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Property in Thailand
There are many subtleties in the world of investments. Apartment or house? By the sea or in the mountains? On the secondary or with installments from the developer? And most importantly – how not to make a mistake with the choice? Of course, when you buy property in Thailand developers will suggest you the option that will suit you best.
Who is Thailand property targeted at
It is more correct to classify real estate not by type (apartments, villas, townhouses, penthouses), but by target group.
For example, there are two identical houses on the beach:
- Large apartments, few staff, the area is quiet and peaceful. It is great to live here, but you should not expect high incomes from rent. That is, the house is focused on people who buy for living and recreation.
- The second, on the contrary, is standard studio apartments in complexes with professional hotel management. Everything is included: practical decoration and furniture, 24-hour reception, restaurant, SPA, kids club, swimming pool. And most importantly – a hotel license, without which the daily rent of apartments is prohibited by law. In a word, everything works to gain maximum profit. The target group in this case is people who are primarily interested in generating income from real estate.
Now you understand how important it is to determine the purpose of the purchase, make a list of key criteria and select properties according to these criteria.
Define your goals
There are 3 main goals that buying property in Phuket can solve:
- Investments
90% of real estate transactions in Phuket are for the purpose of generating rental and resale income. Citizens of China, the CIS countries and the European Union buy apartments in hotel complexes by floors. There is an explanation:
- Year-round tourist flow
- Stable national currency: Thailand has the lowest inflation rate in the world
- Rise in real estate prices by 5% per year, and even more for the resort
- No property taxes
- Registration for foreigners in full ownership
- Low entry threshold – from USD 80,000 for an apartment by the sea under construction
- Thailand is not interested in the origin of money and does not give out the names of the owners
- And most importantly: high rental income! At least 5-7% per annum. This is 4 times more than the bank’s foreign currency deposit.
If the main goal is to generate income, then before choosing a property, we recommend building an investment strategy. You must clearly understand: what do you want to earn on, what is the entry threshold and exit time, resale target groups, minimum payback threshold, real costs, etc.
- Rest by the sea (lifestyle)
The next purpose of the purchase is a house or apartment where you can relax for several months of the year, and rent out the rest of the time to pay for the upkeep. Such complexes differ from investment projects in terms of footage, management, hotel license, payback, liquidity and, of course, tourist flow.
For example, a large footage of an apartment will be convenient for families, but it will be worse for rent than a standard studio. And if the main goal is income, then 30-40 square meters this is just your option.
Important: when buying an apartment or a holiday home, two factors must be taken into account:
- Real estate must be liquid. In a few years, you will want to buy something bigger or newer, and the old one will need to be sold quickly! The price should not be too high!
- If you want to recoup the maintenance of real estate – rent it out in your absence. If you want to make good money, choose an investment project with hotel management. You can also relax there, but the income is higher, and the price of the real estate is lower.
- Property for living (residental)
The third purpose of the purchase is an apartment or a house for living. This is if you are one of those who want to live in Phuket all year round, run a business, enjoy their retirement or write books, for example.
Such complexes are away from tourists and closer to schools, kindergartens, hospitals, golf courses and picturesque green hills. In this case, it is better not to consider tourist locations, where everything has a resort extra charge and fuss.
Real estate in Thailand
Thailand-Real.Estate website has a large catalog of properties. So, when you will define your investment goal you are a couple of clicks away from a property in Thailand.
