| Thailand is often considered to be the " Spain of the East" as it has long been the most popular Asian tourist destination. Tourism figures are very near the level they were at pre-tsunami and investment in high-demand tourist areas is a highly attractive option for property purchasers and buy-to-let investors alike.
The key drivers behind the Thai housing market are the rapid economic growth the country is experiencing and the expected increase in tourism that Thailand will undergo as a direct result of further property development. Real estate prices have continued to rise in sought after locations and high quality projects have reported increases in sales over the past months. The country has been keen to encourage tourism and overseas investment, particularly since the Tsunami disaster.
Today, many buyers are discovering the great potential Thailand offers as an excellent real estate investment opportunity.
Reasons why property in Thailand is a good investment • Thailand is the largest growth market in Asia . Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia
• Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region
• Once an exotic long haul destination, Thailand is now also a sophisticated tourist destination with a universal appeal
• For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar
• Retirement visas are available for foreigners over 50 years of age
• Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit
• The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air. Thailand is one of the cheapest places to fly to in Asia
• The country has strong business links with China and has an excellent infrastructure and world-class facilities in many resort towns
• Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand . Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities
• Thailand offers beautiful mountains, dense forests and stunning beaches, a tropical climate and cities teeming with culture and colour which draw visitors back each year.
• The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are growing quickly and strongly (around 10-15% a year)
• Rental potential is great, due to increased government spending luring growing numbers of tourists
• Warm weather for winter holidaymakers between November and February
• No capital gains tax for private investors, and low ongoing taxes
• Today foreigners are regarded by the government as a big investment opportunity in Thailand
Buying Process
It is very important to hire a real estate attorney when purchasing property. The realty industry in the country is still unregulated, so a lawyer will be able to provide more security than a mere real estate agent.
There are, essentially, two important documents that are needed: passport and an Exchange Control Form. But if the option of buying through a company is preferred, the following are required documents:
- Certified copy of the certificate of incorporation
- Certified copy of the memorandum of association
- Notaries certificate
- List of shareholders (in English with Thai translation)
- Minutes of directors' meetings with resolution to purchase the property
- Letter of advice regarding specific signature
- Power of attorney - if you, as a director, will not be present in the transactions
- Free debt letter
- Foreign co-owner letter
- Certified copy of IDs of authorized director(s)
- Certified copy of the house registration of the authorized director(s)
- Title deed of the condominium unit
Due diligence should be conducted prior to signing agreements and paying deposits. It is wise to ask the lawyer to do a caveat search and verify the property's actual condition before engaging in purchase transactions. Once the seller accepts the offer, his lawyer will prepare a purchase agreement. This should include, among other things, which party pays the legal fees, transfer fees, and taxes.
A deposit of 10% will be paid upon signing. Bear in mind: Deposits in escrow are still rare. Furthermore, deposits are non-refundable unless it is the seller who backs out. In that case, he will need to pay you double the amount for damages.
Closing usually takes 30 to 60 days. This includes the exchange of contracts and settlement of the remaining balance. When these have been accomplished, the title deeds will be submitted to the Land Department for registration and payment of government duties.
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