Real Estate Investment Opportunities in Thailand

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Real Estate Investment Opportunities in Thailand

Thailand is one of the most interesting real estate markets in the world offering plenty of opportunities to acquire splendid properties and even make a significant profit on your initial investment. Thailand has a unique climate that ensures year round good weather as well as beach side properties that reach out onto the beach and the ocean.

The unique legislation of Thailand makes foreign investments in real-estate rather challenging, however, there are numerous companies and brokers that have facilitated foreign investments creating one of the most profitable markets in Asia particularly due to the somewhat restrictive laws.

Basically, according to the country’s legislative system foreigners are prohibited from acquiring or owning land unless they are part of a group that is at the very least 51% owned by Thai nationals. This has led many people to form mixed association or companies that are investing heavily in real estate, particularly in tourist friendly areas like Pattaya, Phuket or the country’s capital city Bangkok.

No location is perfect. But ideally, you’ll have to research for strong economic signals, a rising number of tourists, and a low unemployment rate. It is helpful to read the news about previous year real estate market situation.

Some of the best investment deals for foreigners are found in Koh Samui luxury condominiums as they generally require a larger investment anyway. This means that forming an association between a series of investors was necessary anyway so the legislation problems that prohibit foreign investors become irrelevant.

Thailand is one of the biggest touristic destinations in the world with millions of visitors each year that come to take advantage of the local beauty, unique culture and stunning locations. Investments in hotels, resorts and spas are considered to be one of the best directions to go with when looking for real-estate deals.  With the industrial and commercial growth the country has registered in recent years residential building in Thailand’s major cities, like Bangkok, Phuket or Pattaya is also growing. A new generation of more demanding young professionals also means the need for a more diversified housing market. This in turn leads to more projects that range from luxurious condominiums to modest apartment blocks or new suburban neighborhoods.

The bottom line is that whether you choose to invest in a condominium with local partners, buy an apartment in a condominium and resell at a later point for profit or bring a sufficiently large enough investment and start up a resort, Thailand is the place to do it. The relatively cheap price of land, abundance of high-quality cheap labor and demand for residential housing make it an attractive investment opportunity that will continue to grow in the next couple of decades.

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Property Types In Koh Samui By Budget

In order to uphold the architectural tradition of the surrounding area the developers of Koh Samui are usually selling a certain style of property that showcases the elements of traditional architecture. This is the reason why there are very few property types that you will encounter in Koh Samui that are offered for investors. You need to keep this in mind when searching for properties that are available to buy here because these are probably the layouts that will be offered to you.

The main type of property that is usually requested by investors is one that has a sea view. This can be an amazing investment option as it can work both as a vacation house, a retirement home or a vacation rental because, let’s face it, who doesn’t want to have an amazing view from their window? So villas with a sea view are the most sought after properties. However, Koh Samui villas for sale come with a hefty price. If you only have a couple of millions to spend, you should reconsider your options and probably search for such a property when you are closer to 10 million Baht. Usually villas at this price come with a smaller pool and are just around 150 square meters. You can also opt for garden style villas which are usually accompanied by a small terrace outside and swimming pools. These allow those who come here to have a glimpse of the lavish Thailand vacation home but you won’t find those at this price.

Those who want a bigger private pool should look for Balinese style villas as they offer more for a smaller price. They are usually around 10 million to 15 million Baht and you can build one or buy one for a lower price. The advantage of such a villa is the large area that surrounds it and the fact that the villa itself is usually larger, with 2 to 3 bedrooms and living room with open plan kitchen, Unfortunately, there are very few Balinese style properties in Koh Samui and those who have already been built are increasing their value. This can be a good investment opportunity for someone who has the money now as they can easily sell them later for a good profit. Make sure that it comes with a garden and a large enough pool as just being Balinese style is not enough to be desirable by potential customers. The most important aspect when purchasing property in Koh Samui is to not expect to find a lot of sea view properties because they are in short supply and those that are for sale have become very expensive.

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Guide to Buying Property in Koh Samui

If you ever dreamed of retiring to an exotic beach on a lovely island buying property in Koh Samui might not be an unusual decision. However, the process of buying property in Thailand is not as easy as some might expect so, in order to make sure that you make the best decision before you are spending your money, here are some guidelines to take into account.

Before starting anything do a little research yourself. Check out the prices for properties in different areas of Koh Samui and make sure that you understand the strong points and the weak points of every area before starting your journey towards the perfect property. Make sure that you include everything in your budget, the trip there, the stay, the experts you are going to need with you, everything. On top of that, add even more money to make sure that you are well prepared and financially secure when it comes to your decision. Depending on your plan, whether you want to keep the property, offer it for rent, invest in the area and sell it, make sure that you do some digging and see what the best places are. Some places are more tourist friendly while others offer high end residential properties, and you definitely don’t want to mix those up when looking for one type or another. You can’t go wrong with areas like Bophut, Maenam, Chaweng Noi, Chaweng and Plai Laem as they are very close to whatever facilities people living there might need: restaurants, entertainment venues, the beach, medical facilities, etc. But there might be other areas of interest that might be as good as those, all you have to do is go there and make sure that you find them.

The bureaucracy in Thailand is pretty high so you might need to make sure that you get accustomed and make a list with everything you need in terms of authorization or papers before starting the process. Make sure that you aren’t in a rush because you will have to be patient to finish the legal documents and eventually find a property you like, more importantly, the perfect property for you. Your preparation should also include getting a lawyer, and while you are searching for one, make sure that you find one with experience in these matters because things can get pretty complicated and you don’t want to be unprepared. However, don’t worry, as usually with an experienced lawyer things are very easy to handle and the process is much faster.