How to Choose Property: Key Factors to Consider
Budget Real estate prices in Thailand are relatively low compared to other popular global resorts. Small apartments in aparthotels or condominiums in Phuket can be found for $100,000 to $150,000, and villas start at $350,000. It’s best to discuss specific examples with a real estate agent to get a more accurate idea of prices.
Purpose of Purchase The location, type of property, and ownership structure should depend on your goals for purchasing.
Foreigners planning to relocate to Thailand usually avoid tourist zones. For example, expats in Phuket prefer the southern and eastern coasts, where infrastructure is well-developed: schools, hospitals, shops, and services. There are fewer tourists in these areas, so renting out property is not very profitable.
Those who don't plan to live permanently in Thailand but want a second home for vacations prefer more private beaches and areas with developed infrastructure—shopping centers, clinics, restaurants. Many opt for serviced residences in large complexes. Renting out such properties while away is possible but not highly profitable due to the challenges of coordinating tenant schedules.
Investment For investment purposes, serviced apartments in condominiums or hotel rooms are the best choices. These properties tend to have high occupancy rates and professional management. Many developers offer loyalty programs where owners can stay in their properties for a few weeks each year free of charge.
Ownership Structure: Freehold or Leasehold? Since 2020, buying property in Thailand has become easier for foreigners. Now they can own apartments, houses, and villas, but land ownership is still restricted. Land can only be fully owned through a legal entity with at least 51% Thai ownership.
Foreign individuals can own buildings (freehold), while land can only be leased (leasehold) for up to 90 years. In 2023, foreigners may be allowed to own land in Bangkok and Pattaya under new legislation.
There is also a 49% limit on foreign ownership of residential building space, with the remaining 51% available for leasehold ownership.
Investors often prefer leasehold, as these properties are typically 10% cheaper, provide higher returns, and come with lower taxes. Leaseholders have full rights to sell, gift, rent, or inherit their properties.