Koh Tao - Real Estate Investment in Paradise
The appeal of Thailand – for travelers and tourists as well as for retirees, and therefor for property investors - can not be denied. Thailand is under priced, it is the "Land of the Smile" it is incredibly beautiful and it has a vastly increasing numbers of annual visitors. Thailand is slowly but steadily building up it’s infrastructure and it’s reputation for foreign investment. Now if you are thinking of investing in property in Thailand, there are certain things you should take in consideration.
Real Estate demand in Thailand
The demand for property in Thailand affects many sectors and this demand is slowly but steadily increasing. There is massive tourism demand for accommodation across Thailand and the demand is increasing annually and will be further be further on increasing potentially over the next decade. One can foresee that the huge commercial demand for property will be increasing accordingly.Now because in recent history and vast political changes, the level of investment in Thailand has been relatively low. Fact is, there is actually a massive under supply in many sectors representing instant investment appeal.
Longterm Investment
Now add to this the fact that the real estate industry in Thailand is now actively taking it upon itself to promote the delights and opportunities available in Thailand, so you could quite possibly have reached the perfect time to enter and invest in the property market in Thailand if you make very carefully researched purchases that you are willing to hold for the long term.
Investors should be aware that this is not a market for short term investment. The Thai government is not keen on short term speculation in any of its investment markets, this includes the real estate market. As a direct result of these politics, there are very strict restrictions in place, preventing a real estate investor from owning land in Thailand in general or from owning more than 49% of any property development. (Except condominiums - A condominium can be owned by a foreigner to 100% according to the condominium Law ) There are of course ways around these restriction such as the use of a well structured Thailand Special Purpose Company. And of course there is property leasing, where you can lease property for up to 90 years in Thailand.
Conclusion
Sure there are definable and definite risks and rewards for a real estate investor in Thailand, but where not?. It is just up to the every individual to decide which outweighs the other and make a decision accordingly. Ultimately there is much to gain from real estate in Thailand on the long run.
We recommend in any case, if you want to invest in realty or buy or lease real estate or property for your own private purpose in Thailand, to have a real estate agent in the country who speaks and writes the Thai language and is familiar with the property laws in Thailand.
For any questions about real estate investment, buying or leasing property on Koh Tao, please contact Supisha Ltd. Koh Tao Thailand.
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
Excellent Blog. I’ve been reading along and just wanted to say hi. I will be reading more of your posts in the future.
- Jason.
There are so many factors to be considered with a long term investment. Thailand is a beautiful place and I could see an investment being a profitable thing. Doing your research as to the current market and local needs would be important.
Thailand’s developers are faster than Seabiscuit, our company is curretntly collaborating with them. Everything is right on schedule, our Thai colleagues are though in business negotiating, but our buildings in one turist location will be finished before the summer. To respond to the question of the day, I can only advise to invest in Thailand.