Buying Property in Thailand as a Foreigner

Feb 14

Many people who live outside of Thailand have found that buying a property in the nation is an ideal investment, as the country offers a number of benefits for foreign investors. However, before taking this step, you need to know more about the guidelines and laws that govern investments in Thailand.

The Excitement of Owning a Property in Thailand

If you love the sunny climate of the country and want to get a good return on your investment, you will find that Thailand holds a great deal of promise in these areas. Buying property in Thailand as a foreigner gives you a competitive edge as a real estate investor. Regardless of where you call home in the world, you will find that owning property in Thailand will cause you to navigate more and more toward the country.

Foreign Investors are Driving the Market

You will find that places, such as Phuket, attract a large number of people from varying backgrounds — from entrepreneurs to retirees — who wish to retreat to a hospitable location. But the foreign investors who are buying properties in Thailand are the ones who are driving the market. And, why shouldn’t they? Both entrepreneurs and retirees, plus holiday-seekers, will want to rent their properties.

Are You an Investment Advisor?

Maybe you are an investment advisor in the U.S. You have several clients who wish to invest in properties in Thailand. If this is the case, you need to know what to recommend. This also means that you need to contact Thai lawyers who know what it takes to buy an investment property in Thailand. If people know you are aligned with competent legal professionals, they are more likely to take investment advice from you and follow your recommendations.

Freehold Condominiums – the Most Common Form of Real Estate Investments

The most straightforward method to own or buy property in Thailand is to invest in a freehold condominium. This type of real estate is common in Thailand and therefore offers the opportunity for an attractive return. Whether you are an investment advisor or investor, you will find that buying condominiums in Thailand is indeed enticing.

Own the Real Estate Until Your Choose to Sell It

According to the laws in Thailand, you can invest in real estate and own 49% of the property you plan to buy. As long as the Thai-owned percentage within a real estate development continues, a condo unit can be legally and fully titled in the name of a foreign investor. Therefore, you can permanently own the property in perpetuity. This means you can own the real estate until you elect to sell it.

Therefore, when you buy a condo as a foreigner, the real estate title features a fractional interest – not only in the building but in the common areas too. In turn, the investor also owns a small interest, although small, in a development’s gardens, car park, reception, and swimming pool. This fractional interest also translates into a share of the vote in the condo owner’s association.

Condotel Investments

This type of opportunity in buying a property in Thailand as a foreigner also extends to purchasing real estate, such as hotel-licensed hotels known as condotels. Just as the name suggests, a condotel combines hotel services with the legal framework of a condominium. This type of sound investment makes buying properties in Thailand lucrative. The condo investor can buy a condominium and rent it out as hotel accommodation.

Each owner of the property is given a specific number of days for use for their unit yearly. This period may span from 2 weeks to a month-long. During the remaining part of the year, the property is rented by the hotel. In this case, the hotel typically oversees the resort and rental operations.

Pooling the Rental Earnings – Another Way to Earn Money on Your Investment

You can invest in a condotel with the idea of getting a guaranteed return on the property or by participating in a rental pool. A rental pool allows owners to offer their units for rent. In turn, the rental earnings are pooled, allowing all the rental owners to share in the profits.

Buying a Luxury Property

For high net-worth investors, buying a property in Thailand ends up being quite lucrative. For example, in this case, you might think about investing in a branded property. Usually, this type of real estate falls under the category of luxury property. Properties within this segment may include villas or luxury condos. Again, Thailand allows foreign owners to invest 49% in these upscale properties when buying properties in Thailand. As a result, foreigners can buy branded or luxury units and own them as freehold real estate.

When a development shares the name of a property with a luxury hotel business, an investor knows precisely what he or she is buying. Designs of these types of developments are sketched by world-famous architects and the fixtures and hardware are high quality. Property interiors translate to a luxury ambiance – one that is too tempting to pass up as an investor and resident. Most luxury or branded properties are resort-managed and often include the option to participate in a rental pool. Quality 5-star type service prevails.

Would you like to know more about buying a property in Thailand as a foreigner? If so, talk to a Thai real estate legal specialist first. You cannot buy real estate without securing the services of a competent legal professional. That is the first thing you want to do before you delve further into the Thai real estate market.