Buying New Property in Thailand: Benefits
Tax and Financial Benefits
Thailand has a tax already advantageous compared to France (see our full article on taxes and fees). The purchase of a new property will make you only liable for the transfer fee equivalent to 1% of the estimated value of the property. Finally, buying new is also a good way to stagger your investment through a payment schedule.
Buying in New Thailand: Things to Watch
A Price Per Square Meter in the Upper Bracket
Another point that is important: The price per square meter of new properties. The scarcity of the number of building plots available has the logical consequence of the increasing the land price. Moreover, because of the increase in the cost of labor and building materials, the prices will increase as well.
Smaller Area but Better Layout
Real estate developers are counterbalancing this trend by offering smaller apartments. From now on, developers are focusing more on the layout and optimization of space in order to maintain a pleasant living space for its occupants.
Defending Against Risk
Buying on plan may involve risks. These tricky situations can range from simple faulty electrical equipment to structural defects and delays in project delivery. Our real estate agents have a perfect knowledge of the market and its actors. We are therefore able to advise and assist in your decision of a real estate program tailored to your needs and a trustworthy developer.
Bangkok: A Dynamic High-End Market
The new real estate market in Bangkok has some quirks to know about. Indeed, Bangkok is a real economic hub of Southeast Asia. This strength, accompanied by stable and continuous growth, has enabled the launch of several new real estate projects in the City of Angels.
However, the number of available plots of land in central Bangkok is now lower and there is a downward trend in the number of new projects.
This situation has two consequences on the new real estate market in Bangkok:
- A rise in the range of new projects launched in the central districts of Sukhumvit or Sathorn, for example.
- A phenomenon of relocation of new projects to the outskirts of central Bangkok
Phuket: A Popular Destination
Just an hour and a half from Bangkok by plane, Phuket Island is one of Thailand’s most popular destinations. Its sandy beaches, sumptuous sunsets and the cost of living attract a growing number of people every year. This enthusiasm for the island helps to boost the real estate market and especially new projects consisting of villas and apartments (condominiums).
Given its tourist attractiveness, Phuket lends itself well to the rental investment model with guaranteed return. This system is particularly popular with investors who can benefit from hotel management services while having a guaranteed rental income.
Focus on Guaranteed Return Investment
This system allows you to buy real estate in order to offer it for rent. The rental management company will manage your property: this includes the search for tenants, managing check-in/check-out, or the relationship with tenants. The manager will pay you back your guaranteed rental interest – for example, 10% of the purchase price, every 10 years.
You can find a more detailed version of this article on the website of our real estate agency by clicking here.