The Kingdom of Thailand
The Kingdom of Thailand and its attractiveness
“The land of smiles”… Many people may have heard about this phrase used to refer to Thailand. Behind the kind smiles that we see in this country is the existence of Buddhism. Over 90 percent of the people of Thailand are devout Buddhists, and so the beliefs as well as ideas that have been accumulated over a long period of time still exists in the modern life of the people of Thailand.
The climate is comfortable as it is warm throughout the year, and cost of living such as food as well as traffic costs is also low. It is possible to casually visit beautiful beaches on a day trip or by spending a night and there are also golf courses as well as restaurants with low costs. Tourists from around the world continue to visit this country with rich tourism resources and a peaceful trait of the people who live there.
Thai Economy and AEC (Southeast Asia Economic Community)
On December 31, 2015, AEC Southeast Asia Economic Community, comprising of ten Southeast Asian countries, was established. The AEC is an initiative to unite ASEAN as an economic zone, by realizing the free movement of goods, services, investment, and workers, starting from the elimination of tariffs. In short, a more active market with 620 million people has been born, as movement of the "people, goods and money" became more freely. Among them, because Thailand is located in the heart of the AEC countries geographically, it will be the hub standing position to boost the economic growth at 7% to 10% at present of the neighboring countries. It is also referred to as a "Country that can mostly enjoy the benefits" as the movement of the "people, goods, and money" will become more active and will be gathered in the city, such as highly convenient Bangkok. The country has a high affinity with Japan as there are 10 million Japanese residents centering in the Japanese automotive industry.
Thailand real estate market
Promising real estate market
GDP per capita is currently steadily growing in Thailand, and the #middle class" of the county has been increasing. Although the demographic structure of the country has changed with society aging while child birthrates are falling, it has been forecast to that the total population is growing as increasing immigrants the inauguration of AEC. Property right will not be given to foreigners by buying and selling of land, in principle. Foreigners can purchase a condominium if it is within 49% of the total units. The average yield is 5.13% (vs. 5.02% in Japan). The real estate price is rising although there was a flood or coup d'etat, the office rooms’ vacancy has reduced since the Asian currency crisis in 1997, and the occupancy rate of apartments has been kept around 90%. The reason of these are, there is no investment that was too twist rapid price information and leverage, population growth by AEC integration, it can be said that the normal real estate market has been realized because the demand can be expected due to the development of the railway networks.
Pathaya that attracts attention
Talking of Thailand's property the valuation of the article is abundant, the places to occur in mind are Bangkok, where the variation of the abundant is but the price is high, and Sriracha where although article demand is increasing by the advance of the Japanese companies but the demand is limited to a ceiling. These two cities are certainly attractive as the real estate investment destinations. But Thailand's real estate investment destinations are not limited to Bangkok and Sriracha only. Pathaya, Thailand's third town, is also attracting attention as an investment destination. This town was originally developed as a health resort of the US military, is now known around the world as a resort, which is a major tourist spot for foreigners to visit the year about 800 million people (2014). As there is also a tourists boosting policy of the government, the city has been reborn from the "night town" to the place of good security where women and family can enjoy, the casino concept and high-speed railway development has advanced and the T-TAPAO airport near Pathaya has become an international airport. It is expected that the tourists visiting Pathaya will increase. Pathaya, being in such a state, although there are some luxurious hotels in the city the cheap hotels where facilities are poor are often found, the number of middle-class hotels and condominiums is not enough, it is in a situation that does not fully entertain the tourists.
Fusion of a resort town and a bed town
The domiciliation population of the Patahya special city is approximately 20 million people. It is located in the place of a 120-minute drive from Bangkok, a 90-minute drive from the Suvarnabhumi Airport, and a 30-minute drive from Sriracha where about 1,000 Japanese companies have advanced. Although many of the people working for Japanese companies had used to be settled in Bangkok but due to the relocation of Japanese companies to Sriracha the number of people renting a room in Pathaya, where it is easier to live in than in Sriracha, is increasing. Also in recent years Chinese tourists are increasing because it is a resort town, the hotel bill has soared. It became the city where high-quality hotels and condominiums are mostly required. In Pathaya in the 2000s, there was an era of large supply. However, due to the fact the quality of the property is bad, there are surprisingly many empty rooms of the property or unsold. This is the area with many advantages as the investment destination because we can purchase properties cheaper than in Bangkok if it is possible to ascertain "winning property" and "lost property" as it is not so difficult to find a lessee.
The circumstances of real estate in Thailand
Real estate will rise in price
In the Southeast Asian countries not only in Thailand it is a common idea that "real estate is nothing but to rise" because it is the area where the economic growth is increasing. Less likely to be fallen from the time of new construction, so it is possible to rise premise, if the management and maintenance is enough, you may get a higher value than that at the time of new construction. Along with the income gain to recover the investment in rental income which is a common investment method in Japan, it has also been actively carried out investment aimed at capital gains to increase the profit by reselling.
Investors and users from around the world ─ private residence also now in trend
As Thailand is in warm climate it is suited for long stay and villas, because there are good properties for the people staying in the period of winter at home country or long-term stay type vacation, or for the properties excellent for prices, there are many people who migrate to after the retirement ages. Because the properties can be relatively easily purchased by foreigners, there is a growing attention from investors and distributors overseas. In Thailand the number of people who utilize "private resident" which is now in trend is increasing, the selection is increasing as one of the investment methods or accommodation methods.
Low real estate price and low tax
For example, newly built condominiums of about 30 square meters with swimming pool and fitness facilities are sold at from 5 million dollars. In addition, no inheritance tax is levied for the inheritance of less than 1 billion baht property in Thailand, there is no property tax in other property of some areas. Gift tax is also not levied (there is a tax related to the buying and selling). The management and expenses for labor costs are cheap, even if you continue to possess the real estate is cheaper is the favorable point for investment in Thailand.
Luxurious designs and facilities
Condominiums with modern as well as luxurious designs equipped with lavish facilities are increasing with new properties in Thailand. Since foreigners became able to purchase these in 2008, this trend is expected to continue growing in the future. There are many facilities such as swimming pools, gyms, 24 hour security guards, tennis courts, squash courts, café restaurants, and this is becoming normal in Thailand. Some the expensive properties with such facilities can exceed 1 million Dollars, however the lower priced properties are available at around 60,000 Dollars. Owners from foreign countries are able to purchase by simply signing the contract sent by the developer, and this is leading to the increase of foreigners purchasing properties.