Thailand represents an exciting lifestyle alternative comparing to the busy Singapore urban life.
Over the past few years, Thailand has attracted real estate investors from around the world and Singaporeans are no exception. The country is actually one of the most dynamic property markets in the region, attracting more foreign investments than any other country in Asia Pacific.
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An affordable market for foreign investors
Thailand is one of the least expensive countries to live or invest in. The main reason being, the country is tax-friendly for foreign investors since they’re not required to pay any capital gain tax.
While Hong Kong has the world’s highest price per square meter (US$31503.46), Singapore is the second most expensive market (US$ 19628.45) according to Numbeo. Singapore has started taking cooling measures after 2017, to counter the explosive growth rates of the real estate prices, but to compare, Thailand’s price per square meter is 5 times less at (US$3500.72).
As a consequence, many developers in Singapore are now shifting to properties in Thailand. The overall cost of living in Thailand is considerably low when you compare it to other nearby nations and the country is well connected with the rest of the world. Bangkok, which is the capital of Thailand and one of the most visited cities in the world is also a dynamic business hub in Asia.
Currently, Singapore ranks on the 2nd place in terms of most expensive housing markets and this has led to the Singaporeans getting attracted to Thailand for property investments.
“A lot of major property developers in Singapore have now invested in Thai properties and the trend is expected to grow further” reports Samui Exclusive, a real estate agent located in Koh Samui. Adding that “The Thai real estate market has shown great signs of growth due to the soft policies of the government towards foreign investors. In terms of doing business with ease, the country is ranked number 21 in the world.
Thailand is also one of the cheapest countries to fly to, making it easier for investors to keep checking up on their investments and keep it well maintained. Of course, Thailand is also a land of culture, amazing food and breath-taking scenes but you already know that if you follow Weekender.
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Important information when investing in Thailand
Foreigners are not directly allowed to purchase lands in Thailand, but there are workaround solutions, either by registering a Thai company that owns the property or by “purchasing” a land with 30-year renewable leases. In this case, investors are allowed to apply for a further 30-year extension on the leases for a duration of up to 90 years but note that, according to the government rules, such leases cannot be sold, transferred, or subleased as it cannot be registered.
Due to these complications, most of the foreign investors, who are looking to invest in a residential property in Thailand are purchasing freehold condominiums. With this method, the title deed will be registered directly in the owner’s name.
Even though there are no capital gain taxes in Thailand, you still have to pay property tax if you decide to sell within the first 5 years of purchasing.
Thailand can be said as the most promising real estate investment. Investors who are looking to get an overseas property for vacations or even commercial gains are welcomed by the government with encouraging policies. As a growing tourism and trade hub, the Thai economy has a lot of gains to offer to the investors that will just multiply themselves with time.
Currently, the Thai economy has been growing significantly well and the country is expected to become more important to world trade than Singapore and other Southeast Asian countries.