Recently, the demand to buy villas in Ko Samui for foreigners has increased, in particular, on the island, as an investment object. In this article, we will analyze the reasons for the growing popularity of Thai real estate, as well as give some recommendations to potential buyers.
Reasons to buy property
To begin with, let’s look at the reasons that prompt an increasing number of investors to pay attention to houses and villas in Thailand:
- No signs of a “soap bubble” in the real estate market in Thailand. Prices for quality housing and land are rising, but without the jerks inherent in the US, Spanish, or Dubai markets at one time. Most of the real estate in Thailand is acquired in the property without the participation of borrowed funds, which also contributes to the market’s stability without “overheating” it.
- The vast majority of objects are purchased for their own residence or rental; there is no speculative mood in the market. Another factor preventing the formation of a “soap bubble” in the market is the state policy of Thailand, aimed at limiting the ownership of real estate by foreigners.
- Low property taxes. The land tax in Thailand is so small (a few baht from one rai of land -16 acres) that the government agencies responsible for collecting it apply to land owners every few years. The commercial building use tax is 12.5% of the rental value specified in the lease or the estimated rental value determined by the Tax Department. Property owners who use it for their living are exempt from the tax. There is no inheritance tax in Thailand.
- Economic stability.
- Climatic conditions, convenient geographical position in the center of Asia.
- Beautiful beaches and calm seas, suitable for swimming all year round.
- With the right choice of an object for investment, its owner guarantees himself a stable (5% -8% per annum) rental income. This is facilitated by a developed tourism industry, coupled with the huge popularity of Thailand among tourists from all over the world. If you do not plan to use the villa for your living, you will not only spend nothing on its maintenance but also provide yourself with a good passive income.
- Developed infrastructure.
- National culture based on Buddhist principles; Thai friendliness.
- Visa-free entry for up to 30 days for citizens of many countries. Persons over 50 can apply for an annual retirement visa and renew it every year without leaving Thailand.
A short rainy season, usually lasting no more than one month; mild climate; availability of hospitals, international schools, shopping centers, and international airport; no tsunami threat; magnificent beaches with white and golden sand surrounded by coconut trees – all this contributes to an unprecedented increase in the popularity of the island among wealthy tourists from all over the world. Many of them prefer to spend their holidays in private villas in Koh Samui, which guarantees you an income from renting a villa. Some of them may want to buy your villa in the future if suddenly, for some reason, you want to sell it.
Making a deal
Thai legislation and the process of making a transaction require the attention of a specialist, so if you still decide to buy, it is better to involve a qualified lawyer and use the services of an agency. When buying, you must pay 10% of the future housing cost. If the transaction fails due to the buyer’s fault, the seller will keep the deposit; in the opposite situation, you will be paid a double deposit. The process itself will take about two to three months. You must be prepared for the additional costs of all kinds of payments.
Accommodation in Thailand
A Thai visa allows you to live in the country for up to 30 days. A longer period requires coordination at the embassy or consulates of different countries. In total, any foreigner can stay in Thailand for up to a year, but for this, you need to have a work or student visa. A residence permit is easiest to obtain for pensioners with a certain amount in the account, investors, and entrepreneurs.
Assistance in purchasing real estate in Koh Samui
Investing in real estate in Koh Samui is a great solution for a profitable income. Contact the https://thailand-real.estate/ staff, and they will select suitable housing options, taking into account your requests and wishes. Contact the experts right now, and take a step towards your dream!