Reasons to invest in Thailand property
Thailand’s capacity to attract tourists isn’t limited to the appeal of its stunning beaches and unlimited shopping choices. Thanks to its fast growing economy, endless business opportunities have become available, sparking the interest of foreign buyers to make a Thailand property investment.
Thailand is located in the heart of Southeast Asia and its strategic location creates abundant business and trading opportunities with China and other ASEAN countries.
Thailand’s market potential is a great opportunity for foreign investors to invest in Thailand.
The performance of the real estate market in Thailand: For a long time, investments in the Thai property market have offered investors attractive, safe and stable returns, both in the form of capital gains by increasing the value of their property and rental income.
The return on investment of Thai Real Estate exceeds 10% per year. Land values have risen by more than 300% in the last 10 years and the current real estate price index (HPI) of 6.8%, the Thai real estate market is experiencing a sharp capital appreciation.
Rental yields are on average 5% per year, with yields of 7% to 10% certainly achievable, offering homeowners a stable income. In addition to high returns, Thai real estate offers excellent value for money compared to other countries.
The market here has lower mortgage debt levels than other countries, as foreign investors can not obtain credit on real estate and Thai banks are more cautious in credit than Western financial institutions. This has a major effect on the market as lower mortgage debt results in greater price stability, lower risk and the possibility of a stock market bubble.
In Thailand, transaction costs related to real estate are very low: transfer taxes range from 1.1% to 6.3% maximum. This is compared to other countries in the region, such as Singapore, where buyers of foreign goods are currently subject to an additional stamp duty of 15%.
Thailand also offers property owners the added benefit of having no annual property tax, which is a considerable saving for homeowners. Owning a US $ 1 million property in the United States would likely result in an annual tax bill of US $ 24,000, or US $ 720,000 over a 30-year period, in Thailand this tax bill would be zero ( Paul Renaud: Thai Stocks).
A wise investment always looks forward to what and how much it can return money back. With the increasing number of tourists who prefer to rent a private holiday homes than hotels, a estate investment in Thailand can be a good source of rental incomings as investors.