Investing in Thailand’s real estate is the best way to diversify your capital. With the growing economy scale and limited land, the demand for flats, villas, hotels are boosting. Also, from the past few decades, Thailand is also known as the most prominent tourist destination spot. As a result, investors get more opportunities for buying a property in Thailand hot spots like Bangkok, Phuket, Chang Mai, Phi-Phi Island, and many more.
But, buying a property overseas can be a little complicated unless you are not aware of state or country property rules. It will be useful to hire a real estate agent that completes all your formalities. Still, there are some factors that you need to be aware of while investing in Thailand.
- Check Out Your Investment Purpose
Before investing in real estate, it is essential to clear your investment purpose. Choose a property with low liquidity and high ROI, especially if you are investing in real estate that can provide you financial distress. Then what to look for in that property. Here we have categorized purposes of investments into a broad category.
- Buy for self-use: It will save the rental amount, and you will get a high value after use.
- Leasing: In Thailand, leasing for 30 years is the best way for investment and enjoy ownership rights. But you need to handle legal issues, repairing works, and tenets problems.
- Buy to Sell: This will help you to make a normal to average profit in a short time. You can buy the property during the construction phase and sell it when completed.
- Know the Thailand Ownership Right
Although foreigners are not allowed to buy property in Thailand. Still, you can enjoy the property ownership. Wondering how? To control the Skyrocket pricing of property government has implemented this policy. But, to give privilege, the government offers 49% ownership for the foreigner in the following cases:
- First, you can either invest by creating their own Thai based company, whose majority of shares rights lies with the Thailand Government.
- The second option is to marry a Thai citizen. You can also buy a condo to get completely right over the property but still will be an owner for a 49% floor area.
- Third, you can buy a Thai property on lease for 30 years. Keep in mind; the lease can only be renewed up to three times during the life of the owner. The third time you need to change land ownership and transfer property to spouse or children.
Look at Thailand Property Legal Requirements
Investing in Thailand real estate means you always need a lawyer that can protect you from fraudulent deals. The local lawyers have complete knowledge about property and related issues that assist in protecting the investor’s hard-earned. They make sure transfer must have all the legal property right and is authorized to transfer title. Before proceeding with the agreement and contract, they ensure property records from the first owner.
Types of Title Deed
|Freehold or Nor Sor 4||This deed resembles the complete right of the ownership of the property for investors. Buyers can also make necessary changes in the property.|
|Nor Sor 3 Gor||This means the investor is waiting for complete title deed or waiting for Nor Sor 4.|
|Nor Sor 3||This is a certificate issued by the Land Department regarding plots boundaries that are not officially defined and are not registered.|
|Possessory right||This certificate is only recognized for tax payment at the local govt office. This is one of the weakest types of rights on the land.|
For the overseas investors choosing Nor Sor 4 is the best deed for property investments in Thailand.
Sacrificing some money to pay lawyers can never be a worthless investment. Because no one can understand the country better than a lawyer.
- Take Plenty of Time Before Investing
Sometimes, the desire to buy a property makes you impatient. Keep in mind; patience always pays you a high dividend. So, take your time to explore the market. You will get a number of opportunities that can boost your wealth double or triple in a few years only. For example, while investing in property in Thailand, you will get a number of options in the range of apartments, condos, and villas. Whether you want to live there or want to use for renting purposes, you will get high returns if you invest in a near-commercial area or top tourist attractions. But do not forget to check:
- Major linking roads and distance to take public transport.
- Nearby utilities such as hospitals, malls, schools, offices, etc.
- Similar property prices in other areas.
The Bottom Line
Real estate investment always offers high valve returns with low-risk levels. But it is highly advisable to hire real estate agents/managers to make your search reach wider. They show you properties according to your budget and needs with the highest return on investment…
Thank you for reading this post……
Good luck with your investment!!!!