.nnIn 2016, the Thai government launched the u0022Thailand 4.0u0022 plan to establish a u0022special economic zoneu0022 in the east to build large-scale infrastructure and promote the development of the digital business industry. Every single move has effectively attracted foreign investment and boosted the value and demand of real estate in Thailand.nnIn addition, the Thai government is now paying more attention to the development of public transportation, which has improved local transportation problems and greatly improved convenience and transformed Thailand as a more suitable place for foreigners to invest. Although the property market in Thailand experienced a slight decline during the epidemic. its real estate market has shown a clear upward trend afterward. Obviously, the real estate in Bangkok is the most beneficiary

1. Popular tourist areas

Thailand weather is pleasant which is very suitable for tourism. Coupled with low consumer prices, many tourists who have visited Thailand have had the idea of living in Thailand. According to the u0022Global Retirement Index Report 2019u0022 released by u0022International Livingu0022, Thailand ranks among the top 10 countries with the best retirement livability in the world, and the demand for local buildings continues unabated.

2. Favorable policies

In order to attract foreign investment and promote Thailand’s economic recovery, the Thai government has released good news for the market one after another. First, it will be announced in 2021 that foreigners may be able to directly buy land or villas. Second, a new visa will be proposed to attract more overseas elites to Thailand. Among them, the 10-year long-term residence visa has relaxed the restrictions on overseas investment in real estate. LTR holders can directly purchase permanent property rights of real estate (including villas and land) in specified areas.

3. Real estate promotions

Facing the impact of the epidemic, Thai real estate developers have launched price reductions to attract buyers into the market, hoping to recover funds and costs as soon as possible.Real estate developers in Thailand predict that villa projects will be particularly popular with buyers in the future. Since the epidemic has changed people’s living habits and consumption patterns, they will be more interested in the living environment. Real estate promotion are a great choice for local or overseas investors. Fantastic opportunity.

Appreciation potential of real estate in Thailand

Thailand’s property market includes many local real estate developers, unlike Hong Kong’s monopoly situation. Due to the large size of Thailand, area of Bangkok is 1.4 times size of Hong Kong. Therefore, it is easy for investors to encounter many real estate projects launched in Thailand at the same time, and the large supply will bring healthy competition in the real estate market in Thailand.nnIn 2016, the Thai government launched the u0022Thailand 4.0u0022 plan to establish a u0022special economic zoneu0022 in the east to build large-scale infrastructure and promote the development of the digital business industry. Every single move has effectively attracted foreign investment and boosted the value and demand of real estate in Thailand.nnIn addition, the Thai government is now paying more attention to the development of public transportation, which has improved local transportation problems and greatly improved convenience and transformed Thailand as a more suitable place for foreigners to invest. Although the property market in Thailand experienced a slight decline during the epidemic. its real estate market has shown a clear upward trend afterward. Obviously, the real estate in Bangkok is the most beneficiary

• Procedure of buying property in Thailand

Procedure of buying property in Thailand

Procedure of buying property in Thailand

Before investing in Thailand real estate, you must first understand the general procedures for buying real estate in Thailand. Although most of the procedures for buying property in Thailand are similar to those in Hong Kong, it should be noted that there is generally no brokerage commission for buying a property. Also, the cost will be borne by the seller or developer. Therefore, it is best to seek help from a real estate agent if you want to buy a property in Thailand.

Procedure 1: Property Search

u003ch3u003eu003c/h3u003enInvestors can first search for their favorite real estate in Thailand online. Most real estate websites in Thailand will provide trend information on property prices, rents and rental yields. After investors have selected their favorite real estate, they can contact real estate agents for help. If possible, investors are advised to visit Thailand to inspect the environment in person.

Procedure 2: Hiring a Lawyer and Opening a Thai Bank Account

After you have learned about the real estate information, house type and title period from the real estate agent, you can hire a lawyer to handle legal affairs for you. And remember to open a Thai bank account.

Procedure 3: Deposit

Before paying the deposit, the buyer needs to sign the reserved housing unit document and ensure that the important terms such as the unit number, property price, and payment method on the document are clear and consistent. After that, you can pay 5%-10% of the property price as a deposit by transfer or check.

Procedure 4: Paying the down payment

Before paying the down payment, the buyer must sign a sale and purchase contract with the seller and clearly state the date of ownership transfer in the contract.

Procedure 5: Applying for a mortgage

3 to 6 months before the handover, the buyer can choose to apply for a mortgage for the Thai real estate in a Hong Kong bank, but the interest rate and repayment period of different mortgage plans are different. If you want to apply for a mortgage at the Bank of Thailand, you must pay attention to the fact that you can only borrow up to 50% of the property price.Also, the interest rate is relatively high. Therefore, the best way is to apply for a mortgage from a Hong Kong bank, and then transfer the funds to a Thai bank account for buying a property. However, be careful not to convert Hong Kong dollars into Thai baht in advance, otherwise you will not be able to obtain the FET form (the necessary document for the transfer of title).

Procedure 6: Property acceptance

After receiving the notice from the developer, the buyer can go through the formalities of taking over the building within the specified time. When taking over the building, the buyer may have to pay a one-year management fee, a one-time maintenance fund, water and electricity meters, and the deed tax for handing over the building. In addition, the exact delivery date will be notified.

Procedure 7：Handing over the property

On the day of handover, the buyer will receive the key. The bank will also pay the total amount of the loan to the developer and the balance of the property price must also be paid before then

• Costs of buying Thailand property

Costs of buying Thailand property

Costs of buying Thailand property

The cost of buying a property in Thailand is divided into taxes and other expenses, including transfer tax, specific commercial tax, stamp duty, withholding tax, lease registration fee, legal fee, building fund and property fees, etc. In this article, I will introduce Thailand’s property purchase tax one by one.

Transfer Fee

According to the regulations of the Land Department of Thailand, if the owner wants to transfer the ownership of the property to others, he needs to pay the local government a transfer tax of 2% of the property price which is shared by the seller and the buyer.

Specific Business Tax

If the owner has a freehold title to the property and has held the property for less than 5 years, the seller is required to pay a specific business tax of 3.3% of the property price when selling the property.

Stamp Duty

Depending on whether it is freehold or leasehold, it is the seller’s responsibility. If the specific business tax has been paid, there is no need to pay stamp duty.

Withholding Tax

The withholding tax is 5–37% or 1% of the rental income, depending on whether it is an individual seller or a company seller.

Lease Registration Fee

Applicable to leasehold, at buyer’s or seller’s expense.

Building fund

It is usually a one-time payment at the time of purchase, and the price is about 500 to 700 baht per square meter.

Property fees

The property fee is like the building management fee in Hong Kong. It is usually paid monthly, usually about 35 to 60 baht per square meter.

• Reminders of buying a property in Thailand

Reminders of buying a property in Thailand

Reminders of buying a property in Thailand

Most overseas investors will choose to buy first-hand buildings. The decoration and environment of new buildings are usually very good, and the potential for leasing and appreciation is high. However, it should be noted that first-hand properties can be divided into existing properties or uncompleted properties. The risk of buying existing properties is relatively small, while the risk of buying uncompleted properties is relatively high. If unfortunately you encounter a developer with bad financial status or bad reputation, there is a risk of unfinished business. Given the choice, overseas investors are advised to purchase new buildings that have just been completed or are about to start from large-scale developers with good reputation.nnu0026nbsp;nnIf you plan to buy a property in Thailand to collect rent, you must pay attention to the leasehold title of the land. If you only buy the leasehold title of the land, you must first obtain the approval of the landlord before renting out the property. If there is a property that is rented in Thailand, and the annual rental income exceeds THB 150,000, it will be taxed. The basic tax rate is 5%, and the progressive system is adopted. In 2019, the Thai government will charge a flat rate of 12.5% for building and land tax.

• Pros of Bangkok property

Pros of Bangkok property

Pros of Bangkok property

The Thai government launched the u0022Thailand 4.0u0022 plan in 2016, which successfully attracted foreign investment and drove the value and demand of Thailand’s real estate, especially Bangkok real estate. As the capital of Thailand, Bangkok is the center of business and a popular tourist destination. Compared with other Asian countries, its living index is still relatively low. Therefore, many investors choose to invest in real estate in Bangkok for retirement purposes. The demand for real estate in Bangkok is definitely increasing. Based on the prime location of Bangkok, the increase can reach 10 to 12% per year. Furthermore, real estate in Bangkok is now open to foreigners to buy freehold, which means that the property can be passed on from generation to generation.nnu0026nbsp;nnAlthough the traffic in Bangkok is heavy and there are often traffic jams, the appreciation or renting of real estate properties in Bangkok is not disappointing. With rising demand and constant land area in Bangkok, real estate properties in Bangkok will have more advantages and appreciation potential. However, Thailand’s foreign exchange reserves have been very strong in recent years, jumping to 15th place, and the Thai baht has continued to appreciate. Overseas buyers who invest in real estate in Thailand or Bangkok are using foreign exchange to make money in disguise.nnu0026nbsp;nnThe area of Bangkok is 1.4 times that of Hong Kong. There are many properties in Bangkok that go on sale at the same time. Investors must know exactly what they want. If the properties are expected to increase in value, they can choose Bangkok properties in the core area. It is recommended that before making a decision, you can visit the site for field inspections to understand the local environment and analyze the appreciation potential of the project.