thailand property safe investment or not?

Answer 1

do you always get your investment advice here on yahoo?

Answer 2

Depends on who you ask. I will explain.

The Thai Baht is now around 34 baht per USD. Historically for the past 5 years it had varied from as high as 42 baht in the later part of the year to as low as 34 baht during the first part of the year. Well, that trend has been broken, during 2006 it fell from 38 baht to USD in late 2005 and kept going down to the present amount of 34 baht per dollar. With the weakening of the USD and the increased exports of Thailand. Thus, if you comparing it to the USD, Americans have lost 11 percent of their purchasing power. If you are british, you have lost 12 percent of your purchasing power, in 2006 it averaged 70 baht per BPS and is now at 62 baht per BPS. Assuming that the baht will rise again to 38 or even as high as 40 baht per dollar. This is just the money aspect of what is going on.

Currently, in Bangkok and other parts of Thailand there has been a slow down in the economy and the housing market in general. Though the sales to farang or foreigners had remained strong but, the uncertainty of the new government has slowed that sector also. The government also is now easing the funds held requirement for foreign investors.

In general, I think the real property investment is a good investment depending on what you buy.

Foreigners are only allowed to buy condominiums directly. If you were to buy a house or land you would have to form a corporation and have 5 thai nationals as shareholders, this gets complicated. There are ways of getting around it, by buying the building nd leasing the land for 30 years. Again a bit complicated.

Keep in mind most buildings require rehab within 10 years due to the environment of humidity and heat. Thus you would almost want to flip or sell the property after you purchase it or buy it on speculation. Alot of that will be happening over the next few years since the government has approved the new mass transit lines but, the stations have not been designated yet. Oh what fun.

If you thinking in the long term, more than 2 years, it could be safe. In the short term, you may be able to buy at a discount depending on what happens from the elections. The government has been trying to get the Baht back up because it has been hurting the tourism industry which is their biggest source of new money. Though their exports have been on the rise for a while.

I would wait and see what the new government does. The elections are supposed to be in September. No front runner has appeared. Thaksin's trial has already started which will create a stir in Thailand.

I read the online version of the Bangkok Post, www.bangkokpost.com for updates of what is happening. The business section and "Your Money" sections are real property related.

www.thaiwebsites.com has a number of websites for real estate for all over Thailand.

Good luck.

Answer 3

Best to know the laws regarding property ownership before you commit. Plus the Thai economy is not that stable yet. The construction industry had been booming during the last PM and the momentum had been affected somewhat by the present Govt. Prices had stagnated or even drop since as foreigners had kept away, waiting for new political direction. Probably after the election later this year can shed clearer light on where the Thai economy will go.

Answer 4

I live in Hua Hin, 220 KM south of BKK, they just build 4000 new Houses in this City, mainly Englisch People (Thanks to the Television Series : A place under the Sun)
In the last 3 Years the prices increase more than 150%
- Great investment - and still good for the next 7 years!

Answer 5

As this is not the forum to get advice on the future value of Thai real estate, I assume your question re "safety" refers to whether it is legally safe for foreigners to buy Thai property.

Well, according to Thai law, foreigners are not allowed to own land. However, they may own 49 percent of the aggregate sellable unit space at a condominum building while the remaining 51 percent must be owned by either Thai nationals or majority owned (51 percent) Thai Companies.

If a foreigner buys a condominium, it has to be documented (by the national bank), that the condo was paid for with money transferred into Thailand. So, whereas a foreigner can buy a condo, please be aware of the "small print" in terms of bureaucratic procedures that must be observed.

A Thai Limited Liability Company (LLC) is a "Juristic Person" (legal entity). In terms of property ownership, if 51 percent of all shares (by voting rights) are held by a Thai national or juristic person, then it is recognized as a "Thai person" and, therefore, may own land.

Many foreigners try to be "clever" and buy land through a Thai legal entity where 51% (or more) is owned by Thais acting on proxy.

However, this is in my view risky as it in actuality illegal according to Thai law (as it obviously circumvents the intent of the law). If Thai authorities decide to crack down on the proxy set-ups, the foreign investor risks losing it all.

Apart from that, many foreigners have not known enough and invested in land with title deeds of doubtful value -- there are many "levels" of title deeds in Thailand, but only two are acceptable.

It is also essential to have the land surveyed and to have the boundaries marked out by a land surveyor. The size and dimensions of land stated on title deeds often varies significantly with the reality. This may be due to road construction, government actions, inaccuracies and border disputes.

This is especially important as all contracts and documentation is in Thai. So one has to know what one is doing when buying land in Thailand.

Since foreigners are allowed to own a house (but not the land it is built upon), a 100% legal set-up is for foreigners to lease land. You can, for example, lease for 30 years (rent fully prepaid) with an option for another 30 years.

Leaseholds don't give you ownership, but it is fully legal.

in Thailand, if you have correct legal documentation -- e.g., land lease contracts and (properly executed) purchases of condominiums -- you are protected by the law and the agreements will not be overturned in court.
Where foreigners mostly have had problems are in case of weak title deeds.

Another issue I have noted is that foreigners buying houses in Thailand (often through a Thai real estate agency run/owned by a foreigner), the buyer discovers after a few years that the quality of the house he bought (through the risky set-up with a Thai legal entity owned by proxies) is not of the same standard as the one he was shown before signing. In essence, many developers (whether Thai or foreign) cut corners on quality to increase their profits.

You also have to note that residential property is a long term investment; Thais do not "flip". Thais do generally not like to buy "second hand".

Answer 6

anyone interesed in Thailnd should check oui wesite
www,thaivisa.com you will find all the information you need

Answer 7

NO..

for starters , FOREIGNERS aren't allowed to own REAL ESTATE.