There are many opportunities for you when it comes to investing in the real estate market in Thailand. Foreigners can make outright purchases or consider innovative financing options. Here are specific details to guide you in making your first real estate investment in the country, particularly in Bangkok.
Investment Options in Bangkok Real Estate
If you are going to make an investment in real estate in Bangkok, you need to know your options. These are popular choices for you to ponder, so that you can make informed decisions.
- Residential condos
Foreigners have been entitled to legal ownership rights in the country, particularly in the ownership of condo units. Thus, investing in residential condos can be a practical move if you are looking for a dwelling place while in the country.
- Buy-to-let properties
There is also investment income when you are planning to let your newly bought condo unit or serviced apartment in locations with high rental demands. Moreover, this is a great option for expats, students, and tourists who frequent prime locations.
If you are a foreigner who wants to lease a parcel of land in Bangkok, you can do so. This is a practical way to purchase it for commercial purposes. The lease will be for a long time, and it can be renewed for up to thirty years.
- Joint ventures
You may also get a partnership with Thai nationals or companies so that you can develop or manage real estate projects. Just make sure you follow legal structure in compliance with foreign ownership laws when engaging with joint ventures.
- Real estate investment trusts
Another way to invest in real estate is to invest indirectly in Thai real estate via REITs traded on the Stock Exchange of Thailand. If you want a low-risk way of earning dividends from property assets, then this is a great option to consider.
Financing Options for Real Estate
Investing does not always mean you have to pay in full through cash payments. You may also use popular financing options to make your purchase a lot smoother.
- Developer financing
There are instalment payment plans that you can enjoy as what developers offer potential buyers. This is quite common particularly for pre-construction or newly-launched condo units.
- Bank loans
If you are a foreigner but possess a Thai residency, significant business ties, or local employment, you may qualify for loans from selected Thai banks. However, you need to know that they offer higher interest rates compared to non-residents.
- Co-investment or fractional ownership
You may also share property ownership with other investors so that you can reduce the upfront costs. That said, you may still be earning proportional returns for that matter.
Whom to Consult About Real Estate Investment
Investing in real estate may involve complicated documentation and legal processes that you may not be able to do on your own. Therefore, you have to employ the services of real estate agents so that you will understand the market trends and find suitable properties.
You may also consider the services of property lawyers for due diligence, contract review, and compliance with property laws in the country. There are also financial advisors and property managers to help you navigate the complexities of Thai real estate investments.
