Property investments in Thailand in 2024: decision, profitability and risks

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Property investments in Thailand in 2024: decision, profitability and risks

Investments are the most sought-after and reliable asset that will not let you down during economic fluctuations. Real estate is a conservative way to

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Investments are the most sought-after and reliable asset that will not let you down during economic fluctuations. Real estate is a conservative way to save money. An investment-attractive apartment is a considerable asset that will remain with the owner no matter what happens. Today, not only do older people who defaulted in 1998 invest in properties but also the younger generation of the 2000s realizes that risky and profitable transactions require investment in sustainable real estate.

A distinctive feature of investing in Thai properties is that they always generate income in both the short and long term. Buying a property in Thailand is a profitable investment with great potential to receive high investments and increase capital. This article discusses the benefits of how to buy real estate in Thailand for foreigners in 2024, and why it is a good option for investors who want to multiply their savings. Let’s figure it out how to build the process of investing in successful projects in Thailand and how profitable it is.

An example of investing in a new community in Thailand

Let’s have a look at the Embassy Condominium project as an investment-attractive example. The new building is located in Pattaya, on the second line of the sea. The project consists of three 8-storey buildings. The complex offers a lagoon pool with a children’s area, a fitness room, and a clubhouse. The total number of housing units in the project is 470 apartments with 1 and 2 bedrooms, which ensures a quick sale of the foreign quota and guarantees the owners a calm and comfortable stay. All residences are furnished and equipped with all necessary household appliances.

According to statistics, more than 90% of tourists want to live within walking distance from the beach (first or second line), so potentially this project can bring you profitable investments. This location significantly increases the annual income of the apartment owner. However, remote work, which has become extremely popular over the past two years, significantly expands the possibilities of tenants. Today, many people can afford to live in Thailand without a visa for 30 days. Tourists who come to the country to spend the winter here consider housing options far away from the coast.

Investing in real estate in Pattaya is available to a large number of foreigners. If you are responsible for purchasing a local property, you can easily become the owner of a liquid housing unit.

The algorithm of actions

So, after the initial payment of 30%, the contract comes into force and becomes your property. You can do whatever you want with your property: sell, give, bequeath, etc. Depending on the stages of construction in this project, the developer increases the cost (this is 8-15% every 6 months). After the construction company sells a foreign quota in the project, which is 49% of the total number of apartments in the building, you can opt out of the investment and put up a contract for sale.

Investing in new communities in Thailand is the most beneficial way to invest money, but you need to take into account your financial capabilities. If you were unable to sell the contract during this period, you will need to continue making payments on the contract or sell the contract with minimal income.

How much income does investing in Thai properties bring?

The income of the homeowner depends on the strategy:

  • The most profitable way of investing is considered to be a speculative transaction. In this case, the owner uses the scheme – “buy a property for less and sell it for more”. There is nothing to worry about, as you are not fooling anyone in this deal. Earnings are created depending on the dynamics of real estate price growth.
  • If it is a question of investing in properties at an early stage of construction, the amount of initially invested capital can be increased by 80-100%. Moreover, you can sell the apartment before the construction is completed. However, you need to take into account the peculiarity of such transactions. If the house has not yet been put into operation, the homeowner can cede the right of claim only under an equity agreement.
  • Purchasing a seaview residence and then renting it out is another way to invest. In this case, the apartment owner will receive from 5 to 12% per annum for providing their housing for temporary use to tourists. This is a typical scheme for those who do not strive for quick earnings. The absence of risks is the main advantage of this type of investment. If the owner cooperates with a developer or a management company, the process of finding a suitable tenant is as simple as possible.
  • Investing under the “buy-lease-sell” scheme is considered the most balanced strategy. In such a situation, you can receive the largest amount of income if:

o   you purchase apartments at an early stage of construction;

o   you enter into a lease agreement with a developer or a management company;

o   you sell your property no earlier than 5 years after the purchase.

Why do you need to sell your apartment no earlier than in 5 years? First, this way you can save on taxes. Second, the value of liquid housing will increase significantly over this period.

Sustainable market growth in Thailand in 2024

Here are some major facts about the Kingdom‘s market. According to Forbes for 2023, the demand for real estate in Thailand has doubled, and this trend will continue in 2024. Experts predict a further rise in property prices in the country, which makes buying real estate a promising investment option next year.

High rental Yields in Thailand

Many investors purchase housing in the Kingdom to rent it out. As the country becomes more and more popular with tourists, renting a home can bring a stable income of at least 7-12% per annum. Additionally, owning a local property allows you to enjoy holidays on the world’s best beaches at any time of the year.

How to start buying real estate in Thailand

Before you start purchasing a property in the country in 2024, you should turn to professional agents and lawyers who will help you choose a suitable home and understand the legal aspects of the transaction. You also need to study the local real estate market and explore the areas that are most suitable for investment. In this case, you can visit Thailand-Real.Estate, because its brokers have been working in this market for a long time and have the most up-to-date information about each accommodation option.

Buying a property in Thailand in 2024 is a profitable opportunity for those who wish to earn income from their home. Stable market growth and high rental yields make the Kingdom an attractive investment destination. At the same time, you need to turn to professionals and study the market carefully to make the right choice and get the maximum return on investment.

Thousands and thousands of tourists visited the country in 2023. There are endless beaches, warm sea, unique nature and modern real estate for every taste and budget. Tourists and expats need accommodation for a short or long term. Therefore, residential properties in Thailand are your best investment tool, which will always bring passive income.