Real estate investment: where? House, apartment? Which locations to focus on? What are the most attractive cities?

What questions when you want to invest, especially in a foreign country. But if you are a little lost, do not panic, here are the 3 most recommended types of property in Thailand, as well as their main benefits.


There are three main types of real estate in which to invest in the Kingdom of Thailand as a foreigner:

Condominium, residential hotels and finally houses and villas.

What Kind of Good Investment?

Condominium

Some might not feel familiar of the term “condominium”, but a condominium (or condo) is a set of apartments in a building with common areas enjoying the right of co-ownership between owners of each apartment. Unlike other types of property, the Thai Condominium Act of 1979 allows foreigners to purchase such apartments in their own name, and thus to have full ownership of the property for an unlimited period.

However, for this the investor must respect 3 conditions:

  • It must be purchased in a condominium-type residence offering full ownership
  • Must ensure that 49% of the living space of the residence has not already been purchased by foreigners
  • All funds covering the purchase must be transferred to a foreign currency
What are the benefits of a condominium?
  • The building is managed in co-ownership
  • Residents enjoy many services (swimming pool, gym, security)
  • The apartments offer full ownership to foreigners
  • Different ranges are available
  • The pitches are generally of choice: close to transport and in developed areas
Choosing a condominium means opting for multiple benefits:
  • Delivered equipped and/or furnished
  • Swimming Pool
  • Sports Hall
  • Security 24-hours
  • Technician
  • Maintenance staff
  • Private Parking

 

Hotel Residences

The residential hotels, or tourist homes, are residential programs with hotel services and for seasonal rental.

Investing in this type of program means buying an apartment or a villa with all the services that a hotel can offer: reception, reservation, concierge, cleaning, maintenance, security, etc…

With this type of residence, investors can buy an apartment or a villa in full ownership, in a residence run by professionals with responsibility for the daily management. Most real estate programs allow investors to personally benefit a few weeks in the year, and a lease by one or third the rest of the time.

The advantages of residential hotels:
  • Integrated management service (promotion, rental, maintenance)
  • Swimming Pool
  • Sports Hall
  • Reception 24-hour
  • Security 24-hour
  • Private Parking
  • Concierge Service
  • Restaurants
  • Maintenance Staff
The key points to remember for the hotel residence:
  • Residences with services (Pool, gym, security)
  • The services of a hotel (reception, reservations, concierge, maintenance…)
  • Offer adapted to the seasonal hiring with integrated management
  • Apartment offering full ownership to foreigners, or lease for 30 years renewable
  • Different ranges available
  • Rental yield between 5 and 10% / year depending on the destination
Several types of management contract:
  • Rental guarantee during given period
  • Revenue sharing with the manager

Houses and Villas

If the acquisition of an apartment allows a foreigner to enjoy full ownership, it is different for the purchase of a house or villa in Thailand. Indeed, it is not possible for a foreigner to buy a piece of land. So, how is it that each year thousands of people from all over the world buy homes and villas? Investors wishing to buy this type of home will be offered a long-term lease for the land on which the property is located. This alternative to full ownership provides a 30-year lease with a two-time renewal option for a total of 90 years.

Key points to remember when buying houses or villas?
  • There are many offers in the real estate market, both in town and close to beaches, islands and countryside, therefore different ranges are available
  • This type of approach allows full ownership of the building, as well as an emphyteutic lease for the land (3 x 30 years)
  • Houses and villas can be in “co-ownership” and therefore include many services, like condos and hotel residences
  • These homes offer space and privacy

 

 

Privilege a Quality Location

 

And if you’re wondering where to invest, discover and choose one of Thailand’s most attractive destinations!

Discover more Thailand-related articles on About Thailand Living!